1|Page
ARIZONA LIFE AND HEALTH FINAL
ACTUAL EXAM PREP 2026 ALL
QUESTIONS AND CORRECT DETAILED
ANSWERS ALREADY A GRADED |NEW
AND REVISED
In Arizona, when personal information is collected from a source other
then the accident and health insurance applicant or public records, a
notice or information practices must be given to the applicant no later
than the date of? - ANSWER- Application
How does the cost for a survivorship life policy compare to the cost of
combining two separate individual life insurance policies? - ANSWER-
Survivorship life policy is lower
How does a continuous premium whole life policy differ from a limited
payment whole life policy? - ANSWER- The time period in which
premiums will be paid
An agent's authority to bind an insurer to an insurance contract may be
granted in the? - ANSWER- Agent's contract and the insurance
company's appointment
Which statement concerning the Entire Contact provision in an
individual accident and health insurance policy is TRUE? - ANSWER-
,2|Page
The agent doesn't have the authority to change the policy or waive its
provisions
Under the Fair Credit Reporting Act, which statement is true? -
ANSWER- The consumer who was investigated must be advised that
credit, insurance, or employment was denied because of an unfavorable
report.
Field underwriting by a producer? - ANSWER- May result in the
disclosure of hazardous activity of the applicant.
When group benefits under COBRA have expired, a fully insured group
policy can be converted to a(n) - ANSWER- Individual health policy
In a qualified retirement plan, the yearly contributions to an employee's
account? - ANSWER- Are restricted to maximum limits set by the IRS
The unwritten authority given to a producer to carry out necessary
incidental acts of the agency agreement is called? - ANSWER- Implied
authority
Which provision makes the application part of the annuity contract? -
ANSWER- Entire Contract clause
Arizona Law require the Human Immunodeficiency Virus (HIV)
consent form to? - ANSWER- Disclose the types of individuals or
organizations that may receive a copy of the test results
,3|Page
Under which marketing system do insurers solicit customers by mass
media advertising and mail without their services of an agent? -
ANSWER- Direct Response
A policy owner has just borrowed from a life insurance policy's cash
value. Which of these statements is true? - ANSWER- In the event of
death, the loan amount is deducted from the policy proceeds
According to federal fraud and false statement regulation, what is
required for a prohibited person to transact insurance business in this
state? - ANSWER- Written consent from the state insurance regulatory
agency
Employer-paid qualifies long-term care insurance premiums are
typically? - ANSWER- Excluded from the employee's gross income
When replacing a life insurance policy, which of the following is
advisable? - ANSWER- Wait until the new policy Is issued and deliver
before surrendering existing policy
Which of these may NOT be deducted from premium payments or the
cash value of a variable life insurance policy? - ANSWER- Federal
premium taxes
A policy owner pays the first annual premium for a $50,000 Life
Insurance policy and dies one month after the policy effective fate.
, 4|Page
Which of these statements is normally true? - ANSWER- Beneficiary
receives $50,000 income tax-free
A life policy that has premiums that are lower than normal during the
early years is called? - ANSWER- Modified Life
Which life insurance settlement option pays a stated monthly benefit
until both principal and interest are exhausted? - ANSWER- Fixed
amount installment option
What type of doctor-ordered care assists an individual with performing
basic daily activists such as bathing, dressing, eating? - ANSWER-
Custodial Care
Which of these is true regarding the exchange of consideration among
parties involved in an insurance contract? - ANSWER- Can be unequal
The premiums paid by an employer for his employee's group life
insurance are usually considered to be? - ANSWER- Tax-deductible to
the employer
Kevin has an existing life insurance policy and assigns it to another
insurer for a new contract. How would this transaction be treated for tax
purposes? - ANSWER- As a section 1035 exchange
Which of these is NOT a common life insurance nonforfeiture option? -
ANSWER- Life income annuity
ARIZONA LIFE AND HEALTH FINAL
ACTUAL EXAM PREP 2026 ALL
QUESTIONS AND CORRECT DETAILED
ANSWERS ALREADY A GRADED |NEW
AND REVISED
In Arizona, when personal information is collected from a source other
then the accident and health insurance applicant or public records, a
notice or information practices must be given to the applicant no later
than the date of? - ANSWER- Application
How does the cost for a survivorship life policy compare to the cost of
combining two separate individual life insurance policies? - ANSWER-
Survivorship life policy is lower
How does a continuous premium whole life policy differ from a limited
payment whole life policy? - ANSWER- The time period in which
premiums will be paid
An agent's authority to bind an insurer to an insurance contract may be
granted in the? - ANSWER- Agent's contract and the insurance
company's appointment
Which statement concerning the Entire Contact provision in an
individual accident and health insurance policy is TRUE? - ANSWER-
,2|Page
The agent doesn't have the authority to change the policy or waive its
provisions
Under the Fair Credit Reporting Act, which statement is true? -
ANSWER- The consumer who was investigated must be advised that
credit, insurance, or employment was denied because of an unfavorable
report.
Field underwriting by a producer? - ANSWER- May result in the
disclosure of hazardous activity of the applicant.
When group benefits under COBRA have expired, a fully insured group
policy can be converted to a(n) - ANSWER- Individual health policy
In a qualified retirement plan, the yearly contributions to an employee's
account? - ANSWER- Are restricted to maximum limits set by the IRS
The unwritten authority given to a producer to carry out necessary
incidental acts of the agency agreement is called? - ANSWER- Implied
authority
Which provision makes the application part of the annuity contract? -
ANSWER- Entire Contract clause
Arizona Law require the Human Immunodeficiency Virus (HIV)
consent form to? - ANSWER- Disclose the types of individuals or
organizations that may receive a copy of the test results
,3|Page
Under which marketing system do insurers solicit customers by mass
media advertising and mail without their services of an agent? -
ANSWER- Direct Response
A policy owner has just borrowed from a life insurance policy's cash
value. Which of these statements is true? - ANSWER- In the event of
death, the loan amount is deducted from the policy proceeds
According to federal fraud and false statement regulation, what is
required for a prohibited person to transact insurance business in this
state? - ANSWER- Written consent from the state insurance regulatory
agency
Employer-paid qualifies long-term care insurance premiums are
typically? - ANSWER- Excluded from the employee's gross income
When replacing a life insurance policy, which of the following is
advisable? - ANSWER- Wait until the new policy Is issued and deliver
before surrendering existing policy
Which of these may NOT be deducted from premium payments or the
cash value of a variable life insurance policy? - ANSWER- Federal
premium taxes
A policy owner pays the first annual premium for a $50,000 Life
Insurance policy and dies one month after the policy effective fate.
, 4|Page
Which of these statements is normally true? - ANSWER- Beneficiary
receives $50,000 income tax-free
A life policy that has premiums that are lower than normal during the
early years is called? - ANSWER- Modified Life
Which life insurance settlement option pays a stated monthly benefit
until both principal and interest are exhausted? - ANSWER- Fixed
amount installment option
What type of doctor-ordered care assists an individual with performing
basic daily activists such as bathing, dressing, eating? - ANSWER-
Custodial Care
Which of these is true regarding the exchange of consideration among
parties involved in an insurance contract? - ANSWER- Can be unequal
The premiums paid by an employer for his employee's group life
insurance are usually considered to be? - ANSWER- Tax-deductible to
the employer
Kevin has an existing life insurance policy and assigns it to another
insurer for a new contract. How would this transaction be treated for tax
purposes? - ANSWER- As a section 1035 exchange
Which of these is NOT a common life insurance nonforfeiture option? -
ANSWER- Life income annuity
