ARIZONA LIFE AND HEALTH INSURANCE EXAM
2026 FULL QUESTIONS AND VERIFIED 100%
CORRECT ANSWERS GRADED A+
◉ Death Benefit. Answer: The amount paid upon the death of the
insured in a life insurance policy
◉ Cash Value. Answer: Equity amount accumulated in permanent life
insurance
◉ Estate. Answer: A person's net worth
◉ Illustrations. Answer: Presentation or depiction of nonguaranteed
elements of a life insurance policy
◉ Life Insurance. Answer: Coverage on human lives
◉ Liquidation. Answer: Selling assets in order to raise capital (such as
using cash value for capital needs)
◉ Lump-Sum. Answer: Payment of the entire benefit in one sum
◉ Minor. Answer: A person under legal age
,◉ Solvency. Answer: The ability to meet financial obligations (an
insurance company maintains enough assets to pay claims)
◉ Survivor Protection. Answer: Life insurance can provide the funds
necessary for the survivors of the insured to be able to maintain their
lifestyle in the event of the insured's death and this is called
________________
◉ Estate Conservation. Answer: Life insurance proceeds may be used to
pay inheritance taxes and federal estate taxes so that it is not necessary
for the beneficiaries to sell off the assets which is
___________________
◉ Estate Creation. Answer: The insured will have an estate worth the
amount of the life policy upon the first paid premium which is
______________
◉ Viatical Settlements. Answer: ____________________ allows
someone living with a life-threatening condition to sell their existing life
insurance policy and use the proceeds when they are most needed,
before their death
◉ Viator. Answer: The insured selling their life insurance in a viatical
settlement
, ◉ Viatical Settlement Provider. Answer: A person, other than a viator,
that enters into a viatical settlement contract (the person buying the life
insurance policy)
◉ Viatical Producer. Answer: A person who represents the viatical
settlement provider
◉ Viatical Broker. Answer: A person who represents the viator
◉ Life Settlement. Answer: Any financial transaction in which the
owner of a life insurance policy sells a policy that is no longer needed to
a third party for some form of compensation, usually cash
◉ Uses of Life Insurance. Answer: 1. Survivor Protection
2. Estate Creation and Conservation
3. Liquidity and Cash Accumulation
4. Viatical Settlements and Life Settlements
◉ Human Life Value Approach. Answer: This approach gives the
insured an estimate of what would be lost to the family in the event of
the premature death of the insured. It calculates an individual's life value
by looking at the insured's wage, inflation, the number of years to
retirement, and the time value of money.
2026 FULL QUESTIONS AND VERIFIED 100%
CORRECT ANSWERS GRADED A+
◉ Death Benefit. Answer: The amount paid upon the death of the
insured in a life insurance policy
◉ Cash Value. Answer: Equity amount accumulated in permanent life
insurance
◉ Estate. Answer: A person's net worth
◉ Illustrations. Answer: Presentation or depiction of nonguaranteed
elements of a life insurance policy
◉ Life Insurance. Answer: Coverage on human lives
◉ Liquidation. Answer: Selling assets in order to raise capital (such as
using cash value for capital needs)
◉ Lump-Sum. Answer: Payment of the entire benefit in one sum
◉ Minor. Answer: A person under legal age
,◉ Solvency. Answer: The ability to meet financial obligations (an
insurance company maintains enough assets to pay claims)
◉ Survivor Protection. Answer: Life insurance can provide the funds
necessary for the survivors of the insured to be able to maintain their
lifestyle in the event of the insured's death and this is called
________________
◉ Estate Conservation. Answer: Life insurance proceeds may be used to
pay inheritance taxes and federal estate taxes so that it is not necessary
for the beneficiaries to sell off the assets which is
___________________
◉ Estate Creation. Answer: The insured will have an estate worth the
amount of the life policy upon the first paid premium which is
______________
◉ Viatical Settlements. Answer: ____________________ allows
someone living with a life-threatening condition to sell their existing life
insurance policy and use the proceeds when they are most needed,
before their death
◉ Viator. Answer: The insured selling their life insurance in a viatical
settlement
, ◉ Viatical Settlement Provider. Answer: A person, other than a viator,
that enters into a viatical settlement contract (the person buying the life
insurance policy)
◉ Viatical Producer. Answer: A person who represents the viatical
settlement provider
◉ Viatical Broker. Answer: A person who represents the viator
◉ Life Settlement. Answer: Any financial transaction in which the
owner of a life insurance policy sells a policy that is no longer needed to
a third party for some form of compensation, usually cash
◉ Uses of Life Insurance. Answer: 1. Survivor Protection
2. Estate Creation and Conservation
3. Liquidity and Cash Accumulation
4. Viatical Settlements and Life Settlements
◉ Human Life Value Approach. Answer: This approach gives the
insured an estimate of what would be lost to the family in the event of
the premature death of the insured. It calculates an individual's life value
by looking at the insured's wage, inflation, the number of years to
retirement, and the time value of money.
