ARIZONA LIFE INSURANCE EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
A whole life policy that provides a choice of dividend options include the following statement
about dividends
they accrue at a guaranteed rate
they are deferred for one year
they are not guaranteed
they are guaranteed after the first year - ANS they are not guaranteed
When there is a named beneficiary on a life insurance policy, the death benefits
1. are directed to a trustee if the insured has any outstanding debts
2. are paid directly to the insured`s creditors, with any remaining balance forwarded to the
beneficiary
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,3. are paid directly to the beneficiary, minus any debt claims by the insured`s creditors
4. are paid directly to the beneficiary without interference from the insured`s creditors -
ANS are paid directly to the beneficiary without interference from the insured`s creditors
What determines how much an annuitant is paid for a variable annuity
1. varies according to how many outstanding annuitant is paid for a variable annuity
2. payments fluctuate as annuitant gets older
3. the market value variations of the securities backing it
4. varies according to the insurers investments in its general account - ANS the market value
variations of the securities backing it
a terminated employee has how many days upon termination to convert group life insurance
coverage to an individual policy
10 days
15 days
30 days
31 days - ANS 31 days
Rick owns a variable universal life insurance policy and chooses a variable death benefit option.
what will typically happen to the death benefit as a result of this section
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,1. remain the same
2 decrease but never increase
3 increase but never decrease
4 fluctuate with changes in the cash amount - ANS fluctuate with changes in the cash amount
the policy provision that permits an employee to change from group life insurance to an
individual policy is called
1 assignment provision
2 conversion provision
3 certificate provision
4 modification provision - ANS conversion provision
when the deferred annuity is surrendered, who must sign the authorization to do so
owner
annuitant and beneficiary
annuitant
all parties involved - ANS owner
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Which of the following is NOT a valid contract exchange?
1. an annuity exchanged for a life insurance policy
2 an annuity exchanged for another annuity
3 a life insurance policy exchanged for another life insurance policy
4 a life insurance policy exchanged for another annuity - ANS an annuity exchanged for a life
insurance policy
which of these statements regarding the extended term insurance nonforfeiture option in a life
policy is accurate
evidence of insurability is required
coverage remains until death of the insured
the premium to purchase the coverage comes from the policy`s cash value
cash value will continue to grow - ANS the premium to purchase the coverage comes from
the policy`s cash value
a life insurance policy that includes a return of premium rider will pay the beneficiary how much
upon the insured death
total premiums paid plus the policy face amount
face amount plus interest
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS GRADED A+
2025/2026
A whole life policy that provides a choice of dividend options include the following statement
about dividends
they accrue at a guaranteed rate
they are deferred for one year
they are not guaranteed
they are guaranteed after the first year - ANS they are not guaranteed
When there is a named beneficiary on a life insurance policy, the death benefits
1. are directed to a trustee if the insured has any outstanding debts
2. are paid directly to the insured`s creditors, with any remaining balance forwarded to the
beneficiary
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,3. are paid directly to the beneficiary, minus any debt claims by the insured`s creditors
4. are paid directly to the beneficiary without interference from the insured`s creditors -
ANS are paid directly to the beneficiary without interference from the insured`s creditors
What determines how much an annuitant is paid for a variable annuity
1. varies according to how many outstanding annuitant is paid for a variable annuity
2. payments fluctuate as annuitant gets older
3. the market value variations of the securities backing it
4. varies according to the insurers investments in its general account - ANS the market value
variations of the securities backing it
a terminated employee has how many days upon termination to convert group life insurance
coverage to an individual policy
10 days
15 days
30 days
31 days - ANS 31 days
Rick owns a variable universal life insurance policy and chooses a variable death benefit option.
what will typically happen to the death benefit as a result of this section
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,1. remain the same
2 decrease but never increase
3 increase but never decrease
4 fluctuate with changes in the cash amount - ANS fluctuate with changes in the cash amount
the policy provision that permits an employee to change from group life insurance to an
individual policy is called
1 assignment provision
2 conversion provision
3 certificate provision
4 modification provision - ANS conversion provision
when the deferred annuity is surrendered, who must sign the authorization to do so
owner
annuitant and beneficiary
annuitant
all parties involved - ANS owner
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Which of the following is NOT a valid contract exchange?
1. an annuity exchanged for a life insurance policy
2 an annuity exchanged for another annuity
3 a life insurance policy exchanged for another life insurance policy
4 a life insurance policy exchanged for another annuity - ANS an annuity exchanged for a life
insurance policy
which of these statements regarding the extended term insurance nonforfeiture option in a life
policy is accurate
evidence of insurability is required
coverage remains until death of the insured
the premium to purchase the coverage comes from the policy`s cash value
cash value will continue to grow - ANS the premium to purchase the coverage comes from
the policy`s cash value
a life insurance policy that includes a return of premium rider will pay the beneficiary how much
upon the insured death
total premiums paid plus the policy face amount
face amount plus interest
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
