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
3. are paid directly to the beneficiary, minus any debt claims by the insured`s creditors
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,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
1. remain the same
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,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
Which of the following is NOT a valid contract exchange?
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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
interest acquired plus total premiums paid
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
3. are paid directly to the beneficiary, minus any debt claims by the insured`s creditors
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,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
1. remain the same
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,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
Which of the following is NOT a valid contract exchange?
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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
interest acquired plus total premiums paid
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
