ARIZONA LIFE INSURANCE EXAM -
LIFE INSURANCE BASICS. EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
Beneficiary - ANS A person who receives the benefits of an insurance policy
Death Benefit - ANS The amount paid upon the death of the insured in a life insurance policy
Cash Value - ANS Equity amount accumulated in permanent life insurance
Estate - ANS A person's net worth
Illustrations - ANS Presentation or depiction of nonguaranteed elements of a life insurance
policy
Life Insurance - ANS Coverage on human lives
Liquidation - ANS Selling assets in order to raise capital (such as using cash value for capital
needs)
Lump-Sum - ANS Payment of the entire benefit in one sum
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Minor - ANS A person under legal age
Solvency - ANS The ability to meet financial obligations (an insurance company maintains
enough assets to pay claims)
Survivor Protection - ANS 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 - ANS 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 - ANS The insured will have an estate worth the amount of the life policy
upon the first paid premium which is ______________
Viatical Settlements - ANS ____________________ 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 - ANS The insured selling their life insurance in a viatical settlement
Viatical Settlement Provider - ANS A person, other than a viator, that enters into a viatical
settlement contract (the person buying the life insurance policy)
Viatical Producer - ANS A person who represents the viatical settlement provider
Viatical Broker - ANS A person who represents the viator
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
LIFE INSURANCE BASICS. EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
Beneficiary - ANS A person who receives the benefits of an insurance policy
Death Benefit - ANS The amount paid upon the death of the insured in a life insurance policy
Cash Value - ANS Equity amount accumulated in permanent life insurance
Estate - ANS A person's net worth
Illustrations - ANS Presentation or depiction of nonguaranteed elements of a life insurance
policy
Life Insurance - ANS Coverage on human lives
Liquidation - ANS Selling assets in order to raise capital (such as using cash value for capital
needs)
Lump-Sum - ANS Payment of the entire benefit in one sum
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Minor - ANS A person under legal age
Solvency - ANS The ability to meet financial obligations (an insurance company maintains
enough assets to pay claims)
Survivor Protection - ANS 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 - ANS 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 - ANS The insured will have an estate worth the amount of the life policy
upon the first paid premium which is ______________
Viatical Settlements - ANS ____________________ 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 - ANS The insured selling their life insurance in a viatical settlement
Viatical Settlement Provider - ANS A person, other than a viator, that enters into a viatical
settlement contract (the person buying the life insurance policy)
Viatical Producer - ANS A person who represents the viatical settlement provider
Viatical Broker - ANS A person who represents the viator
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
