ARIZONA LIFE INSURANCE TEST 120 QUESTIONS &
CORRECT ANSWERS LATEST 2025
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 - ANSWER-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
,4. are paid directly to the beneficiary without interference from the insured`s
creditors - ANSWER-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 - ANSWER-
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 - ANSWER-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 decrease but never increase
3 increase but never decrease
4 fluctuate with changes in the cash amount - ANSWER-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 - ANSWER-conversion provision
, when the deferred annuity is surrendered, who must sign the authorization to do
so
owner
annuitant and beneficiary
annuitant
all parties involved - ANSWER-owner
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 - ANSWER-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
CORRECT ANSWERS LATEST 2025
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 - ANSWER-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
,4. are paid directly to the beneficiary without interference from the insured`s
creditors - ANSWER-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 - ANSWER-
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 - ANSWER-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 decrease but never increase
3 increase but never decrease
4 fluctuate with changes in the cash amount - ANSWER-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 - ANSWER-conversion provision
, when the deferred annuity is surrendered, who must sign the authorization to do
so
owner
annuitant and beneficiary
annuitant
all parties involved - ANSWER-owner
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 - ANSWER-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
