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Free AZ-Insurance-Producer-Life Practice Questions

Question # 21

An individual is planning for retirement and wants to ensure their beneficiaries receive payments if they pass away early. Which annuity payment option best meets their needs?

Options:

A.  

Life Annuity with period certain

B.  

Deferred Annuity

C.  

Pure Life Annuity

D.  

Immediate Annuity

Discussion 0
Question # 22

An individual wants to retire at age 50 but will not be able to receive any retirement funds until he reaches the age of 65. He would like to purchase an annuity that would provide income from the date he retires to the age when the other retirement funds become available. What type of annuity is most suitable for this individual?

Options:

A.  

Refund life.

B.  

Annuity certain.

C.  

Single premium deferred annuity.

D.  

Variable annuity.

Discussion 0
Question # 23

An Arizona licensee moved on April 1. The licensee MUST inform the director of the address change NO later than

Options:

A.  

May 1.

B.  

June 1.

C.  

July 1.

D.  

October 1.

Discussion 0
Question # 24

A policyholder with an adjustable life insurance policy wants to reduce their premium payments temporarily due to financial constraints. What adjustment can they make to achieve this?

Options:

A.  

Withdraw cash value from the policy.

B.  

Cancel the policy and reapply later.

C.  

Decrease the face amount of the policy.

D.  

Shorten premium payment period.

Discussion 0
Question # 25

An insurable interest must exist

Options:

A.  

at the time of the loss.

B.  

at the time of the application.

C.  

between all parties to the contract.

D.  

between the applicant and the producer.

Discussion 0
Question # 26

An insured has elected to receive $20,000 per month until the principal and interest on his wife ' s life insurance policy has been paid out. The insured has elected which option?

Options:

A.  

Fixed period.

B.  

Fixed amount.

C.  

Interest only.

D.  

Life income.

Discussion 0
Question # 27

What is the MINIMUM number of members a credit union that must have for the credit union to be eligible for a group life insurance policy?

Options:

A.  

10

B.  

12

C.  

25

D.  

32

Discussion 0
Question # 28

A life annuity ceases payments to the annuitant at

Options:

A.  

policy termination.

B.  

death.

C.  

maturity.

D.  

age 100.

Discussion 0
Question # 29

John and Mary are new parents in their twenties, with a large mortgage and monthly expenses. What type of policy would BEST suit their needs?

Options:

A.  

Single Premium Whole Life.

B.  

Limited Pay Whole Life.

C.  

Term.

D.  

Joint Life, Last to Die.

Discussion 0
Question # 30

Which of the following dividend options will increase the death benefit?

Options:

A.  

Extended term.

B.  

Guaranteed insurability.

C.  

Accelerated endowment.

D.  

Paid-up additions.

Discussion 0

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