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Arizona Examination for Life Insurance Producer — Information & Free Practice

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Arizona Examination for Life Insurance Producer

Provider
PSI Services LLC
Format
Computer-administered, closed-book examination
Exam questions
100 scored items plus 5 to 10 possible unscored experimental items
Time limit
2 hours
Passing score
70% correct
Exam fee
$50
Examination outline
  • Insurance Regulation (5%)
    • Licensing
    • Licensing / License application requirements (20-285)
    • Licensing / Number of exam attempts 20-284(H)
    • Licensing / Licensing eligibility/lawful presence (41-1080)
    • Licensing / Types of licensees
    • Licensing / Types of licensees / Producers (20-281(5), 286)
    • Licensing / Types of licensees / Nonresidents (20-281(11))
    • Licensing / Types of licensees / Life Settlement Broker (ARS 20-3202)
    • Licensing / Types of licensees / Business entities (20-281(1), 285(D, E), 290(B))
    • Licensing / Types of licensees / Temporary (20-294)
    • Licensing / Types of licensees / Vending machines (20-293)
    • Licensing / Types of licensees / Lines of producer license authority (20-286, (A), 321, 331, 332, 411, 411.01, 1580, 1693.01, 2662)
    • Licensing / Types of licensees / Fingerprinting requirements (20-142(E), 285(E), 286(C), 289(D))
    • Licensing / Types of licensees / Assumed business name (20-297)
    • Licensing / Maintenance and duration
    • Licensing / Maintenance and duration / Expiration, surrender and renewal (20-289)
    • Licensing / Maintenance and duration / Inactive license status during military service (20-289.01)
    • Licensing / Maintenance and duration / Change of personal contact information (20-286(C))
    • Licensing / Maintenance and duration / Change of business information (20-286)(C))
    • Licensing / Maintenance and duration / Business information (20-286)(C))
    • Licensing / Maintenance and duration / Report of actions (20-301)
    • Licensing / Maintenance and duration / Continuing education (20-2902, 2903)
    • Licensing / Disciplinary actions
    • Licensing / Disciplinary actions / Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296)
    • Licensing / Disciplinary actions / Cease and desist order (20-292)
    • State regulation
    • State regulation / Acts constituting insurance transaction (20-106, 282, 401.01)
    • State regulation / Acts constituting insurance transaction (20-106, 282, 401.01) / Negotiate (20-281(10))
    • State regulation / Acts constituting insurance transaction (20-106, 282, 401.01) / Sell (20-281(14))
    • State regulation / Acts constituting insurance transaction (20-106, 282, 401.01) / Solicit (20-281(15))
    • State regulation / Acts constituting insurance transaction (20-106, 282, 401.01) / Payment of premiums (20-191)
    • State regulation / Acts constituting insurance transaction (20-106, 282, 401.01) / Certificate of authority (20-217(A))
    • State regulation / Acts constituting insurance transaction (20-106, 282, 401.01) / Identification of Producer (20-229)
    • State regulation / Producer regulation
    • State regulation / Producer regulation / Sharing commissions (20-298)
    • State regulation / Producer regulation / Place of business and records (20-157, 290; AZ Const Art 14 s 16)
    • State regulation / Unfair practices and frauds
    • State regulation / Unfair practices and frauds / Unfair trade practices (20-442)
    • State regulation / Unfair practices and frauds / Misrepresentation (20-443, 443.01, 447; Rule R20-6-801(D))
    • State regulation / Unfair practices and frauds / False or deceptive advertising (20-444)
    • State regulation / Unfair practices and frauds / Defamation of insurer (20-445)
    • State regulation / Unfair practices and frauds / Boycott, coercion or intimidation (20-446)
    • State regulation / Unfair practices and frauds / False financial statements (20-447)
    • State regulation / Unfair practices and frauds / Unfair discrimination (20-448)
    • State regulation / Unfair practices and frauds / Gender discrimination (Rule R20-6-207)
    • State regulation / Unfair practices and frauds / Rebating (20-451)
    • State regulation / Unfair practices and frauds / Prohibited inducements (20-452)
    • State regulation / Unfair practices and frauds / Fees (20-465)
    • State regulation / Unfair practices and frauds / Unfair claims settlement practices (20-461; Rule R20-6-801)
    • State regulation / Unfair practices and frauds / Claims payment (20-462)
    • State regulation / Unfair practices and frauds / Insurance fraud (20-463, 466–466.04)
    • Insurance information and privacy protection (20-2101–2122)
  • Federal Laws and Regulations (3%)
    • Fair Credit Reporting Act (15 USC 1681–1681d)
    • National Do Not Call List
    • Gramm-Leach-Bliley Act (20-2121; Public Law 106-102)
    • Prohibited Persons in Insurance (18 United States Code (USC) Sections 1033 and 1034) waiver
    • CAN-SPAM Act of 2003 (15 USC 7701; 18 USC 1037)
    • Genetic Information Nondiscrimination Act (45 CFR Parts 144, 146, and 148; 45 CFR Parts 160 and 164; and 29 CFR Part 2590)
    • Mental Health Parity and Addiction Equity Act (45 CFR Parts 146 and 147)
    • Telemarketing Sales Rule (16 CFR 310; 15 USC 6101–6108; A.R.S. 44-1282)
  • General Insurance Concepts (13%)
    • Risk
    • Risk / Methods of Handling Risk (Avoidance, Retention, Sharing, Reduction, Transfer)
    • Risk / Elements of Insurable Risks
    • Risk / Definitions (Risk, Hazard, Peril, Loss)
    • Classifications of Insurers
    • Classifications of Insurers / Mutual, Stock, Fraternals
    • Classifications of Insurers / Admitted, Non-Admitted
    • Classifications of Insurers / Foreign, Domestic, Alien
    • Elements of a Contract
    • Elements of a Contract / Consideration
    • Elements of a Contract / Competent Parties
    • Elements of a Contract / Legal Purpose
    • Elements of a Contract / Offer
    • Elements of a Contract / Acceptance
    • Authority and Powers of Producers
    • Authority and Powers of Producers / Express
    • Authority and Powers of Producers / Implied
    • Authority and Powers of Producers / Apparent
    • Authority and Powers of Producers / The Law of Agency
    • Legal Interpretations Affecting Contracts
    • Legal Interpretations Affecting Contracts / Reasonable Expectations - good faith
    • Legal Interpretations Affecting Contracts / Indemnity
    • Legal Interpretations Affecting Contracts / Good Faith
    • Legal Interpretations Affecting Contracts / Fraud
    • Legal Interpretations Affecting Contracts / Warranties, Representations, Misrepresentations, and Concealment
  • Life Insurance Basics (16%)
    • Insurable Interest
    • Personal Uses of Life Insurance
    • Personal Uses of Life Insurance / Survivor Protection
    • Personal Uses of Life Insurance / Liquidity
    • Determining Amount of Personal Life Insurance
    • Determining Amount of Personal Life Insurance / Human Life Value Approach
    • Determining Amount of Personal Life Insurance / Needs Approach
    • Business Uses of Life Insurance
    • Business Uses of Life Insurance / Buy-Sell Funding
    • Business Uses of Life Insurance / Key Person
    • Business Uses of Life Insurance / Executive Bonuses
    • Factors in Premium Determination
    • Factors in Premium Determination / Mortality
    • Factors in Premium Determination / Interest
    • Factors in Premium Determination / Expense
    • Premium Frequency
    • Field Underwriting
    • Field Underwriting / Application Procedures
    • Field Underwriting / Warranties and Representations
    • Policy Delivery
    • Policy Delivery / Effective Date of Coverage
    • Policy Delivery / Policy Review
    • Policy Delivery / Premium Collection
    • Policy Delivery / Statement of Good Health
    • Company Underwriting
    • Company Underwriting / Sources of Information
    • Company Underwriting / Classifications of Risk (Preferred, Standard, Substandard, Declined)
  • Types of Life Insurance Policies (18%)
    • Term Life Insurance
    • Term Life Insurance / Level
    • Term Life Insurance / Decreasing
    • Term Life Insurance / Increasing Term
    • Whole (Permanent, Ordinary) Life Insurance
    • Whole (Permanent, Ordinary) Life Insurance / Single Premium
    • Whole (Permanent, Ordinary) Life Insurance / Continuous Premium
    • Whole (Permanent, Ordinary) Life Insurance / Limited Payment
    • Whole (Permanent, Ordinary) Life Insurance / Adjustable Life
    • Universal Life
    • Variable Life
    • Variable Universal
    • Indexed Universal Life
    • Specialized Policies
    • Specialized Policies / Joint Life
    • Specialized Policies / Survivorship Life
    • Specialized Policies / Juvenile
    • Group Life Insurance
    • Group Life Insurance / Eligible Groups
    • Group Life Insurance / Characteristics of Group Life Insurance
  • Life Insurance Policy Provisions, Options, and Riders (28%)
    • Standard Life Insurance Provisions
    • Standard Life Insurance Provisions / Ownership
    • Standard Life Insurance Provisions / Assignment
    • Standard Life Insurance Provisions / Right to Examine (Free Look)
    • Standard Life Insurance Provisions / Payment of Premiums
    • Standard Life Insurance Provisions / Grace Period
    • Standard Life Insurance Provisions / Misstatement of Age/Sex
    • Standard Life Insurance Provisions / Incontestability
    • Standard Life Insurance Provisions / Reinstatement
    • Standard Life Insurance Provisions / Entire Contract
    • Beneficiary Designation Options
    • Beneficiary Designation Options / Individuals
    • Beneficiary Designation Options / Classes
    • Beneficiary Designation Options / Minors
    • Types of Beneficiaries
    • Types of Beneficiaries / Primary and Contingent
    • Beneficiary-Related Clauses
    • Beneficiary-Related Clauses / Common Disaster
    • Settlement Options
    • Settlement Options / Cash Payment (Lump Sum)
    • Settlement Options / Interest Only
    • Settlement Options / Life Income
    • Settlement Options / Fixed-Period
    • Settlement Options / Fixed-Amount Installments
    • Settlement Options / Joint
    • Settlement Options / Last Survivor
    • Nonforfeiture Options
    • Nonforfeiture Options / Cash Surrender Value
    • Nonforfeiture Options / Extended Term
    • Nonforfeiture Options / Reduced Paid-Up Insurance
    • Policy Loan and Withdrawal Options
    • Policy Loan and Withdrawal Options / Loans
    • Policy Loan and Withdrawal Options / Automatic Premium Loans
    • Policy Loan and Withdrawal Options / Withdrawals Partial Surrenders
    • Dividend Options
    • Dividend Options / Paid-Up Additions
    • Dividend Options / Cash Payment (Lump Sum)
    • Dividend Options / One Year Term
    • Dividend Options / Reduction of Premium
    • Dividend Options / Accumulation at Interest
    • Disability Riders
    • Disability Riders / Waiver of Premium
    • Disability Riders / Disability Income Benefit
    • Disability Riders / Payor Benefit Life
    • Riders Covering Additional Insureds
    • Riders Covering Additional Insureds / Spouse
    • Riders Covering Additional Insureds / Children
    • Riders Covering Additional Insureds / Family term rider
    • Riders Affecting Death Benefit Amount
    • Riders Affecting Death Benefit Amount / Accidental Death
    • Riders Affecting Death Benefit Amount / Guaranteed Insurability
    • Riders Affecting Death Benefit Amount / Cost of Living
    • Riders Affecting Death Benefit Amount / Return of Premium
    • Riders Affecting Death Benefit Amount / Accelerated (Living) Benefit Provision Rider
    • Riders Affecting Death Benefit Amount / Long-Term Care Rider
    • Policy Exclusions
  • Annuities (12%)
    • Annuity Principles and Concepts
    • Annuity Principles and Concepts / Accumulation Period versus Annuity Period
    • Annuity Principles and Concepts / Owner, Annuitant, and Beneficiary
    • Immediate versus Deferred Annuities
    • Annuity (Benefit) Payment Options
    • Annuity (Benefit) Payment Options / Life Contingency Options
    • Annuity (Benefit) Payment Options / Annuities Certain
    • Annuity (Benefit) Payment Options / Pure Life versus Life with Guaranteed Minimum
    • Annuity (Benefit) Payment Options / Single Life versus Multiple Life
    • Annuity Products
    • Annuity Products / Fixed Annuities
    • Annuity Products / Equity Indexed Annuities
    • Annuity Products / Variable Annuities
    • Uses of Annuities
    • Uses of Annuities / Lump-Sum Settlements
    • Uses of Annuities / Retirement Income
    • Uses of Annuities / Long-Term Care Rider
    • Uses of Annuities / Guaranteed Minimum Withdrawal Benefit (GMWB)
  • Federal Tax Considerations for Life Insurance (5%)
    • Taxation of Personal Life Insurance and Annuities
    • Taxation of Personal Life Insurance and Annuities / Premiums
    • Taxation of Personal Life Insurance and Annuities / Dividends
    • Taxation of Personal Life Insurance and Annuities / Settlements
    • Taxation of Personal Life Insurance and Annuities / Last In First Out (LIFO) and First In First Out (FIFO)
    • Taxation of Personal Life Insurance and Annuities / Surrenders and Withdrawals
    • Modified Endowment Contracts (MECs)
Examination sources