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Insurance Licensing AZ-Insurance-Producer-Life Sample Questions:
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?
- A. Refund life.
- B. Single premium deferred annuity.
- C. Variable annuity.
- D. Annuity certain.
Correct Answer: D 🗳️
Explanation: Only visible for DumpsFree members. You can sign-up / login (it's free).
A single parent of young twins takes out a term life insurance policy of fifteen years to provide security for the twins until they complete high school. The parent plans to cash the policy in and use the cash surrender value for the twins ' college costs. Is this a sound financial plan?
- A. Yes, because insurance premiums typically have better returns on investments than college savings plans.
- B. No, because term insurance policies do not have cash surrender values.
- C. No, because the cash surrender value of term policies does not keep up with inflation.
- D. Yes, because the premiums for term policies are more affordable than those of other life insurance policies.
Correct Answer: B 🗳️
Explanation: Only visible for DumpsFree members. You can sign-up / login (it's free).
A policyowner may NOT pay life insurance premiums with which frequency?
- A. quarterly
- B. bi-weekly
- C. semi-annually
- D. monthly
Correct Answer: B 🗳️
Explanation: Only visible for DumpsFree members. You can sign-up / login (it's free).
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?
- A. 10
- B. 25
- C. 32
- D. 12
Correct Answer: B 🗳️
Explanation: Only visible for DumpsFree members. You can sign-up / login (it's free).
What is a key feature of fixed annuities?
- A. Variable interest
- B. Equity indexing
- C. Market risk
- D. Guaranteed payments
Correct Answer: D 🗳️
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