Free Arizona Department of Insurance AZ-Insurance-Producer-Life Exam Questions

Become Arizona Department of Insurance Certified with updated AZ-Insurance-Producer-Life exam questions and correct answers

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Total 105 Questions | Updated On: Oct 25, 2026

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Question 1

An adult child is the beneficiary of their parent ' s life insurance policy.What is the tax obligation for the funds paid to the child?

A : The principal is not taxed, but any interest that accrues is taxed at rates applicable to interest from other sources.

B : The full amount is taxed as regular income unless it is gifted to the beneficiary ' s children, in which case it is tax-free.

C : The full amount is taxed, but the payments can be spread over a period of several years.

D : It is not taxed if it is placed in a trust until the funds are withdrawn from the trust; then it is taxed as regular income.

Answer: A

Question 2

Which approach considers the future needs of the survivors in determining amounts of life insurance?

A : Cost Comparison Approach.

B : Needs Approach.

C : Living Benefits Approach.

D : Human Life Value Approach.

Answer: B

Question 3

An insured owns a whole life insurance policy on himself. He would also like coverage for his minor son and/or daughter. One way the insured can accomplish this goal is to purchase a

A : child term rider.

B : guaranteed insurability rider.

C : family maintenance rider.

D : family income rider.

Answer: A

Question 4

An insured owns a whole life insurance policy on himself. He would also like coverage for his minor son and/or daughter. One way the insured can accomplish this goal is to purchase a

A : child term rider.

B : guaranteed insurability rider.

C : family maintenance rider.

D : family income rider.

Answer: A

Question 5

Which approach considers the future needs of the survivors in determining amounts of life insurance?

A : Cost Comparison Approach.

B : Needs Approach.

C : Living Benefits Approach.

D : Human Life Value Approach.

Answer: B

Page: 1 / 21

Total 105 Questions | Updated On: Oct 25, 2026

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