Arizona Life & Health Insurance License Exam Overview
The Arizona Life & Health Insurance License Exam is administered by Prometric on behalf of the Arizona Department of Insurance and Financial Institutions (DIFI). Arizona is one of the fastest-growing states in the nation, with Phoenix serving as a major financial and business hub in the Southwest.
Passing this exam qualifies you to sell life insurance, health insurance, annuities, and related products throughout Arizona—a state with over 7 million residents, a rapidly expanding population, and strong demand for insurance products.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 150 multiple-choice |
| Scored Questions | 150 |
| Time Limit | 2.5 hours |
| Passing Score | 70% (105 correct answers) |
| Testing Vendor | Prometric |
| Exam Fee | $55 |
| Pre-licensing Education | 40 hours required |
Why Get Licensed in Arizona?
- Fastest-growing market — Over 7 million and rapidly expanding
- Phoenix metro boom — Major corporate relocations and growth
- Retiree destination — Strong demand for Medicare and LTC products
- Business-friendly — Low regulation environment
- Competitive compensation — Average agent salary over $64,000
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Key Topics Covered on the Exam
1. Life Insurance Fundamentals (30-35%)
Types of Life Insurance:
- Term Life (level, decreasing, renewable, convertible)
- Whole Life (ordinary, limited pay, single premium)
- Universal Life (flexible premiums, adjustable death benefit)
- Variable Life (securities-based, separate account)
Policy Provisions Under Arizona Law:
| Provision | Arizona Requirement |
|---|---|
| Grace Period | 31 days minimum |
| Incontestability | 2 years |
| Suicide Clause | 2 years |
| Free Look Period | 10 days (30 days for seniors 65+) |
| Reinstatement | 3 years |
| Misstatement of Age | Adjustment of benefits |
Beneficiary Designations:
- Primary and contingent beneficiaries
- Revocable vs. irrevocable designations
- Per stirpes vs. per capita distribution
- Arizona community property considerations
2. Health Insurance Fundamentals (30-35%)
Major Medical Coverage:
- Deductibles, copays, coinsurance
- Out-of-pocket maximums
- Network types (HMO, PPO, EPO, POS)
- Essential health benefits under ACA
Arizona-Specific Health Topics:
- Healthcare.gov marketplace (Arizona uses federal exchange)
- AHCCCS (Arizona Health Care Cost Containment System - Medicaid)
- KidsCare (Arizona CHIP program)
- Mental health parity requirements
Disability Income Insurance:
- Short-term vs. long-term disability
- Own occupation vs. any occupation definitions
- Elimination periods and benefit periods
- Social Security integration
Long-Term Care Insurance:
- Benefit triggers (ADLs, cognitive impairment)
- Arizona Long-Term Care Partnership
- Tax-qualified policies
- Inflation protection options
3. Annuities (15-20%)
- Fixed vs. variable annuities
- Immediate vs. deferred annuities
- Accumulation and annuitization phases
- Arizona annuity suitability requirements
- Surrender charges and free withdrawal provisions
- 1035 exchanges and tax implications
4. Arizona Insurance Code and Regulations (15-20%)
Arizona Revised Statutes (A.R.S.) Title 20 Key Provisions:
- Producer licensing requirements
- Unfair trade practices
- Unfair claims settlement practices
- Replacement regulations
- Advertising guidelines
Licensing Requirements:
- Pre-licensing education: 40 hours
- Continuing education: 24 hours every 2 years
- Ethics requirement: 3 hours included in CE
- Background check and fingerprinting required
Producer Responsibilities:
- Fiduciary duties to clients
- Premium handling requirements
- Record retention (5 years)
- Reporting changes within 30 days
5. Ethics and Professional Conduct (10-15%)
- Suitability and needs analysis
- Disclosure requirements
- Privacy and confidentiality (HIPAA compliance)
- Anti-rebating and anti-twisting rules
- Handling complaints and grievances
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Life insurance products and provisions | 12-15 |
| Week 2-3 | Health insurance and ACA | 12-15 |
| Week 3-4 | Annuities and specialty products | 8-10 |
| Week 4-5 | Arizona regulations (A.R.S. Title 20) | 8-10 |
| Week 5-6 | Practice exams and review | 12-15 |
Total recommended study time: 55-65 hours
🎯 Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the Arizona Life & Health exam.
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Arizona-Specific Exam Tips
1. Know Your Arizona Laws
The exam tests Arizona-specific regulations:
- A.R.S. Title 20 — Arizona Insurance Code
- DIFI — Department of Insurance and Financial Institutions
- AHCCCS — Arizona's Medicaid program
- Director powers — Enforcement and penalties
2. Master the Numbers
| Topic | Arizona Requirement |
|---|---|
| Grace period | 31 days |
| Free look period | 10 days (30 for 65+) |
| Incontestability | 2 years |
| CE requirement | 24 hours/2 years |
| Pre-licensing | 40 hours |
| Passing score | 70% |
| Record retention | 5 years |
3. Understand Federal Marketplace
Arizona uses Healthcare.gov for health insurance:
- Open enrollment periods (November-January)
- Special enrollment qualifications
- Subsidy and tax credit eligibility
- Plan tier options (Bronze through Platinum)
4. Focus on Senior Market
Arizona's retiree population creates unique needs:
- Medicare supplement expertise
- Long-term care insurance demand
- Extended free look period (30 days for 65+)
- Annuity suitability requirements
Common Mistakes to Avoid
- Underestimating Arizona regulations — A.R.S. Title 20 is heavily tested
- Ignoring the senior market — Arizona has large retiree population
- Skipping health insurance — It's equal weight to life insurance
- Forgetting AHCCCS — Arizona's unique Medicaid program
- Not practicing timed exams — 2.5 hours for 150 questions requires pacing
- Cramming last minute — Spread study over 5-6 weeks
After Passing Your Exam
- Apply for license through Arizona DIFI online portal
- Complete fingerprinting — Required for all applicants
- Pay license fee — $50 for resident license
- Affiliate with insurer — Get appointed by carrier
- Maintain CE compliance — 24 hours every 2 years
- Begin selling — Your license is valid for 2 years
2026 Arizona Updates
For 2026, be aware of:
- Healthcare.gov marketplace updates
- Enhanced telehealth coverage requirements
- Updated producer appointment rules
- AHCCCS program changes
Start Your Arizona Insurance Career Today
The Arizona Life & Health license opens doors to one of the nation's fastest-growing insurance markets. With proper preparation, you can pass the exam on your first attempt.
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Our free study materials include:
- ✅ Complete topic coverage
- ✅ Practice questions with explanations
- ✅ Arizona-specific regulations (A.R.S. Title 20)
- ✅ Study guides and summaries
- ✅ AI-powered study assistance
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