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Key Facts: AZ Life & Health Exam

150 Q

Exam Questions

PSI Services

None

Pre-License Education

A.R.S. 20-285

48 hrs

CE Per 4-Year Term

AZ DIFI (at least 6 hrs ethics)

70%

Passing Score

AZ DIFI

$59

Exam Fee

PSI Services

Arizona does not require pre-licensing education before the life and health insurance exam. PSI's Series 13-33 exam has 150 questions in 2.5 hours with a 70% passing score and a $59 fee. Arizona is overseen by DIFI (Department of Insurance and Financial Institutions) and requires 48 hours of continuing education per four-year license term (including at least 6 hours of ethics). The largest outline areas are Life, Accident and Health Insurance Basics (17%), Life Insurance Policy Provisions, Options, and Riders (15%), and Medical Plans (11%).

Sample AZ Life & Health Practice Questions

Try these sample questions to review concepts for the AZ Life & Health exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 625+ question experience with AI tutoring.

1Which state agency is responsible for regulating insurance companies and producers in Arizona?
A.Arizona Insurance Commission
B.Arizona Department of Insurance and Financial Institutions (DIFI)
C.Arizona Corporation Commission
D.Arizona Department of Financial Services
Explanation: The Arizona Department of Insurance and Financial Institutions (DIFI) is the state agency that regulates all insurance activities in Arizona under Title 20 of the Arizona Revised Statutes. DIFI was formed in 2020 when the Department of Insurance merged with the Department of Financial Institutions. The Arizona Corporation Commission regulates utilities and securities, not insurance.
2How is the Director of the Arizona Department of Insurance and Financial Institutions selected?
A.Elected by popular vote in a statewide election
B.Appointed by the Governor and confirmed by the Arizona Senate
C.Appointed by the Arizona Legislature
D.Selected by a board of insurance industry representatives
Explanation: In Arizona, the Director of DIFI is appointed by the Governor and must be confirmed by the Arizona Senate. This differs from some states where the insurance commissioner is elected by popular vote. The Director serves at the pleasure of the Governor and oversees all insurance regulatory functions in the state.
3Under Arizona law, which title of the Arizona Revised Statutes governs insurance regulation?
A.Title 10 - Corporations and Associations
B.Title 20 - Insurance
C.Title 32 - Professions and Occupations
D.Title 44 - Trade and Commerce
Explanation: Title 20 of the Arizona Revised Statutes is specifically designated as the Insurance Code and contains all statutes governing insurance companies, producers, policies, and regulatory requirements in the state. Title 10 covers corporations, Title 32 covers professions, and Title 44 covers trade and commerce, but none of these govern insurance.
4What is the minimum age requirement to obtain an insurance producer license in Arizona?
A.16 years old
B.18 years old
C.21 years old
D.25 years old
Explanation: Arizona requires that insurance producer license applicants be at least 18 years of age. This is consistent with the age of majority in Arizona and ensures that licensees can legally enter into contracts on behalf of the insurers they represent. Applicants who are 16 or 17 years old are too young to be licensed.
5Which of the following best describes Arizona's pre-licensing education requirement for a resident life and health insurance producer applicant?
A.Arizona does not mandate pre-licensing education, though approved courses are strongly recommended to prepare for the exam
B.A 40-hour pre-licensing education course is required by statute
C.A college degree in business or finance is required
D.An apprenticeship with a licensed producer is required
Explanation: Unlike many states, Arizona does NOT require resident producer applicants to complete a set number of pre-licensing education hours before sitting for the licensing examination. DIFI approves pre-licensing courses and providers, and applicants are strongly encouraged to complete one to prepare, but it is not a statutory prerequisite. A college degree and apprenticeship are likewise not required.
6How many hours of continuing education (CE) must an Arizona resident insurance producer with a major line of authority complete per four-year licensing period?
A.24 hours every four years
B.30 hours every four years
C.48 hours every four years
D.48 hours every two years
Explanation: Arizona requires resident producers with a major line of authority (life, accident and health, property, casualty, or personal lines) to complete 48 hours of approved continuing education every four-year license period. A minimum of 6 of those 48 hours must be in ethics. Note Arizona uses a four-year CE/renewal cycle, not the two-year cycle used by many other states.
7An Arizona insurance producer fails to renew their license before the expiration date. What is the consequence under Arizona law?
A.The license is automatically renewed with a late fee
B.The producer may continue selling for 30 days while completing renewal
C.The producer must cease all insurance activities until the license is reinstated
D.DIFI will issue a temporary permit valid for 90 days
Explanation: Under Arizona law, a producer whose license has expired must immediately cease all insurance activities. Transacting insurance without a valid license is a violation of Title 20 and may result in penalties. There is no automatic renewal, no grace period to continue selling, and DIFI does not issue temporary permits for lapsed licenses.
8Which of the following actions would the Director of DIFI be authorized to take against a licensed producer who violates Arizona insurance law?
A.Impose criminal penalties including imprisonment
B.Revoke, suspend, or refuse to renew the producer's license and impose civil penalties
C.Order the producer to pay restitution directly to consumers without a hearing
D.Transfer the producer's license to another state for disciplinary proceedings
Explanation: The Director of DIFI has authority to revoke, suspend, or refuse to renew a producer's license and impose civil penalties for violations of insurance laws. Criminal penalties require prosecution through the court system, not the Director's office. The Director cannot order restitution without due process, and licenses are state-specific.
9A nonresident producer wants to sell life and health insurance in Arizona. Which of the following is required?
A.The producer must establish a physical office in Arizona before DIFI will issue a nonresident license
B.The producer must hold a valid home-state license and apply via NIPR or the NAIC Uniform Application
C.The producer must pass the Arizona insurance producer examination for each line of authority sought
D.The producer must complete a DIFI-approved pre-licensing course before submitting an application
Explanation: Under Arizona's reciprocal licensing provisions, a nonresident producer must hold a valid license in their home state and apply for a nonresident license, online through the National Insurance Producer Registry (NIPR) or on the NAIC Uniform Application. PSI's Arizona bulletin says exam requirements do not apply to most nonresidents, Arizona has no pre-licensing education requirement for producer licenses (A.R.S. 20-285), and a nonresident does not need to establish a physical office in Arizona.
10Under Arizona's CE requirements, how many of the 48 required four-year-cycle hours must be in ethics?
A.3 hours
B.6 hours
C.10 hours
D.12 hours
Explanation: Arizona requires that a minimum of 6 of the 48 continuing education hours completed each four-year license period be dedicated to ethics. This ethics component ensures producers maintain current knowledge of ethical standards and regulatory compliance. 3 hours is below the requirement, and 10 or 12 hours exceed the minimum.

About the AZ Life & Health Exam

The Arizona life and health insurance exam covers DIFI licensing requirements, the role of the Director of Insurance, the absence of a pre-licensing education requirement, the 48-hour CE requirement per four-year license term, replacement regulations, annuity suitability, Medicare Supplement, long-term care partnership program, and Arizona-specific unfair trade practices provisions.

Exam sponsor: Arizona Department of Insurance and Financial Institutions (DIFI) / PSI. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

150 questions

Time Limit

2 hours 30 minutes

Passing Score

70%

Exam / Certification Fees

$59

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

4%

Insurance Regulation

Licensing, state regulation, and Arizona insurance information and privacy protection (A.R.S. 20-2101 to 20-2122)

3%

Federal Laws and Regulations

Federal rules that apply to life and health insurance

7%

General Insurance Concepts

Methods of handling risk, insurable risk, insurer types, and legal interpretations affecting contracts

17%

Life, Accident and Health Insurance Basics

Insurable interest, uses of life insurance, premium factors, field and company underwriting, and policy delivery

9%

Types of Life Insurance Policies

Term, whole, universal, variable, indexed universal, specialized, and group life

15%

Life Insurance Policy Provisions, Options, and Riders

Standard provisions, beneficiaries, settlement and nonforfeiture options, loans, dividends, riders, and exclusions

7%

Annuities

Annuity principles, immediate versus deferred annuities, payout options, products, and uses

8%

Individual Accident and Health Insurance Policy Provisions

Uniform required and optional provisions and other general provisions

6%

Disability Income and Related Insurance

Disability income and related coverages

11%

Medical Plans

Medical plan concepts and types (major medical, HMOs, PPOs, POS plans), cost containment, limited health policies, HIPAA, and the Affordable Care Act

3%

Group Health Insurance

Group health eligibility, enrollment, and coverage rules

5%

Specialized Health Insurance for Qualified Individuals

Medicare Parts A-D and enrollment periods, Medicare supplement standardized plans, and long-term care benefits

5%

Federal Tax Considerations for Life and Health Insurance

Taxation of premiums, dividends, settlements, surrenders and withdrawals, and consumer-driven health plans

Preparing for the AZ Life & Health Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 150 questions
  • Time limit: 2 hours 30 minutes
  • Exam / certification fees: $59 Official sources

Using Our Practice Resources

  • Work through all 625 available questions
  • Review every answer and explanation
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AZ Life & Health: Suggested Study Strategy

1Know that Arizona has no pre-license education requirement and requires 48 hours of CE per license term (at least 6 hours ethics)
2Master DIFI structure and the role of the Director of Insurance (Governor-appointed, Senate-confirmed)
3Understand Arizona Life and Disability Insurance Guaranty Fund limits: $300K life death benefit, $250K annuity, $500K health benefit plan
4Study Arizona replacement regulations: 5-business-day notification, insurer retention of replacement notices for at least 5 years
5Learn Arizona's free look periods: 10 days for life/health, 10 days for annuities (30 days at age 65 or older), 30 days for Medicare Supplement

Frequently Asked Questions

How many questions are on the Arizona life and health insurance exam?

The Arizona life and health insurance exam has 150 total questions covering both general insurance concepts and Arizona state-specific regulations. You have 2 hours and 30 minutes to complete the exam and need a score of 70% to pass. The exam fee is $59 and is administered by PSI Services.

Does Arizona require pre-license education for insurance?

No. Arizona does not require pre-license education: under A.R.S. 20-285 an applicant must be at least 18, have no grounds for denial, pay the fees, and pass the exams. After obtaining your license, Arizona requires 48 hours of continuing education during each license term (a first license runs three to four years, renewals four years), including at least 6 hours of ethics training.

What is the Arizona Life and Disability Insurance Guaranty Fund?

The Arizona Life and Disability Insurance Guaranty Fund (A.R.S. 20-681 et seq.) protects policyholders when an insurance company becomes insolvent and is unable to pay claims. It provides coverage up to $300,000 for life insurance death benefits, $250,000 for annuity benefits, and $500,000 for health benefit plans. Producers are prohibited from using guaranty fund coverage as a sales inducement.

What are Arizona replacement regulations?

Arizona replacement regulations require insurance producers to provide a Notice Regarding Replacement of Life Insurance when an existing life insurance or annuity policy is being replaced. The replacing insurer must notify the existing insurer within 5 business days. The replacing insurer must be able to produce copies of the replacement notices, indexed by producer, for at least five years or until its next regular examination, whichever is later. The producer must leave the applicant with the notice and all sales materials used.

What are unfair trade practices under Arizona insurance law?

Arizona insurance law prohibits unfair trade practices including misrepresentation of policy terms, twisting (inducing replacement through misrepresentation), churning (generating commissions through unnecessary replacements), rebating (offering inducements not specified in the policy), false advertising, and unfair discrimination. DIFI enforces these provisions and can impose penalties including fines, license suspension, or license revocation.