AZ Life & Health study guide
AZ Life & Health · Work through your exam, one topic at a time.
The Arizona life and health insurance producer license is the credential a person needs to sell life insurance, annuities, and health insurance products in the state. It is issued by the Arizona Department of Insurance and Financial Institutions (DIFI), the state agency whose licensing section handles insurance professional licensing, applications, renewals, and license lookups. The AZ Life & Health study guide has 5 sections and about 1,719 words.
01Arizona Insurance Law, Rules, and Regulations
Arizona insurance is governed by Title 20 of the Arizona Revised Statutes and administered by the Arizona Department of Insurance and Financial Institutions (DIFI) , led by a Director appointed by the Governor. The Director licenses insurers and producers, examines company conduct and solvency, investigates consumer complaints, holds hearings, and may impose fines, suspend, or revoke authority.
378 words, about 2 min02General Insurance Concepts
Insurance transfers pure risk (loss or no loss) - never speculative risk (chance of gain), which is why gambling is uninsurable. A peril is the cause of loss (fire, death, illness); a hazard increases the chance or severity of loss.
326 words, about 2 min03Life Insurance Principles and Policy Provisions
Insurable interest must exist at policy issue , not at death. Underwriting classifies risk by age, sex, health, occupation, and avocations into preferred/standard/substandard, with representations on the application (not warranties) forming the basis of the contract.
347 words, about 2 min04Annuities and Retirement Products
An annuity is a contract that liquidates a sum of money over time. In the accumulation phase the contract builds value (fixed interest, separate-account investments, or indexed credits); in the annuitization (payout) phase the insurer makes periodic payments.
343 words, about 2 min05Health Insurance Principles, Policy Provisions, and Government Programs
A deductible is paid first, then coinsurance (a percentage) or a copay (flat amount) applies until the out-of-pocket maximum caps the member's share. Coordination of benefits prevents duplicate payment when two plans cover a person, and preexisting condition limits are largely prohibited for major medical under current federal rules.
325 words, about 2 min