Arizona Insurance License Exam

Written by: Ethan Peyton

Cartoon woman holding Arizona Insurance License Exam document

    Passing your Arizona insurance license exam is an essential step to working as a licensed insurance agent in Arizona.

    To help you, we’ve broken down the requirements and general information you’ll need in order to pass your Arizona license exam. We’ll also show you the differences in the examination lines and provide you with the information you need to prepare for this test. We’ll also guide you on what to do once you pass your Arizona insurance licensing exam.

     

    Arizona Insurance Exam Basics

    General Information

    The State of Arizona uses Prometric to administer its insurance agent licensing. This means you can register and book all of your licensing examinations through the Prometric website. Your test can be carried out online or in person.

    Each major insurance line examination is made up of bullet-point questions and includes both general and state-specific material.

    The general questions test your federal insurance product and agent knowledge. The state-specific questions test you on the Arizona insurance regulations and laws that you will need to know in order to operate as an insurance agent.

    Score Explanation

    Insurance licensing exams are not scored in the most obvious manner. Arizona requires a score of 70% in order to pass the Arizona insurance licensing exam.

    Once you complete your exam, the screen will show you both: a percentage score, and a statement letting you know whether you passed or not.

    The report also breaks down the correct percentage for each major section of the exam (e.g., Life Insurance Basics, Insurance Regulations, etc.).

    Once you are done, Prometric will send the Arizona Department of Insurance your exam results within 48 hours.

     

    Cost

    Your Arizona insurance license exam cost will depend on the type and number of examinations that you take:

    Examination

    Cost 

    Time Allowed

    Life

    $38

    120 Minutes

    Accident and Health

    $38

    120 Minutes

    Life, Accident, and Health

    $49

    150 Minutes

    Property

    $38

    120 Minutes

    Casualty

    $38

    120 Minutes

    Property and Casualty

    $49

    120 Minutes

    Note: You should focus on one exam at a time. This will likely increase the amount of time and effort you can allocate to each examination and should allow you to feel more prepared when you sit your exam.

    Recommended Pre-License Course

    Before taking your insurance exam, we recommend completing a pre-license education course. This is not a requirement in the state of Arizona, but it can go a long way in helping you get accustomed to the information that you will be expected to know.
    4.7 out of 5 starsKaplan Education Company

     

    Arizona Life and Health Insurance Exam

    Below you can find the content outline offered by Prometric.

    We recommend using it as a checklist when working through your pre-license education course. This way, you’ll be absolutely sure that you haven’t missed any topic that you will be tested on later on.

    Life, Accident, and Health Exam

    150 questions

    1.0 Insurance Regulation (4%)

    1.1 Licensing
    1.2 State Regulation
    1.3 Federal Regulation

     

    2.0 General Insurance (6%)

    2.1 Concepts
    2.2 Insurers
    2.3 Producers and general rules of agency
    2.4 Contracts

     

    3.0 Life Insurance Basics (12%)

    3.1 Insurable interest
    3.2 Personal uses of life insurance
    3.3 Determining amount of personal life insurance
    3.4 Business uses of life insurance
    3.5 Classes of life insurance policies
    3.6 Premiums
    3.7 Producer responsibilities
    3.8 Individual underwriting by the insurer

     

    4.0 Life Insurance Policies (10%)

    4.1 Term life insurance
    4.2 Whole life insurance
    4.3 Flexible premium policies
    4.4 Specialized policies
    4.5 Group life insurance
    4.6 Credit life insurance

     

    5.0 Life Insurance Policy Provisions, Options, and Riders (10%)

    5.1 Standard provisions
    5.2 Beneficiaries
    5.3 Settlement options
    5.4 Nonforfeiture options
    5.5 Policy loan and withdrawal options
    5.6 Dividend options
    5.7 Disability riders
    5.8 Accelerated benefit provision/rider
    5.9 Riders covering additional insureds
    5.10 Riders affecting the death benefit amount

     

    6.0 Annuities (9%)

    6.1 Standard provisions
    6.2 Annuity principles and concepts 
    6.3 Immediate versus deferred annuities
    6.4 Annuity payment options
    6.5 Annuity products 
    6.6 Uses of annuities

     

    7.0 Federal Tax Considerations for Life Insurance and Annuities (4%)

    7.1 Taxation of personal life insurance
    7.2 Modified endowment contracts (MECs)
    7.3 Taxation of non-qualified annuities
    7.4 Taxation of individual retirement plans
    7.5 Rollovers and transfers
    7.6 Section 1035 exchanges

     

    8.0 Disability Insurance Basics (9%)

    8.1 Definitions of perils
    8.2 Principal types of losses and benefits
    8.3 Classes of health insurance policies
    8.4 Limited policies
    8.5 Common exclusions from coverage
    8.6 Producer responsibilities in individual health insurance
    8.7 Individual underwriting by the insurer
    8.8 Considerations in replacing health insurance

     

    9.0 Individual Disability Insurance Policy General Provisions (6%)

    9.1 Uniform required provisions
    9.2 Uniform optional provisions
    9.3 Other general provisions

     

    10.0 Disability Income and Related Insurance (4%)

    10.1 Qualifying for disability benefits
    10.2 Individual disability income insurance
    10.3 Unique aspects of individual disability underwriting
    10.4 Group disability income insurance
    10.5 Business disability insurance
    10.6 Social Security disability
    10.7 Workers compensation

     

    11.0 Medical Plans (6%)

    11.1 Medical plan concepts
    11.2 Types of providers and plans
    11.3 Cost containment in health care delivery
    11.4 Arizona eligibility requirements
    11.5 Marketing considerations

     

    12.0 Group Accident and Health Insurance (6%)

    12.1 Characteristics of group insurance
    12.2 Types of eligible groups
    12.3 Marketing considerations
    12.4 Large group disability insurance
    12.5 Small group disability insurance
    12.6 Privacy

     

    13.0 Dental Insurance (3%)

    13.1 Types of dental treatment
    13.2 Indemnity plans/PPO Dental Plans
    13.3 Prepaid dental plans

     

    14.0 Insurance for Senior Citizens and Special Needs Individuals (8%)

    14.1 Medicare
    14.2 Medicare supplements
    14.3 Other options for individuals with Medicare
    14.4 Long-term care insurance

     

    15.0 Federal Tax Considerations for Disability Insurance (3%)

    15.1 Personally-owned health insurance
    15.2 Employer group health insurance
    15.3 Medical expense coverage for sole proprietors and partners
    15.4 Business disability insurance
    15.5 Health Reimbursement Arrangements

    We recommend reading our in-depth How to Pass the Life Insurance Exam guide for a better overview.

     

    Arizona Property and Casualty License Exam

    Below you can find the content outline offered by Prometric.

    You should use this outline as a checklist when working through your pre-license education course in order to ensure that you haven’t missed any topic that you will be tested on later on.

    Property and Casualty Exam

    150 scorable answers

    I.0 Insurance Regulation (5%)

    1.1 Licensing
    1.2 State regulation
    1.3 Federal regulation

     

    2.0 General Insurance (5%)

    2.1 Concepts
    2.2 Insurers
    2.3 Producers and general rules of agency
    2.4 Contracts

     

    3.0 Property and Casualty Insurance Basics (14%)

    3.1 Principles and concepts
    3.2 Policy structure
    3.3 Common policy provisions
    3.4 Required provisions

     

    4.0 Dwelling Policy (9%)

    4.1 Characteristics and purpose
    4.2 Coverage forms — Perils insured against
    4.3 Property coverages
    4.4 General exclusions
    4.5 Conditions
    4.6 Selected endorsements
    4.7 Personal liability supplement

     

    5.0 Homeowners Policy (15%)

    5.1 Coverage forms
    5.2 Definitions
    5.3 Section I — Property coverages
    5.4 Section II — Liability coverages
    5.5 Perils insured against
    5.6 Exclusions
    5.7 Conditions
    5.8 Selected endorsements

     

    6.0 Auto Insurance (13%)

    6.1 Laws
    6.2 Personal auto policy
    6.3 Commercial auto

     

    7.0 Commercial Package Policy (CPP) (17%)

    7.1 Components of a commercial policy
    7.2 Commercial general liability
    7.3 Commercial property
    7.4 Commercial crime
    7.5 Commercial inland marine
    7.6 Equipment breakdown
    7.7 Farm coverage

     

    8.0 Business owners Policy (6%)

    8.1 Characteristics and purpose
    8.2 Business owners Section I — Property
    8.3 Business owners Section II — Liability
    8.4 Business owners Section III — Common Policy Conditions
    8.5 Selected endorsements

     

    9.0 Workers Compensation Insurance (8%)

    9.1 Workers compensation laws
    9.2 Workers compensation and employers liability insurance policy
    9.3 Premium computation
    9.4 Other sources of coverage

     

    10.0 Other Coverages and Options (8%)

    10.1 Umbrella/excess liability policies
    10.2 Specialty liability insurance
    10.3 Surplus lines
    10.4 Surety bonds
    10.5 Aviation insurance
    10.6 National Flood Insurance Program

    We recommend reading our Property and Casualty Insurance exam article for a more in-depth overview.

     

    How to Pass the Arizona Insurance Exam

    Passing your Arizona insurance exam ultimately comes down to your mindset and degree of preparation.

    We have composed a few helpful exam tips and tricks that should help you perform as well as you can during your exam day.

    Get a Pre-License Course

    Even though this is not a requirement in the state of Arizona, getting a pre-license course can be incredibly beneficial. These courses can help you get accustomed to the extensive amount of content that you will have to memorize.

    We recommend Kaplan’s course because it offers a variety of helpful features, including:

    • Online exam simulations
    • Live online training
    • Printable study guides
    • End of chapter reviews

    For more information, we recommend reading our Kaplan Insurance Course Review.

     

    Make Enough Time to Study

    Not leaving enough time to prepare is one of the easiest ways to ensure that you do not pass your exam on your first attempt.

    Remember, there are zero questions on your exam that are based on common sense or critical thinking. All questions are purely factual, and so will relate to how well you understand and remember the content that you have learned.

    We recommend allocating around one to two weeks to prepare for your exam, as this should allow you to go through all of the material at least twice.

     

    Control Test Anxiety

    Even though you cannot control whether you get exam anxiety or not, you can take a few steps when preparing to limit its effect on your performance:

    • Establish a consistent pretest routine — Acclimate yourself to exam conditions by following a specific routine on each practice exam at home. This should help you feel less anxious during your exam day.
    • Get plenty of sleep — Lack of sleep can exacerbate your anxiety and increase your self-doubt. Make sure you are consistently getting a good night’s sleep in the week leading up to your exam.
    • Study effectively — This sounds obvious, but make sure you are actually tailoring your studying to the exam that you are taking. Remember, there are no critical thinking or common sense questions involved.
    • Arrive early — If you are planning to sit your exam in person, we recommend you arrive at least 30 minutes before it’s due to start in order to get used to your surroundings and have time to check in with your center’s administrator.

    For a more in-depth overview of how you can prepare for your Arizona insurance exam, we recommend reading our How to Pass the Insurance Exam article.

     

    Getting Your Arizona Insurance License

    Your next steps will depend on whether you actually passed your exam, as well as on whether you plan to get licensed for any additional lines.

    You can apply for your license up to 12 months after you complete your exam. If you would like to attempt passing additional insurance line exams before filing your licensing application with the Arizona Department of Insurance and Financial Institutions, you are free to do that.

    After you have passed your insurance licensing exam, you will need to:

    • Complete a fingerprint and background check
    • File your licensing application
    • Wait for your application to be reviewed

    Have a look at our How to Become an Insurance Agent in Arizona review for more information on all the steps that you will need to take after passing your insurance exam.




    Arizona Insurance Exams FAQ

    How often do I have to renew my license?

    You have to renew your license every four years in the state of Arizona.

    For more information, see our guide on How to Renew Your Insurance License in Arizona.

     

    How long is the Arizona insurance exam?

    Exam time limits can vary depending on which exam you take. The Life Insurance and the Accident and Health or Sickness insurance exams both have a two hour time limit.

    On the other hand, the Property and Casualty insurance exam has a two and a half hour time limit.

     

    How many times can you take the Arizona insurance exam?

    You are allowed four attempts per exam per year in the state of Arizona.

    If you are worried about passing your insurance exam, we recommend having a look at our How to Pass the Insurance Exam article.

     

    How many questions are on the Arizona insurance exam?

    This will depend on what exam you are taking. The Life Insurance and the Accident and Health or Sickness insurance exams, for example, are both made up of 100 questions.

    Arizona Department of Insurance and Financial Institutions Contact Information

    Mailing Address:

    100 North 15th Avenue, Suite 261
    Phoenix, Arizona 85007-2630

    Phone: (602) 364-3100

    Email: licensing@azinsurance.gov

    Website: https://difi.az.gov/insurance

    License Search: Arizona Insurance License Search and Lookup




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    Information on this page has been gathered by a multitude of sources and was most recently updated in October 2022.

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