Arizona Insurance Licensing Information Bulletin

Karla Zellmer

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ARIZONA
Department of Insurance
Licensing Information Handbook
Effective as of August 3, 2020
Register online at http://www.prometric.com/arizona/insurance
Published by Prometric Providing License Examinations for the State of Arizona
Copyright © 2017-2020 Prometric LLC REVISED 01292020

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Introduction

1

A Message from the Department.................... 1

At a Glance .................................................. 1

Arizona Licensing Requirements

3

Types of Licenses ......................................... 3

Moving to Arizona......................................... 5

Nonresident Applicants.................................. 5 Fingerprint Requirement................................ 5 Fees ............................................................ 7

Scheduling Your Exam

8

Exam Restriction .......................................... 8 Register and Schedule .................................. 8
Online...................................................... 8

By Fax or Mail .......................................... 8 By Phone ................................................. 8 Reschedule and Cancellation ...................... 9 If Absent or Late for Your Appointment ....... 9 Holidays................................................... 9 Emergency Closings .................................. 9 Testing Accommodations............................... 9 Test Centers .............................................. 10

Preparing for Your Exam

11

Content Outlines Overview .......................... 11 Study Materials .......................................... 11 Practice Exams........................................... 12

Taking Your Exam

13

The Testing Process .................................... 13 Test Center Regulations .............................. 13 Question Types .......................................... 15 Experimental Questions .............................. 15 Your Exam Results ..................................... 16

Contents

Appeals Process.......................................... 17

Apply for Your License

18

Submit Your Application .............................. 18 Business Name ....................................... 18
Licensing Eligibility Requirement (Form L-152) ........................................................18
Fingerprint Service .................................. 19 Department of Insurance Application Review
Process............................................... 19 License Expiration ................................... 19 Maintaining Your License ............................. 20 NIPR: National Insurance Producer Registry20 License Renewal ..................................... 20 Insurance Continuing Education ............... 20

Exam Content Outlines

22

Arizona Examination for Life Insurance Producer (Series 13-31) ........................................ 22
Arizona Examination for Property and Casualty Insurance Producer Series 13-34.............. 42
150 questions ­ 2.5-hour time limit ............. 69
Effective July 1, 2018.................................. 69

Exam Registration Form

70

Credit Card Payment Form

71

Arizona Department of Insurance

Fingerprint Verification Form

72

L-FPV

Form L-152: Licensing Eligibility

73

Requirement

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Introduction

A Message from the Department
At a Glance

This Handbook provides information about the examination and licensing process for individuals who wish to become licensed by the Arizona Department of Insurance ("Department"). In addition to the information in this Handbook, you should also review the information on eligibility to hold a license on the Department's website: www.insurance.az.gov/producers
The Handbook does not provide instructions pertaining to licensing business entities. For information about licensing a business entity, visit the Insurance Licensing Section website at https://insurance.az.gov/producers, e-mail the Insurance Licensing Section at insurancelicensing@difi.az.gov, or call the Insurance Licensing Section at 602.364.4457.
This handbook provides information about the examination and licensing process for obtaining a resident insurance license. You should read this Licensing Handbook, including the examination content outlines, prior to taking an exam. If interested in applying for a nonresident license, you can apply online via NIPR at www.nipr.com or an NIPR authorized business partner.
Overview of Licensing Process
Follow these main steps if you are interested in obtaining an insurance license.
1 Read the information on the Department's website for the type of license you desire to make sure you meet all of the requirements. www.insurance.az.gov/producers
2 Review this handbook to determine which exam(s) you need to pass, if any, for the type(s) of license you require. Prepare for your exam, using this bulletin and materials from other sources. The content outlines at the back of this guide are the basis for the exams.
3 Register and schedule your exam. The easiest way to schedule is online at www.prometric.com/arizona/insurance Phone; fax and mail options are also available.
4 Bring the required identification to the test center and take the exam(s). You will receive your results immediately after the exam.
5 You must pass your exam then apply for your license at http://www.nipr.com/
Certain types of licenses require submission of fingerprints as part of the application package. Please see the chart below in Arizona licensing requirements to determine if this is a requirement and detailed information on the fingerprint requirements and options in the section Apply for your license.
6 If you do NOT pass the exam, repeat steps 2 through 4. PLEASE NOTE: ARS §20-284(H) permits a maximum of 4 attempts to pass an exam in a 12month period. If you do not pass an exam after 4 attempts, you must wait one year after failing the fourth attempt before you are eligible to take that exam again.

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Note Passing an exam does not guarantee that you will receive a license. If you
take an exam unnecessarily or are found unqualified, neither the exam fee nor the license application fee will be refunded.
To get answers not provided in this handbook
Visit our Website: http://www.prometric.com/arizona/insurance Frequently Asked Questions are available: https://www.prometric.com/en-
us/clients/insurance/Documents/arizona/AZInsuranceExamFAQs.pdf
Direct licensing-related questions to:
Arizona Department of Insurance Licensing Section Phone: 602.364.4457 E-mail: insurancelicensing@difi.az.gov Website: https://insurance.az.gov/producers
Direct questions and requests for information about exams to:
Prometric 7941 Corporate Drive Nottingham, MD 21236 Phone: 800.853.5448 TDD User: 800.790.3926 Website: http://www.prometric.com/arizona/insurance
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Arizona Licensing Requirements

Types of Licenses

Arizona Revised Statutes ("ARS") and Arizona Administrative Code ("AAC") set forth the requirements for licensees, insurers and insurance products in the State of Arizona. The Arizona legislature may amend the statutes and the Department of Insurance may promulgate changes to administrative code or policies as necessary. Licensees must remain aware of changes in law, code and Department policies that affect their activities.
· For ARS, select "Arizona Revised Statutes" from the "Legislative Council" menu
option on the Arizona State Legislature website at www.azleg.gov.
· For AAC, select "Administrative Code" from the "Rules" menu option on the Arizona
Secretary of State website at www.azsos.gov.
· To receive Department regulatory bulletins and press releases, register online at
http://www.insurance.az.gov/mailinglists.html.
The Department grants licenses specifying one or more lines of license authority. Each license is only valid for the lines of license authority shown on the license.
Exam requirements do not apply to business entity licenses and they do not apply to most nonresidents. Most residents and some nonresident adjusters must complete exams as shown in the following table. Obtain additional license requirements from the Producer page of the Insurance Licensing Section website (https://insurance.az.gov/producers).

License Line
Life Insurance Accident and Health or Sickness Life, Accident and Health or Sickness Variable Life and Variable Annuity Products Property and Casualty Property Casualty Personal Lines Travel Accident Ticket or Baggage Insurance (See note to right)

Exam Series 13-31 13-32 13-33
None
13-34 13-42 13-43 13-44 --

Fingerprint
Yes* Yes* Yes*
Yes*
Yes* Yes* Yes* Yes*
--

Surplus Lines Broker

13-41

Mexican Insurance Surplus Lines Broker (per ARS § 20-411.01)

None

Yes* Yes*

Background Check Yes Yes Yes

Notes

Yes

Must hold life producer authority.

Yes

Yes

Yes

Yes

--

Effective July 24, 2014, this

license is no longer available for

individuals and has been

replaced with a limited lines

travel insurance producer

business entity license

Yes

Must also hold property producer

or casualty producer authority.

Yes

Must have an office in Arizona

and hold property producer or

casualty producer authority.

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License Line
Adjuster (including portable electronics) (per ARS § 20-321.01)

Exam Series 13-36

Fingerprint Yes*

Bail Bond Agent (per ARS § 20-340.01)

13-35

Yes

Crop Risk Management Consultant (per ARS § 20-331.01)
Life Settlement Broker (per ARS § 20-3202)
Health Insurance Navigator or Health Insurance Certified Application Counselor

13-46 None
None
None

Yes* Yes*
Yes*
Yes*

Background Check Yes
Yes
Yes Yes
Yes
Yes

Notes
Residents, and nonresidents who do not hold a resident license in their resident state, must pass the exam. Must be AZ resident for at least one year to qualify for license. See application instructions for additional requirements.
Requires written authorization from political subdivision (city or county) employer. Must also hold or be applying for life producer authority. Form LLSB is required. Must meet federal training and registration requirements

* Fingerprints are not required if you are adding a line of authority to an existing license.
Consult the Producer page of the Insurance Licensing Section Website (https://insurance.az.gov/producers) for detailed application requirements.

Note: Long-term care Training & Continuing Education

Accident and health or sickness insurance producers (resident or nonresident) who wants to sell, solicit or negotiate long-term care insurance must first complete eight hours of Arizona-approved long-term care training (LTCT) and must complete four hours of Arizona-approved LTCT during each two-year period after July 1, 2009. A resident licensee can apply hours of LTCT toward satisfying Arizona's CE requirement. Nonresidents can satisfy the LTCT requirement if they completed substantially similar courses in another state.

Exception to the long-term care training requirement. A nonresident insurance producer can satisfy Arizona's LTCT requirement by satisfying a substantially similar LTCT requirement in the producer's home state. ARS §20-1691.12.

Note: Annuity Training & Continuing Education
Life insurance producers (resident or nonresident) who wants to sell, solicit or negotiate annuities must first complete four hours of Arizona-approved annuity training. A resident licensee can apply hours of annuity training toward satisfying Arizona's CE requirement if the course is also an Arizona approved CE course. Both residents and nonresidents can satisfy the annuity training requirement if they completed substantially similar courses in another state.

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Moving to Arizona

If you hold a resident insurance license in another state and are relocating to Arizona, you must submit a license application to the Department within 90 days after canceling the resident license in your former state to avoid having to pass an Arizona insurance exam. Your application must include a "clearance letter" issued by the insurance department in your former state. The letter must specify:
· the date your license from the former state was cancelled, expired or converted to
a nonresident status (which must be within 90 days of the date the Department receives your application);
· the line(s) of authority for which you were licensed in the other state (Arizona must
already issue these exact license types to residents of this state); and,
· that you were licensed in good standing at the time the license expired, cancelled,
or converted to a nonresident status.
Note: If your prior home state does not issue clearance letters, contact the
Licensing Section for the required procedures. Not all license lines of authority are eligible for transfer.

Nonresident Applicants
Fingerprint Requirement

If you are seeking a nonresident adjuster license and you are not licensed as a resident in your resident state, you will need to pass the AZ adjuster exam.
All nonresident applicants must either:
· apply online at http://www.nipr.com/; or · submit the appropriate NAIC Uniform Application Form.
Note: If you apply through NIPR or use a Uniform Application, carefully review
the checklist of application requirements and furnish all specified information.
If you are an Arizona resident, a nonresident relocating to Arizona, or a nonresident adjuster whose resident state does not license adjusters, you must submit fingerprints and Form L-FPV with your license application. You are not required to submit fingerprints if you are adding a line of authority to an existing Arizona insurance license. Form L-FPV is located in bulletin near the last page.
The Arizona Department of Public Safety (AZDPS) and the Federal Bureau of Investigations (FBI) use the fingerprints to conduct criminal history background checks. See the "Obtaining your license" section on page 18 for details on how to satisfy the fingerprint requirement.
Your fingerprints will be used to check the criminal history records of the FBI. If you have a criminal history record, the officials making a determination of your suitability for the job, license, or other benefit must provide you the opportunity to complete or challenge the accuracy of the information in the record. You should be afforded a reasonable amount of time to correct or complete the record (or decline to do so) before officials deny you the job, license, or other benefit based on information in the criminal history record.
The procedures for obtaining a change, correction, or updating of your FBI criminal history record are set forth in Title 28, Code of Federal Regulations (CFR), Sections 16.30 through 16.34. Information on how to review and challenge your FBI criminal history record can be found at https://www.fbi.gov/services/cjis/identity-history-summary-checks (Identity History Summary Checks) or by calling 304.625.5590.
To obtain a copy of your Arizona criminal history in order to review, update or correct the record, you can contact the Arizona Department of Public Safety

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Criminal History Records Unit at 602.223.2222 to obtain a fingerprint card and a Review and Challenge packet. Information on the review and challenge process can be found on the DPS website at https://www.azdps.gov/services/public/records/criminal Prometric offers a fingerprinting service at its Arizona test centers. Please refer to the Fingerprinting service under Apply for your license below.
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Fees

The following fees may apply to your license application:
· Examination fee charged by Prometric (either $44 or $56), depending upon the
exam you take ­ see the Exam Registration Form.
· Fingerprinting fee charged by Prometric ($20) or the amount charged by another
professional fingerprinting service that scans fingerprints using LiveScan technology equipment (fees vary). We recommend you do not schedule your fingerprint appointment until you have passed your licensing exam. You will not be fingerprinted if you do not pass your exam, as all fees are nonrefundable.
· FBI fingerprint processing fee ($22, subject to change ­ see the Department's
website for the current fee) paid to the Department if you are required to submit fingerprints with your license application.
· License fee, paid to the Department with your license application, consisting of
one or more of the following: · $120 per license class other than surplus lines broker or life settlement
broker. License classes are Adjuster, Bail Bond, Insurance Producer, Portable Electronics Vendor, Rental Car Agent, Risk Management Consultant, Self Service Storage Agent and Temporary Producer.
· $1,000 for surplus lines broker license authority on a new license or added to an existing license that has a remaining term of two years or more;
· $500 for surplus lines broker authority added to an existing license with a remaining term of less than two years.
· $500 for life settlement broker license authority on a new license or added to an existing license that has a remaining term of two years or more;
· $250 for life settlement broker license authority added to an existing license that has a remaining term of less than two years;
Prometric accepts payment by MasterCard, Visa, American Express, money order, company check, and cashier's check. Personal checks and cash are not accepted. Prometric's fees are not refundable or transferable.
The Department accepts payment by credit card, check or money order. Cash is not accepted. If you apply online using a NIPR website, payment is accepted by credit card or electronic check. Please be aware that pursuant to ARS § 20-167, the Department cannot refund or prorate fees.
Note: Arizona license fees are subject to annual updates each July 1. The FBI
fingerprint-processing fee may change at any time. Obtain up-to-date fee information from the Insurance Licensing Section website at insurancelicensing@difi.az.gov, or by contacting the Insurance Licensing Section by email at insurancelicensing@difi.az.gov, or by phone at 602.364.4457 (or 877.660.0964).

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Scheduling YourExam

Exam Restriction
Register and Schedule

Exam Restrictions. It is unlawful to take an examination for a line of authority for which you already hold an Arizona insurance license. ARS § 20-284(G). Additionally, while ARS § 20-284(C) requires the Department of Insurance to make license examinations available to license applicants, the Department is not required to make examinations available to other persons. To promote security over exam questions, the Department has instructed Prometric to refuse to administer an examination to a person who is not an applicant for a license.

Note: You will be eligible to take the exam up to four attempts to pass an exam
for a line of authority within a one-year period. After the fourth unsuccessful attempt, you will be placed into a waiting period and not be able to retake the exam until the one-year waiting period is over. ARS § 20-284(H)

Prometric provides computerized testing through its multistate testing network. You may take the exam at any Prometric test center in the United States. Follow the instructions here to register and schedule an appointment.
Testing Accommodations. If you require an Americans with Disabilities Act (ADA) accommodation(s) or English as Second Language (ESL) additional time, see the "Testing Accommodations" Section below before scheduling your exam.

Online

Register and Schedule Online--it saves time and it's easy!

You can easily schedule your exam online at any time using our Internet Registration Service by going to:

1

www.prometric.com/arizona/insurance

2

Click on Schedule Your Test and follow the prompts.

By Fax or Mail
You may fax the completed Exam Registration Form found at the end of this handbook to Prometric to (877) 341-9469. You must also include the completed Credit Card Payment Form (Visa, MasterCard or American Express). The cardholder's signature must be on the Form.
OR
You may mail the completed Exam Registration Form and the appropriate exam fee to the address on the form. When registering by mail, you may pay the exam fee by Visa, MasterCard or American Express, company check, cashier's check or money order. Personal checks and cash are not accepted. If paying by credit card, you must also include the completed Credit Card Payment Form (Visa, MasterCard or American Express). The cardholder's signature must be on the Form.
By Phone
If you are unable to schedule online, you may schedule the examination by calling (800) 853-5448 between 8 a.m. and 9 p.m. (Eastern Time), Monday through
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Friday, and between 10 a.m. and 3 p.m. (Eastern Time), Saturday and Sunday. Please have your exam information and credit card information for payment available.

Reschedule and Cancellation
To reschedule your existing exam appointment, you must contact Prometric 48 hours prior to the exam appointment date in order to avoid a $40 reschedule fee. If you need to reschedule or confirm your appointment, please go to http://www.prometric.com/arizona/insurance .
If you cancel your appointment or fail to appear for your appointment, you will forfeit your examination fee(s). Exam registration fees are not refundable or transferable.
If Absent or Late for Your Appointment If you miss your appointment, or arrive late and are not allowed to test, you will forfeit your exam fee(s).
Holidays Testing generally does not occur on federal holidays. Additional state holidays may be observed in the state where your schedule the exam appointment.
Emergency Closings Severe weather or an emergency could require canceling scheduled exams. If this occurs, Prometric will attempt to contact you by phone; however, you may check for testing site closures by checking our website at https://www.prometric.com/en-us/pages/siteclosure.aspx or calling Prometric at (866) 370-3411. If the site is closed, the exam will be rescheduled without a rescheduling fee.
If a test center is open for testing and you choose not to appear for the appointment, you will forfeit the exam fees and must reschedule and pay another exam fee.

Testing Accommodations

ADA Accommodation. Reasonable testing accommodations are provided to allow candidates with documented disabilities recognized under the ADA an opportunity to demonstrate their skills and knowledge. Prometric makes every effort to provide reasonable testing accommodations that enable all test takers to take examinations.

If you require testing accommodations under the Americans with Disabilities Act (ADA), please complete and submit a Testing Accommodation Request Form online at https://www.prometric.com/en-us/for-test-takers/prepare-for-testday/pages/arrange-testing-accommodations.aspx, or contact Prometric at (888) 226-9406 to obtain an Accommodation Request Form.

Professional documentation of the disability must be submitted with the Accommodation Request Form to aid Prometric in determining the appropriate testing accommodations. Thirty days' advance notice is required for all testing arrangements. There is no additional charge for these accommodations.

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Test Centers

ESL Accommodation. All examinations are given in English. If English is not your primary language, you may qualify for additional time for the test by requesting an ESL Authorization from Prometric. To request an ESL authorization, please submit:
A personal letter requesting the authorization; and a letter from the English instructor or sponsoring company (on company letterhead), certifying that English is not your primary language.
Please fax documents to 800.347.9242 and allow three (3) days for processing. If your request is approved, Prometric may extend the time limit on your examination to time-and-one-half or 150% of the normal time limit. Prometric will inform you by mail whether your request for accommodation is approved. You should not schedule your exam until you have received the confirmation email. Exams scheduled before the ESL request has been approved will not include extra time.
You may take the exam at any Prometric test center in the United States.
Test center locations are subject to change. Be sure to verify the address of and directions to the test center before you leave for the exam. Go to http://www.prometric.com/arizona/insurance and click on "Check appointment availability" to confirm the address and get directions.
Test Centers most convenient in Arizona include:

Flagstaff, AZ
2615 North 4th St., # 8 Flagstaff, AZ 86004

AZ Test Centers
Tempe, AZ Papago Arroyo Business Ctr. 1275 West Washington St., # 110 Tempe, AZ 85281

Goodyear, AZ 13770 West Van Buren St., # 100 Goodyear, AZ 85338
Phoenix, AZ Camelwest Plaza 1951 West Camelback Rd., # 120 Phoenix, AZ 85015

Tucson, AZ
University of Arizona Testing Office #0403 220 W 6th Street Building B, Room B114 Tucson, AZ 85721
Yuma, AZ 1790 S 3rd Ave
Suite 2 Yuma, AZ 85364

Additional Test Centers Near Arizona

Las Vegas, NV
Valley View Business Ctr. 6625 South Valley View Blvd., # 414 Las Vegas, NV 89118

St. George, UT
Dixie State College SW Corner of Tabernacle Street & 1000 East St. George, UT 84770

Farmington, NM
San Juan College
4601 College Blvd Info Tech Bldg., Rm. 7120 Farmington, NM 87402

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Content Outlines Overview

Preparing for Your Exam
Being well prepared can help you pass the exam and save time and possibly money spent retaking it. This section offers:
· An overview of the exam content outlines. · Information about study materials. · An explanation of how to take a practice exam.
The license exam for each type of license consists of questions that test knowledge of topical areas listed in the content outline for that exam. An overview of each exam content outline appears at the end of this handbook.
Note: Do not schedule the exam until you are familiar with all subject areas in
the applicable content outline.

Study Materials

The Department of Insurance does not provide study materials, cannot recommend any supplier for study materials and does not evaluate the quality of any training course or study material. You are free to use the materials of your choice to prepare for the exam. Different publishers provide materials to assist you in preparing for insurance licensing exams. These materials take different approaches and you should choose one that meets your needs. A list of businesses that have advised the Department that they may provide training or study materials can be found at: https://insurance.az.gov/sites/default/files/documents/files/Study%20 Materials%2020161018.pdf
Neither the Office of the Commissioner of Insurance nor Prometric reviews or approves these study materials.
General recommendations. You may obtain recommendations for study materials and pre-licensing study courses from insurance companies, the company or agency you plan to work for, or local insurance and agents' associations.
Arizona statutes. The exam outlines contain a section relating to Arizona Revised Statutes ("ARS") and Arizona Administrative Code ("AAC"). In addition to general study material, you may wish to consult ARS Title 20 and AAC Title 20, Chapter 6.
You can also access Arizona statutes and insurance regulations at http://www.azleg.gov/arsDetail/?title=20 and the Arizona Secretary of State at https://www.azsos.gov/rules/arizona-administrative-code .

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Practice Exams

To take a practice exam, select or copy link below to your browser:
https://www.prometric.com/en-us/clients/insurance/Pages/practiceexam.aspx
While practice exams contain general, non-state specific insurance questions, they are created in the same format and use the same question types as the actual licensure exams. Practice exams are designed to help you become familiar with the computer-based testing process.
During the practice exam, you will get immediate feedback to correct and incorrect responses as well as overall feedback at the end of the session just as you would during the actual exam. Practice exams are available for:
· (LIPA) Life Insurance Producer/Agent Practice Exam in English only · (HIPA) Health Insurance Producer/Agent Practice Exam in English only · (PIPA) Property & Casualty Insurance Producer Practice Exam in English only There is no cost to take Prometric Practice Exams!

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Taking Your Exam

The Testing Process

Knowing what to expect when taking the exam may help you prepare for it. This section contains:
· An overview of the testing process. · Regulations that will be enforced at the testing center. · Information about the types of questions on the exam. · A guide to understanding the exam results. · Information about appeals.
The exam will be administered by computer; you are not required to have any computer experience or typing skills to take the exam.
Arrival. You should arrive at least 30 minutes before the scheduled exam appointment. This allows time for you to sign in and for staff to verify your identification and complete all security checks.
Identification Required. You must present a valid form of identification before taking the test. The identification document must:
· Be government-issued (e.g., driver's license, state-issued identification card,
passport, or military identification card).
· Contain both a current photo and signature (if not you must present two
identification cards: one with your photo and one with your signature).
· Exactly match the name used to register for the exam (including designations such
as "Jr." and "III").
Important Failure to provide appropriate identification at the time of the exam
is considered a missed appointment. As a result, you will be required to pay another full examination fee before making another appointment. If you cannot provide the identification listed above, contact Prometric before scheduling the appointment to arrange an alternative way to meet this requirement.

Test Center Regulations

Copyrighted Questions. All test questions are the property of Prometric LLC and are protected by copyright. Federal law provides severe civil and criminal penalties for the unauthorized reproduction, distribution, or exhibition of copyrighted materials.
To ensure that all candidates are tested under similar conditions, the following regulations and procedures will be enforced at each test center. Failure to follow any of these security procedures may result disqualification from taking an examination.
1 While in the test center, you will be continuously monitored by video. During your examination, you will also be monitored by physical walk-throughs and through an observation window. All testing sessions are video and audio recorded.
2 You must present valid (unexpired) and acceptable ID(s) in order to take your test. (See "Identification required" in the previous section).
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3 You will be scanned with a metal detector wand prior to every entry into the test room. If you refuse, you cannot test.
4 You will be required to raise your pants legs above your ankles, empty and turn all pockets inside-out and raise shirt sleeves above your wrists prior to every entry into the test room.
5 If you are wearing eyeglasses, you will be required to remove them for visual inspection to ensure they don't contain a recording device. Large jewelry items must be stored in your locker due to concerns over concealed recording devices.
6 You must sign the test center roster each time you leave the test room. You must also sign back in and show your ID to the Test Center Administrator (TCA) in order to re-enter the test room.
7 You are prohibited from communicating, publishing, reproducing, or transmitting any part of your test, in any form or by any means, verbal or written, for any purpose.
8 You must not talk to other candidates or refer to their screens, testing materials, or written notes in the test room.
9 You must not use written notes, published materials, or other testing aids. 10 You are allowed to bring soft ear plugs or center-supplied tissues into the
test room. 11 Any clothing or jewelry items allowed to be worn in the test room must
remain on your person at all times. Removed clothing or jewelry items must be stored in your locker. 12 You must not bring any personal/unauthorized items into the testing room. Such items include but are not limited to outerwear, hats, food, drinks, purses, briefcases, notebooks, pagers, watches, cellular telephones, recording devices, and photographic equipment. Weapons are not allowed at any Prometric test center. You will be asked to empty and turn your pockets inside out prior to every entry into the test room to confirm that you have no prohibited items. 13 You must return all materials issued to you by the test center administrator ("TCA") at the end of your test. 14 You are not allowed to use any electronic device or phone during breaks. 15 If you have a medical condition that may require you to access food or medicine during your exam session, you must store those items separately from other items you place in the test center locker. You must inform the TCA before you retrieve the food or medicine, and the TCA will observe you obtaining the item from the locker. You are not allowed to access any item other than food or medicine needed for a medical reason. 16 You must conduct yourself in a civil manner at all times when on the premises of the test center. Exhibiting abusive behavior towards the TCA or any other staff member of the test center may result in examination disqualification and criminal prosecution.
Note Failure to follow any of these security procedures may result in the
disqualification of the examination. Prometric reserves the right to audio and videotape any examination session.
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For more information on Prometric test center regulations, please visit: www.prometric.com/en-us/for-test-takers/prepare-for-testday/documents/TestCenterRegulations.pdf
Please note: Test center administrators are not allowed to answer any questions pertaining to the exam content. If you do not understand a question on the examination, you should answer the question to the best of your ability.

Question Types
Question Formats. Format 1-- Direct Question

The examination contains four-option multiple-choice questions. These questions are designed to be as clear and concise as possible while testing knowledge and comprehension of insurance concepts as well as the application of the insurance concepts. The design of the exam ensures that those who possess the required knowledge of the specific insurance line of authority being tested should perform well on the examination for which they prepared.
Three different multiple-choice formats are used. Each format is shown in the following examples. An asterisk (*) indicates the correct answer in each sample question.
Which one of the following is a type of health insurance policy designed to replace the wages of an insured that is unable to work due to an accident or sickness? * 1. Disability Income Insurance Policy
2. Employer-Sponsored Group Major Medical Policy 3. Hospital Expense Insurance Policy 4. Special Risk Policy

Format 2-- Incomplete Sentence

Benefits under workers' compensation insurance are payable: 1. For bodily injury that is accidental or intentional
* 2. Regardless of the liability of the employer 3. Unless safety rules are violated 4. Up to a maximum of 30 percent of weekly wages

Format 3--All of the following except

A life insurance policy may include provisions that do all of the following EXCEPT: 1. Restrict coverage if death is caused by suicide 2. Require evidence of insurability to reinstate coverage
* 3. Extend the contestable period beyond two years 4. Adjust proceeds if the insured's age is misstated on the application

Experimental Questions

The examination may include some experimental questions that will not be scored. If present, they are distributed throughout the examination and will not be identified as such. These are used to gather statistical information on the questions before they are added to the examination as scored items. These experimental questions will not be counted for or against you in the final examination score.
You will be helping us help future test takers by completing 5 experimental test questions in your exam. We plan to use the experimental questions on future exams based on your performance.
The questions will:
· be randomly distributed within your test
· will not be counted in your final score
· time spent on the question will not be deducted from your test time

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Your Exam Results
Sample Score Report

At the end of your exam, your score will be shown on the screen and you will receive a printed score report. The report shows your overall score and grade, including the numerical percentage of questions answered correctly and whether you passed or failed.
The report also displays the correct percentage in each major section of the exam, as defined by the exam content outline. These section scores are shown to guide you, or your employer and/or trainer, about areas requiring additional preparation for retesting if you do not pass the exam. Even after you pass, you may want to focus on these areas as you begin to provide insurance products and services to the public.
Score Report for Sample, Sarah A.

Arizona Producer's Life Examination

Number of Number

Questions Correct

Life Total Test Score

100

80

Insurance Regulation

5

4

General Insurance

7

5

Life Insurance Basics

20

17

Life Insurance Policies

18

14

Life Insurance Provisions,

Options and Riders

18

15

Annuities

14

11

Tax Considerations

12

9

Qualified Plans

6

5

Score: 80%

Grade: Pass

(A total score of 70 percent is required to pass)

Percent Correct 80% 80% 71% 85% 78%
83% 79% 75% 83%

Note that the section percentages will not average out to the total percentage score. That is because individual exam outline sections are allocated different numbers of questions on the exam. The total percentage score is computed by dividing the number of questions you answered correctly by the total number of questions in the exam. Adding the section percentages and dividing by the total number of sections do not compute the total score.
Prometric electronically notifies the Department of Insurance of exam results within 48 hours of passing the exam. Note that exam scores are confidential and will be revealed only to you and the Department.
Duplicate score report. You may call or write to Prometric to request a duplicate of your score report for a period of one year after an exam with no fee. Direct any questions or comments about your exam to Prometric.

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Appeals Process

Our goal is to provide a quality exam and a pleasant testing experience for every candidate. If you are dissatisfied with either and believe we can correct the problem, we would like to hear from you. We provide an opportunity for general comments at the end of your exam. Your comments will be reviewed by our personnel, but you will not receive a direct response.
If you would like to submit an appeal concerning examination content, registration, scheduling or test administration (testing site procedures, equipment, personnel, etc.), please submit an appeal by visiting http://www.prometric.com/contactus.
The Appeals Committee will review your concern and send you a written response within 20 business days of receipt.

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A R I Z O N A D E P A R T M E N T O F I N S U R A N C E
Apply for Your License

Submit Your Application

Once you have passed your license exam (if an exam is required), you must submit your license application along with any other required paperwork and your fee payment to the Insurance Licensing Section. The Section must receive all required application materials, including the correct nonrefundable license fees, within one year after you pass the exam. ARS § 20-284 (A).
NOTE: The Insurance Licensing Section no longer accepts documents by fax.
· You must submit license applications either (1) through the NIPR electronic licensing system (www.nipr.com) or (2) by mailing to the Insurance Licensing Section. NOTE: NIPR applications are prioritized for processing, and are processed faster than mailed paper applications.
· Fingerprints (if required) must be delivered with Form L-FPV to the Insurance Licensing Section. The form can be found at: https://insurance.az.gov/sites/default/files/documents/files/LFPV%20Fingerprint%20Verification%2020170601.pdf . Please follow the directions completely or your fingerprints may be rejected causing a delay in the application processing. Prometric offers the convenience of a fingerprinting service at our Arizona test centers only, if scheduled when you schedule your exam. Further information on this service can be found below.
· If you answer "Yes" to a background question on the application, submit your written statement accompanied by corresponding official court documents (printouts from a court's web site are not acceptable):
· as part of your NIPR electronic license application (using the Attachments Warehouse), or
· by e-mail to insurancelicensing@difi.az.gov, or · by mailing to the Insurance Licensing Section.
· Submit all other documents either by e-mail to insurancelicensing@difi.az.gov or by delivery to the Insurance Licensing Section.
Business Name
When conducting insurance business, Arizona law requires that you use your legal name unless you obtain permission from the Department to use another name. Access the L-193 "Certificate of Assumed Name" form on the Insurance Licensing Section website https://insurance.az.gov/producers/licensing-relatedforms to learn how to request permission to use an "assumed name" and how to protect the name by registering a "trade name."
Licensing Eligibility Requirement (Form L-152)
Arizona state agencies cannot issue a license to an individual unless the agency first receives a completed Form L-152 accompanied by a readable photocopy of a required form of identification. You may download Form L-152 from the Insurance Licensing Section Web site at https://insurance.az.gov/sites/default/files/documents/files/form_l152_20170809.pdf

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Arizona residents applying for an initial license and non-resident adjusters who reside in states that do not issue adjuster licenses must complete this form, attach a copy of a required identification and submit it with the license application. If you are applying online at a Prometric test center, you should bring the completed Form L-152 with you to the test center.
Fingerprint Service
If you want Prometric to scan your fingerprints immediately after you pass your exam, you must register for the fingerprinting processing service. We recommend you do not schedule your fingerprint appointment until you have passed your licensing exam. You will not be fingerprinted if you do not pass your exam, as all fees are non-refundable
Note In some cases, based on the content of your application or the type of
license for which you are applying, the NIPR application system may inform you that you need to provide additional information before the Department can process your application.
Department of Insurance Application Review Process
It is your responsibility to ensure that you have completed the license application and other supporting documents fully, properly and accurately. If your application is incomplete, the Department will return it to you, delaying the licensing decision. You will have 60 days from the deficiency date to cure any deficiency. After 60 days, the application will be withdrawn and the fees forfeited.
After receiving your application, the Department has up to 120 days to determine whether it contains all required information and is therefore "administratively complete," and up to an additional 60 days to review the substance of your application. These timeframes are the outer limits by which the Department must grant or deny a license application. The Department processes most license applications within 10 days. The Department is usually able to process applications submitted electronically faster than applications submitted on paper.
After reviewing your application, the Department will either issue or deny the license. If the Department denies your application, the Department will send you a notice that describes the denial reason and your appeal rights.
The Department may deny a license for any cause listed in ARS § 20-295. If your application contains inaccurate or untruthful responses, or material omissions, the Department may deny the license and prevent you from being licensed in the future. If the Department issues a license and later discovers that the application was incomplete or contained erroneous, untruthful or materially incomplete information, the Department may fine you or revoke your license.
License Expiration
When the Department issues an Arizona insurance license to someone who does not already hold a license, the license term is between three and four years and expires on the last day of the licensee's birth month. Future renewals will be a full four-year term from the previous expiration date, expiring on the last day of your birth month.
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Maintaining Your License

Insurance professionals are responsible for complying with Arizona insurance laws and rules, including but not limited to timely reporting changes of address and timely renewing insurance licenses.
NIPR: National Insurance Producer Registry
You can use the NIPR's website, at www.nipr.com to report changes of email, address and telephone information at no charge. In many cases, for a small additional fee, you can also use the NIPR website to renew an existing license.
License Renewal
An insurance professional may renew a license up to 90 days before the date the license expires. The licensee is solely responsible for renewing the license before its expiration. The Department may or may not remind the licensee of the need to renew a license.
If the license expires, the licensee must cease acting under the license. For up to one year after the expiration of the license, a person may apply for a "late renewal" by fulfilling the renewal requirements and adding a $100 late renewal fee to the license renewal fee.
You can either use NIPR (http://www.nipr.com/) to renew your license online, or download a renewal application from the Insurance Licensing Section website at https://insurance.az.gov/producers/licensing-related-forms and mail the completed renewal form to the Insurance Licensing Section.
More detailed information on license renewals can be found on the Department's website at: https://insurance.az.gov/producers/produceragentbroker/producer-agentbroker-license-renewal-individual
Insurance Continuing Education
The insurance continuing education requirements apply to all major line resident licensed Insurance Producers. Specific requirements can be found athttps://insurance.az.gov/producers/producer-agentbroker/produceragentbroker-continuing-education and by using our surveymonkey tool at https://www.surveymonkey.com/r/adoi_ce.
Insurance continuing education only applies to insurance producers. Continuing education is not required for a person to renew a license for insurance adjuster, bail bond agent, self-service storage agent, insurance exchange navigator or insurance exchange certified application counselor license.
Nonresidents do not have an insurance continuing education requirement. A nonresident would only be required to complete insurance continuing education if the resident state did not have a continuing education requirement (and all states do) or if the resident state required an Arizona resident to complete insurance continuing education (and no state does).
Individuals who only hold a limited-line credit or crop insurance producer license do not have an insurance continuing education requirement. A resident that holds a major line of authority may need to complete insurance continuing education.

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Long-term care training As of July 1, 2009, an accident and health or sickness insurance producer (resident or nonresident) who wants to sell, solicit or negotiate long-term care insurance must complete four hours of Arizona-approved long-term care training (LTCT) during each two-year period after July 1, 2009. A resident licensee can apply hours of LTCT toward satisfying Arizona's CE requirement. Nonresidents can satisfy the LTCT requirement if they completed substantially similar courses in another state. Exception to the long-term care training requirement. A nonresident insurance producer can satisfy Arizona's LTCT requirement by satisfying a substantially similar LTCT requirement in the producer's home state. ARS §20-1691.12.
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Exam Content Outlines

The following outlines give an overview of the content of each of the Arizona insurance examinations. Each examination will include questions on the subjects contained in the outline. The percentages indicate the relative weight assigned to each section of the examination.

For example, 10 percent means that 10 questions will be drawn on a 100-question exam and 15 will be drawn on a 150-question exam.
An outline that includes more descriptive subsections for your exam is available online at www.prometric.com/arizona/insurance.

Arizona Examination for Life Insurance Producer
Series 13-31
100 questions - 2-hour time limit
Effective August 3, 2020
1.0 Insurance Regulation 5% 1.1 Licensing
License application requirements (20-285)
Number of exam attempts 20-284(H)
Licensing eligibility/lawful presence (41-1080)
Types of licensees
Producers (20281(5), 286)
Nonresidents (20281(11))
Adjusters (20-321)
Life Settlement Broker (ARS 20-3202)
Business entities (20281(1), 285(D, E), 290(B))
Surplus lines brokers (20-407, 411)
Temporary (20-294)
Vending machines (20-293)
Lines of producer license authority (20-286, (A), 321, 331, 332, 411, 411.01, 1580, 1693.01, 2662)
Fingerprinting requirements (20142(E), 285(E), 286(C), 289(D))
Assumed business name (20-297)

Maintenance and duration
Expiration, surrender and renewal (20289)
Inactive license status during military service (20-289.01)
Change of personal contact information (20-286(C))
Change of business information (20286)(C))
Business information (20-286)(C))
Report of actions (20301)
Continuing education (20-2902, 2903)
Disciplinary actions
Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296)
Cease and desist order (20-292)
1.2 State regulation
Acts constituting insurance transaction (20-106, 282, 401.01)
Negotiate (20281(10))
Sell (20-281(14))
Solicit (20-281(15))
Payment of premiums (20-191)
Certificate of authority (20-217(A))
Identification of Producer (20-229)
Producer regulation

Sharing commissions (20-298)
Place of business and records (20-157, 290; AZ Const Art 14 s 16)
Unfair practices and frauds
Unfair trade practices (20-442)
Misrepresentation (20-443, 443.01, 447; Rule R20-6801(D))
False or deceptive advertising (20444)
Defamation of insurer (20-445)
Boycott, coercion or intimidation (20446)
False financial statements (20447)
Unfair discrimination (20-448)
Gender discrimination (Rule R20-6-207)
Rebating (20-449­ 451)
Prohibited inducements (20452)
Fees (20-465)
Unfair claims settlement practices (20-461; Rule R206-801)
Claims payment (20462)
Insurance fraud (20463, 466­466.04)

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Insurance information and privacy protection (202101­2122)
1.3 Federal regulation
Violent Crime Control and Law Enforcement Act (20-489; 18 USC 1033, 1034; 15 USC 61016108; ARS 44-1282)
Fair Credit Reporting Act (15 USC 1681­1681d)
Telemarketing Sales Rule (16 CFR 310; 15 USC 6101­6108; A.R.S. 441282)
CAN-SPAM Act of 2003 (15 USC 7701; 18 USC 1037)
Gramm-Leach-Bliley Act (20-2121; Public Law 106-102)
Terrorism Insurance Program (15 USC 6701; Public Law 107-297, 109-144, 110-160)
2.0 General Insurance 10% 2.1 Concepts
Insurance, definition of (20-103)
Risk management key terms
Risk
Exposure
Hazard
Peril
Loss
Methods of handling risk
Avoidance
Retention
Sharing
Reduction
Transfer
Elements of insurable risks
Adverse selection
Law of large numbers
Reinsurance
2.2 Insurers
Types of insurers
Mutual, stock, fraternal (20-702, 703)

Captive insurance insurers (20-1098)
Stock insurers
Mutual insurers
Fraternal benefit societies
Reciprocals (20-761,762)
Risk retention groups (20-2401(10), 15 USC SS 3901, 3902)
Lloyd's associations (20-1021)
Private versus government insurers
Authorized versus unauthorized insurers
Domestic, foreign and alien insurers (20-201, 203, 204)
Marketing (distribution) systems
2.3 Producers and general rules of agency
Insurer as principal
Producer/insurer relationship
Authority and powers of producers
Express
Implied
Apparent
2.4 Contracts
Elements of a legal contract
Offer and acceptance
Consideration
Competent parties
Legal purpose
Distinct characteristics of an insurance contract
Contract of adhesion
Personal contract
Aleatory Contract
Unilateral contract
Conditional contract
Legal interpretations affecting contracts
Ambiguities in a contract of adhesion

Reasonable expectations
Indemnity
Utmost good faith
Representations/misre presentations
Warranties
Concealment
Fraud Waiver and estoppel
3.0 Life Insurance Basics 24% 3.1 Insurable interest (20443.02, 20-1104, 1106, 1107)
3.2 Personal uses of life insurance
Survivor protection
Estate creation
Cash accumulation
Liquidity Estate conservation
Viatical and life settlements
3.3 Determining amount of personal life insurance
Human life value approach
Needs approach
Types of information gathered
Determining lumpsum needs
Planning for income needs
3.4 Business uses of life insurance
Buy-sell funding
Key person
Executive bonuses
3.5 Classes of life insurance policies
Group versus individual
Ordinary versus industrial (home service)
Permanent versus term
Participating versus nonparticipating
Fixed versus variable life insurance and annuities

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Regulation of variable products (SEC, FINRA and Arizona) (20-2604, 2606, 2633)
Qualifications of producers for the sale of variable products (20-2662)
3.6 Premiums
Factors in premium determination
Mortality
Interest
Expense
Premium concepts
Net single premium
Gross annual premium
Premium payment mode
3.7 Producer responsibilities
Solicitation and sales presentations, advertising requirements, and disclosures
General provisions (20-1241.03; Rule R20-6-202)
Policy summary (Rule R20-6-209(B)(8), (D))
Buyer's guide (201242.02, Rule R206-209(C), R20-6211 Appendix)
Life and Disability Insurance Guaranty Fund (20-443(6), 683)
Life insurance policy cost comparison methods (Rule R206-209(B)(6))
Replacement (201241­1241.09; Rule R20-6-212)
Field underwriting
Application procedures
Delivery
Policy review
Effective date of coverage
Premium collection

Statement of good health
3.8 Individual underwriting by the insurer
Information sources and regulation
Application
Producer report
Attending physician statement
Investigative consumer (inspection) report (20-2107)
Medical Information Bureau (MIB)
Medical examinations and lab tests including HIV (20448.01; Rule R20-61203, 1204; Bul 2003-5, 9)
Selection criteria
General selection criteria
Discrimination on basis of blindness prohibited (Rule R20-6-211)
Genetic testing (20448(D), (E), 448.02)
Classification of risks
Preferred
Standard
Substandard
Certificate of Authority (20-206(A))
4.0 Life Insurance Policies 23% 4.1 Term life insurance
Level term
Annual renewable term
Level premium term
Decreasing term
4.2 Whole life insurance
Continuous premium (straight life)
Limited payment
Single premium
4.3 Flexible premium policies
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Adjustable life
Universal life
Variable universal
Index whole life
4.4 Specialized policies
Joint life (first-to-die)
Juvenile life
Survivorship life
4.5 Group life insurance
Individual certificates (201265)
Characteristics of group plans
Group eligibility (20-1251)
Types of plan sponsors
Group underwriting requirements
Conversion to individual policy (20-1266­1269)
4.6 Credit life insurance (individual versus group)
5.0 Life Insurance Policy Provisions, Options and Riders 23% 5.1 Standard provisions
Ownership
Assignment (20-1122, 1277)
Limitation of liability (201226)
Entire contract (20-1205)
Modifications
Right to examine (free look) (Rule R20-6209(C)(1))
Payment of premiums (20-1214)
Grace period (20-1203, 1259)
Reinstatement (20-1213)
Incontestability (20-1204, 1217, 1260)
Misstatement of age (201206, 1263)
Policy title (20-1216)
Policy settlements and proceeds (20-1228­ 1230)
Exclusions (20-1226)

Payment of claims (201215)
5.2 Beneficiaries Designation options Individuals Classes Estates Minors Trusts Succession Revocable versus irrevocable Primary and contingent Common disaster clause
5.3 Settlement options Cash payment Interest only Fixed-period installments Fixed-amount installments Life income Single life Joint and survivor
5.4 Nonforfeiture options (20-1231)
Cash surrender value Extended term Reduced paid-up insurance 5.5 Policy loan and
withdrawal options (20-1209, 1209.01) Cash loans Automatic premium loans Withdrawals or partial surrenders 5.6 Dividend options Cash payment Reduction of premium payments Accumulation at interest One-year term option Paid-up additions Paid-up insurance 5.7 Disability riders Waiver of premium Waiver of cost of insurance Disability income benefit

Payor benefit life/disability (juvenile insurance)
5.8 Accelerated (living) benefit provision/rider (20-1136)
Conditions for payment
Effect on death benefit
Long-term care
Conditions for payment
Effect on death benefit
5.9 Riders covering additional insureds (20-1257)
Spouse/other-insured term rider
Children's term rider
Family term rider
5.10 Riders affecting the death benefit amount
Accidental death
Guaranteed insurability
Cost of living
Return of premium
6.0 Annuities 10% 6.1 Standard provisions
Grace period (20-1219, 1271)
Incontestability (20-1220)
Entire contract (20-1221, 1272)
Misstatement of age (201222, 1227, 1273)
Reinstatement (20-1224, 1227)
Free look (20-1233)
Disclosure (20-1242, 1242.01­1242.05)
6.2 Annuity principles and concepts
Accumulation period versus annuity period
Owner, annuitant and beneficiary
Insurance aspects of annuities
6.3 Immediate versus deferred annuities
Single premium immediate annuities (SPIAs)
25

Deferred annuities
Premium payment options
Nonforfeiture (201232, 1274)
Surrender charges
Death benefits
6.4 Annuity (benefit) payment options
Life contingency options
Pure life versus life with guaranteed minimum
Single life versus multiple life
Annuities certain (types)
6.5 Annuity
Fixed annuities
General account assets
Interest rate guarantees (minimum versus current)
Level benefit payment amount
Equity indexed annuities
6.6 Uses of annuities
Market value adjusted annuities
Lump-sum settlements
Qualified retirement plans
Group versus individual annuities
Personal uses
Individual retirement plans
Tax-deferred growth
Retirement income
Education funds
Compatibility and suitability (20-1243, 1243.01­1243.06)
7.0 Federal Tax Considerations for Life Insurance and Annuities 5% 7.1 Taxation of personal life insurance
Amounts available to policyowner

Cash value increases Dividends Policy loans Surrenders Amounts received by beneficiary General rule and
exceptions Settlement options Values included in insured's estate 7.2 Modified endowment contracts (MECs) Modified endowment versus life insurance Seven-pay test Distributions 7.3 Taxation of nonqualified annuities Individually-owned Accumulation phase
(tax issues related to withdrawals) Annuity phase and the exclusion ratio Distributions at death Corporate-owned 7.4 Section 1035 exchanges
Arizona Examination for Accident and Health or Sickness Insurance Producer
Series 13-32
100 questions 2-hour time limit Effective August 3, 2020
1.0 Insurance Regulation 5% 1.1 Licensing License application requirements (20-285) Number of exam attempts (20-284)(H)) Licensing eligibility/lawful presence (41-1080) Types of licensees Producers (20281(5), 286) Nonresidents (20281(11))

Adjusters (20-321)
Life Settlement Broker (ARS 20-3202)
Business entities (20281(1), 285(D, E), 290(B))
Surplus lines brokers (20-407, 411)
Temporary (20-294)
Vending machines (20-293)
Lines of producer license authority (20-286, (A), 321 331, 332, 411, 411.01, 1580, 1693.01,2662)
Fingerprinting requirements (20142(E), 285(E), 286(C), 289(D))
Assumed business name (20-297)
Maintenance and duration
Expiration, surrender and renewal (20289)
Inactive license status during military service (20-289.01)
Change of contact information (20286(C))
Change of business information (20286)(C))
Report of actions (20301)
Continuing education (20-2902, 2903)
Disciplinary actions
Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296)
Cease and desist order (20-292)
1.2 State regulation
Acts constituting insurance transaction (20-106, 282, 401.01)
Negotiate (20281(10))
Sell (20-281(14))
Solicit (20-281(15))
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Payment of premiums (20-191)
Certificate of authority (20-217(A))
Identification of Producer (20-229)
Producer regulation
Sharing commissions (20-298)
Place of business and records (20-157, 290; AZ Const Art 14 s 16)
Unfair practices and frauds
Unfair trade practices (20-442)
Misrepresentation (20-443, 443.01, 447; Rule R20-6801(D))
False or deceptive advertising (20444)
Defamation of insurer (20-445)
Boycott, coercion or intimidation (20446)
False financial statements (20447)
Unfair discrimination (20-448)
Gender discrimination (Rule R20-6-207)
Rebating (20-449­ 451)
Prohibited inducements (20452)
Fees (20-465)
Unfair claims settlement practices (20-461; Rule R206-801)
Claims payment (20462)
Insurance fraud (20463, 466­466.04)
Insurance information and privacy protection (202101­2122)
1.3 Federal regulation
Affordable Care Act (45 CFR 144, 146, 147, 148, 150, 154, 155, 156, 157,

164 and 170; and 42 USC 300gg-300gg-91)
Mental Health Parity and Addiction Equity Act (45 CFR Parts 146 and 147)
Genetic Information Nondiscrimination Act (45 CFR Parts 144, 146, and 148; 45 CFR Parts 160 and 164; and 29 CFR Part 2590)
Violent Crime Control and Law Enforcement Act (20-489; 18 USC 1033, 1034; 15 USC 61016108; ARS 44-1282)
Fair Credit Reporting Act (15 USC 1681­1681d)
Telemarketing Sales Rule (16 CFR 310; 15 USC 6101­6108; A.R.S. 441282)
CAN-SPAM Act of 2003 (15 USC 7701; 18 USC 1037)
Gramm-Leach-Bliley Act (20-2121; Public Law 106-102)
2.0 General Insurance 7% 2.1 Concepts
Insurance, definition of (20-103)
Risk management key terms
Risk
Exposure
Hazard
Peril
Loss
Methods of handling risk
Avoidance
Retention
Sharing
Reduction
Transfer
Managed care
Utilization review
Elements of insurable risks
Adverse selection
Law of large numbers
Reinsurance

2.2 Insurers
Types of insurers
Mutual, stock, fraternal (20-702, 703)
Captive insurance companies (201098)
Stock companies
Mutual companies
Fraternal benefit societies
Reciprocals (20-761,762)
Risk retention groups (20-2401(10), 15 USC SS 3901, 3902)
Lloyd's associations (20-1021)
Hospital, medical, dental, optometric service corporations (ARS 20-821 et seq)
Health care service organizations (ARS 20-1051 et seq; AAC R20-6-1901 et seq; AAC R20-6-405)
Private versus government insurers
Authorized versus unauthorized insurers
Domestic, foreign and alien insurers (20-201, 203, 204)
Marketing (distribution) systems
2.3 Producers and general rules of agency
Insurer as principal
Producer/insurer relationship
Authority and powers of producers
Express
Implied
Apparent
2.4 Contracts
Elements of a legal contract
Offer and acceptance
Consideration
Competent parties
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Legal purpose Distinct characteristics of
an insurance contract Contract of adhesion Personal contract Aleatory contract Unilateral contract Conditional contract
Legal interpretations affecting contracts Ambiguities in a contract of adhesion Reasonable expectations Indemnity Utmost good faith Representations/misre presentations Warranties Concealment Fraud Waiver and estoppel
3.0 Disability (Accident and Health) Insurance Basics 18% 3.1 Definitions of perils Accidental injury Sickness 3.2 Principal types of losses and benefits Loss of income from disability Medical expense Dental expense Long-term care expense Prescriptions 3.3 Classes of health insurance policies Individual versus group Small group versus large group Qualified health plan Marketplace plans Stand-alone dental plans Private versus government Limited versus comprehensive

3.4 Limited policies
Limited perils and amounts
Required notice to insured
Types of limited policies
Excepted benefits (45 CFR 148.220)
Accident-only
Specified (dread) disease
Hospital indemnity (income)
Credit disability
Blanket insurance (teams, passengers, other)
Prescription drugs
Vision care
3.5 Common exclusions from coverage
3.6 Producer responsibilities in individual health insurance
Privacy and security (ARS 20-2101 et seq; AND 45 CFR 155.260)
Marketing requirements
Insurable interest (20-1104. 20-1106, 20-1107, 20-1370)
Advertising Requirements (R206201,201.01,201.02)
Sales presentations
Summary of benefits and coverage (45 CFR Part 147)
Life and Disability Insurance Guaranty Fund (20-683)
Field underwriting
Insurer underwriting
Nature and purpose
Disclosure of information about individuals
Application procedures
Requirements at delivery of policy
Common situations for errors/omissions

3.7 Individual underwriting by the insurer
Underwriting criteria
Guaranteed availability (45 CFR 147.104)
Sources of underwriting information
Application
Producer report
Medical Information Bureau (MIB)
Medical examinations and lab tests (including HIV consent) (20448.01; Rule R20-61203, 1204)(Bul 2003-5, 9)
Policy Delivery
Effective date of coverage
QHP rating factors (45 CFR 147.102)
Unfair discrimination (20448)
Genetic testing (20448(D), (E), 448.02)
Classification of risks
Preferred
Standard
Substandard
Certificate of Authority (20-206(A))
3.8 Considerations in replacing health insurance
Guaranteed renewable (ARS 20-1380; 45 CFR 148.122 AND 146.152)
Termination of coverage (45 CFR 155.430)
Special enrollment period/late enrollment (45 CFR 155.420; ARS 20-2301)
Open enrollment (45 CFR 155.410)
Grace period (ARS 201347; 45 CFR 156.270)
Reinstatement (ARS 201348; 45 CFR 155.430)
Discontinuation (45 CFR 147.106)
Pre-existing conditions
28

Benefits, limitations and exclusions
Underwriting requirements
Producer's liability for errors and omissions
Life and disability insurance Guaranty Fund (20-283(A))
4.0 Individual Disability (Accident and Health) Insurance Policy General Provisions 13% 4.1 Uniform required provisions
Essential health benefits (45 CFR 156)
Entire contract; changes (20-1345)
Time limit on certain defenses (20-1346)
Grace period (20-1347)
Reinstatement (20-1348)
Claim procedures (20.1349­53)
Physical examinations and autopsy (20-1354)
Legal actions (20-1355)
Change of beneficiary (201356)
Time of payment claims (20-1352)
Payment of claims (201353)
Notice of claim
Proof of Loss (20-1351)
Physical examinations and autopsy (20-1354)
4.2 Uniform optional provisions
Change of occupation (201358)
Misstatement of age (201359, 1373)
Other insurance in this insurer (20-1360)
Insurance with other insurers
Expense-incurred basis (20-1361)
Other benefits (201362)

Unpaid premium (201364)
Cancellation (20-1365)
Conformity with state statutes (20-1366)
Illegal occupation (201367)
Intoxicants and narcotics (20-1368)
4.3 Other general provisions
Right to examine (free look) (Rule R20-6-501)
Insuring clause
Consideration clause
Renewability clause (201380)
Noncancelable
Guaranteed renewable
Conditionally renewable
Renewable at option of insurer
Nonrenewable (cancelable, term)
Guaranteed issue (201379)
5.0 Disability Income and Related Insurance 7% 5.1 Qualifying for disability benefits
Inability to perform duties
Own occupation
Any occupation
Indemnity
Pure loss of income (income replacement contracts)
Presumptive disability
Requirement to be under physician care
5.2 Individual disability income insurance
Basic total disability plan
Income benefits (monthly indemnity)
Elimination and benefit periods
Waiver of premium feature

Probationary period
Coordination with social insurance and workers compensation benefits
Additional monthly benefit (AMB)
Social insurance supplement (SIS)
Occupational versus nonoccupational coverage
At-work benefits
Partial disability benefit
Permanent disability benefit
Residual disability benefit
Other provisions affecting income benefits
Cost of living adjustment (COLA) rider
Future increase option (FIO) rider
Relation of earnings to insurance (201363)
Other cash benefits
Accidental death and dismemberment
Rehabilitation benefit
Medical reimbursement benefit (nondisabling injury)
Refund provisions
Return of premium
Cash surrender value
Exclusions
5.3 Unique aspects of individual disability underwriting
Occupational considerations
Benefit limits
Policy issuance alternatives
5.4 Group disability income insurance
Group versus individual plans
Short-term disability (STD)
Long-term disability (LTD)
29

5.5 Business disability insurance
Key employee (partner) disability income
Business overhead expense policy
Disability buy-sell policy
5.6 Social Security disability
Qualification for disability benefits
Definition of disability
Waiting period
Disability income benefits
5.7 Workers compensation
Eligibility (RL 23-901, 23901.01)
Benefits (RL 23-1021)
6.0 Medical Plans 13% 6.1 Medical plan concepts
Expense reimbursement/indemnit y versus prepaid basis
Specified coverage versus comprehensive coverage
Minimum essential coverage (45 CFR 156.600, 602, 604; 45 CFR §155.605)
Schedule of benefits
In- and out-of-network benefits
On- and off-marketplace plans
Grandfathered (45 CFR 147.140) versus transition plan
Unusual/reasonable/custo mary charges
Broad versus narrow provider network
Insureds versus subscribers/participants
Prepaid
Essential health benefits coverage versus excepted benefits
Dependents
Healthcare appeal rights
Role of the federal health insurance marketplace (healthcare.gov)

6.2 Types of providers and plans
Health care services organizations (HCSOs)pre-paid health care
General characteristics
Essential health benefits
Basic health care services (AAC R206-1904)
Preventive care services
Primary care physician versus referral (specialty) physician
Emergency care
Hospital services
Other basic services
In-network providers
Network exception (AAC R20-6-1910)
Cost-share
Maximum out of pocket (MOOP)
Preferred provider organizations (PPOs)
General characteristics
Essential health benefits
Reimbursement methodology
Cost-share differences in- versus out-ofnetwork services
Maximum out of pocket (MOOP)
Provider network
Types of parties to the provider contract
Point-of-service (POS) plans-Combination HCSO & PPO policies
Nature and purpose
In- and Out-ofnetwork provider access
Cost-share differences in- versus out-ofnetwork services
PCP referral (gatekeeper PPO)
Indemnity plan features

6.3 Cost containment in health care delivery
Cost-saving services
Open enrollment period
Preventive care
Hospital outpatient benefits
Alternatives to hospital services
Preauthorization 2nd opinion
Utilization management
Prospective review
Concurrent review
6.4 Arizona eligibility requirements (individual and group)
Dependent child age limit (20-1342(A)(3))
Newborn child coverage (20-1342(A)(3))
Coverage of adopted children (201342(A)(3),(11),(12), 2321, 20-1057)
Child coverage; noncustodial parents (201692.03)
Physically or mentally handicapped dependent coverage (20-1342.01, 1407)
Rating criteria health insurance policies (45 CFR 147.102)
6.5 Marketing Considerations
Advertising (Rule R20-6201)
Regulatory jurisdiction/place of delivery
Disclosure form (20-2323)
Summary of benefits & coverages
7.0 Group Accident and Health Insurance 11% 7.1 Characteristics of group insurance
Small group versus large group (ARS 20-2301 et seq; 45 CFR)
30

Group contract
Certificate of coverage (20-1402(A)(2))
Experience rating versus community rating
7.2 Types of eligible groups (20-1401)
Employment-related groups
Individual employer groups
Multiple-Employer Trusts (METs) or Welfare Arrangements (MEWAs)
Associations (alumni, professional, other)
Customer groups (depositors, creditordebtor, other)
7.3 Marketing considerations
Advertising (Rule R20-6201)
Regulatory jurisdiction/place of delivery
Summary of benefits & coverages
7.4 Large group disability (accident and health) insurance
Insurer underwriting criteria
Characteristics of group
Plan design factors
Eligibility for coverage
Annual open enrollment
Employee eligibility
Dependent eligibility
Coordination of benefits provision (Rule R20-6214)
Change of insurance companies or loss of coverage
Coinsurance and deductible carryover
No-loss no-gain
Events that terminate coverage

Extension of benefits
Continuation of group coverage under COBRA
Conversion (20-1408)
Continuation of individual coverage (20-1377)
Reinstatement of coverage for military personnel (201408(L-N))
Special enrollment period (45 CFR 155.420)
Open enrollment
Loss of minimum essential coverage
7.5 Small group disability (accident and health) insurance
Definition of small employer (202301(A)(21))
Accountable Health Plan (20-2301(A)(1))
Health benefits plan (202301(A)(11))
Small employer (202301(A) (11))
Late Enrollee (202301(A)(15))
Availability and eligibility (20-2304, 2307, 2308)
Prohibited marketing practices (20-2313)
Renewability (20-2309)
Guaranteed issue (202304)
Limitations on exclusion from coverage
Pre-existing conditions (20-2301(A)(20), 2310(B))
Credit for prior coverage (20-2310)
Small business health insurance (20-2341)
Notification of small employer of reduction in premium tax (202304(J))
Geographic rating areas and other rating factors (ARS 20-238; 20-2311; 45 CFR 147.102)

7.6 Privacy (20-1379)
Insurance information & privacy protection (ARS 20-2101 et seq)
Customer information security (AAC R20-62101 - 2104)
HIPAA privacy protections
Electronic notices (ARS 20-239; ARS 44-7001 7052)
Affordable Care Act privacy protections (45 CFR 155.260)
8.0 Dental Insurance 5% 8.1 Types of dental treatment
Diagnostic and preventive Restorative
Oral surgery
Endodontics
Periodontics
Prosthodontics
Orthodontics
8.2 Indemnity plans/PPO Dental Plans
Stand-Alone Dental Plans (SADP) (45 CFR 155.1065)
Essential pediatric dental benefit
Role of the federal health insurance marketplace on dental insurance
Group versus individual dental insurance
Choice of providers Scheduled versus
nonscheduled plans
Benefit categories
Diagnostic/preventive services
Basic services Major services
Deductibles and coinsurance
Combination plans
Exclusions
Limitations
31

Predetermination of benefits
8.3 Prepaid dental plans (R1801), (ARS 20-2001)
Characteristics
Basic services (R20-61806)
Exclusions
Limitations
9.0 Insurance for Senior Citizens and Special Needs Individuals 16% 9.1 Medicare
Nature, financing and administration
Part A -- Hospital Insurance
Individual eligibility requirements
Enrollment
Coverages and costsharing amounts
Part B -- Medical Insurance
Individual eligibility requirements
Enrollment
Coverages and costsharing amounts
Exclusions
Claims terminology and other key terms
Part C -- Medicare Advantage
Part D -- Prescription drug insurance
Late enrollment penalty
Medicare savings programs (QMB, SLMB)
Medicare marketing restrictions
9.2 Medicare supplements (Rule R20-6-1101)
Purpose
Open enrollment
Rating of supplemental plans
Standardized Medicare supplement plans
Core benefits

Additional benefits
Arizona regulations and required provisions
Standards for marketing
Advertising
Appropriateness of recommended purchase and excessive insurance
Guide to health insurance
Outline of coverage
Right to return
Replacement
Minimum benefit standards
Required disclosure provisions
Permitted compensation arrangements
Renewability and cancellation
Continuation and conversion requirements
Notice of change
Medicare select
9.3 Other options for individuals with Medicare
Employer group health plans
Disabled employees
Employees with kidney failure
Individuals age 65 and older
Arizona Health Care Cost Containment System (AHCCCS)
Eligibility (RL 362901(6), 2901.03, .05)
Benefits (RL 362907)
9.4 Long-term care (LTC) insurance
Required communications to LTC applicants
Outline of Coverage (ARS 20-1691.06; Rule R20-6-1022)

Shopper's Guide (Rule R20-6-1023)
Personal Worksheet (Rule R20-6-1018 and Appendix A)
Rating Practices (Rule R20-6-1008(B1-6), (E) and (F))
Eligibility for benefits
Levels of care
Skilled care
Intermediate care
Custodial care
Home health care (Rule R20-61004(I))
Adult day care
Respite care
Benefit periods (201691.03(C))
Benefit amounts
Optional benefits
Guarantee of insurability
Return of premium
Qualified LTC plans
Exclusions (Rule R20-61004(B)(1)­(4))
Underwriting considerations
Arizona regulations and required provisions
Long term care partnership program (ADOI Bulletin 2009-05)
Standards for marketing (Rule R20-6-1017)
Right to return (free look) (20-1691.07)
Replacement (Rule R20-6-1004(F), 1010)
Prohibited policy provisions (201691.05; Rule R206-1004(B), 1011)
Renewal considerations (Rule R20-61004(A))
Cancellation (201691.03(A))
32

Unintentional lapse (Rule R20-6-1005)
Suitability (Rule R206-1018)
Premium increase (Rule R20-61004(G), 1008)
Continuation of benefits (Rule R206-1004(E))
Inflation protection (Rule R20-6-1006)
Required disclosure provisions (Rule R20-6-1007)
Pre-existing conditions (20-1691(12), 1691.03(G))
Contestable periods (20-1691.10)
Nonforfeiture (Rule R20-6-1019)
Nonforfeiture benefit triggers (Rule R206-1020)
Producer long term care partnership training (201691.12)
Arizona Examination for Life, Accident and Health or Sickness Insurance Producer
Series 13-33
150 questions ­ 2.5 hour time limit
Effective August 3, 2020
1.0 Insurance Regulation 4% 1.1 Licensing
License application requirements (20-285)
Number of exam attempts (20-284)(H)
Licensing eligibility/lawful presence (41-1080)
Types of licensees
Producers (20281(5), 286)

Nonresidents (20281(11))
Adjusters (20-321)
Life Settlement Broker (ARS 20-3202)
Business entities (20281(1), 285(D, E), 290(B))
Surplus lines brokers (20-407, 411)
Temporary (20-294)
Vending machines (20-293)
Lines of producer license authority (20-286, (A), 321 331, 332, 411, 411.01, 1580, 1693.01,2662)
Fingerprinting requirements (20142(E), 285(E), 286(C), 289(D))
Assumed business name (20-297)
Maintenance and duration
Expiration, surrender and renewal (20289)
Inactive license status during military service (20-289.01)
Change of personal contact information (20-286(C))
Change of business information (20286)(C))
Report of actions (20301)
Continuing education (20-2902, 2903)
Disciplinary actions
Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296)
Cease and desist order (20-292)
1.2 State regulation
Acts constituting insurance transaction (20-106, 282, 401.01)
Negotiate (20281(10))
Sell (20-281(14))

Solicit (20-281(15))
Payment of premiums (20-191)
Certificate of authority (20-217(A))
Producer regulation
Sharing commissions (20-298)
Place of business and records (20-157, 290; AZ Const Art 14 s 16)
Unfair practices and frauds
Unfair trade practices (20-442)
Misrepresentation (20-443, 443.01, 447; Rule R20-6801(D))
False or deceptive advertising (20444)
Defamation of insurer (20-445)
Boycott, coercion or intimidation (20446)
False financial statements (20447)
Unfair discrimination (20-448)
Gender discrimination (Rule R20-6-207)
Rebating (20-449­ 451)
Prohibited inducements (20452)
Fees (20-465)
Unfair claims settlement practices (20-461; Rule R206-801)
Claims payment (20462)
Insurance fraud (20463, 466­466.04)
Insurance information and privacy protection (202101­2122)
1.3 Federal regulation
Affordable Care Act (45 CFR 144, 146, 147, 148, 150, 154, 155, 156, 157,
33

164 and 170; and 42 USC 300gg-300gg-91)
Mental Health Parity and Addiction Equity Act (45 CFR Parts 146 and 147)
Genetic Information Nondiscrimination Act (45 CFR Parts 144, 146, and 148; 45 CFR Parts 160 and 164; and 29 CFR Part 2590)
Violent Crime Control and Law Enforcement Act (20-489; 18 USC 1033, 1034; 15 USC 61016108; ARS 44-1282)
Fair Credit Reporting Act (15 USC 1681­1681d)
Telemarketing Sales Rule (16 CFR 310; 15 USC 6101­6108; A.R.S. 441282)
CAN-SPAM Act of 2003 (15 USC 7701; 18 USC 1037)
Gramm-Leach-Bliley Act (20-2121; Public Law 106-102)
2.0 General Insurance 6% 2.1 Concepts
Insurance, definition of (20-103)
Risk management key terms
Risk
Exposure
Hazard
Peril
Loss
Methods of handling risk
Avoidance
Retention
Sharing
Reduction
Transfer
Managed care
Utilization review
Elements of insurable risks
Adverse selection
Law of large numbers
Reinsurance

2.2 Insurers
Types of insurers
Mutual, stock, fraternal (20-702, 703)
Captive insurance companies (201098)
Stock companies
Mutual companies
Fraternal benefit societies
Reciprocals (20-761,762)
Risk retention groups (20-2401(10), 15 USC SS 3901, 3902)
Lloyd's associations (20-1021)
Hospital, medical, dental, optometric service corporations (ARS 20-821 et seq)
Health care service organizations (ARS 20-1051 et seq; AAC R20-6-1901 et seq; AAC R20-6-405)
Private versus government insurers
Authorized versus unauthorized insurers
Domestic, foreign and alien insurers (20-201, 203, 204)
Marketing (distribution) systems
2.3 Producers and general rules of agency
Insurer as principal
Producer/insurer relationship
Authority and powers of producers
Express
Implied
Apparent
2.4 Contracts
Elements of a legal contract
Offer and acceptance
Consideration
Competent parties

Legal purpose Distinct characteristics of
an insurance contract Contract of adhesion Personal contract Aleatory contract Unilateral contract Conditional contract
Legal interpretations affecting contracts Ambiguities in a contract of adhesion Reasonable expectations Indemnity Utmost good faith Representations/misre presentations Warranties Concealment Fraud Waiver and estoppel
3.0 Life Insurance Basics 12% 3.1 Insurable interest (20443.02, 20-1104, 1106, 1107) 3.2 Personal uses of life insurance Survivor protection Estate creation Cash accumulation Liquidity Estate conservation Viatical and life settlements 3.3 Determining amount of personal life insurance Human life value approach Needs approach Types of information gathered Determining lumpsum needs Planning for income needs 3.4 Business uses of life insurance Buy-sell funding
34

Key person
Executive bonuses
3.5 Classes of life insurance policies
Group versus individual
Ordinary versus industrial (home service)
Permanent versus term
Participating versus nonparticipating
Fixed versus variable life insurance and annuities
Regulation of variable products (SEC, FINRA and Arizona) (20-2604, 2606, 2633)
Qualifications of producers for the sale of variable products (20-2662)
3.6 Premiums
Factors in premium determination
Mortality
Interest
Expense
Premium concepts
Net single premium
Gross annual premium
Premium payment mode
3.7 Producer responsibilities
Solicitation, sales presentations, advertising requirements, and disclosures
General provisions (20-1241.03; Rule R20-6-202)
Policy summary (Rule R20-6-209(B)(8), (D))
Buyer's guide (201242.02, Rule R206-209(C), R20-6211 Appendix)
Life and Disability Insurance Guaranty Fund (20-443(6), 683)
Life insurance policy cost comparison

methods (Rule R206-209(B)(6))
Replacement (201241­1241.09; Rule R20-6-212)
Field underwriting
Application procedures
Delivery
Policy review
Effective date of coverage
Premium collection
Statement of good health
3.8 Individual underwriting by the insurer
Information sources and regulation
Application
Producer report
Attending physician statement
Investigative consumer (inspection) report (20-2107)
Medical Information Bureau (MIB)
Medical examinations and lab tests including HIV (20448.01; Rule R20-61203, 1204; Bul 2003-5, 9)
Selection criteria
General selection criteria
Discrimination on basis of blindness prohibited (Rule R20-6-211)
Genetic testing (20448(D), (E), 448.02)
Classification of risks
Preferred
Standard
Substandard
Certificate of Authority (20-206(A))
4.0 Life Insurance Policies 10% 4.1 Term life insurance

Level term Annual renewable term Level premium term
Decreasing term 4.2 Whole life insurance
Continuous premium (straight life)
Limited payment Single premium 4.3 Flexible premium
policies Adjustable life Universal life Variable universal Index whole life 4.4 Specialized policies Joint life (first-to-die) Juvenile life Survivorship life 4.5 Group life insurance Individual certificates (20-
1265) Characteristics of group
plans Group eligibility (20-1251) Types of plan sponsors Group underwriting
requirements Conversion to individual
policy (20-1266­1269) 4.6 Credit life insurance
(individual versus group)
5.0 Life Insurance Policy Provisions, Options and Riders 10%
5.1 Standard provisions Ownership Assignment (20-1122, 1277) Limitation of liability (201226) Entire contract (20-1205) Modifications Right to examine (free look) (Rule R20-6209(C)(1))
35

Payment of premiums (20-1214)
Grace period (20-1203, 1259)
Reinstatement (20-1213) Incontestability (20-1204,
1217, 1260) Misstatement of age (20-
1206, 1263) Policy title (20-1216) Policy settlements and
proceeds (20-1228­ 1230) Exclusions (20-1226) Payment of claims (201215) 5.2 Beneficiaries Designation options
Individuals Classes Estates Minors Trusts Succession Revocable versus irrevocable Primary and contingent Common disaster clause 5.3 Settlement options Cash payment Interest only Fixed-period installments Fixed-amount installments Life income Single life
Joint and survivor 5.4 Nonforfeiture options
(20-1231) Cash surrender value
Extended term Reduced paid-up insurance
5.5 Policy loan and withdrawal options (20-1209, 1209.01)
Cash loans Automatic premium loans Withdrawals or partial
surrenders

5.6 Dividend options Cash payment Reduction of premium payments Accumulation at interest One-year term option Paid-up additions Paid-up insurance
5.7 Disability riders Waiver of premium Waiver of cost of insurance Disability income benefit Payor benefit life/disability (juvenile insurance)
5.8 Accelerated (living) benefit provision/rider (20-1136)
Conditions for payment Effect on death benefit Long-term care
Conditions for payment
Effect on death benefit 5.9 Riders covering
additional insureds (20-1257) Spouse/other-insured term rider Children's term rider Family term rider 5.10 Riders affecting the death benefit amount Accidental death Guaranteed insurability Cost of living Return of premium
6.0 Annuities 9% 6.1 Standard provisions Grace period (20-1219, 1271) Incontestability (20-1220) Entire contract (20-1221, 1272) Misstatement of age (201222, 1227, 1273) Reinstatement (20-1224, 1227) Free look (20-1233)

Disclosure (20-1242, 1242.01­1242.05)
6.2 Annuity principles and concepts
Accumulation period versus annuity period
Owner, annuitant and beneficiary
Insurance aspects of annuities
6.3 Immediate versus deferred annuities
Single premium immediate annuities (SPIAs)
Deferred annuities
Premium payment options
Nonforfeiture (201232, 1274)
Surrender charges
Death benefits
6.4 Annuity (benefit) payment options
Life contingency options
Straight life versus life with guaranteed minimum
Single life versus multiple life
Annuities certain (types)
6.5 Annuity products
Fixed annuities
General account assets
Interest rate guarantees (minimum versus current)
Level benefit payment amount
Equity indexed annuities
Market value adjusted annuities
6.6 Uses of annuities
Lump-sum settlements
Qualified retirement plans
Group versus individual annuities
Personal uses
Individual retirement plans
Tax-deferred growth
36

Retirement income
Education funds
Compatibility and suitability (20-1243, 1243.01­1243.06)
7.0 Federal Tax Considerations for Life Insurance and Annuities 4% 7.1 Taxation of personal life insurance
Amounts available to policyowner
Cash value increases
Dividends
Policy loans
Surrenders
Amounts received by beneficiary
General rule and exceptions
Settlement options
Values included in insured's estate
7.2 Modified endowment contracts (MECs)
Modified endowment versus life insurance
Seven-pay test
Distributions
7.3 Taxation of nonqualified annuities
Individually-owned
Accumulation phase (tax issues related to withdrawals)
Annuity phase and the exclusion ratio
Distributions at death
Corporate-owned
7.4 Taxation of individual retirement plans
Traditional IRAs
Contributions and deductible amounts
Premature distributions (including taxation issues)
Annuity phase benefit payments

Values included in the annuitant's estate
Amounts received by beneficiary
Roth IRAs
Contributions and limits
Distributions
7.5 Rollovers and transfers (IRAs and qualified plans)
7.6 Section 1035 exchanges
8.0 Disability (Accident and Health) Insurance Basics 9% 8.1 Definitions of perils
Accidental injury
Sickness
8.2 Principal types of losses and benefits
Loss of income from disability
Medical expense
Dental expense
Long-term care expense
Prescriptions
8.3 Classes of health insurance policies
Individual versus group Small group versus large
group
Qualified health plan
Marketplace plans
Stand-alone dental plans Private versus government
Limited versus comprehensive
8.4 Limited policies
Limited perils and amounts
Required notice to insured
Types of limited policies Excepted benefits (45 CFR 148.220)
Accident-only Specified (dread)
disease
Hospital indemnity (income)

Credit disability
Blanket insurance (teams, passengers, other)
Prescription drugs
Vision care
8.5 Common exclusions from coverage
8.6 Producer responsibilities in individual health insurance
Privacy and security (ARS 20-2101 et seq; AND 45 CFR 155.260)
Marketing requirements
Insurable interest (20-1104. 20-1106, 20-1107, 20-1370)
Advertising Requirements (R206-201, 201.01, 201.02)
Sales presentations
Summary of benefits and coverage (45 CFR Part 147)
Life and Disability Insurance Guaranty Fund (20-683)
Field underwriting
Insurer underwriting
Nature and purpose
Disclosure of information about individuals
Application procedures
Requirements at delivery of policy
Common situations for errors/omissions
8.7 Individual underwriting by the insurer
Underwriting criteria
Guaranteed availability (45 CFR 147.104)
Sources of underwriting information
Application
Producer report
Medical Information Bureau (MIB)
Medical examinations and lab tests
37

(including HIV consent) (20448.01; Rule R20-61203, 1204)(Bul 2003-5, 9)
Policy Delivery
Effective date of coverage
QHP rating factors (45 CFR 147.102)
Unfair discrimination (20448)
Genetic testing (20448(D), (E), 448.02)
Classification of risks
Preferred
Standard
Substandard
Certificate of Authority (20-206(A))
8.8 Considerations in replacing health insurance
Guaranteed renewable (ARS 20-1380; 45 CFR 148.122 AND 146.152)
Termination of coverage (45 CFR 155.430)
Special enrollment period/late enrollment (45 CFR 155.420; ARS 20-2301)
Open enrollment (45 CFR 155.410)
Grace period (ARS 201347; 45 CFR 156.270)
Reinstatement (ARS 201348; 45 CFR 155.430)
Discontinuation (45 CFR 147.106)
Pre-existing conditions
Benefits, limitations and exclusions
Underwriting requirements
Producer's liability for errors and omissions
Life and disability insurance Guaranty Fund (20-283(A))
9.0 Individual Disability (Accident and Health) Insurance Policy General Provisions 6%

9.1 Uniform required provisions
Essential health benefits (45 CFR 156)
Entire contract; changes (20-1345)
Time limit on certain defenses (20-1346)
Grace period (20-1347)
Reinstatement (20-1348)
Claim procedures (20.1349­53)
Physical examinations and autopsy (20-1354)
Legal actions (20-1355)
Change of beneficiary (201356)
Time of payment claims (20-1352)
Payment of claims (201353)
Notice of claim
Proof of Loss (20-1351)
Physical examinations and autopsy (20-1354)
9.2 Uniform optional provisions
Change of occupation (201358)
Misstatement of age (201359, 1373)
Other insurance in this insurer (20-1360)
Insurance with other insurers
Expense-incurred basis (20-1361)
Other benefits (201362)
Unpaid premium (201364)
Cancellation (20-1365)
Conformity with state statutes (20-1366)
Illegal occupation (201367)
Intoxicants and narcotics (20-1368)
9.3 Other general provisions
Right to examine (free look) (Rule R20-6-501)

Insuring clause
Consideration clause
Renewability clause (201380)
Noncancelable
Guaranteed renewable
Conditionally renewable
Renewable at option of insurer
Nonrenewable (cancelable, term)
Guaranteed issue (201379)
10.0 Disability Income and Related Insurance 4% 10.1 Qualifying for disability benefits
Inability to perform duties
Own occupation
Any occupation
Pure loss of income (income replacement contracts)
Indemnity
Presumptive disability
Requirement to be under physician care
10.2 Individual disability income insurance
Basic total disability plan
Income benefits (monthly indemnity)
Elimination and benefit periods
Waiver of premium feature
Probationary period
Coordination with social insurance and workers compensation benefits
Additional monthly benefit (AMB)
Social insurance supplement (SIS)
Occupational versus nonoccupational coverage
At-work benefits
Partial disability benefit
38

Residual disability benefit
Permanent disability benefit
Other provisions affecting income benefits
Cost of living adjustment (COLA) rider
Future increase option (FIO) rider
Relation of earnings to insurance (201363)
Other cash benefits
Accidental death and dismemberment
Rehabilitation benefit
Medical reimbursement benefit (nondisabling injury)
Refund provisions
Return of premium
Cash surrender value
Exclusions
10.3 Unique aspects of individual disability underwriting
Occupational considerations
Benefit limits
Policy issuance alternatives
10.4 Group disability income insurance
Group versus individual plans
Short-term disability (STD)
Long-term disability (LTD)
10.5 Business disability insurance
Key employee (partner) disability income
Business overhead expense policy
Disability buy-sell policy
10.6 Social Security disability
Qualification for disability benefits
Definition of disability
Waiting period

Disability income benefits
10.7 Workers compensation
Eligibility (RL 23-901, 23901.01)
Benefits (RL 23-1021)
11.0 Medical Plans 6% 11.1 Medical plan concepts
Expense reimbursement/indemnit y versus prepaid basis
Specified coverage versus comprehensive coverage
Minimum essential coverage (45 CFR 156.600, 602, 604; 45 CFR §155.605)
Schedule of benefits
In- and out-of-network benefits
On- and off-marketplace plans
Grandfathered (45 CFR 147.140) versus transition plan
Unusual/reasonable/custo mary charges
Broad versus narrow provider network
Insureds versus subscribers/participants
Prepaid
Essential health benefits coverage versus excepted benefits
Dependents
Healthcare appeal rights
Role of the federal health insurance marketplace (healthcare.gov)
11.2 Types of providers and plans
Health care services organizations (HCSOs)pre-paid health care
General characteristics
Essential health benefits
Basic health care services (AAC R206-1904)
Preventive care services

Primary care physician versus referral (specialty) physician
Emergency care
Hospital services
Other basic services
In-network providers
Network exception (AAC R20-6-1910)
Cost-share
Maximum out of pocket (MOOP)
Preferred provider organizations (PPOs)
General characteristics
Essential health benefits
Reimbursement methodology
Cost-share differences in- versus out-ofnetwork services
Maximum out of pocket (MOOP)
Provider network
Types of parties to the provider contract
Point-of-service (POS) plans-Combination HCSO & PPO policies
Nature and purpose
In- and Out-ofnetwork provider access
Cost-share differences in- versus out-ofnetwork services
PCP referral (gatekeeper PPO)
Indemnity plan features
11.3 Cost containment in health care delivery
Cost-saving services
Open enrollment period
Preventive care
Hospital outpatient benefits
Alternatives to hospital services
Utilization management
39

Prospective review
Concurrent review
11.4 Arizona eligibility requirements (individual and group)
Dependent child age limit (20-1342(A)(3))
Newborn child coverage (20-1342(A)(3))
Coverage of adopted children (201342(A)(3),(11),(12), 1692, 2321)
Child coverage; noncustodial parents (201692.03)
Physically or mentally handicapped dependent coverage (20-1342.01, 1407)
Rating criteria health insurance policies (45 CFR 147.102)
11.5 Marketing Considerations
Advertising (Rule R20-6201)
Regulatory jurisdiction/place of delivery
Disclosure form (20-2323)
Summary of benefits & coverages
12.0 Group Accident and Health Insurance 6% 12.1 Characteristics of group insurance
Small group versus large group (ARS 20-2301 et seq; 45 CFR)
Group contract
Certificate of coverage (20-1402(A)(2))
Experience rating versus community rating
12.2 Types of eligible groups (20-1401)
Employment-related groups
Individual employer groups
Multiple-Employer Trusts (METs) or Welfare

Arrangements (MEWAs)
Associations (alumni, professional, other)
Customer groups (depositors, creditordebtor, other)
12.3 Marketing considerations
Advertising (Rule R20-6201)
Regulatory jurisdiction/place of delivery
Disclosure form (20-2323)
Summary of benefits & coverages
12.4 Large group disability (accident and health) insurance
Insurer underwriting criteria
Characteristics of group
Plan design factors
Eligibility for coverage
Annual open enrollment
Employee eligibility
Dependent eligibility
Coordination of benefits provision (Rule R20-6214)
Change of insurance companies or loss of coverage
Coinsurance and deductible carryover
No-loss no-gain
Events that terminate coverage
Extension of benefits
Continuation of coverage under COBRA
Conversion (20-1377, 1408)
Reinstatement of coverage for military personnel (201408(L))
Special enrollment period (45 CFR 155.420)

Open enrollment
Loss of minimum essential coverage
12.5 Small group disability (accident and health) insurance
Definition of small employer (202301(A)(21))
Accountable Health Plan (20-2301(A)(1))
Health benefits plan (202301(A)(11))
Small employer (202301(A) (11))
Late Enrollee (202301(A)(15))
Availability and eligibility (20-2304, 2307, 2308)
Prohibited marketing practices (20-2313)
Renewability (20-2309)
Guaranteed issue (202304)
Limitations on exclusion from coverage
Pre-existing conditions (20-2301(A)(20), 2310(B))
Credit for prior coverage (20-2310)
Small business health insurance (20-2341)
Notification of small employer of reduction in premium tax (202304(J))
Geographic rating areas and other rating factors (ARS 20-238; 20-2311; 45 CFR 147.102)
12.6 Privacy (20-1379)
Insurance information & privacy protection (ARS 20-2101 et seq)
Customer information security (AAC R20-62101 - 2104)
HIPAA privacy protections
Electronic notices (ARS 20-239; ARS 44-7001 7052)
Affordable Care Act privacy protections (45 CFR 155.260)
40

13.0 Dental Insurance 3% 13.1 Types of dental treatment
Diagnostic and preventive
Restorative
Oral surgery
Endodontics
Periodontics
Prosthodontics
Orthodontics
13.2 Indemnity plans/PPO Dental Plans
Stand-Alone Dental Plans (SADP) (45 CFR 155.1065)
Essential pediatric dental benefit
Role of the federal health insurance marketplace on dental insurance
Group versus individual dental insurance
Choice of providers
Scheduled versus nonscheduled plans
Benefit categories
Diagnostic/preventive services
Basic services
Major services
Deductibles and coinsurance
Combination plans
Exclusions
Limitations
Predetermination of benefits
13.3 Prepaid dental plans
Characteristics
Basic services (R20-61806)
Exclusions
Limitations

14.0 Insurance for Senior

Citizens and Special Needs

Individuals

8%

14.1 Medicare

Nature, financing and administration

Part A -- Hospital Insurance
Individual eligibility requirements
Enrollment
Coverages and costsharing amounts
Part B -- Medical Insurance
Individual eligibility requirements
Enrollment
Coverages and costsharing amounts
Exclusions
Claims terminology and other key terms
Part C -- Medicare Advantage
Part D -- Prescription drug insurance
Late enrollment penalty
Medicare savings programs (QMB, SLMB)
Medicare marketing restrictions
14.2 Medicare supplements (Rule R20-6-1101)
Purpose
Open enrollment
Rating of supplemental plans
Standardized Medicare supplement plans
Core benefits
Additional benefits
Arizona regulations and required provisions
Standards for marketing
Advertising
Appropriateness of recommended purchase and excessive insurance
Guide to health insurance
Outline of coverage
Right to return
Replacement

Minimum benefit standards
Required disclosure provisions
Permitted compensation arrangements
Renewability and cancellation
Continuation and conversion requirements
Notice of change
Medicare select
14.3 Other options for individuals with Medicare
Employer group health plans
Disabled employees
Employees with kidney failure
Individuals age 65 and older
Arizona Health Care Cost Containment System (AHCCCS)
Eligibility (RL 362901(6), 2901.03, .05)
Benefits (RL 362907)
14.4 Long-term care (LTC) insurance
Required communications to LTC applicants
Outline of Coverage (ARS 20-1691.06; Rule R20-6-1022)
Shopper's Guide (Rule R20-6-1023)
Personal Worksheet (Rule R20-6-1018 and Appendix A)
Rating Practices (Rule R20-6-1008(B1-6), (E) and (F))
Eligibility for benefits
Levels of care
Skilled care
Intermediate care
Custodial care
41

Home health care (Rule R20-61004(I))
Adult day care
Respite care
Benefit periods (201691.03(C))
Benefit amounts
Optional benefits
Guarantee of insurability
Return of premium
Qualified LTC plans
Exclusions (Rule R20-61004(B)(1)­(4))
Underwriting considerations
Arizona regulations and required provisions
Long term care partnership program (ADOI Bulletin 2009-05)
Standards for marketing (Rule R20-6-1017)
Right to return (free look) (20-1691.07)
Replacement (Rule R20-6-1004(F), 1010)
Prohibited policy provisions (201691.05; Rule R206-1004(B), 1011)
Renewal considerations (Rule R20-61004(A))
Cancellation (201691.03(A))
Unintentional lapse (Rule R20-6-1005)
Suitability (Rule R206-1018)
Premium increase (Rule R20-61004(G), 1008)
Continuation of benefits (Rule R206-1004(E))
Inflation protection (Rule R20-6-1006)
Required disclosure provisions (Rule R20-6-1007)

Pre-existing conditions (20-1691(12), 1691.03(G))
Contestable periods (20-1691.10)
Nonforfeiture (Rule R20-6-1019)
Nonforfeiture Benefit triggers (Rule R206-1020)
Producer long term care partnership training (201691.12)
15.0 Federal Tax Considerations for Disability (Accident and Health) Insurance 3% 15.1 Personally-owned health insurance
Disability income insurance
Medical expense insurance
Long-term care insurance
15.2 Employer group health insurance
Disability income (STD, LTD)
Benefits subject to FICA
Medical and dental expense
Long-term care insurance
Accidental death and dismemberment
Section 125 plans
15.3 Medical expense coverage for sole proprietors and partners
15.4 Business disability insurance
Key person disability income
Buy-sell policy
15.5 Health Reimbursement Arrangements (HRAs)
Flexible Spending Accounts (FSAs)
Definition
Eligibility
Contribution limits
Health Savings Accounts (HSAs)

Definition
Eligibility
Contribution limits
Medical Savings Accounts (MSAs)
Definition
Eligibility
Arizona Examination for Property and Casualty Insurance Producer
Series 13-34
150 questions ­ 2.5 hour time limit
Effective August 3, 2020
1.0 Insurance Regulation 5% 1.1 Licensing
License application requirements (20-285)
Number of exam attempts (20-284(H))
Licensing eligibility/lawful presence (41-1080)
Types of licensees Producers (20281(5), 286)
Nonresidents (20281(11))
Adjusters (20-321)
Life Settlement Broker (ARS 20-3202)
Business entities (20281(1), 285(D, E), 290(B))
Surplus lines brokers (20-407, 411)
Temporary (20-294)
Vending machines (20-293)
Lines of producer license authority (20-286, (A), 321 331, 332, 411, 411.01, 1580, 1693.01, 2662)
Fingerprinting requirements (20142(E), 285(E), 286(C), 289(D))
Assumed business name (20-297)
42

Maintenance and duration
Expiration, surrender and renewal (20289)
Inactive license status during military service (20-289.01)
Change of contact information (20286(C))
Change of business information (20286(C))
Report of actions (20301)
Continuing education (20-2902, 2903)
Disciplinary actions
Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296)
Cease and desist order (20-292)
1.2 State regulation
Acts constituting insurance transaction (20-106, 282, 401.01)
Negotiate (20281(10))
Sell (20-281(14))
Solicit (20-281(15))
Payment of premiums (20-191)
Certificate of authority (20-217(A))
Identification of Producer (20-229)
Producer regulation
Sharing commissions (20-298)
Place of business and records (20-157, 290; AZ Const Art 14 s 16)
Unfair practices and frauds
Unfair trade practices (20-442)
Misrepresentation (20-443, 443.01, 447; Rule R20-6801(D))
False or deceptive advertising (20444)

Defamation of insurer (20-445)
Boycott, coercion or intimidation (20446)
False financial statements (20447)
Unfair discrimination (20-448)
Gender discrimination (Rule R20-6-207)
Rebating (20-449­ 451)
Prohibited inducements (20452)
Fees (20-465)
Unfair claims settlement practices (20-461; Rule R206-801)
Claims payment (20462)
Insurance fraud (20463, 466­466.04)
Insurance information and privacy protection (202101­2122)
1.3 Federal regulation
Violent Crime Control and Law Enforcement Act (20-489; 18 USC 1033, 1034; 15 USC 61016108; ARS 44-1282)
Fair Credit Reporting Act (15 USC 1681­1681d)
Telemarketing Sales Rule (16 CFR 310; 15 USC 6101­6108; A.R.S. 441282)
CAN-SPAM Act of 2003 (15 USC 7701; 18 USC 1037)
Gramm-Leach-Bliley Act (20-2121; Public Law 106-102)
Terrorism Insurance Program (15 USC 6701; Public Law 107-297, 109-144, 110-160)
2.0 General Insurance 5% 2.1 Concepts
Insurance, definition of (20-103)

Risk management key terms
Risk
Exposure
Hazard
Peril
Loss
Methods of handling risk
Avoidance
Retention
Sharing
Reduction
Transfer
Elements of insurable risks
Adverse selection
Law of large numbers
Reinsurance
2.2 Insurers
Types of insurers
Mutual, stock, fraternal (20-702, 703)
Captive insurance companies (201098)
Stock companies
Mutual companies
Fraternal benefit societies
Reciprocals (20-761,762)
Risk retention groups (20-2401(10), 15 USC SS 3901, 3902)
Lloyd's associations (20-1021)
Private versus government insurers
Authorized versus unauthorized insurers
Domestic, foreign and alien insurers (20-201, 203, 204)
Marketing (distribution) systems
2.3 Producers and general rules of agency
Insurer as principal
Producer/insurer relationship
43

Authority and powers of producers Express Implied Apparent
2.4 Contracts Elements of a legal contract Offer and acceptance Consideration Competent parties Legal purpose Distinct characteristics of an insurance contract Contract of adhesion Personal contract Aleatory contract Unilateral contract Conditional contract Legal interpretations affecting contracts Ambiguities in a contract of adhesion Reasonable expectations Indemnity Utmost good faith Representations/misre presentations Warranties Concealment Fraud Waiver and estoppel
3.0 Property and Casualty Insurance Basics 14% 3.1 Principles and concepts Insurable interest (201105) Underwriting Function Loss ratio Rates Types Loss costs Components Hazards Physical

Moral
Morale Negligence
Elements of a negligent act
Damages
Compensatory -- special versus general
Punitive Strict liability
Vicarious liability Causes of loss (perils)
Named perils versus special (open) perils
Direct loss Consequential or indirect
loss
Blanket versus specific insurance
Basic types of construction
Loss valuation
Actual cash value
Replacement cost
Market value
Agreed value Stated amount 3.2 Policy structure
Standard Provisions (201112)
Content of Policy (201113)
Declarations
Definitions
Insuring agreement or clause
Additional/supplementary coverage
Conditions
Exclusions
Endorsements
3.3 Common policy provisions
Insureds -- named, first named, additional
Policy period
Policy territory

Cancellation and nonrenewal
Deductibles
Other insurance
Nonconcurrency
Primary and excess
Pro rata
Contribution by equal shares
Limits of liability
Per occurrence (accident)
Per person
Aggregate -- general versus products -- completed operations
Split
Combined single
Policy limits
Restoration/nonreduction of limits
Coinsurance
Vacancy or unoccupancy
Named insured provisions
Duties after loss
Assignment
Abandonment
Insurer provisions
Liberalization
Subrogation
Salvage
Claim settlement options
Duty to defend
Third-party provisions
Standard mortgage clause
Loss payable clause
No benefit to the Bailee
Electronic Communications (20-239; SB 1222)
Electronic Posting of Policies (20-240)
3.4 Required provisions

Arizona Property and Casualty Insurance Guaranty Fund (20-662)
Certificate of authority (20-217(A))
Cancellation and nonrenewal
Personal (20-1651­ 1656)
Commercial (201671­1679)
Binders (20-1120)
Federal Terrorism Insurance Program (15 USC 6701; Public Law 107­297, 109­144, 110­ 160)
4.0 Dwelling ('02) Policy 9% 4.1 Characteristics and purpose
4.2 Coverage forms -- Perils insured against
Basic
Broad
Special
4.3 Property coverages
Coverage A -- Dwelling
Coverage B -- Other structures
Coverage C -- Personal property
Coverage D -- Fair rental value
Coverage E -- Additional living expense
Other coverages
4.4 General exclusions
4.5 Conditions
4.6 Selected endorsements
Special provisions -- Arizona (DP 01 02)
Automatic increase in insurance (DP 04 11)
Broad theft coverage (DP 04 72)
Dwelling under construction (DP 11 43)
4.7 Personal liability supplement

44

5.0 Homeowners ('11) Policy 15%
5.1 Coverage forms
HO-2 through HO-6
HO-8
5.2 Definitions
5.3 Section I -- Property coverages
Coverage A -- Dwelling
Coverage B -- Other structures
Coverage C -- Personal property
Coverage D -- Loss of use
Additional coverages
5.4 Section II -- Liability coverages
Coverage E -- Personal liability
Coverage F -- Medical payments to others
Additional coverages
5.5 Perils insured against
5.6 Exclusions
5.7 Conditions
5.8 Selected endorsements
Special provisions -- Arizona (HO 01 02)
Limited fungi, wet or dry rot, or bacteria coverage (HO 04 26, HO 04 27)
Permitted incidental occupancies (HO 04 42)
Earthquake (HO 04 54)
Scheduled personal property (HO 04 61)
Personal property replacement cost (HO 04 90)
Home day care (HO 04 97)
Business pursuits (HO 24 71)
Watercraft (HO 24 75)
Personal injury (HO 24 82)
6.0 Auto Insurance 13%
6.1 Laws
Arizona Motor Vehicle Financial Responsibility

Law (RL Title 28, Chapter 9)
Required limits of liability (20-266, RL 28-4009)
Required proof of insurance (RL 284133)
Arizona Automobile Insurance Plan (RL 284008)
Premium payments and administrative fees (20267)
Uninsured/underinsured motorist (20-259.01)
Definitions
Bodily injury
UM/UIM rejection
Required limits
Personal auto cancellation/nonrenewal
Grounds (20-1631)
Notice (20-1632)
Grace period (201632.01)
Notice of eligibility in assigned risk plan (20-1632)
Subrogated claim (20268)
6.2 Personal ('05) auto policy
Definitions
Liability coverage
Bodily injury and property damage
Supplementary payments
Exclusions
Medical payments coverage
Uninsured/Underinsured motorist coverage
Coverage for damage to your auto
Collision
Other than collision
Deductibles
Transportation expense
Exclusions
45

Duties after an accident or loss
General provisions (PP 00 01)
Selected endorsements
Amendment of policy provisions -- Arizona (PP 01 67)
Full Safety Glass Coverage-Arizona (PP 03 48)
Towing and labor costs (PP 03 03)
Extended non-owned coverage -- vehicles furnished or available for regular use (PP 03 06)
Limited Mexico coverage (PP 03 21)
Joint ownership coverage (PP 03 34)
Uninsured motorists coverage -- Arizona (PP 04 77; Regulatory Bulletin 2003-10, 2003-03)
Underinsured motorists coverage -- Arizona (PP 04 89; Regulatory Bulletin 2003-10, 2003-03)
Miscellaneous type vehicle -- Arizona (PP 13 69, PP 13 70, PP 13 71, PP 13 72)
6.3 Commercial auto ('10)
Commercial auto coverage forms
Business auto
Garage
Business auto physical damage
Truckers
Motor carrier
Coverage form sections
Covered autos
Liability coverage
Garagekeepers coverage
Trailer interchange coverage

Physical damage coverage
Exclusions
Conditions
Definitions
Selected endorsements
Lessor -- additional insured and loss payee (CA 20 01)
Mobile equipment (CA 20 15)
Auto medical payments coverage (CA 99 03)
Drive other car coverage (CA 99 10)
Individual named insured (CA 99 17)
7.0 Commercial Package Policy (CPP) 17% 7.1 Components of a commercial policy
Common policy declarations
Common policy conditions
Interline endorsements
One or more coverage parts
7.2 Commercial general liability ('07)
Commercial general liability coverage forms
Bodily injury and property damage liability
Personal and advertising injury liability
Medical payments
Exclusions
Supplementary payments
Who is an insured
Limits of insurance
Conditions
Definitions
Occurrence versus claimsmade
Claims-made features
Trigger

Retroactive date
Extended reporting periods -- basic versus supplemental
Claim information
Premises and operations
Products and completed operations
Insured contract 7.3 Commercial property
('07)
Commercial property conditions form
Coverage forms
Building and personal property
Condominium association
Condominium commercial unitowners
Builders risk
Business income Legal liability
Extra expense
Causes of loss forms
Basic
Broad
Special Selected endorsements
Ordinance or law (CP 04 05)
Spoilage (CP 04 40) Peak season (CP 12
30)
Value reporting form (CP 13 10)
7.4 Commercial crime ('06)
General definitions
Burglary
Theft Robbery
Crime coverage forms
Commercial crime coverage forms (discovery/loss sustained)
Government crime coverage forms
46

(discovery/loss sustained)
Coverages
Employee theft
Forgery or alteration
Inside the premises -- theft of money and securities
Inside the premises -- robbery or safe burglary of other property
Outside the premises
Computer fraud
Funds transfer fraud
Money orders and counterfeit money
Other crime coverage
Extortion -- commercial entities (CR 04 03)
7.5 Commercial inland marine
Nationwide marine definition (Rule R20-6602)
Commercial inland marine conditions form
Inland marine coverage forms
Accounts receivable
Bailee's customer
Commercial articles
Contractors equipment floater
Electronic data processing
Equipment dealers
Installation floater
Jewelers block
Signs
Valuable papers and records
Transportation coverages
Motor truck cargo forms
Transit coverage forms
7.6 Equipment breakdown ('11)

Equipment breakdown protection coverage form (EB 00 20)
Selected endorsement
Actual cash value (EB 99 59)
7.7 Farm coverage
Farm property coverage form ('03)
Coverage A -- Dwellings
Coverage B -- Other private structures
Coverage C -- Household personal property
Coverage D -- Loss of use
Coverage E -- Scheduled farm personal property
Coverage F -- Unscheduled farm personal property
Coverage G -- Other farm structures
Farm liability coverage form ('06)
Coverage H -- Bodily injury and property damage liability
Coverage I -- Personal and advertising injury liability
Coverage J -- Medical payments
Livestock coverage form
Cause of loss (basic, broad and special)
Exclusions
Additional coverages
Limits of insurance
Conditions
Definitions
8.0 Businessowners ('10) Policy 6%
8.1 Characteristics and purpose
8.2 Businessowners Section I -- Property
Coverage
Exclusions

Limits of insurance
Deductibles
Loss conditions
General conditions
Optional coverages Definitions
8.3 Businessowners Section II -- Liability
Coverages
Exclusions
Who is an insured
Limits of insurance
General conditions
Definitions
8.4 Businessowners Section III -- Common Policy Conditions
8.5 Selected endorsements Arizona changes (BP 01 38)
Hired auto and non-owned auto liability (BP 04 04)
Protective safeguards (BP 04 30)
Utility services -- direct damage (BP 04 56)
Utility services -- time element (BP 04 57)
9.0 Workers Compensation Insurance 8% 9.1 Workers compensation laws
Types of laws
Monopolistic versus competitive
Compulsory versus elective
Arizona Workers Compensation Law
Exclusive remedy (RL 23-1022)
Employment covered (required, voluntary, elective) (RL 23901(6), 902)
Covered injuries (RL 23-901(13), 901.04)
Occupational disease (RL 23-901.01)
47

Benefits provided (RL 23-1021, 1044(A,B), 1045(A,B,C), 1046, 1062)
Subsequent injury fund (RL 23-1065)
Federal workers compensation laws
Federal Employers Liability Act (FELA) (45 USC 51­60)
U.S. Longshore and Harbor Workers Compensation Act (33 USC 904)
The Jones Act (46 USC 688)
9.2 Workers compensation and employers liability insurance policy
General section
Part One -- Workers compensation insurance
Part Two -- Employers liability insurance
Part Three -- Other states insurance
Part Four -- Your duties if injury occurs
Part Five -- Premium
Part Six -- Conditions
Voluntary compensation endorsement
9.3 Premium computation
Job classification -- payroll and rates
Experience modification factor
Premium discounts
9.4 Other sources of coverage
Assigned risk plan (RL 231091)
Self-insured employers and employer groups (RR R20-5-201­208)
10.0 Other Coverages and Options 8% 10.1 Umbrella/excess liability policies
Personal (DL 98 01)
Commercial (CU 00 01)

10.2 Specialty liability insurance
Professional liability Errors and omissions Directors and officers
liability Fiduciary liability Liquor liability Employment practices
liability 10.3 Surplus lines
Definitions and markets Licensing requirements 10.4 Surety bonds Principal, obligee, surety Contract bonds License and permit bonds Judicial bonds 10.5 Aviation insurance Aircraft hull Aircraft liability 10.6 National Flood
Insurance Program "Write your own" versus
government Eligibility Coverage Limits Deductibles 10.7 Other policies Boatowners Difference in conditions
Arizona Examination for Bail Bond Agent
Series 13-35
60 questions ­ 1 hour time limit Effective August 3, 2020
1.0 Insurance Regulation 25% 1.1 Licensing (Rule R20-6601(C)) License application requirements (20-285) Persons to be licensed (20-340, 340.01)

Surety bond required (20340.02)
Maintenance and duration of license
Expiration, surrender and renewal (20289)
Change of personal/business information (20286(C))
Report of actions (20301)
Disciplinary actions
Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296)
Cease and desist order (20-292)
1.2 Agent regulation
Director's general duties and powers (20-142, 340.05)
Bail recovery agent (20340, 340.04, RL 133885(C­G))
Place of business (20340.01(E))
Business hours (20340.01(H), R20-6601(D)(8))
Employees (Rule R20-6601(D)(2, 3); RL 133885(D); 20340.03(A)(9), (B))
Records maintenance (20340.01(D­H); Rule R206-601(D)(8))
Prohibited conduct (20340.03; Rule R20-6601(D))
Solicitation where prisoners are confined
Failure to act as fiduciary
Nondisclosure of fees or charges
Practice of law
Referral of attorney
Signing bond in blank
Entry into an occupied residential structure (RL 13-3885(B)(1))

Apprehension or arrest of Bailee (RL 13-3885(B)(2))
Uniform/badge identification (RL 13-3885(B)(3))
Permitting others to apprehend or arrest (RL 13-3885(B)(4))
Charges, refunds and rebates (20-340.03(D); Rule R20-6-601(E))
2.0 The Legal Framework 30% 2.1 Authority Express Implied Apparent 2.2 Contracts Elements of a legal contract Offer and acceptance Consideration Competent parties Legal purpose Classifications of contracts Formal and informal Unilateral and bilateral Executory and executed contracts Express and implied Concealment Fraud 2.3 Court jurisdictions Original jurisdiction Territorial Subject-matter Personal Appellate jurisdiction 2.4 Terminology Acquit Adjudicate Capital offense Collateral Conviction Custody Defendant

48

Disposition Exoneration Extradition Felony Forfeiture Fugitive Hearing Incarceration Indictment Misdemeanor Recognizance Revoke Supervening indictment Suspend Warrant Writ
3.0 Bail Bond Principles and Practices 45% 3.1 Parties to a surety bond Principal Indemnitor for principal Indemnity agreement Obligee Surety 3.2 Duties of bail bond agent Approval Premium receipt (20340.01(G) Power of attorney Collateral and trust obligations (Rule R20-6601(E)(4)) 3.3 Types of bonds Personal surety bond Corporate surety bond Criminal defendant bonds Bail Appeal Supersedeas Habeas corpus Extradition Property bond Nonsurety/cash

Ten percent surety 3.4 Bonding procedure
Application for bond (Surety/defendant contract)
Collateral security Surety contract Posting the bond Informational notice 3.5 Court procedures Court appearances
Initial appearance Trial Appeal Conditions of release Prior to trial Pending appeal Failure to appear Revocation of bail 3.6 Release of surety Exoneration of bond Return of collateral (20340.03(A)(6); Rule R206-601(E)(4)) 3.7 Surrender of principal (defendant) Return of premium (Rule R20-6-601(E)(5)) 3.8 Bond forfeiture Motion Notice to defendant and sureties Judgment Dispersal of funds Time limit for appeals Arrest after forfeiture
Arizona Examination for Property and Casualty Insurance Adjuster Series 13-36
150 questions ­ 2.5 hour time limit
Effective August 3, 2020
49

1.0 Insurance Regulation 6%

1.1

Licensing requirements

(20-321, 321.01)

Assumed name (20-297)

Qualifications

License application requirements

Licensing exceptions

1.2 Maintenance and duration

Expiration, surrender and renewal (20-289, 321.02)

Inactive status during military service (20289.01)

Report of actions (20-301, 321.02)

1.3 Disciplinary actions

Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296, 321.02)

Cease and desist orders (20-292, 321.02)

1.4 Claim settlement laws and regulations (20461, 462; Rule R20-6801; RR R20-5-163)

2.0 Insurance Basics 21% 2.1 Contract basics
Elements of a legal contract
Offer and acceptance
Consideration
Competent parties
Legal purpose
Distinct characteristics of an insurance contract
Contract of adhesion
Personal contract
Unilateral contract
Conditional contract
Legal interpretations affecting contracts
Ambiguities in a contract of adhesion
Reasonable expectations
Indemnity

Utmost good faith Representations/misre
presentations Warranties Concealment Fraud Waiver and estoppel
2.2 Insurance principles and concepts
Insurable interest Hazards
Physical Moral Morale Negligence
Elements of a negligent act
Defenses against negligence
Damages Compensatory -- special versus general Punitive
Strict liability Vicarious liability Causes of loss (perils)
Named perils versus special (open) perils
Direct loss Consequential or indirect
loss Blanket versus specific
insurance Basic types of construction Loss valuation
Actual cash value Replacement cost Market value Agreed value Stated amount 2.3 Policy structure Declarations Definitions Insuring agreement or clause Additional/supplementary coverage

Conditions Exclusions Endorsements 2.4 Common policy
provisions Insureds -- named, first
named, additional Policy period Policy territory Cancellation and
nonrenewal Deductibles Other insurance
Nonconcurrency Primary and excess Pro rata Contribution by equal
shares Limits of liability
Per occurrence (accident)
Per person Aggregate -- general
versus products -- completed operations Split Combined single Policy limits Restoration/nonreduction of limits Coinsurance Vacancy or unoccupancy Assignment Insurer provisions Liberalization Duty to defend Third-party provisions Standard mortgage clause Loss payable clause No benefit to the Bailee 2.5 Required provisions Cancellation and nonrenewal Personal (20-1651­ 1656)
50

Commercial (201671­1679)
Fraud; liability for reporting (20-463)
Federal Terrorism Insurance Program (15 USC 6701; Public Law 107­297, 109­144, 110­ 160)
3.0 Adjusting Losses 30% 3.1 Role of the adjuster Duties and responsibilities Staff and independent adjuster versus public adjuster Relationship to the legal profession 3.2 Claim reporting Claim investigation Claim file documentation of events Types of reports Initial or first field Interim or status Full formal 3.3 Property losses
Duties of insured after a loss Notice to insurer Minimizing the loss Proof of loss Special requirements
Production of books and records
Abandonment Determining value and loss
Burden of proof of value and loss
Estimates Depreciation Salvage Claim settlement options Payment and discharge 3.4 Liability losses Investigation procedures Verify coverage Determine liability Gathering evidence

Physical evidence Witness statements Determining value of intangible damages 3.5 Coverage problems Dealing with coverage disputes Reservation of rights
letter Nonwaiver agreement Declaratory judgment
action 3.6 Claims adjustment
procedures Settlement procedures
Advance payments Draft authority Execution of releases Subrogation procedures Alternative dispute resolution Appraisal Arbitration Competitive estimates Mediation Negotiation
4.0 Dwelling ('02) Policy 5% 4.1 Characteristics and purpose 4.2 Coverage forms -- Insured perils Basic Broad Special 4.3 Property coverages Coverage A -- Dwelling Coverage B -- Other structures Coverage C -- Personal property Coverage D -- Fair rental value Coverage E -- Additional living expense Other coverages 4.4 General exclusions 4.5 Conditions

4.6 Selected endorsements
Special provisions -- Arizona (DP 01 02)
Automatic increase in insurance (DP 04 11)
Broad theft coverage (DP 04 72)
Dwelling under construction (DP 11 43)
4.7 Personal liability supplement
5.0 Homeowners ('11) Policy 10% 5.1 Coverage forms
HO-2 through HO-6
HO-8
5.2 Definitions
5.3 Section I -- Property coverages
Coverage A -- Dwelling
Coverage B -- Other structures
Coverage C -- Personal property
Coverage D -- Loss of use
Additional coverages
5.4 Section II -- Liability coverages
Coverage E -- Personal liability
Coverage F -- Medical payments to others
Additional coverages
5.5 Insured perils
5.6 Exclusions
5.7 Conditions
5.8 Selected endorsements
Special provisions -- Arizona (HO 01 02)
Limited fungi, wet or dry rot, or bacteria coverage (HO 04 26, HO 04 27)
Permitted incidental occupancies (HO 04 42)
Earthquake (HO 04 54)
Scheduled personal property (HO 04 61)
Personal property replacement cost (HO 04 90)
51

Home day care (HO 04 97)
Business pursuits (HO 24 71)
Watercraft (HO 24 75)
Personal injury (HO 24 82)
6.0 Auto Insurance 12% 6.1 Laws
Arizona Motor Vehicle Financial Responsibility Law (RL Title 28, Chapter 9)
Required limits of liability (20-266, RL 28-4009)
Required proof of insurance (RL 284133)
Arizona Automobile Insurance Plan (RL 284008)
Uninsured/underinsured motorist (20-259.01)
Definitions
Bodily injury
UM/UIM rejection
Required limits
Personal auto cancellation/nonrenewal
Grounds (20-1631)
Notice (20-1632)
Grace period (201632.01)
Notice of eligibility in assigned risk plan (20-1632)
Subrogated claim (20268)
6.2 Personal ('05) auto policy
Definitions
Liability coverage
Bodily injury and property damage
Supplementary payments
Exclusions
Medical payments coverage
Uninsured motorist coverage

Coverage for damage to your auto
Collision
Other than collision
Deductibles
Transportation expense
Exclusions
Duties after an accident or loss
General provisions
Selected endorsements
Amendment of policy provisions -- Arizona (PP 01 67)
Towing and labor costs (PP 03 03)
Extended non-owned coverage -- vehicles furnished or available for regular use (PP 03 06)
Limited Mexico coverage (PP 03 21)
Joint ownership coverage (PP 03 34)
Uninsured motorists coverage -- Arizona (PP 04 77)
Underinsured motorists coverage -- Arizona (PP 04 89)
Miscellaneous type vehicle -- Arizona (PP 13 69, PP 13 70, PP 13 71, PP 13 72)
6.3 Commercial auto ('10)
Commercial auto coverage forms
Business auto
Garage
Business auto physical damage
Truckers
Motor carrier
Coverage form sections
Covered autos
Liability coverage
Garagekeepers coverage

Trailer interchange coverage
Physical damage coverage
Exclusions
Conditions
Definitions
Selected endorsements
Lessor -- additional insured and loss payee (CA 20 01)
Mobile equipment (CA 20 15)
Auto medical payments coverage (CA 99 03)
Drive other car coverage (CA 99 10)
Individual named insured (CA 99 17)
Commercial carrier regulations
The Motor Carrier Act of 1980
Endorsement for motor carrier policies of insurance for public liability (MCS-90)
Commercial automobile policy liability
Bodily injury and property damage
Supplemental payments
Persons insured
Exclusions
7.0 Commercial Package Policy (CPP) 7% 7.1 Components of a commercial policy
Common policy declarations
Common policy conditions
Interline endorsements
One or more coverage parts
7.2 Commercial general liability ('07)
Commercial general liability coverage forms
52

Bodily injury and property damage liability
Personal and advertising injury liability
Medical payments
Exclusions
Supplementary payments
Who is an insured
Limits of insurance
Conditions
Definitions
Occurrence versus claimsmade
Claims-made features
Trigger
Retroactive date
Extended reporting periods -- basic versus supplemental
Claim information
Premises and operations
Products and completed operations
Insured contract
7.3 Commercial property ('07)
Commercial property conditions form
Coverage forms
Building and personal property
Condominium association
Condominium commercial unitowners
Builders risk
Business income
Legal liability
Extra expense
Causes of loss forms
Basic
Broad
Special
Selected endorsements
Ordinance or law (CP 04 05)

Spoilage (CP 04 40)
Peak season (CP 12 30)
Value reporting form (CP 13 10)
7.4 Commercial crime ('06)
General definitions
Burglary
Theft
Robbery
Crime coverage forms
Commercial crime coverage forms (discovery/loss sustained)
Government crime coverage forms (discovery/loss sustained)
Coverages
Employee theft
Forgery or alteration
Inside the premises -- theft of money and securities
Inside the premises -- robbery or safe burglary of other property
Outside the premises
Computer fraud
Funds transfer fraud
Money orders and counterfeit money
Other crime coverage
Extortion -- commercial entities (CR 04 03)
7.5 Commercial inland marine
Nationwide marine definition (Rule R20-6602)
Commercial inland marine conditions form
Inland marine coverage forms
Accounts receivable
Bailee's customer
Commercial articles
Contractors equipment floater

Electronic data processing
Equipment dealers
Installation floater
Jewelers block
Signs
Valuable papers and records
Transportation coverages
Motor truck cargo forms
Transit coverage forms
7.6 Equipment breakdown ('11)
Equipment breakdown protection coverage form (EB 00 20)
Selected endorsement
Actual cash value (EB 99 59)
7.7 Farm coverage
Farm property coverage form ('03)
Coverage A -- Dwellings
Coverage B -- Other private structures
Coverage C -- Household personal property
Coverage D -- Loss of use
Coverage E -- Scheduled farm personal property
Coverage F -- Unscheduled farm personal property
Coverage G -- Other farm structures
Farm liability coverage form ('06)
Coverage H -- Bodily injury and property damage liability
Coverage I -- Personal and advertising injury liability
Coverage J -- Medical payments
Livestock coverage form
Cause of loss (basic, broad and special)
53

Exclusions Additional coverages Limits of insurance Conditions Definitions
8.0 Businessowners ('10) Policy 7% 8.1 Characteristics and purpose 8.2 Businessowners Section I -- Property Coverage Exclusions Limits of insurance Deductibles Loss conditions General conditions Optional coverages Definitions 8.3 Businessowners Section II -- Liability Coverages Exclusions Who is an insured Limits of insurance General conditions Definitions 8.4 Businessowners Section III -- Common Policy Conditions 8.5 Selected endorsements Arizona changes (BP 01 38) Hired auto and non-owned auto liability (BP 04 04) Protective safeguards (BP 04 30) Utility services -- direct damage (BP 04 56) Utility services -- time element (BP 04 57)
9.0 Other Coverages and Options 2% 9.1 Umbrella/excess liability policies Personal (DL 98 01) Commercial (CU 00 01)

9.2 Specialty liability insurance
Professional liability Errors and omissions Directors and officers
liability Fiduciary liability Liquor liability Employment practices
liability 9.3 Surplus lines
Definitions and markets 9.4 Aviation insurance
Aircraft hull Aircraft liability 9.5 National Flood
Insurance Program "Write your own" versus
government Eligibility Coverage Limits Deductibles 9.6 Other policies Boatowners Difference in conditions
Arizona Examination for Surplus Lines Insurance Broker Series 13-41
60 questions - 1 hour time limit Effective August 3, 2020
1.0 Insurance Regulation 15% 1.1 Licensing Assumed name (20-297) Who needs a license 20411.02 Who may be licensed (20411) Individuals Business entities Licensing requirements (20-411) Maintenance and duration

Expiration, surrender and renewal (20289) (B)(1),(E),(411(F))
Change of personal/business information (20286(C)(1))
Report of actions (20301)
Disciplinary actions
Denial, suspension, revocation or refusal to renew (20-295, 296, 418)
1.2 Authority of surplus lines broker
Binding
Underwriting
Claims
Commissions (20-298, 412)
Service fees (20-410(C))
Mexican insurance surplus lines broker limited authority (20-411.01, 422)
1.3 General prohibitions
Unfair practices and frauds
Misrepresentation (20-443, 443.01, 447)
False or deceptive advertising (20444),(20-446)
Unfair discrimination (20-448), (20-445)
Rebating (20-451)
Prohibited inducements (20451),(20-452)
Unfair claim settlement practices (20-461)
1.4 General requirements
Recognized surplus lines (20-409)
Diligent effort (20-401(4), 407)
Validity of contracts (20402, 410(A))
Exemptions from surplus lines provisions (20420)
Home state (20-401 (6)
54

Multistate risk (20-401 (7)
Single state risk (20-401 (10)
Notice to insured (20410(B)) Unauthorized insurer Arizona insurance guaranty fund
2.0 Markets 50% 2.1 United States nonadmitted market Nonadmitted insurers Insurance exchanges
2.2 Alien nonadmitted market
London market Lloyd's of London Other London companies
Other alien markets United States trust funds
2.3 Alternative markets Foreign risk retention groups Industrial insureds
2.4 Qualified unauthorized insurers (20-413)
Requirements List of unauthorized
insurers Withdrawal of certificate Service of process (20-
419)
3.0 Records and Tax 35% 3.1 Record of coverage (20414) 3.2 Report of broker (20408)
Timeliness (20-408(A), (E))
Contents (20-408(A)) Surplus Lines Association
(20-408(C)) Stamping fee (20-167(I),
20-408(D)) 3.3 Statement of
transactions (20-415)

3.4 Surplus lines tax (20416.01)
Amount
Collection
Remittance
Tax report
Civil penalty
Arizona Examination for Property Insurance Producer
Series 13-42
100 questions ­ 2 hour time limit Effective August 3, 2020
1.0 Insurance Regulation 5% 1.1 Licensing
License application requirements (20-285)
Number of exam attempts (20-284(H))
Licensing eligibility/lawful presence (41-1080)
Types of licensees
Producers (20281(5), 286)
Nonresidents (20281(11))
Adjusters (20-321)
Life Settlement Broker (ARS 20-3202)
Business entities (20281(1), 285(D, E), 290(B))
Surplus lines brokers (20-407, 411)
Temporary (20-294)
Vending machines (20-293)
Lines of producer license authority (20-286, (A), 321 331, 332, 411, 411.01, 1580, 1693.01, 2662)
Fingerprinting requirements (20142(E), 285(E), 286(C), 289(D))
Assumed business name (20-297)
Maintenance and duration

Expiration, surrender and renewal (20289)
Inactive license status during military service (20-289.01)
Change of personal contact information (20-286(C))
Change of business information (20286(C))
Report of actions (20301)
Continuing education (20-2902, 2903)
Disciplinary actions
Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296)
Cease and desist order (20-292)
1.2 State regulation
Acts constituting insurance transaction (20-106, 282, 401.01)
Negotiate (20281(10))
Sell (20-281(14))
Solicit (20-281(15))
Payment of premiums (20-191)
Certificate of authority (20-217(A))
Identification of Producer (20-229)
Producer regulation
Sharing commissions (20-298)
Place of business and records (20-157, 290; AZ Const Art 14 s 16)
Unfair practices and frauds
Unfair trade practices (20-442)
Misrepresentation (20-443, 443.01, 447; Rule R20-6801(D))
False or deceptive advertising (20444)

Defamation of insurer (20-445)
Boycott, coercion or intimidation (20446)
False financial statements (20447)
Unfair discrimination (20-448)
Gender discrimination (Rule R20-6-207)
Rebating (20-449­ 451)
Prohibited inducements (20452)
Fees (20-465)
Unfair claims settlement practices (20-461; Rule R206-801)
Claims payment (20462)
Insurance fraud (20463, 466­466.04)
Insurance information and privacy protection (202101­2122)
1.3 Federal regulation
Violent Crime Control and Law Enforcement Act (20-489; 18 USC 1033, 1034; 15 USC 61016108; ARS 44-1282)
Fair Credit Reporting Act (15 USC 1681­1681d)
Telemarketing Sales Rule (16 CFR 310; 15 USC 6101­6108; A.R.S. 441282)
CAN-SPAM Act of 2003 (15 USC 7701; 18 USC 1037)
Gramm-Leach-Bliley Act (20-2121; Public Law 106-102)
Terrorism Insurance Program (15 USC 6701; Public Law 107-297, 109-144, 110-160)
2.0 General Insurance 7% 2.1 Concepts
Insurance, definition of (20-103)

55

Risk management key terms
Risk
Exposure
Hazard
Peril
Loss
Methods of handling risk
Avoidance
Retention
Sharing
Reduction
Transfer
Elements of insurable risks
Adverse selection
Law of large numbers
Reinsurance
2.2 Insurers
Types of insurers
Mutual, stock, fraternal (20-702, 703)
Captive insurance companies (201098)
Stock companies
Mutual companies
Fraternal benefit societies
Reciprocals (20-761,762)
Risk retention groups (20-2401(10), 15 USC SS 3901, 3902)
Lloyd's associations (20-1021)
Private versus government insurers
Authorized versus unauthorized insurers
Domestic, foreign and alien insurers (20-201, 203, 204)
Marketing (distribution) systems
2.3 Producers and general rules of agency
Insurer as principal
Producer/insurer relationship

Authority and powers of producers Express Implied Apparent
2.4 Contracts Elements of a legal contract Offer and acceptance Consideration Competent parties Legal purpose Distinct characteristics of an insurance contract Contract of adhesion Personal contract Aleatory contract Unilateral contract Conditional contract Legal interpretations affecting contracts Ambiguities in a contract of adhesion Reasonable expectations Indemnity Utmost good faith Representations/misre presentations Warranties Concealment Fraud Waiver and estoppel
3.0 Property Insurance Basics 17% 3.1 Principles and concepts Insurable interest (201105) Underwriting Function Loss ratio Rates Types Loss costs Components Hazards
56

Physical Moral Morale Causes of loss (perils)
Named perils versus special (open) perils
Direct loss Consequential or indirect
loss Blanket versus specific
insurance Basic types of construction Loss valuation
Actual cash value Replacement cost Market value Agreed value Stated amount 3.2 Policy structure
Standard Provisions (201112)
Content of Policy (201113)
Declarations Definitions Insuring agreement or
clause Additional/supplementary
coverage Conditions Exclusions Endorsements 3.3 Common policy
provisions Insureds -- named, first
named, additional Policy period Policy territory Cancellation and
nonrenewal Deductibles Other insurance
Nonconcurrency Primary and excess Pro rata Policy limits
Restoration/nonreduction of limits

Coinsurance
Vacancy or unoccupancy
Named insured provisions
Duties after loss
Assignment
Abandonment
Insurer provisions
Liberalization
Subrogation
Salvage
Claim settlement options
Third-party provisions
Standard mortgage clause
Loss payable clause
No benefit to the Bailee
Electronic Communications (20-239)
Electronic Posting of Policies (20-240)
3.4 Required provisions
Arizona Property and Casualty Insurance Guaranty Fund (20-662)
Certificate of authority (20-217(A))
Cancellation and nonrenewal
Personal (20-1651­ 1656)
Commercial (201671­1679)
Binders (20-1120)
Federal Terrorism Insurance Program (15 USC 6701; Public Law 107­297, 109­144, 110­ 160)
4.0 Dwelling ('02) Policy 10% 4.1 Characteristics and purpose
4.2 Coverage forms -- Perils insured against
Basic
Broad
Special
4.3 Property coverages

Coverage A -- Dwelling
Coverage B -- Other structures
Coverage C -- Personal property
Coverage D -- Fair rental value
Coverage E -- Additional living expense
Other coverages
4.4 General exclusions
4.5 Conditions
4.6 Selected endorsements
Special provisions -- Arizona (DP 01 02)
Automatic increase in insurance (DP 04 11)
Broad theft coverage (DP 04 72)
Dwelling under construction (DP 11 43)
4.7 Personal liability supplement
5.0 Homeowners ('11) Policy 16% 5.1 Coverage forms
HO-2 through HO-6 HO-8 5.2 Definitions
5.3 Section I -- Property coverages
Coverage A -- Dwelling Coverage B -- Other
structures
Coverage C -- Personal property
Coverage D -- Loss of use
Additional coverages 5.4 Perils insured against
5.5 Exclusions
5.6 Conditions
5.7 Selected endorsements
Special provisions -- Arizona (HO 01 02)
Limited fungi, wet or dry rot, or bacteria coverage (HO 04 26, HO 04 27)
Permitted incidental occupancies (HO 04 42)
57

Earthquake (HO 04 54)
Scheduled personal property (HO 04 61)
Personal property replacement cost (HO 04 90)
Home day care (HO 04 97)
6.0 Auto Insurance 15% 6.1 Laws
Personal auto cancellation/nonrenewal
Grounds (20-1631)
Notice (20-1632)
Grace period (201632.01)
6.2 Personal ('05) auto policy
Definitions
Coverage for damage to your auto
Collision
Other than collision
Deductibles
Transportation expense
Exclusions
Duties after an accident or loss
General provisions
Selected endorsements
Amendment of policy provisions -- Arizona (PP 01 67)
Towing and labor costs (PP 03 03)
Joint ownership coverage (PP 03 34)
Miscellaneous type vehicle -- Arizona (PP 13 69, PP 13 70, PP 13 71, PP 13 72)
6.3 Commercial auto ('10)
Commercial auto coverage forms
Business auto
Garage
Business auto physical damage

Truckers
Motor carrier
Coverage form sections
Covered autos
Physical damage coverage
Exclusions Conditions
Definitions Selected endorsements
Lessor -- additional insured and loss payee (CA 20 01)
Mobile equipment (CA 20 15)
Individual named insured (CA 99 17)
7.0 Commercial Package Policy (CPP) 16% 7.1 Components of a commercial policy
Common policy declarations
Common policy conditions
Interline endorsements
One or more coverage parts
7.2 Commercial property ('07)
Commercial property conditions form
Coverage forms
Building and personal property
Condominium association
Condominium commercial unitowners
Builders risk
Business income
Legal liability
Extra expense
Causes of loss forms
Basic
Broad
Special
Selected endorsements

Ordinance or law (CP 04 05)
Spoilage (CP 04 40)
Peak season (CP 12 30)
Value reporting form (CP 13 10)
7.3 Commercial inland marine
Nationwide marine definition (Rule R20-6602)
Commercial inland marine conditions form
Inland marine coverage forms
Accounts receivable
Bailee's customer
Commercial articles
Contractors equipment floater
Electronic data processing
Equipment dealers
Installation floater
Jewelers block
Signs
Valuable papers and records
Transportation coverages
Motor truck cargo forms
Transit coverage forms
7.4 Equipment breakdown ('11)
Equipment breakdown protection coverage form (EB 00 20)
Selected endorsement
Actual cash value (EB 99 59)
7.5 Farm coverage
Farm property coverage form ('03)
Coverage A -- Dwellings
Coverage B -- Other private structures
Coverage C -- Household personal property
58

Coverage D -- Loss of use
Coverage E -- Scheduled farm personal property
Coverage F -- Unscheduled farm personal property
Coverage G -- Other farm structures
Livestock coverage form Cause of loss (basic, broad
and special)
Exclusions
Additional coverages
Limits of insurance
Conditions
Definitions
8.0 Businessowners ('10) Policy -- Property 8% 8.1 Characteristics and purpose
8.2 Businessowners Section I -- Property
Coverage
Exclusions
Limits of insurance
Deductibles
Loss conditions
General conditions
Optional coverages
Definitions
8.3 Businessowners Section III -- Common Policy Conditions
8.4 Selected endorsements
Arizona changes (BP 01 38)
Protective safeguards (BP 04 30)
Utility services -- direct damage (BP 04 56)
Utility services -- time element (BP 04 57)
9.0 Other Coverages and Options 6% 9.1 Aviation insurance
Aircraft hull

9.2 National Flood Insurance Program
"Write your own" versus government
Eligibility Coverage Limits Deductibles 9.3 Other policies Boatowners Difference in conditions
Arizona Examination for Casualty Insurance Producer
Series 13-43
100 questions - 2 hour time limit Effective August 3, 2020
1.0 Insurance Regulation 5% 1.1 Licensing License application requirements (20-285) Number of Exam Attempts 20-284(H) Licensing eligibility/lawful presence (41-1080) Types of licensees Producers (20281(5), 286) Nonresidents (20281(11)) Adjusters (20-321) Life Settlement Broker (ARS 20-3202) Business entities (20281(1), 285(D, E), 290(B)) Surplus lines brokers (20-407, 411) Temporary (20-294) Vending machines (20-293) Lines of producer license authority (20-286, (A), 321 331, 332, 411, 411.01, 1580, 1693.01, 2662)

Fingerprinting requirements (20142(E), 285(E), 286(C), 289(D))
Assumed business name (20-297)
Maintenance and duration
Expiration, surrender and renewal (20289)
Inactive license status during military service (20-289.01)
Change of contact information (20286(C))
Change of business information (20286(C))
Report of actions (20301)
Continuing education (20-2902, 2903)
Disciplinary actions
Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296)
Cease and desist order (20-292)
1.2 State regulation
Acts constituting insurance transaction (20-106, 282, 401.01)
Negotiate (20281(10))
Sell (20-281(14))
Solicit (20-281(15))
Payment of premiums (20-191)
Certificate of authority (20-217(A))
Identification of Producer (20-229)
Producer regulation
Sharing commissions (20-298)
Place of business and records (20-157, 290; AZ Const Art 14 s 16)
Unfair practices and frauds
Unfair trade practices (20-442)
59

Misrepresentation (20-443, 443.01, 447; Rule R20-6801(D))
False or deceptive advertising (20444)
Defamation of insurer (20-445)
Boycott, coercion or intimidation (20446)
False financial statements (20447)
Unfair discrimination (20-448)
Gender discrimination (Rule R20-6-207)
Rebating (20-449­ 451)
Prohibited inducements (20452)
Fees (20-465)
Unfair claims settlement practices (20-461; Rule R206-801)
Claims payment (20462)
Insurance fraud (20463, 466­466.04)
Insurance information and privacy protection (202101­2122)
1.3 Federal regulation
Violent Crime Control and Law Enforcement Act (20-489; 18 USC 1033, 1034; 15 USC 61016108; ARS 44-1282)
Fair Credit Reporting Act (15 USC 1681­1681d)
Telemarketing Sales Rule (16 CFR 310; 15 USC 6101­6108; A.R.S. 441282)
CAN-SPAM Act of 2003 (15 USC 7701; 18 USC 1037)
Gramm-Leach-Bliley Act (20-2121; Public Law 106-102)
Terrorism Insurance Program (15 USC 6701; Public Law 107-297, 109-144, 110-160)

2.0 General Insurance 9%
2.1 Concepts
Insurance, defintion of (20-103)
Risk management key terms
Risk
Exposure
Hazard
Peril
Loss
Methods of handling risk
Avoidance
Retention
Sharing
Reduction
Transfer
Elements of insurable risks
Adverse selection
Law of large numbers
Reinsurance
2.2 Insurers
Types of insurers
Mutual, stock, fraternal (20-702, 703)
Captive insurance companies (201098)
Stock companies
Mutual companies
Fraternal benefit societies
Reciprocals (20-761,762)
Risk retention groups (20-2401(10), 15 USC SS 3901, 3902)
Lloyd's associations (20-1021)
Private versus government insurers
Authorized versus unauthorized insurers
Domestic, foreign and alien insurers (20-201, 203, 204)
Marketing (distribution) systems

2.3 Producers and general rules of agency
Insurer as principal Producer/insurer
relationship Authority and powers of
producers Express Implied Apparent
2.4 Contracts Elements of a legal contract Offer and acceptance Consideration Competent parties Legal purpose Distinct characteristics of an insurance contract Contract of adhesion Personal contract Aleatory contract Unilateral contract Conditional contract Legal interpretations affecting contracts Ambiguities in a contract of adhesion Reasonable expectations Indemnity Utmost good faith Representations/misre presentations Warranties Concealment Fraud Waiver and estoppel
3.0 Casualty Insurance Basics 15% 3.1 Principles and concepts Insurable interest Underwriting Function Loss ratio Rates
60

Types
Loss costs Components Hazards Physical Moral Morale Negligence
Elements of a negligent act
Damages Compensatory -- special versus general Punitive
Strict liability Vicarious liability 3.2 Policy structure Standard Provisions (20-
1112) Content of Policy (20-
1113) Declarations Definitions Insuring agreement or
clause Additional/supplementary
coverage Conditions Exclusions Endorsements 3.3 Common policy
provisions Insureds -- named, first
named, additional Policy period Policy territory Cancellation and
nonrenewal Deductibles Other insurance
Nonconcurrency Primary and excess Pro rata Contribution by equal
shares Limits of liability

Per occurrence (accident)
Per person
Aggregate -- general versus products -- completed operations
Split
Combined single
Named insured provisions
Duties after loss
Assignment
Insurer provisions
Liberalization
Subrogation
Duty to defend
3.4 Required provisions
Arizona Property and Casualty Insurance Guaranty Fund (20-662)
Certificate of authority (20-217(A))
Cancellation and nonrenewal
Personal (20-1651­ 1656)
Commercial (201671­1679)
Binders (20-1120)
Federal Terrorism Insurance Program (15 USC 6701; Public Law 107­297, 109­144, 110­ 160)
4.0 Homeowners ('11) Policy 15% 4.1 Coverage forms
HO-2 through HO-6
HO-8
4.2 Definitions
4.3 Section II -- Liability coverages
Coverage E -- Personal liability
Coverage F -- Medical payments to others
Additional coverages
4.4 Exclusions
4.5 Conditions
4.6 Selected endorsements

Special provisions -- Arizona (HO 01 02)
Limited fungi, wet or dry rot, or bacteria coverage (HO 04 26, HO 04 27)
Permitted incidental occupancies (HO 04 42)
Home day care (HO 04 97)
Business pursuits (HO 24 71)
Watercraft (HO 24 75)
Personal injury (HO 24 82)
5.0 Auto Insurance 19% 5.1 Laws
Arizona Motor Vehicle Financial Responsibility Law (RL Title 28, Chapter 9)
Required limits of liability (20-266, RL 28-4009)
Required proof of insurance (RL 284133)
Arizona Automobile Insurance Plan (RL 284008)
Premium payments and administrative fees (20267)
Uninsured/underinsured motorist (20-259.01)
Definitions
Bodily injury
UM/UIM rejection
Required limits
Personal auto cancellation/nonrenewal
Grounds (20-1631)
Notice (20-1632)
Grace period (201632.01)
Notice of eligibility in assigned risk plan (20-1632)
Subrogated claim (20268)
5.2 Personal ('05) auto policy
Definitions
61

Liability coverage
Bodily injury and property damage
Supplementary payments
Exclusions
Medical payments coverage
Uninsured/Underinsured motorist coverage
Coverage for damage to your auto
Collision
Other than collision
Deductibles
Transportation expense
Exclusions
Duties after an accident or loss
General provisions (PP 00 01)
Selected endorsements
Amendment of policy provisions -- Arizona (PP 01 67)
Full Safety Glass Coverage-Arizona (PP 03 48)
Towing and labor costs (PP 03 03)
Extended non-owned coverage -- vehicles furnished or available for regular use (PP 03 06)
Limited Mexico coverage (PP 03 21)
Joint ownership coverage (PP 03 34)
Uninsured motorists coverage -- Arizona (PP 04 77; Regulatory Bulletin 2003-10, 2003-03)
Underinsured motorists coverage -- Arizona (PP 04 89; Regulatory Bulletin 2003-10, 2003-03)
Miscellaneous type vehicle -- Arizona

(PP 13 69, PP 13 70, PP 13 71, PP 13 72)
5.3 Commercial auto ('10)
Commercial auto coverage forms
Business auto
Garage
Business auto physical damage
Truckers
Motor carrier
Coverage form sections
Covered autos
Liability coverage
Garagekeepers coverage
Trailer interchange coverage
Physical damage coverage
Exclusions
Conditions
Definitions
Selected endorsements
Lessor -- additional insured and loss payee (CA 20 01)
Mobile equipment (CA 20 15)
Auto medical payments coverage (CA 99 03)
Drive other car coverage (CA 99 10)
Individual named insured (CA 99 17)

6.0 Commercial Package Policy

(CPP)

15%

6.1 Components of a commercial policy

Common policy declarations

Common policy conditions

Interline endorsements

One or more coverage parts

6.2 Commercial general liability ('07)

Commercial general liability coverage forms
Bodily injury and property damage liability
Personal and advertising injury liability
Medical payments
Exclusions
Supplementary payments
Who is an insured
Limits of insurance
Conditions
Definitions
Occurrence versus claimsmade
Claims-made features
Trigger
Retroactive date
Extended reporting periods -- basic versus supplemental
Claim information
Premises and operations
Products and completed operations
Insured contract
6.3 Commercial crime ('06)
General definitions
Burglary
Theft
Robbery
Crime coverage forms
Commercial crime coverage forms (discovery/loss sustained)
Government crime coverage forms (discovery/loss sustained)
Coverages
Employee theft
Forgery or alteration
Inside the premises -- theft of money and securities
Inside the premises -- robbery or safe
62

burglary of other property
Outside the premises
Computer fraud
Funds transfer fraud
Money orders and counterfeit money
Other crime coverage
Extortion -- commercial entities (CR 04 03)
6.4 Farm coverage
Farm liability coverage form ('06)
Coverage H -- Bodily injury and property damage liability
Coverage I -- Personal and advertising injury liability
Coverage J -- Medical payments
Exclusions
Additional coverages
Limits of insurance
Conditions
Definitions
7.0 Businessowners ('10) Policy -- Liability 6% 7.1 Characteristics and purpose
7.2 Businessowners Section II -- Liability
Coverages
Exclusions
Who is an insured
Limits of insurance
General conditions
Definitions
7.3 Businessowners Section III -- Common Policy Conditions
7.4 Selected endorsements
Arizona changes (BP 01 38)
Hired auto and non-owned auto liability (BP 04 04)

8.0 Workers Compensation Insurance 10%
8.1 Workers compensation laws
Types of laws
Monopolistic versus competitive
Compulsory versus elective
Arizona Workers Compensation Law
Exclusive remedy (RL 23-1022)
Employment covered (required, voluntary, elective) (RL 23901(6), 902)
Covered injuries (RL 23-901(13), 901.04)
Occupational disease (RL 23-901.01)
Benefits provided (RL 23-1021, 1044(A,B), 1045(A,B,C), 1046, 1062)
Subsequent injury fund (RL 23-1065)
Federal workers compensation laws
Federal Employers Liability Act (FELA) (45 USC 51­60)
U.S. Longshore and Harbor Workers Compensation Act (33 USC 904)
The Jones Act (46 USC 688)
8.2 Workers compensation and employers liability insurance policy
General section
Part One -- Workers compensation insurance
Part Two -- Employers liability insurance
Part Three -- Other states insurance
Part Four -- Your duties if injury occurs
Part Five -- Premium
Part Six -- Conditions
Voluntary compensation endorsement
8.3 Premium computation

Job classification -- payroll and rates
Experience modification factor
Premium discounts 8.4 Other sources of
coverage Assigned risk plan (RL 23-
1091) Self-insured employers and
employer groups (RR R20-5-201­208)
9.0 Other Coverages and Options 6%
9.1 Umbrella/excess liability policies
Personal (DL 98 01) Commercial (CU 00 01) 9.2 Specialty liability
insurance Professional liability Errors and omissions Directors and officers
liability Fiduciary liability Liquor liability Employment practices
liability 9.3 Surplus lines
Definitions and markets Licensing requirements 9.4 Surety bonds Principal, obligee, surety Contract bonds License and permit bonds Judicial bonds 9.5 Aviation insurance Aircraft liability 9.6 Other policies Boatowners
Arizona Examination for Personal Lines Insurance Producer Series 13-44
100 questions - 2 hour time limit Effective August 3, 2020 63

1.0 Insurance Regulation 10% 1.1 Licensing
License application requirements (20-285)
Number of Exam Attempts 20-284(H)
Licensing eligibility/lawful presence (41-1080)
Types of licensees
Producers (20281(5), 286)
Nonresidents (20281(11))
Adjusters (20-321)
Life Settlement Broker (ARS 20-3202)
Business entities (20281(1), 285(D, E), 290(B))
Surplus lines brokers (20-407, 411)
Temporary (20-294)
Vending machines (20-293)
Lines of producer license authority (20-286, (A), 321 331, 332, 411, 411.01, 1580, 1693.01, 2662)
Fingerprinting requirements (20142(E), 285(E), 286(C), 289(D))
Assumed business name (20-297)
Maintenance and duration
Expiration, surrender and renewal (20289)
Inactive license status during military service (20-289.01)
Change of personal contact information (20-286(C))
Change of business information (20286(C))
Report of actions (20301)
Continuing education (20-2902, 2903)
Disciplinary actions

Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296)
Cease and desist order (20-292)
1.2 State regulation
Acts constituting insurance transaction (20-106, 282, 401.01)
Negotiate (20281(10))
Sell (20-281(14))
Solicit (20-281(15))
Payment of premiums (20-191)
Certificate of authority (20-217(A))
Identification of Producer (20-229)
Producer regulation
Sharing commissions (20-298)
Place of business and records (20-157, 290; AZ Const Art 14 s 16)
Unfair practices and frauds
Unfair trade practices (20-442)
Misrepresentation (20-443, 443.01, 447; Rule R20-6801(D))
False or deceptive advertising (20444)
Defamation of insurer (20-445)
Boycott, coercion or intimidation (20446)
False financial statements (20447)
Unfair discrimination (20-448)
Gender discrimination (Rule R20-6-207)
Rebating (20-449­ 451)
Prohibited inducements (20452)
Fees (20-465)

Unfair claims settlement practices (20-461; Rule R206-801)
Claims payment (20462)
Insurance fraud (20463, 466­466.04)
Insurance information and privacy protection (202101­2122)
1.3 Federal regulation
Fair Credit Reporting Act (15 USC 1681­1681d)
Violent Crime Control and Law Enforcement Act (20-489; 18 USC 1033, 1034; 15 USC 61016108; ARS 44-1282)
Telemarketing Sales Rule (16 CFR 310; 15 USC 6101­6108; A.R.S. 441282)
CAN-SPAM Act of 2003 (15 USC 7701; 18 USC 1037)
Gramm-Leach-Bliley Act (20-2121; Public Law 106-102)
Terrorism Insurance Program (15 USC 6701; Public Law 107-297, 109-144, 110-160)
2.0 General Insurance 10% 2.1 Concepts
Insurance, definition of (20-103)
Risk management key terms
Risk
Exposure
Hazard
Peril
Loss
Methods of handling risk
Avoidance
Retention
Sharing
Reduction
Transfer
Elements of insurable risks
Adverse selection
64

Law of large numbers
Reinsurance
2.2 Insurers
Types of insurers
Mutual, stock, fraternal (20-702, 703)
Captive insurance companies
Stock companies
Mutual companies
Fraternal benefit societies
Reciprocals (20-761,762)
Risk retention groups (20-2401(10), 15 USC SS 3901, 3902)
Lloyd's associations (20-1021)
Private versus government insurers
Authorized versus unauthorized insurers
Domestic, foreign and alien insurers (20-201, 203, 204)
Marketing (distribution) systems
2.3 Producers and general rules of agency
Insurer as principal
Producer/insurer relationship
Authority and powers of producers
Express
Implied
Apparent
2.4 Contracts
Elements of a legal contract
Offer and acceptance
Consideration
Competent parties
Legal purpose
Distinct characteristics of an insurance contract
Contract of adhesion
Personal contract

Aleatory contract Unilateral contract Conditional contract Legal interpretations affecting contracts Ambiguities in a
contract of adhesion Reasonable
expectations Indemnity Utmost good faith Representations/misre
presentations Warranties Concealment Fraud Waiver and estoppel
3.0 Property and Casualty Insurance Basics 17% 3.1 Principles and concepts Insurable interest (201105) Underwriting Function Loss ratio Rates Types Loss costs Components Hazards Physical Moral Morale Negligence Elements of a negligent act Damages Compensatory -- special versus general Punitive Strict liability Vicarious liability Causes of loss (perils) Named perils versus special (open) perils

Direct loss Consequential or indirect
loss Blanket versus specific
insurance Basic types of construction Loss valuation
Actual cash value Replacement cost Market value Agreed value Stated amount 3.2 Policy structure
Standard Provisions (201112)
Content of Policy (201113)
Declarations Definitions Insuring agreement or
clause Additional/supplementary
coverage Conditions Exclusions Endorsements 3.3 Common policy
provisions Insureds -- named, first
named, additional Policy period Policy territory Cancellation and
nonrenewal Deductibles Other insurance
Nonconcurrency Primary and excess Pro rata Contribution by equal
shares Limits of liability
Per occurrence (accident)
Per person Split Combined single Policy limits
65

Restoration/nonreduction of limits
Coinsurance
Vacancy or unoccupancy
Named insured provisions
Duties after loss
Assignment
Abandonment
Insurer provisions
Liberalization
Subrogation
Salvage
Claim settlement options
Duty to defend
Third-party provisions
Standard mortgage clause
Loss payable clause
No benefit to the Bailee
Electronic Communications (20-239)
Electronic Posting of Policies (20-240)
3.4 Required provisions
Arizona Property and Casualty Insurance Guaranty Fund (20-662)
Certificate of authority (20-217(A))
Cancellation and nonrenewal (20-1651­ 1656)
Binders (20-1120)
Federal Terrorism Insurance Program (15 USC 6701; Public Law 107­297, 109­144, 110­ 160)
4.0 Dwelling ('02) Policy 11% 4.1 Characteristics and purpose
4.2 Coverage forms -- Perils insured against
Basic
Broad
Special
4.3 Property coverages

Coverage A -- Dwelling
Coverage B -- Other structures
Coverage C -- Personal property
Coverage D -- Fair rental value
Coverage E -- Additional living expense
Other coverages
4.4 General exclusions
4.5 Conditions
4.6 Selected endorsements
Special provisions -- Arizona (DP 01 02)
Automatic increase in insurance (DP 04 11)
Broad theft coverage (DP 04 72)
Dwelling under construction (DP 11 43)
4.7 Personal liability supplement
5.0 Homeowners ('11) Policy 23% 5.1 Coverage forms
HO-2 through HO-6
HO-8 5.2 Definitions
5.3 Section I -- Property coverages
Coverage A -- Dwelling
Coverage B -- Other structures
Coverage C -- Personal property
Coverage D -- Loss of use
Additional coverages
5.4 Section II -- Liability coverages
Coverage E -- Personal liability
Coverage F -- Medical payments to others
Additional coverages
5.5 Perils insured against
5.6 Exclusions
5.7 Conditions
5.8 Selected endorsements

Special provisions -- Arizona (HO 01 02)
Limited fungi, wet or dry rot, or bacteria coverage (HO 04 26, HO 04 27)
Permitted incidental occupancies (HO 04 42)
Earthquake (HO 04 54)
Scheduled personal property (HO 04 61)
Personal property replacement cost (HO 04 90)
Home day care (HO 04 97)
Business pursuits (HO 24 71)
Watercraft (HO 24 75)
Personal injury (HO 24 82)
6.0 Auto Insurance 23% 6.1 Laws
Arizona Motor Vehicle Financial Responsibility Law (RL Title 28, Chapter 9)
Required limits of liability (20-266, RL 28-4009)
Required proof of insurance (RL 284133)
Arizona Automobile Insurance Plan (RL 284008)
Premium payments and administrative fees (20267)
Uninsured/underinsured motorist (20-259.01)
Definitions
Bodily injury
UM/UIM rejection
Required limits
Personal auto cancellation/nonrenewal
Grounds (20-1631)
Notice (20-1632)
Grace period (201632.01)
66

Notice of eligibility in assigned risk plan (20-1632)
Subrogated claim (20268)
6.2 Personal ('05) auto policy
Definitions
Liability coverage
Bodily injury and property damage
Supplementary payments
Exclusions
Medical payments coverage
Uninsured/Underinsured motorist coverage
Coverage for damage to your auto
Collision
Other than collision
Deductibles
Transportation expense
Exclusions
Duties after an accident or loss
General provisions (PP 00 01)
Selected endorsements
Amendment of policy provisions -- Arizona (PP 01 67)
Full Safety Glass Coverage-Arizona (PP 03 48)
Towing and labor costs (PP 03 03)
Extended non-owned coverage -- vehicles furnished or available for regular use (PP 03 06)
Limited Mexico coverage (PP 03 21)
Joint ownership coverage (PP 03 34)
Uninsured motorists coverage -- Arizona (PP 04 77; Regulatory Bulletin 2003-10, 2003-03)

Underinsured motorists coverage -- Arizona (PP 04 89; Regulatory Bulletin 2003-10, 2003-03)
Miscellaneous type vehicle -- Arizona (PP 13 69, PP 13 70, PP 13 71, PP 13 72)
7.0 Other Coverages and Options 6%
7.1 Umbrella/excess liability policies
Personal (DL 98 01) 7.2 National Flood
Insurance Program "Write your own" versus
government Eligibility Coverage Limits Deductibles 7.3 Other policies Boatowners
Arizona Producer's Crop Insurance
Series 13-46
60 questions ­ 1 hour time limit Effective August 3, 2020
1.0 Insurance Regulation 10% 1.1 Licensing Requirements (20-285) Types of licensees Producers (20281(5), 286) Nonresident producers (20-281(11)) Adjusters (20-321) Business entities (20281(1), 285(D, E), 290(B)) Temporary (20-294) Lines of producer license authority (20-286, (A), 321 331, 332, 411,

411.01, 1580, 1693.01, 2662)
Fingerprinting requirements (20142(E), 285(E), 286(C), 289(D))
Assumed business name (20-297)
Maintenance and duration
Expiration, surrender and renewal (20289)
Inactive license status during military service (20-289.01)
Change of name, address, telephone number (20286(C))
Reporting of actions (20-301)
Continuing education (20-2902, 2903)
Disciplinary actions
Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296)
Cease and desist order (20-292)
1.2 State regulation
Acts constituting insurance transaction (20-106, 282, 401.01)
Negotiate (20281(10))
Sell (20-281(14))
Solicit (20-281(15))
Payment of premiums (20-191)
Certificate of authority (20-217(A))
Signature on insurance policy (20-229)
Producer regulation
Sharing commissions (20-298)
Place of business and records (20-157, 290; AZ Const Art 14 s 16)
Certificate of authority (20-217(A))
Unfair trade practices (20442)
67

Misrepresentation (20-443, 443.01, 447; Rule R20-6801(D))
False or deceptive advertising (20444)
Defamation of insurer (20-445)
Boycott, coercion or intimidation (20446)
Unfair discrimination (20-448)
Gender discrimination (Rule R20-6-207)
Rebating (20-449­ 451)
Prohibited inducements (20452)
Fees (20-465)
Insurance fraud (20-463, 466­466.04)
Privacy of Insurance information and privacy protection (20-2101­ 2122)
1.3 Federal regulation
Fair Credit Reporting Act (15 USC 1681­1681d)
Other federal regulations (e.g. Do Not Call List) https://www.donotcall.go v/
2.0 General Insurance 10% 2.1 Concepts
Risk management key terms
Risk
Exposure
Hazard
Peril
Loss
Methods of handling risk
Avoidance
Retention
Sharing
Reduction
Transfer
Elements of insurable risks

Adverse selection
Law of large numbers
Reinsurance
Indemnity/pay on behalf of
2.2 Insurers
Types of insurers
Captive insurers
Stock companies
Mutual companies
Fraternal benefit societies
Reciprocals
Risk retention groups
Lloyd's associations
Self-insurers
Surplus lines
Risk purchasing groups
Private versus government insurers
Authorized versus unauthorized insurers
Domestic, foreign and alien insurers
Marketing (distribution) systems
Financial solvency status (independent rating services)
A.M. Best, Standard and Poor's, NAIC
2.3 Producers and general rules of agency
Insurer as principal
Producer/insurer relationship
Authority and powers of producers
Express
Implied
Apparent
Responsibilities to the applicant/insured
2.4 Contracts
Elements of a legal contract
Offer and acceptance
Consideration
Competent parties

Legal purpose Distinct characteristics of
an insurance contract Contract of adhesion Personal contract Aleatory contract Unilateral contract Conditional contract
Legal interpretations affecting contracts Ambiguities in a contract of adhesion Reasonable expectations Indemnity Utmost good faith Representations/misre presentations Warranties Concealment Fraud Waiver and estoppel
3.0 Crop-Hail Insurance 28% 3.1 Eligibility Insureds Insurable crops 3.2 Application Binder Declarations section Required signatures Required information Provision for company rejection 3.3 Term of coverage Effective date Inception of coverage Expiration Cancellation 3.4 Perils insured against 3.5 Exclusions 3.6 Limits of coverage Insurable value Percentage plan Deductibles Reduction of insurance
68

3.7 Other provisions Replanting clause Acreage variation Transit extension Fire department service charge Pro rata liability clause Fire and lightning coverage Catastrophe loss award Assignment Subrogation
3.8 Claim settlement practices
Notice of loss Insured's duties after loss Appraisal/arbitration
4.0 Federal Multi-Peril Crop Insurance Programs 52% 4.1 Basic/catastrophic crop insurance (CAT) Eligibility Insureds Insurable crops Actuarial document books Yield guarantee Actual production history (APH) Assigned yield Transitional yield Coverage level Market price percentage Covered causes of loss Application Basic unit Administrative fee Production records Acreage reporting Late planting agreement option Disqualification of producer Life of policy Continuous Cancellation Termination

4.2 Multiple peril policy options
Levels of coverage Price election Optional units High-risk land exclusion Hail/fire exclusion Replant payments Late planting coverage Prevented planting
coverage Transfer of coverage Assignment of indemnity Subrogation 4.3 Other provisions Individual crop Small grain Coarse grain
Priorities of conflicts between provisions
Duties after loss Insured Insurer
4.4 Revenue Protection Plan
Base price Units Harvest price Guaranteed revenue Rebating
69

Exam Registration Form
Arizona Insurance Examinations

To conveniently register online, please go to http://www.prometric.com/arizona/insurance

Print or type clearly and neatly. Incomplete or illegible forms will not be processed.

Last Name

First Name

Middle Name

Residence Address (Your address of legal residence is required)

City

State

ZIP Code

Employer (insurance company, if known)

E-mail address (applications without an email address may experience delays)

Name of Your Pre-licensing Education Course Provider

Daytime Phone Number (including area code)

Evening Phone Number (including

area code)

(

)

Fax Number (including area code)

(

)

Pre-licensing Course Completion Date

Series

Exam Title

Exam Fee Total

13-31 Insurance Producer ­ Life

$38

$

13-32 Insurance Producer ­ Accident and Health

$38

$

13-33 Insurance Producer ­ Life, Accident and Health

$49

$

13-34 Insurance Producer- Property and Casualty

$49

$

13-35 Bail Bond Agent

$35

$

13-36 Adjuster

$49

$

13-41 Surplus Lines Insurance Broker

$35

$

13-42 Insurance Producer- Property (commercial and noncommercial)

$38

$

13-43 Insurance Producer- Casualty (commercial and noncommercial)

$38

$

13-44 Insurance Producer- Personal Lines (noncommercial property and casualty)

$38

$

13-46 Insurance Producer- Crop

$35

$

Fingerprint Processing Fee (We recommend you do not schedule your fingerprint appointment until you have passed your licensing exam. You will not be fingerprinted if you do not pass your exam, as all fees are nonrefundable).

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By filing this registration, you assume full responsibility for exam selection. If you are unsure about which exam you need for the license you are seeking, resolve this question before you register. Fees for these exams are non-refundable and non-transferrable. Exam fees are valid for 90 days from receipt at Prometric.

Please allow 7-10 business days for receipt and processing of your application. An authorized Prometric Client Service Representative will contact you by phone to obtain your social security number to complete the registration process. Once you have registered for your exam, you can schedule your exam appointment online or by phone.
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Credit Card Payment Form

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