ARKANSAS LIFE INSURANCE LATEST 2026 STANDARD
FINALS ALL QUESTIONS AND ANSWERS MARKED A+
✔✔Buyers Guide - ✔✔Generic information about life insurance policies that contains,
and is limited to, language approved by the Department of Insurance. (Agents are
required to give a buyer's guide to all applicants before premium is collected.)
✔✔Policy Summary - ✔✔A written statement describing the features and elements of
the policy being issued. Must include the name and address of the agent, full name and
home office or administrative office address of the insurer, and the generic name of the
basic policy and each rider.
✔✔Attained Age - ✔✔The insured's age at the time the policy is issued or renewed.
✔✔Cash Value - ✔✔A policy's savings element or living benefit.
✔✔Face Amount - ✔✔The amount of benefit stated in the life insurance policy.
✔✔Fixed Life Insurance - ✔✔Contracts that offer guaranteed minimum or fixed benefits.
✔✔Deferred - ✔✔Withheld or postponed until a specific time or event in the future.
✔✔Endow - ✔✔The cash value of a whole life policy has reached the contractual face
amount.
✔✔Level Premium - ✔✔The premium that does not change throughout the life of a
policy.
✔✔Liquidation of an Estate - ✔✔Converting a person's net worth into a cash flow.
✔✔Nonforfeiture Values - ✔✔Benefits in a life insurance policy that the policyowner
cannot lose even if the policy is surrendered or lapses.
✔✔Policy Maturity - ✔✔In life policies, the time when the face value is paid out.
✔✔Qualified Plan - ✔✔A retirement plan that meets IRS guidelines for receiving
favorable tax treatment.
✔✔Securities - ✔✔Financial instruments that may trade for value (I.E. stocks, bonds,
options.)
✔✔Suitablity - ✔✔A requirement to determine if an insurance product is appropriate for
a customer.
, ✔✔Variable Life Insurance - ✔✔Contracts in which the cash values accumulate based
upon a specific portfolio of stocks without guarantees of performance.
✔✔Term Insurance (Pure Life) - ✔✔Temporary protection because it only provides
coverage for a specific period of time. There is usually a maximum time.
✔✔Three Basic Types of Term Coverage - ✔✔1. Level
2. Increasing
3. Decreasing
✔✔Level Term Insurance - ✔✔The most common type of temporary protection
purchased.
Level refers to the death benefit that does not change throughout the life of the policy.
✔✔Annually Renewable Term Insurance - ✔✔Purest form of term insurance.
Death benefit remains level, but the premium increases annually according to the
attained age, as the probability of death increases.
✔✔Decreasing Term Insurance - ✔✔A level premium and a death benefit that
decreases each year over the duration of the policy term. (Death benefit equals $0 at
the end of the term)
✔✔Return of Premium - ✔✔(Increasing term insurance policy)
Pays an additional death benefit to the beneficiary equal to the amount of the premiums
paid. RoP is also paid if the insured outlives the policy term.
✔✔Renewable Provision - ✔✔Allows the policyowner the right to renew the coverage at
the expiration date without evidence of insurability. (New premium is based on insured's
current age.)
✔✔Convertible Provision - ✔✔Provides the policyowner with the right to convert the
policy to a permanent insurance policy without evidence of insurability. (New premium is
based on insured's current age.)
✔✔Permanent Life Insurance - ✔✔General term for policies that build cash value and
remain in effect for the entire life of the insured (or until age 100) as long as the
premium is paid.
✔✔Whole Life Insurance - ✔✔Lifetime protection, and includes a savings element.
✔✔Ordinary Whole Life Insurance - ✔✔(Straight Life) The basic whole life policy.
Policyowner pays the premium from the time the policy is issued until the insured's
death or age 100.
FINALS ALL QUESTIONS AND ANSWERS MARKED A+
✔✔Buyers Guide - ✔✔Generic information about life insurance policies that contains,
and is limited to, language approved by the Department of Insurance. (Agents are
required to give a buyer's guide to all applicants before premium is collected.)
✔✔Policy Summary - ✔✔A written statement describing the features and elements of
the policy being issued. Must include the name and address of the agent, full name and
home office or administrative office address of the insurer, and the generic name of the
basic policy and each rider.
✔✔Attained Age - ✔✔The insured's age at the time the policy is issued or renewed.
✔✔Cash Value - ✔✔A policy's savings element or living benefit.
✔✔Face Amount - ✔✔The amount of benefit stated in the life insurance policy.
✔✔Fixed Life Insurance - ✔✔Contracts that offer guaranteed minimum or fixed benefits.
✔✔Deferred - ✔✔Withheld or postponed until a specific time or event in the future.
✔✔Endow - ✔✔The cash value of a whole life policy has reached the contractual face
amount.
✔✔Level Premium - ✔✔The premium that does not change throughout the life of a
policy.
✔✔Liquidation of an Estate - ✔✔Converting a person's net worth into a cash flow.
✔✔Nonforfeiture Values - ✔✔Benefits in a life insurance policy that the policyowner
cannot lose even if the policy is surrendered or lapses.
✔✔Policy Maturity - ✔✔In life policies, the time when the face value is paid out.
✔✔Qualified Plan - ✔✔A retirement plan that meets IRS guidelines for receiving
favorable tax treatment.
✔✔Securities - ✔✔Financial instruments that may trade for value (I.E. stocks, bonds,
options.)
✔✔Suitablity - ✔✔A requirement to determine if an insurance product is appropriate for
a customer.
, ✔✔Variable Life Insurance - ✔✔Contracts in which the cash values accumulate based
upon a specific portfolio of stocks without guarantees of performance.
✔✔Term Insurance (Pure Life) - ✔✔Temporary protection because it only provides
coverage for a specific period of time. There is usually a maximum time.
✔✔Three Basic Types of Term Coverage - ✔✔1. Level
2. Increasing
3. Decreasing
✔✔Level Term Insurance - ✔✔The most common type of temporary protection
purchased.
Level refers to the death benefit that does not change throughout the life of the policy.
✔✔Annually Renewable Term Insurance - ✔✔Purest form of term insurance.
Death benefit remains level, but the premium increases annually according to the
attained age, as the probability of death increases.
✔✔Decreasing Term Insurance - ✔✔A level premium and a death benefit that
decreases each year over the duration of the policy term. (Death benefit equals $0 at
the end of the term)
✔✔Return of Premium - ✔✔(Increasing term insurance policy)
Pays an additional death benefit to the beneficiary equal to the amount of the premiums
paid. RoP is also paid if the insured outlives the policy term.
✔✔Renewable Provision - ✔✔Allows the policyowner the right to renew the coverage at
the expiration date without evidence of insurability. (New premium is based on insured's
current age.)
✔✔Convertible Provision - ✔✔Provides the policyowner with the right to convert the
policy to a permanent insurance policy without evidence of insurability. (New premium is
based on insured's current age.)
✔✔Permanent Life Insurance - ✔✔General term for policies that build cash value and
remain in effect for the entire life of the insured (or until age 100) as long as the
premium is paid.
✔✔Whole Life Insurance - ✔✔Lifetime protection, and includes a savings element.
✔✔Ordinary Whole Life Insurance - ✔✔(Straight Life) The basic whole life policy.
Policyowner pays the premium from the time the policy is issued until the insured's
death or age 100.
