ARKANSAS LIFE INSURANCE LATEST 2026
COMPREHENSIVE EXAM QUESTIONS AND ANSWERS
MARKED A+
✔✔Krissa purchases a 10-year level term life insurance policy that has a death benefit
of $200,000. Which of these statements is true? - ✔✔The face amount and premium will
remain constant over the 10-year period
✔✔What is Arkansas' REQUIRED grace period for a life insurance contract? - ✔✔31
days
✔✔A domestic insurance company in Arkansas MUST - ✔✔Be organized under
Arkansas Insurance laws
✔✔Simon has purchased a fixed immediate annuity. His payment amount will be
dependent upon principal, interest, and the contract's - ✔✔Income period
✔✔What kind of life insurance policy issued by a mutual insurer provides a return of
divisible surplus? - ✔✔Participating life insurance policy
✔✔No one is allowed to act as a producer for any insurance company in Arkansas that -
✔✔Is unauthorized to do business in Arkansas
✔✔What MUST the company do prior to conducting an HIV related test? - ✔✔Obtain a
written consent from the proposed insured
✔✔Which approach predicts a person's earning potential and determines how much of
that amount would be devoted to dependents? - ✔✔Human life value approach
✔✔If the annuitant dies before the annuity start date, - ✔✔The premiums paid plus
interest earned will be given to the beneficiary
✔✔If dividends are illustrated, the advertisement MUST state that the dividends are: -
✔✔Not guaranteed
✔✔Intentional withholding of material facts that would affect an insurance policy's
validity is called a(n) - ✔✔Concealment
✔✔Field underwriting performed by the producer involves - ✔✔Completing the
application and collecting initial premium
,✔✔Which of the following statements is CORRECT regarding an individual applying for
life or health insurance? - ✔✔The applicants medical history may be analyzed and
reported
✔✔Life insurance policies will normally pay for losses arising from - ✔✔Commercial
aviation
✔✔An example of rebating would be - ✔✔Offering a client something of value not
stated in the contract in exchange for their business
✔✔Which type of insurance company allows their policyowners to elect governing
body? - ✔✔Mutual
✔✔Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive? - ✔✔Endowment policy
✔✔A life insurance claim which involves a per capita distribution of policy proceeds
would be payable to the - ✔✔Named living primary beneficiaries
✔✔A type of group that has a constitution and bylaws and has been organized for
purposes other than obtaining insurance is called a(n) - ✔✔Association or labor group
✔✔What are an applicant's statements concerning occupation, hobbies, and personal
health history regarded as? - ✔✔Representation
✔✔Ken is a producer who has obtained Consumer Information Reports under false
pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may
be imposed on Ken? - ✔✔$5,000
✔✔The _________ must provide an insured with proper disclosure concerning the
replacement of a life insurance policy - ✔✔Producer
✔✔Within how many days must a rollover be completed in order to avoid being taxed as
current income? - ✔✔60 days to complete the rollover to another IRA
✔✔Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life
policy covering all three of their lives. If Mike dies first, the policy proceeds - ✔✔Will no
longer provide insurance protection
✔✔An insurer may pay commissions directly to any person for services as a producer
provided the producer is licensed and ________ - ✔✔Appointed
, ✔✔The principle of insurable interest, in regards to a life insurance contract, is
accurately described in which statement? - ✔✔Insurable interest can be based on the
love and affection of individuals related by blood or law
✔✔Andy the annuitant dies before the annuity start date. Which of the following is a
TRUE statement? - ✔✔Premiums paid plus interest earned is returned to the
beneficiary
✔✔All of these are considered key factors in underwriting life insurance EXCEPT -
✔✔Marital status
✔✔The promise of a discount in premium as an inducement to purchase insurance is
an Unfair Trade Practice known as: - ✔✔Rebating
✔✔Jonas is a whole life insurance policyowner and would like to add coverage for his
two children. Which of the following products would allow him to accomplish this? -
✔✔Child term rider
✔✔Which of the following basics is a producer's fiduciary responsibility? - ✔✔Collecting
premiums and paying them to the insurance company
✔✔Donald is the primary insured of a life insurance policy and adds a children's term
rider. What is the advantage of adding this rider? - ✔✔Can be converted to permanent
coverage without evidence of insurability
✔✔In Arkansas, replacement forms are required to be obtained for the replacement of
which of the following - ✔✔Annual Renewable Term (ART) insurance
✔✔What is involved when a life insurance policy has been backdated? - ✔✔Making the
policy effective on an earlier date than the present
✔✔Elizabeth is the beneficiary of a life insurance policy. She is receiving the death
benefit in payments of $10,000 per month until the principal and interest has been paid
out. Which option was chosen? - ✔✔Fixed amount
✔✔In Arkansas, which of the following is considered an Unfair Trade Practice? -
✔✔Coercion
✔✔Shirley has a $500,000 10-year non-renewable level term life policy. If she dies 15
years after the policy's inception date, how much will her beneficiary receive? -
✔✔Nothing
COMPREHENSIVE EXAM QUESTIONS AND ANSWERS
MARKED A+
✔✔Krissa purchases a 10-year level term life insurance policy that has a death benefit
of $200,000. Which of these statements is true? - ✔✔The face amount and premium will
remain constant over the 10-year period
✔✔What is Arkansas' REQUIRED grace period for a life insurance contract? - ✔✔31
days
✔✔A domestic insurance company in Arkansas MUST - ✔✔Be organized under
Arkansas Insurance laws
✔✔Simon has purchased a fixed immediate annuity. His payment amount will be
dependent upon principal, interest, and the contract's - ✔✔Income period
✔✔What kind of life insurance policy issued by a mutual insurer provides a return of
divisible surplus? - ✔✔Participating life insurance policy
✔✔No one is allowed to act as a producer for any insurance company in Arkansas that -
✔✔Is unauthorized to do business in Arkansas
✔✔What MUST the company do prior to conducting an HIV related test? - ✔✔Obtain a
written consent from the proposed insured
✔✔Which approach predicts a person's earning potential and determines how much of
that amount would be devoted to dependents? - ✔✔Human life value approach
✔✔If the annuitant dies before the annuity start date, - ✔✔The premiums paid plus
interest earned will be given to the beneficiary
✔✔If dividends are illustrated, the advertisement MUST state that the dividends are: -
✔✔Not guaranteed
✔✔Intentional withholding of material facts that would affect an insurance policy's
validity is called a(n) - ✔✔Concealment
✔✔Field underwriting performed by the producer involves - ✔✔Completing the
application and collecting initial premium
,✔✔Which of the following statements is CORRECT regarding an individual applying for
life or health insurance? - ✔✔The applicants medical history may be analyzed and
reported
✔✔Life insurance policies will normally pay for losses arising from - ✔✔Commercial
aviation
✔✔An example of rebating would be - ✔✔Offering a client something of value not
stated in the contract in exchange for their business
✔✔Which type of insurance company allows their policyowners to elect governing
body? - ✔✔Mutual
✔✔Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive? - ✔✔Endowment policy
✔✔A life insurance claim which involves a per capita distribution of policy proceeds
would be payable to the - ✔✔Named living primary beneficiaries
✔✔A type of group that has a constitution and bylaws and has been organized for
purposes other than obtaining insurance is called a(n) - ✔✔Association or labor group
✔✔What are an applicant's statements concerning occupation, hobbies, and personal
health history regarded as? - ✔✔Representation
✔✔Ken is a producer who has obtained Consumer Information Reports under false
pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may
be imposed on Ken? - ✔✔$5,000
✔✔The _________ must provide an insured with proper disclosure concerning the
replacement of a life insurance policy - ✔✔Producer
✔✔Within how many days must a rollover be completed in order to avoid being taxed as
current income? - ✔✔60 days to complete the rollover to another IRA
✔✔Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life
policy covering all three of their lives. If Mike dies first, the policy proceeds - ✔✔Will no
longer provide insurance protection
✔✔An insurer may pay commissions directly to any person for services as a producer
provided the producer is licensed and ________ - ✔✔Appointed
, ✔✔The principle of insurable interest, in regards to a life insurance contract, is
accurately described in which statement? - ✔✔Insurable interest can be based on the
love and affection of individuals related by blood or law
✔✔Andy the annuitant dies before the annuity start date. Which of the following is a
TRUE statement? - ✔✔Premiums paid plus interest earned is returned to the
beneficiary
✔✔All of these are considered key factors in underwriting life insurance EXCEPT -
✔✔Marital status
✔✔The promise of a discount in premium as an inducement to purchase insurance is
an Unfair Trade Practice known as: - ✔✔Rebating
✔✔Jonas is a whole life insurance policyowner and would like to add coverage for his
two children. Which of the following products would allow him to accomplish this? -
✔✔Child term rider
✔✔Which of the following basics is a producer's fiduciary responsibility? - ✔✔Collecting
premiums and paying them to the insurance company
✔✔Donald is the primary insured of a life insurance policy and adds a children's term
rider. What is the advantage of adding this rider? - ✔✔Can be converted to permanent
coverage without evidence of insurability
✔✔In Arkansas, replacement forms are required to be obtained for the replacement of
which of the following - ✔✔Annual Renewable Term (ART) insurance
✔✔What is involved when a life insurance policy has been backdated? - ✔✔Making the
policy effective on an earlier date than the present
✔✔Elizabeth is the beneficiary of a life insurance policy. She is receiving the death
benefit in payments of $10,000 per month until the principal and interest has been paid
out. Which option was chosen? - ✔✔Fixed amount
✔✔In Arkansas, which of the following is considered an Unfair Trade Practice? -
✔✔Coercion
✔✔Shirley has a $500,000 10-year non-renewable level term life policy. If she dies 15
years after the policy's inception date, how much will her beneficiary receive? -
✔✔Nothing
