ARKANSAS LIFE INSURANCE EXAM (ACTUAL EXAM) LATEST 2026 |WITH 100+ EXPERT CERTIFIED
QUESTIONS AND ANSWERS I ALREADY GRADED A+ 100% PASS
J is a producer who has induced an insured through misrepresentation to surrender an existing
insurance policy. What is J guilty of? ✔️Twisting
What is implied authority defined as? ✔️Authority that is not specifically given to an agent contract, but
that an agent can reasonably assume to carry out his/her duties
A person who is a nonsmoker, average weight, excellent health would fall into what risk classification?
✔️Preferred
Which of the following is considered to be the period when the accumulated value in an annuity is paid
out? ✔️Annuitization phase
An insurers claim settlement practices are regulated by the: ✔️State insurance departments
An insurers ability to make unpredictable payouts to policy owners is called: ✔️Liquidity
Which of the following pertains to the analysis of an applicants personal information and determining
whether insurance should be issued or declined? ✔️Underwriting
What does the Group Life underwriting risk selection process help protect insurance companies from?
✔️Adverse Selection
The Arkansas Life & Disability Insurance Guaranty Association assures payment of benefits from
insurance policies for insolvent insurers, and covers all of the following insured policies, EXCEPT:
✔️Liability Insurance
What would happen if a life insurance applicant is given a conditional receipt from an insurance agent
and then dies the next day? ✔️Claim will be paid if application is approved
A life insurance policy owner does NOT have the right to: ✔️Revoke an absolute assignment
An employee under a group insurance policy has the right to name a beneficiary and the right to:
✔️Convert to an individual policy in the event of employment termination
The two major actions required for a policyholder to comply with the Reinstatement Clause are
✔️Provide evidence of insurability, past due premiums
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?
✔️The policy may be paid up early by using policy dividends
Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer
price index has gone up 4%, how much may Ron increase the face value of the policy? ✔️$4,000
,($100,000 X .04 = $4,000)
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
QUESTIONS AND ANSWERS I ALREADY GRADED A+ 100% PASS
J is a producer who has induced an insured through misrepresentation to surrender an existing
insurance policy. What is J guilty of? ✔️Twisting
What is implied authority defined as? ✔️Authority that is not specifically given to an agent contract, but
that an agent can reasonably assume to carry out his/her duties
A person who is a nonsmoker, average weight, excellent health would fall into what risk classification?
✔️Preferred
Which of the following is considered to be the period when the accumulated value in an annuity is paid
out? ✔️Annuitization phase
An insurers claim settlement practices are regulated by the: ✔️State insurance departments
An insurers ability to make unpredictable payouts to policy owners is called: ✔️Liquidity
Which of the following pertains to the analysis of an applicants personal information and determining
whether insurance should be issued or declined? ✔️Underwriting
What does the Group Life underwriting risk selection process help protect insurance companies from?
✔️Adverse Selection
The Arkansas Life & Disability Insurance Guaranty Association assures payment of benefits from
insurance policies for insolvent insurers, and covers all of the following insured policies, EXCEPT:
✔️Liability Insurance
What would happen if a life insurance applicant is given a conditional receipt from an insurance agent
and then dies the next day? ✔️Claim will be paid if application is approved
A life insurance policy owner does NOT have the right to: ✔️Revoke an absolute assignment
An employee under a group insurance policy has the right to name a beneficiary and the right to:
✔️Convert to an individual policy in the event of employment termination
The two major actions required for a policyholder to comply with the Reinstatement Clause are
✔️Provide evidence of insurability, past due premiums
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?
✔️The policy may be paid up early by using policy dividends
Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer
price index has gone up 4%, how much may Ron increase the face value of the policy? ✔️$4,000
,($100,000 X .04 = $4,000)
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
