1
ARKANSAS LIFE INSURANCE ACTUAL
EXAM 2026/2027 | Expert Certified
Questions and Answers | Already Graded A+
& 100% Pass | Pass Guaranteed - A+ Graded
SECTION 1: ARKANSAS INSURANCE LAWS AND REGULATIONS (33
Questions)
Q1: According to Arkansas Code, which of the following statements correctly describes the free
look period requirement for individual life insurance policies sold in Arkansas?
A. A 10-day free look period is required for all policies, with a 30-day period for seniors over 65
B. A 20-day free look period is required from the date the policy is delivered
C. A 10-day free look period is required from the date of application
D. Arkansas does not require a free look period for life insurance policies
Correct Answer: B [CORRECT]
Rationale: Arkansas Code § 23-79-208 requires a 20-day free look period for individual life
insurance policies, beginning from the date the policy is delivered to the policyowner. This
allows consumers to review the entire contract, including all riders and amendments. Option A is
incorrect; while some states have extended senior free look periods, Arkansas maintains a
uniform 20-day period regardless of age. Option C is incorrect because the free look period
begins at delivery, not application, ensuring the consumer has physical possession of the policy.
Option D is incorrect; Arkansas mandates this consumer protection measure to allow
policyowners to return the policy for a full refund of all premiums paid if not satisfied.
Q2: Under Arkansas Insurance Code § 23-64-305, what is the minimum age requirement for
obtaining a life insurance producer license in Arkansas?
A. 18 years of age
B. 21 years of age
C. 16 years of age with parental consent
D. 25 years of age for non-resident applicants only
Correct Answer: A [CORRECT]
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Rationale: Arkansas Insurance Code § 23-64-305 requires all insurance producer license
applicants to be at least 18 years of age. This aligns with the NAIC Producer Licensing Model
Act and ensures legal capacity to contract. Option B is incorrect; 21 is not the minimum age for
licensing in Arkansas. Option C is incorrect; no exceptions exist for minors with parental consent
in insurance licensing. Option D is incorrect; non-resident applicants must meet the same age
requirements as residents, and 25 is not a specified age threshold.
Q3: According to Arkansas Insurance Department regulations, how many hours of pre-licensing
education are required for a life insurance producer license?
A. 20 hours of life-specific instruction
B. 40 hours of life-specific instruction
C. 20 hours of life and 20 hours of health insurance instruction
D. 40 hours total, with at least 20 hours in life insurance
Correct Answer: A [CORRECT]
Rationale: Arkansas requires 20 hours of pre-licensing education specifically for life insurance,
as mandated by Arkansas Insurance Department rules implementing § 23-64-307. This must be
completed through an approved education provider. Option B exceeds the requirement. Option C
describes the combined life and health licensing requirement (40 hours total when both lines are
sought). Option D is misleading; for life-only licensing, only 20 hours are required, not 40.
Q4: Under Arkansas Code § 23-79-202, what is the maximum grace period required for
individual life insurance policies with monthly premium payment modes?
A. 7 days
B. 10 days
C. 30 days
D. 31 days
Correct Answer: C [CORRECT]
Rationale: Arkansas Code § 23-79-202 mandates a grace period of 30 days for monthly
premium payment modes in individual life insurance policies. For annual, semi-annual, or
quarterly modes, the grace period is 31 days. This protects policyowners from inadvertent lapse
due to minor payment delays. Option A is incorrect; 7 days is insufficient and not compliant.
Option B is incorrect; 10 days is the grace period for industrial life insurance in some contexts,
not ordinary life. Option D is incorrect; 31 days applies to non-monthly modes, not monthly.
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Q5: According to Arkansas replacement regulations, when must a producer provide the "Notice
Regarding Replacement" to an applicant?
A. At the time of application
B. Within 3 days of application
C. At policy delivery
D. Prior to taking the application or at the time of taking the application
Correct Answer: D [CORRECT]
Rationale: Arkansas Insurance Code § 23-79-1101 et seq. and Department Regulation 23 require
the Notice Regarding Replacement to be provided to the applicant prior to taking the application
or at the time the application is taken when replacement is contemplated. This ensures the
applicant understands the consequences of replacing existing coverage before making a
commitment. Option A is too vague; "at the time" could mean during rather than before. Option
B is incorrect; there is no 3-day window—the notice must be provided before or at application.
Option C is too late; the notice must precede the application process to ensure informed consent.
Q6: Under Arkansas Insurance Code § 23-79-208, what must be included in the free look notice
provided with individual life insurance policies?
A. A statement that the policy may be returned within 10 days for a full refund
B. A statement that the policy may be returned within 20 days for a refund of premiums paid, less
any policy loan amounts
C. A statement that the policy may be returned within 20 days from delivery for a full refund of
all premiums paid
D. A statement that the policy may be returned within 30 days, but only if the insured has not
undergone a medical exam
Correct Answer: C [CORRECT]
Rationale: Arkansas Code § 23-79-208 requires the free look notice to specify that the
policyowner has 20 days from delivery to return the policy for a full refund of all premiums paid.
This is a complete refund with no deductions permitted. Option A is incorrect; it states 10 days
rather than 20. Option B is incorrect; deductions for policy loans are not permitted during the
free look period—the refund must be complete. Option D is incorrect; the free look right exists
regardless of whether a medical exam was conducted, and the period is 20 days, not 30.
Q7: According to Arkansas Insurance Department Regulation 43, which of the following actions
constitutes an unfair claims settlement practice?
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A. Failing to acknowledge receipt of a claim within 10 working days
B. Denying a claim without providing a reasonable basis in the policy
C. Offering to settle a claim for less than the amount reasonably due
D. All of the above
Correct Answer: D [CORRECT]
Rationale: Arkansas Regulation 43, implementing § 23-66-206 (Unfair Trade Practices Act),
prohibits all listed actions as unfair claims settlement practices. Insurers must acknowledge
claims promptly (within 10 working days), provide reasonable bases for denials referencing
specific policy provisions, and not compel claimants to accept less than reasonably due through
misrepresentation or undue pressure. Each option represents a specific violation of the
regulation's detailed standards for claims handling.
Q8: Under Arkansas Code § 23-64-315, how long does a licensed life insurance producer have to
complete continuing education requirements?
A. Every year by the license expiration date
B. Every 2 years by the license expiration date
C. Every 3 years by the license expiration date
D. Arkansas does not require continuing education for life insurance producers
Correct Answer: B [CORRECT]
Rationale: Arkansas Code § 23-64-315 requires licensed producers to complete 24 hours of
continuing education every 2 years by their license expiration date, including 3 hours of ethics
training. This biennial requirement aligns with NAIC model regulations. Option A is incorrect;
the requirement is not annual. Option C is incorrect; the cycle is 2 years, not 3. Option D is
incorrect; Arkansas has mandatory continuing education requirements for license renewal.
Q9: According to Arkansas replacement regulations, which of the following is NOT required to
be listed on the "Important Notice" regarding replacement?
A. The name of the existing insurer being replaced
B. The name of the existing policy being replaced
C. The premium amount of the proposed replacement policy
D. The cash surrender value of the existing policy
Correct Answer: D [CORRECT]
Rationale: Arkansas Regulation 23 requires the Important Notice to include: (1) a statement that
replacement is occurring, (2) the name of the existing insurer and policy being replaced, (3) the
ARKANSAS LIFE INSURANCE ACTUAL
EXAM 2026/2027 | Expert Certified
Questions and Answers | Already Graded A+
& 100% Pass | Pass Guaranteed - A+ Graded
SECTION 1: ARKANSAS INSURANCE LAWS AND REGULATIONS (33
Questions)
Q1: According to Arkansas Code, which of the following statements correctly describes the free
look period requirement for individual life insurance policies sold in Arkansas?
A. A 10-day free look period is required for all policies, with a 30-day period for seniors over 65
B. A 20-day free look period is required from the date the policy is delivered
C. A 10-day free look period is required from the date of application
D. Arkansas does not require a free look period for life insurance policies
Correct Answer: B [CORRECT]
Rationale: Arkansas Code § 23-79-208 requires a 20-day free look period for individual life
insurance policies, beginning from the date the policy is delivered to the policyowner. This
allows consumers to review the entire contract, including all riders and amendments. Option A is
incorrect; while some states have extended senior free look periods, Arkansas maintains a
uniform 20-day period regardless of age. Option C is incorrect because the free look period
begins at delivery, not application, ensuring the consumer has physical possession of the policy.
Option D is incorrect; Arkansas mandates this consumer protection measure to allow
policyowners to return the policy for a full refund of all premiums paid if not satisfied.
Q2: Under Arkansas Insurance Code § 23-64-305, what is the minimum age requirement for
obtaining a life insurance producer license in Arkansas?
A. 18 years of age
B. 21 years of age
C. 16 years of age with parental consent
D. 25 years of age for non-resident applicants only
Correct Answer: A [CORRECT]
,2
Rationale: Arkansas Insurance Code § 23-64-305 requires all insurance producer license
applicants to be at least 18 years of age. This aligns with the NAIC Producer Licensing Model
Act and ensures legal capacity to contract. Option B is incorrect; 21 is not the minimum age for
licensing in Arkansas. Option C is incorrect; no exceptions exist for minors with parental consent
in insurance licensing. Option D is incorrect; non-resident applicants must meet the same age
requirements as residents, and 25 is not a specified age threshold.
Q3: According to Arkansas Insurance Department regulations, how many hours of pre-licensing
education are required for a life insurance producer license?
A. 20 hours of life-specific instruction
B. 40 hours of life-specific instruction
C. 20 hours of life and 20 hours of health insurance instruction
D. 40 hours total, with at least 20 hours in life insurance
Correct Answer: A [CORRECT]
Rationale: Arkansas requires 20 hours of pre-licensing education specifically for life insurance,
as mandated by Arkansas Insurance Department rules implementing § 23-64-307. This must be
completed through an approved education provider. Option B exceeds the requirement. Option C
describes the combined life and health licensing requirement (40 hours total when both lines are
sought). Option D is misleading; for life-only licensing, only 20 hours are required, not 40.
Q4: Under Arkansas Code § 23-79-202, what is the maximum grace period required for
individual life insurance policies with monthly premium payment modes?
A. 7 days
B. 10 days
C. 30 days
D. 31 days
Correct Answer: C [CORRECT]
Rationale: Arkansas Code § 23-79-202 mandates a grace period of 30 days for monthly
premium payment modes in individual life insurance policies. For annual, semi-annual, or
quarterly modes, the grace period is 31 days. This protects policyowners from inadvertent lapse
due to minor payment delays. Option A is incorrect; 7 days is insufficient and not compliant.
Option B is incorrect; 10 days is the grace period for industrial life insurance in some contexts,
not ordinary life. Option D is incorrect; 31 days applies to non-monthly modes, not monthly.
,3
Q5: According to Arkansas replacement regulations, when must a producer provide the "Notice
Regarding Replacement" to an applicant?
A. At the time of application
B. Within 3 days of application
C. At policy delivery
D. Prior to taking the application or at the time of taking the application
Correct Answer: D [CORRECT]
Rationale: Arkansas Insurance Code § 23-79-1101 et seq. and Department Regulation 23 require
the Notice Regarding Replacement to be provided to the applicant prior to taking the application
or at the time the application is taken when replacement is contemplated. This ensures the
applicant understands the consequences of replacing existing coverage before making a
commitment. Option A is too vague; "at the time" could mean during rather than before. Option
B is incorrect; there is no 3-day window—the notice must be provided before or at application.
Option C is too late; the notice must precede the application process to ensure informed consent.
Q6: Under Arkansas Insurance Code § 23-79-208, what must be included in the free look notice
provided with individual life insurance policies?
A. A statement that the policy may be returned within 10 days for a full refund
B. A statement that the policy may be returned within 20 days for a refund of premiums paid, less
any policy loan amounts
C. A statement that the policy may be returned within 20 days from delivery for a full refund of
all premiums paid
D. A statement that the policy may be returned within 30 days, but only if the insured has not
undergone a medical exam
Correct Answer: C [CORRECT]
Rationale: Arkansas Code § 23-79-208 requires the free look notice to specify that the
policyowner has 20 days from delivery to return the policy for a full refund of all premiums paid.
This is a complete refund with no deductions permitted. Option A is incorrect; it states 10 days
rather than 20. Option B is incorrect; deductions for policy loans are not permitted during the
free look period—the refund must be complete. Option D is incorrect; the free look right exists
regardless of whether a medical exam was conducted, and the period is 20 days, not 30.
Q7: According to Arkansas Insurance Department Regulation 43, which of the following actions
constitutes an unfair claims settlement practice?
, 4
A. Failing to acknowledge receipt of a claim within 10 working days
B. Denying a claim without providing a reasonable basis in the policy
C. Offering to settle a claim for less than the amount reasonably due
D. All of the above
Correct Answer: D [CORRECT]
Rationale: Arkansas Regulation 43, implementing § 23-66-206 (Unfair Trade Practices Act),
prohibits all listed actions as unfair claims settlement practices. Insurers must acknowledge
claims promptly (within 10 working days), provide reasonable bases for denials referencing
specific policy provisions, and not compel claimants to accept less than reasonably due through
misrepresentation or undue pressure. Each option represents a specific violation of the
regulation's detailed standards for claims handling.
Q8: Under Arkansas Code § 23-64-315, how long does a licensed life insurance producer have to
complete continuing education requirements?
A. Every year by the license expiration date
B. Every 2 years by the license expiration date
C. Every 3 years by the license expiration date
D. Arkansas does not require continuing education for life insurance producers
Correct Answer: B [CORRECT]
Rationale: Arkansas Code § 23-64-315 requires licensed producers to complete 24 hours of
continuing education every 2 years by their license expiration date, including 3 hours of ethics
training. This biennial requirement aligns with NAIC model regulations. Option A is incorrect;
the requirement is not annual. Option C is incorrect; the cycle is 2 years, not 3. Option D is
incorrect; Arkansas has mandatory continuing education requirements for license renewal.
Q9: According to Arkansas replacement regulations, which of the following is NOT required to
be listed on the "Important Notice" regarding replacement?
A. The name of the existing insurer being replaced
B. The name of the existing policy being replaced
C. The premium amount of the proposed replacement policy
D. The cash surrender value of the existing policy
Correct Answer: D [CORRECT]
Rationale: Arkansas Regulation 23 requires the Important Notice to include: (1) a statement that
replacement is occurring, (2) the name of the existing insurer and policy being replaced, (3) the
