ARKANSAS HEALTH INSURANCE EXAM WITH 100%
CORRECT ANSWERS 2024.
In order for a contract to be valid, it must:
Contain an offer & acceptance
When does a nondisabled person first qualify for a Medicare Supplement Policy?
Age 65
A life insurance company has transferred some of its risk to another insurer. The insurer assuming the
risk is called the:
Reinsurer
A common exclusion with vision plans is:
Lasik Surgery
What are applicants statements concerning occupation, hobbies and personal health history?
Representation
States that have "no loss, no gain" laws require a replacing policy to:
Pay for ongoing claims under the policy it replaces
A rehabilitation benefit is intended to:
Prepare the insured to return to employment
Which of the following does coordination of benefits allow?
The secondary payor to reduce their benefit payments so no more than 100% of the claim is paid
An insurer may pay a commission in which of the following scenarios:
To a licensed producer who is appointed with the insurer
In which of the following situations would the insurer be liable for a loss?
The insured suffered an injury during a bank robbery
The Fair Credit and Reporting Act's main purpose is to:
Protect consumers with guidelines regarding credit reporting and distribution
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
The two major actions required for a policyholder to comply with the Reinstatement Clause are:
provide evidence of insurability, pay past due premiums
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
Pat owns a 20-pay life policy with a paid-up dividend option. Which is true?
The policy may be paid up early by using policy dividends?
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 policy owner can receive a percentage payment of the death benefits prior to death by using what
kind of contract?
Viatical Settlement agreement
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
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
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
Which would be considered a possible applicant & contract policyholder for group health benefits?
Employer
Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance
provision. She incurs a $1,500 in covered healthcare services. How much will her group insurance
carrier pay?
$1,000
"Maximum benefits" refers to the:
Upper limit of the total lifetime benefits the insurance company will pay
What does Medicare part D cover?
Prescription drugs
Which best describes a conditional insurance contract?
A contract that requires certain conditions or acts by the insured individual
A professional liability for which producers can be sued for mistakes of putting a policy into effect is
called:
Errors and omissions
A long-term care policy typically provides all of the following levels of care EXCEPT:
Acute care
Convincing a prospective insured to buy an insurance policy based on exaggerations is called:
CORRECT ANSWERS 2024.
In order for a contract to be valid, it must:
Contain an offer & acceptance
When does a nondisabled person first qualify for a Medicare Supplement Policy?
Age 65
A life insurance company has transferred some of its risk to another insurer. The insurer assuming the
risk is called the:
Reinsurer
A common exclusion with vision plans is:
Lasik Surgery
What are applicants statements concerning occupation, hobbies and personal health history?
Representation
States that have "no loss, no gain" laws require a replacing policy to:
Pay for ongoing claims under the policy it replaces
A rehabilitation benefit is intended to:
Prepare the insured to return to employment
Which of the following does coordination of benefits allow?
The secondary payor to reduce their benefit payments so no more than 100% of the claim is paid
An insurer may pay a commission in which of the following scenarios:
To a licensed producer who is appointed with the insurer
In which of the following situations would the insurer be liable for a loss?
The insured suffered an injury during a bank robbery
The Fair Credit and Reporting Act's main purpose is to:
Protect consumers with guidelines regarding credit reporting and distribution
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
The two major actions required for a policyholder to comply with the Reinstatement Clause are:
provide evidence of insurability, pay past due premiums
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
Pat owns a 20-pay life policy with a paid-up dividend option. Which is true?
The policy may be paid up early by using policy dividends?
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 policy owner can receive a percentage payment of the death benefits prior to death by using what
kind of contract?
Viatical Settlement agreement
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
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
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
Which would be considered a possible applicant & contract policyholder for group health benefits?
Employer
Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance
provision. She incurs a $1,500 in covered healthcare services. How much will her group insurance
carrier pay?
$1,000
"Maximum benefits" refers to the:
Upper limit of the total lifetime benefits the insurance company will pay
What does Medicare part D cover?
Prescription drugs
Which best describes a conditional insurance contract?
A contract that requires certain conditions or acts by the insured individual
A professional liability for which producers can be sued for mistakes of putting a policy into effect is
called:
Errors and omissions
A long-term care policy typically provides all of the following levels of care EXCEPT:
Acute care
Convincing a prospective insured to buy an insurance policy based on exaggerations is called:
