Arkansas Life Insurance Exam Questions
With 100% Correct Answers | Verified |
Updated 2024.
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?
With 100% Correct Answers | Verified |
Updated 2024.
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?
