Arkansas Life Insurance Exam Questions and Answers 100% Correct 2024

Arkansas Life Insurance Exam Questions and Answers 100% Correct 2024 J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? - CORRECT ANSWER-Twisting What is implied authority defined as? - CORRECT ANSWER-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? - CORRECT ANSWER-Preferred Which of the following is considered to be the period when the accumulated value in an annuity is paid out? - CORRECT ANSWER-Annuitization phase An insurers claim settlement practices are regulated by the: - CORRECT ANSWERState insurance departments An insurers ability to make unpredictable payouts to policy owners is called: - CORRECT ANSWER-Liquidity Which of the following pertains to the analysis of an applicants personal information and determining whether insurance should be issued or declined? - CORRECT ANSWERUnderwriting What does the Group Life underwriting risk selection process help protect insurance companies from? - CORRECT ANSWER-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: - CORRECT ANSWER-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? - CORRECT ANSWER-Claim will be paid if application is approved A life insurance policy owner does NOT have the right to: - CORRECT ANSWERRevoke an absolute assignment An employee under a group insurance policy has the right to name a beneficiary and the right to: - CORRECT ANSWER-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 - CORRECT ANSWER-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? - CORRECT ANSWER-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? - CORRECT ANSWER-$4,000