Arkansas Life Insurance Exam Terms
UPDATED Study Guide QUESTIONS
AND CORRECT ANSWERS
Accelerated Benefits - CORRECT ANSWERS Riders attached to life
insurance policies which allow death benefits to be used to cover nursing or
convalescent home expenses.
Accidental Death Benefits - CORRECT ANSWERS A policy rider that
states that the cause of death will be analyzed to determine if it complies with
the policy description of accidental death.
Accidental Death Insurance - CORRECT ANSWERS An insurance
policy that provides payment if the insured's death is the result of an accident.
Accumulation Period - CORRECT ANSWERS The time before an
annuitant's retirement during which the annuitant is making payments or
investments in an annuity
Acquired Immunodeficiency Syndrome (AIDS) - CORRECT ANSWERS
An infectious and incurable disease caused by the human
immunodeficiency virus (HIV).
Actual Cash Value (ACV) - CORRECT ANSWERS The required
amount to pay damages or for property loss. This amount is calculated based on
the property's current replacement value minus depreciation.
Actuary - CORRECT ANSWERS A person trained in the technical
aspects of insurance and related fields, particularly in the mathematics of
insurance; a person who, on behalf of the company, determines the
mathematical probability of loss.
, Adhesion - CORRECT ANSWERS A contract offered on a "take-it-or
leave-it" basis by an insurer, in which the insured's only option is to either
accept or reject the contract. Any ambiguities in the contract will be settled in
favor of the insured.
Adjustable Life - CORRECT ANSWERS Life insurance which permits
changes in the face amount, premium amount, period of protection, and the
duration of the premium payment period.
Adjuster - CORRECT ANSWERS A representative of an insurance
company who investigates and acts on the behalf of the company to obtain
agreements for the amount of the insurance claim.
Administrator - CORRECT ANSWERS An individual appointed by a
court as a fiduciary to settle the financial affairs and estate of a deceased person.
Admitted (Authorized) Insurer - CORRECT ANSWERS An insurance
company authorized and licensed to transact business in a particular state.
Adult Day Care - CORRECT ANSWERS A program for impaired adults
that attempts to meet their health, social, and functional needs in a setting away
from their homes.
Adverse Selection - CORRECT ANSWERS The tendency of risks with
higher probability of loss to purchase and maintain insurance more often than
the risks who present lower probability.
Agency - CORRECT ANSWERS An insurance sales office or company.
UPDATED Study Guide QUESTIONS
AND CORRECT ANSWERS
Accelerated Benefits - CORRECT ANSWERS Riders attached to life
insurance policies which allow death benefits to be used to cover nursing or
convalescent home expenses.
Accidental Death Benefits - CORRECT ANSWERS A policy rider that
states that the cause of death will be analyzed to determine if it complies with
the policy description of accidental death.
Accidental Death Insurance - CORRECT ANSWERS An insurance
policy that provides payment if the insured's death is the result of an accident.
Accumulation Period - CORRECT ANSWERS The time before an
annuitant's retirement during which the annuitant is making payments or
investments in an annuity
Acquired Immunodeficiency Syndrome (AIDS) - CORRECT ANSWERS
An infectious and incurable disease caused by the human
immunodeficiency virus (HIV).
Actual Cash Value (ACV) - CORRECT ANSWERS The required
amount to pay damages or for property loss. This amount is calculated based on
the property's current replacement value minus depreciation.
Actuary - CORRECT ANSWERS A person trained in the technical
aspects of insurance and related fields, particularly in the mathematics of
insurance; a person who, on behalf of the company, determines the
mathematical probability of loss.
, Adhesion - CORRECT ANSWERS A contract offered on a "take-it-or
leave-it" basis by an insurer, in which the insured's only option is to either
accept or reject the contract. Any ambiguities in the contract will be settled in
favor of the insured.
Adjustable Life - CORRECT ANSWERS Life insurance which permits
changes in the face amount, premium amount, period of protection, and the
duration of the premium payment period.
Adjuster - CORRECT ANSWERS A representative of an insurance
company who investigates and acts on the behalf of the company to obtain
agreements for the amount of the insurance claim.
Administrator - CORRECT ANSWERS An individual appointed by a
court as a fiduciary to settle the financial affairs and estate of a deceased person.
Admitted (Authorized) Insurer - CORRECT ANSWERS An insurance
company authorized and licensed to transact business in a particular state.
Adult Day Care - CORRECT ANSWERS A program for impaired adults
that attempts to meet their health, social, and functional needs in a setting away
from their homes.
Adverse Selection - CORRECT ANSWERS The tendency of risks with
higher probability of loss to purchase and maintain insurance more often than
the risks who present lower probability.
Agency - CORRECT ANSWERS An insurance sales office or company.
