Arkansas Life Insurance Exam ACTUAL
QUESTIONS AND CORRECT ANSWERS
A life insurance premium is paid each month. The insurer then subtracts a
mortality and expense charge from the policy's cash value. This best describes
which of the following life insurance policies?
A. Whole Life
B. Variable Whole Life
C. Universal Life
D. Adjustable Whole Life - CORRECT ANSWERS C. Universal Life
What is the name of a single policy covering two or more lives that pays
benefits upon the death of the first insured?
A. Accidental Death
B. Joint Survivorship Life
C. Joint Life
D. Universal Life - CORRECT ANSWERS C. Joint Life
Which of the following is TRUE of a term rider when attached to a permanent
life policy?
A. It allows the policy to achieve paid up status at the end of the term.
B. It can provide additional temporary coverage on the insured or on other
members of the family.
C. It always is in the amount of the base policy
D. It only pays out a death benefit in cases of accidental death - CORRECT
ANSWERS B. It can provide additional temporary coverage on the
insured or on other members of the family
For those individuals who have health issues, which of the following would be
an insurance plan to consider?
, A. Decreasing Term
B. Joint Life
C. Group
D. Variable Universal Life - CORRECT ANSWERS C. Group
T has some hearth health issues but needs some additional life insurance
coverage. What options should T consider?
A. A group life insurance plan
B. A group health insurance plan
C. Universal Life Option B
D. Adjustable Life - CORRECT ANSWERS A. A group life insurance
plan
If Alvin purchases a Variable Universal Life Policy with a face amount of
$250,000, and chooses death benefit Option B, upon his death the amount of the
benefit payable to the beneficiary would be ________ if the policy had $25,000
in cash values.
A. $225,000
B. $250,000
C. Nothing
D. $275,000 - CORRECT ANSWERS D. $275,000
Linda wants her husband to be the beneficiary of her life policy but also wants
to retain all rights of ownership. Which of the following types of beneficiary
designations should she use?
A. Contingent beneficiary
B. Tertiary beneficiary
C. Irrevocable beneficiary
D. Revocable beneficiary - CORRECT ANSWERS D. Revocable
QUESTIONS AND CORRECT ANSWERS
A life insurance premium is paid each month. The insurer then subtracts a
mortality and expense charge from the policy's cash value. This best describes
which of the following life insurance policies?
A. Whole Life
B. Variable Whole Life
C. Universal Life
D. Adjustable Whole Life - CORRECT ANSWERS C. Universal Life
What is the name of a single policy covering two or more lives that pays
benefits upon the death of the first insured?
A. Accidental Death
B. Joint Survivorship Life
C. Joint Life
D. Universal Life - CORRECT ANSWERS C. Joint Life
Which of the following is TRUE of a term rider when attached to a permanent
life policy?
A. It allows the policy to achieve paid up status at the end of the term.
B. It can provide additional temporary coverage on the insured or on other
members of the family.
C. It always is in the amount of the base policy
D. It only pays out a death benefit in cases of accidental death - CORRECT
ANSWERS B. It can provide additional temporary coverage on the
insured or on other members of the family
For those individuals who have health issues, which of the following would be
an insurance plan to consider?
, A. Decreasing Term
B. Joint Life
C. Group
D. Variable Universal Life - CORRECT ANSWERS C. Group
T has some hearth health issues but needs some additional life insurance
coverage. What options should T consider?
A. A group life insurance plan
B. A group health insurance plan
C. Universal Life Option B
D. Adjustable Life - CORRECT ANSWERS A. A group life insurance
plan
If Alvin purchases a Variable Universal Life Policy with a face amount of
$250,000, and chooses death benefit Option B, upon his death the amount of the
benefit payable to the beneficiary would be ________ if the policy had $25,000
in cash values.
A. $225,000
B. $250,000
C. Nothing
D. $275,000 - CORRECT ANSWERS D. $275,000
Linda wants her husband to be the beneficiary of her life policy but also wants
to retain all rights of ownership. Which of the following types of beneficiary
designations should she use?
A. Contingent beneficiary
B. Tertiary beneficiary
C. Irrevocable beneficiary
D. Revocable beneficiary - CORRECT ANSWERS D. Revocable
