ARKANSAS LIFE INSURANCE EXAM |
200+ QUESTIONS AND ANSWERS
RATED A+ | 2025 LATEST GUIDE
Which of the following employers is required to follow ERISA
regulations?
- Correct Answer - A local electrical supply company with 12 employees
Which is an annuity that is linked to a market-related index?
- Correct Answer - Equity-indexed annuity
Who's signature is not required on an individual insurance application?
- Correct Answer - Insurer
A policy owner is prohibited from making any changes to the policy
without the beneficiary's written consent under which beneficiary
designation?
- Correct Answer - Irrevocable beneficiary
The power given to an individual producer that is not specifically
addressed in his/her contract is considered what type of authority?
- Correct Answer - Implied
,An example of replacement is:
- Correct Answer - Cancelling a term life policy to buy a whole life policy
Variable life insurance and Universal life insurance are very similar.
Which of these features are held exclusively by variable universal life
insurance?
- Correct Answer - Policyowner has the right to select the investment
which will provide the greatest return
A Roth IRA owner must be at least what age in order to make tax-free
withdrawals?
- Correct Answer - 59 1/2 and owned an account for a minimum of 5
years
A professional liability for which producers can be sued for mistakes of
putting a policy into effect is called
- Correct Answer - Errors and omissions
Converting a group plan to permanent life insurance involves
- Correct Answer - the conversion being applied within 1 month of
termination
,How are contributions made to a Roth IRA handled for tax purposes?
- Correct Answer - Not tax deductible
Within how many days must a Traditional IRA be rolled over to another
IRA to avoid tax consequences? - Correct Answer - 60 days
Which describes the result of a modified endowment contract that failed
to meet the seven-pay test? - Correct Answer - Pre-death distributions
are typically taxable
An insurance company needs to obtain personal information from a third
party concerning an applicant. Which law do all insurers and their
producers need to comply with? - Correct Answer - Fair Credit Reporting
Act
Which does a life insurance policy summary normally include? - Correct
Answer - The policy's cash value
Insurance premium is determined by each of the following factors
EXCEPT - Correct Answer - Liquidity
Which situation accurately describes a reduced paid-up nonforfeiture
option? - Correct Answer - Policy has a decreased face amount
, How long must an individual be unable to engage in any gainful activity
due to physical or mental disability in order to qualify for Social Security
Total Disability? - Correct Answer - 12 months
To qualify, the disability must be expected to last, or have lasted, at least
12 months, or it must be expected to result in death
An applicant's character and personal habits can be obtained for
underwriting purposes from which source? - Correct Answer -
Investigative consumer report
*detailed report that contains information on a consumer's character,
general reputation, personal characteristics, or mode of living and is
obtained through personal interviews with neighbors, friends, or
associates of the consumer
A foreign insurance company is defined as one that is - Correct Answer -
Formed under the laws of a state other than Arkansas
A policy owner may exercise which of these dividend options that uses
the dividend to pay all or part of the next premium due? - Correct Answer
- Reduction of premium dividend option
Which of these is NOT considered to be a nonforfeiture option in a whole
life insurance policy? - Correct Answer - Interest only
200+ QUESTIONS AND ANSWERS
RATED A+ | 2025 LATEST GUIDE
Which of the following employers is required to follow ERISA
regulations?
- Correct Answer - A local electrical supply company with 12 employees
Which is an annuity that is linked to a market-related index?
- Correct Answer - Equity-indexed annuity
Who's signature is not required on an individual insurance application?
- Correct Answer - Insurer
A policy owner is prohibited from making any changes to the policy
without the beneficiary's written consent under which beneficiary
designation?
- Correct Answer - Irrevocable beneficiary
The power given to an individual producer that is not specifically
addressed in his/her contract is considered what type of authority?
- Correct Answer - Implied
,An example of replacement is:
- Correct Answer - Cancelling a term life policy to buy a whole life policy
Variable life insurance and Universal life insurance are very similar.
Which of these features are held exclusively by variable universal life
insurance?
- Correct Answer - Policyowner has the right to select the investment
which will provide the greatest return
A Roth IRA owner must be at least what age in order to make tax-free
withdrawals?
- Correct Answer - 59 1/2 and owned an account for a minimum of 5
years
A professional liability for which producers can be sued for mistakes of
putting a policy into effect is called
- Correct Answer - Errors and omissions
Converting a group plan to permanent life insurance involves
- Correct Answer - the conversion being applied within 1 month of
termination
,How are contributions made to a Roth IRA handled for tax purposes?
- Correct Answer - Not tax deductible
Within how many days must a Traditional IRA be rolled over to another
IRA to avoid tax consequences? - Correct Answer - 60 days
Which describes the result of a modified endowment contract that failed
to meet the seven-pay test? - Correct Answer - Pre-death distributions
are typically taxable
An insurance company needs to obtain personal information from a third
party concerning an applicant. Which law do all insurers and their
producers need to comply with? - Correct Answer - Fair Credit Reporting
Act
Which does a life insurance policy summary normally include? - Correct
Answer - The policy's cash value
Insurance premium is determined by each of the following factors
EXCEPT - Correct Answer - Liquidity
Which situation accurately describes a reduced paid-up nonforfeiture
option? - Correct Answer - Policy has a decreased face amount
, How long must an individual be unable to engage in any gainful activity
due to physical or mental disability in order to qualify for Social Security
Total Disability? - Correct Answer - 12 months
To qualify, the disability must be expected to last, or have lasted, at least
12 months, or it must be expected to result in death
An applicant's character and personal habits can be obtained for
underwriting purposes from which source? - Correct Answer -
Investigative consumer report
*detailed report that contains information on a consumer's character,
general reputation, personal characteristics, or mode of living and is
obtained through personal interviews with neighbors, friends, or
associates of the consumer
A foreign insurance company is defined as one that is - Correct Answer -
Formed under the laws of a state other than Arkansas
A policy owner may exercise which of these dividend options that uses
the dividend to pay all or part of the next premium due? - Correct Answer
- Reduction of premium dividend option
Which of these is NOT considered to be a nonforfeiture option in a whole
life insurance policy? - Correct Answer - Interest only
