ARKANSAS LIFE INSURANCE PRACTICE
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GUARANTEED TO PASS.
The two major actions required for a policyholder to comply with
the Reinstatement Clause are. 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? 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? Answer: $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? Answer:
The face amount and premium will remain constant over the 10-year
period
, What is Arkansas' REQUIRED grace period for a life insurance
contract? Answer: 31 days
A domestic insurance company in Arkansas MUST. Answer: 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.
Answer: Income period
What kind of life insurance policy issued by a mutual insurer
provides a return of divisible surplus? Answer: Participating life
insurance policy
No one is allowed to act as a producer for any insurance company in
Arkansas that. Answer: Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related
test? Answer: 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? Answer:
Human life value approach
, If the annuitant dies before the annuity start date,. Answer: The
premiums paid plus interest earned will be given to the beneficiary
If dividends are illustrated, the advertisement MUST state that the
dividends are:. Answer: Not guaranteed
Intentional withholding of material facts that would affect an
insurance policy's validity is called a(n). Answer: Concealment
Field underwriting performed by the producer involves. Answer:
Completing the application and collecting initial premium
Which of the following statements is CORRECT regarding an
individual applying for life or health insurance? Answer: The applicants
medical history may be analyzed and reported
Life insurance policies will normally pay for losses arising from.
Answer: Commercial aviation
An example of rebating would be. Answer: 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? Answer: Mutual
Which type of life insurance policy pays the face amount at the end
of the specified period if the insured is still alive? Answer: Endowment
policy
A life insurance claim which involves a per capita distribution of
policy proceeds would be payable to the. Answer: 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).
Answer: Association or labor group
What are an applicant's statements concerning occupation, hobbies,
and personal health history regarded as? Answer: Representation
Ken is a producer who has obtained Consumer Information Reports
under false pretenses. Under the Fair Credit Reporting Act, what is the
maximum penalty that may be imposed on Ken? Answer: $5,000
The _________ must provide an insured with proper disclosure
concerning the replacement of a life insurance policy. Answer: Producer
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GUARANTEED TO PASS.
The two major actions required for a policyholder to comply with
the Reinstatement Clause are. 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? 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? Answer: $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? Answer:
The face amount and premium will remain constant over the 10-year
period
, What is Arkansas' REQUIRED grace period for a life insurance
contract? Answer: 31 days
A domestic insurance company in Arkansas MUST. Answer: 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.
Answer: Income period
What kind of life insurance policy issued by a mutual insurer
provides a return of divisible surplus? Answer: Participating life
insurance policy
No one is allowed to act as a producer for any insurance company in
Arkansas that. Answer: Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related
test? Answer: 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? Answer:
Human life value approach
, If the annuitant dies before the annuity start date,. Answer: The
premiums paid plus interest earned will be given to the beneficiary
If dividends are illustrated, the advertisement MUST state that the
dividends are:. Answer: Not guaranteed
Intentional withholding of material facts that would affect an
insurance policy's validity is called a(n). Answer: Concealment
Field underwriting performed by the producer involves. Answer:
Completing the application and collecting initial premium
Which of the following statements is CORRECT regarding an
individual applying for life or health insurance? Answer: The applicants
medical history may be analyzed and reported
Life insurance policies will normally pay for losses arising from.
Answer: Commercial aviation
An example of rebating would be. Answer: 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? Answer: Mutual
Which type of life insurance policy pays the face amount at the end
of the specified period if the insured is still alive? Answer: Endowment
policy
A life insurance claim which involves a per capita distribution of
policy proceeds would be payable to the. Answer: 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).
Answer: Association or labor group
What are an applicant's statements concerning occupation, hobbies,
and personal health history regarded as? Answer: Representation
Ken is a producer who has obtained Consumer Information Reports
under false pretenses. Under the Fair Credit Reporting Act, what is the
maximum penalty that may be imposed on Ken? Answer: $5,000
The _________ must provide an insured with proper disclosure
concerning the replacement of a life insurance policy. Answer: Producer
