Arkansas Life Insurance Exam Questions With 100% Correct Answers 2024/2025

Arkansas Life Insurance Exam Questions With 100% Correct Answers 2024/2025 J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? - answerTwisting What is implied authority defined as? - answerAuthority 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? - answerPreferred Which of the following is considered to be the period when the accumulated value in an annuity is paid out? - answerAnnuitization phase An insurers claim settlement practices are regulated by the: - answerState insurance departments An insurers ability to make unpredictable payouts to policy owners is called: - answerLiquidity Which of the following pertains to the analysis of an applicants personal information and determining whether insurance should be issued or declined? - answerUnderwriting What does the Group Life underwriting risk selection process help protect insurance companies from? - answerAdverse 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: - answerLiability Insurance What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day? - answerClaim will be paid if application is approved A life insurance policy owner does NOT have the right to: - answerRevoke an absolute assignment An employee under a group insurance policy has the right to name a beneficiary and the right to: - answerConvert 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 - answerProvide 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? - answerThe 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? - answerThe face amount and premium will remain constant over the 10-year period What is Arkansas' REQUIRED grace period for a life insurance contract? - answer31 days A domestic insurance company in Arkansas MUST - answerBe 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 - answerIncome period What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? - answerParticipating life insurance policy No one is allowed to act as a producer for any insurance company in Arkansas that - answerIs unauthorized to do business in Arkansas What MUST the company do prior to conducting an HIV related test? - answerObtain 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? - answerHuman life value approach If the annuitant dies before the annuity start date, - answerThe premiums paid plus interest earned will be given to the beneficiary If dividends are illustrated, the advertisement MUST state that the dividends are: - answerNot guaranteed Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) - answerConcealment Field underwriting performed by the producer involves - answerCompleting the application and collecting initial premium Which of the following statements i