Arkansas Life Insurance Exam 2024 Questions & Answers (GRADED A)

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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER D. Revocable Which of the following annuities does not have a traditional accumulation phase? A. Flexible premium deferred B. Single premium deferred C. Single premium immediate D. Periodic premium deferred - ANSWER C. Single premium immediate An insured forgets to pay his insurance premium. Instead of the policy lapsing, the premium is paid by the company. This would suggest that a __________ policy was purchased. A. Renewable term B. Level term C. Decreasing term