Arkansas Insurance Exam Complete Questions & Answers (GRADED A)

what is the purpose of settlement options? - ANSWER They determine how death proceeds will be paid which of the following determines the cash value of a variable life policy? - ANSWER The performance of the policy portfolio An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have? - ANSWER Universal Life which of the following is the basic source of information used by the company in the risk selection process? - ANSWER application which of the following is INCORRECT regarding a $100,000 20 - year level term policy? - ANSWER At the end of 20 years, the policy's cash value will equal $100,000. when a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to? - ANSWER Purchase a single premium policy for a reduced face amount In forming an insurance contract, when does acceptance usually occur? - ANSWER When an insurer's underwriter approves coverage A rider attached to a life insurance policy that provides coverage on the insured's family members is called the? - ANSWER Other-insured rider A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this? - ANSWER Level term all of the following are divided options EXCEPT? - ANSWER fixed - period installments which of the following is NOT an essential element of an insurance contract? - ANSWER counteroffer what describes the specific information about a policy? - ANSWER Policy summary all of the following would be different between qualified and nonqualified retirement plans EXCEPT? - ANSWER Taxation on accumulation which of the following types of policies allows for a flexible premium and a variable investment component? - ANSWER Variable universal life insurance what is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military? - ANSWER War or military service which of the following is NOT true regarding the annuitant? - ANSWER The annuitant cannot be the same person as the annuity owner. which of the following is true regarding the annuity period? - ANSWER It may last for the lifetime of the annuitant The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become