ARKANSAS LIFE INSURANCE 2025 Actual
Exam Questions and Answers A+ Graded
J .is .a .producer .who .has .induced .an .insured .through .misrepresentation .to
.surrender .an .existing .insurance .policy. .What .is .J .guilty .of? .- .CORRECT
.ANSWER-Twisting
What .is .implied .authority .defined .as? .- .CORRECT .ANSWER-Authority .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? .- .CORRECT .ANSWER-Preferred
Which .of .the .following .is .considered .to .be .the .period .when .the .accumulated
.value .in .an .annuity .is .paid .out? .- .CORRECT .ANSWER-Annuitization .phase
An .insurers .claim .settlement .practices .are .regulated .by .the: .- .CORRECT
.ANSWER-State .insurance .departments
An .insurers .ability .to .make .unpredictable .payouts .to .policy .owners .is .called: .-
.CORRECT .ANSWER-Liquidity
Which .of .the .following .pertains .to .the .analysis .of .an .applicants .personal
.information .and .determining .whether .insurance .should .be .issued .or .declined?
.- .CORRECT .ANSWER-Underwriting
What .does .the .Group .Life .underwriting .risk .selection .process .help .protect
.insurance .companies .from? .- .CORRECT .ANSWER-Adverse .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: .- .CORRECT .ANSWER-Liability
.Insurance
What .would .happen .if .a .life .insurance .applicant .is .given .a .conditional .receipt
.from .an .insurance .agent .and .then .dies .the .next .day? .- .CORRECT .ANSWER-
Claim .will .be .paid .if .application .is .approved
A .life .insurance .policy .owner .does .NOT .have .the .right .to: .- .CORRECT
.ANSWER-Revoke .an .absolute .assignment
,An .employee .under .a .group .insurance .policy .has .the .right .to .name .a
.beneficiary .and .the .right .to: .- .CORRECT .ANSWER-Convert .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 .- .CORRECT .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? .- .CORRECT .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? .- .CORRECT .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? .- .CORRECT .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? .-
.CORRECT .ANSWER-31 .days
A .domestic .insurance .company .in .Arkansas .MUST .- .CORRECT .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 .- .CORRECT .ANSWER-
Income .period
What .kind .of .life .insurance .policy .issued .by .a .mutual .insurer .provides .a .return
.of .divisible .surplus? .- .CORRECT .ANSWER-Participating .life .insurance .policy
No .one .is .allowed .to .act .as .a .producer .for .any .insurance .company .in .Arkansas
.that .- .CORRECT .ANSWER-Is .unauthorized .to .do .business .in .Arkansas
What .MUST .the .company .do .prior .to .conducting .an .HIV .related .test? .-
.CORRECT .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? .- .CORRECT .ANSWER-
Human .life .value .approach
If .the .annuitant .dies .before .the .annuity .start .date, .- .CORRECT .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: .- .CORRECT .ANSWER-Not .guaranteed
Intentional .withholding .of .material .facts .that .would .affect .an .insurance .policy's
.validity .is .called .a(n) .- .CORRECT .ANSWER-Concealment
Field .underwriting .performed .by .the .producer .involves .- .CORRECT .ANSWER-
Completing .the .application .and .collecting .initial .premium
Which .of .the .following .statements .is .CORRECT .regarding .an .individual
.applying .for .life .or .health .insurance? .- .CORRECT .ANSWER-The .applicants
.medical .history .may .be .analyzed .and .reported
Life .insurance .policies .will .normally .pay .for .losses .arising .from .- .CORRECT
.ANSWER-Commercial .aviation
An .example .of .rebating .would .be .- .CORRECT .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? .- .CORRECT .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? .- .CORRECT .ANSWER-Endowment
.policy
A .life .insurance .claim .which .involves .a .per .capita .distribution .of .policy
.proceeds .would .be .payable .to .the .- .CORRECT .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) .- .CORRECT .ANSWER-
Association .or .labor .group
What .are .an .applicant's .statements .concerning .occupation, .hobbies, .and
.personal .health .history .regarded .as? .- .CORRECT .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? .- .CORRECT .ANSWER-$5,000
The ._________ .must .provide .an .insured .with .proper .disclosure .concerning .the
.replacement .of .a .life .insurance .policy .- .CORRECT .ANSWER-Producer
Within .how .many .days .must .a .rollover .be .completed .in .order .to .avoid .being
.taxed .as .current .income? .- .CORRECT .ANSWER-60 .days .to .complete .the
.rollover .to .another .IRA
Exam Questions and Answers A+ Graded
J .is .a .producer .who .has .induced .an .insured .through .misrepresentation .to
.surrender .an .existing .insurance .policy. .What .is .J .guilty .of? .- .CORRECT
.ANSWER-Twisting
What .is .implied .authority .defined .as? .- .CORRECT .ANSWER-Authority .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? .- .CORRECT .ANSWER-Preferred
Which .of .the .following .is .considered .to .be .the .period .when .the .accumulated
.value .in .an .annuity .is .paid .out? .- .CORRECT .ANSWER-Annuitization .phase
An .insurers .claim .settlement .practices .are .regulated .by .the: .- .CORRECT
.ANSWER-State .insurance .departments
An .insurers .ability .to .make .unpredictable .payouts .to .policy .owners .is .called: .-
.CORRECT .ANSWER-Liquidity
Which .of .the .following .pertains .to .the .analysis .of .an .applicants .personal
.information .and .determining .whether .insurance .should .be .issued .or .declined?
.- .CORRECT .ANSWER-Underwriting
What .does .the .Group .Life .underwriting .risk .selection .process .help .protect
.insurance .companies .from? .- .CORRECT .ANSWER-Adverse .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: .- .CORRECT .ANSWER-Liability
.Insurance
What .would .happen .if .a .life .insurance .applicant .is .given .a .conditional .receipt
.from .an .insurance .agent .and .then .dies .the .next .day? .- .CORRECT .ANSWER-
Claim .will .be .paid .if .application .is .approved
A .life .insurance .policy .owner .does .NOT .have .the .right .to: .- .CORRECT
.ANSWER-Revoke .an .absolute .assignment
,An .employee .under .a .group .insurance .policy .has .the .right .to .name .a
.beneficiary .and .the .right .to: .- .CORRECT .ANSWER-Convert .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 .- .CORRECT .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? .- .CORRECT .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? .- .CORRECT .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? .- .CORRECT .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? .-
.CORRECT .ANSWER-31 .days
A .domestic .insurance .company .in .Arkansas .MUST .- .CORRECT .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 .- .CORRECT .ANSWER-
Income .period
What .kind .of .life .insurance .policy .issued .by .a .mutual .insurer .provides .a .return
.of .divisible .surplus? .- .CORRECT .ANSWER-Participating .life .insurance .policy
No .one .is .allowed .to .act .as .a .producer .for .any .insurance .company .in .Arkansas
.that .- .CORRECT .ANSWER-Is .unauthorized .to .do .business .in .Arkansas
What .MUST .the .company .do .prior .to .conducting .an .HIV .related .test? .-
.CORRECT .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? .- .CORRECT .ANSWER-
Human .life .value .approach
If .the .annuitant .dies .before .the .annuity .start .date, .- .CORRECT .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: .- .CORRECT .ANSWER-Not .guaranteed
Intentional .withholding .of .material .facts .that .would .affect .an .insurance .policy's
.validity .is .called .a(n) .- .CORRECT .ANSWER-Concealment
Field .underwriting .performed .by .the .producer .involves .- .CORRECT .ANSWER-
Completing .the .application .and .collecting .initial .premium
Which .of .the .following .statements .is .CORRECT .regarding .an .individual
.applying .for .life .or .health .insurance? .- .CORRECT .ANSWER-The .applicants
.medical .history .may .be .analyzed .and .reported
Life .insurance .policies .will .normally .pay .for .losses .arising .from .- .CORRECT
.ANSWER-Commercial .aviation
An .example .of .rebating .would .be .- .CORRECT .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? .- .CORRECT .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? .- .CORRECT .ANSWER-Endowment
.policy
A .life .insurance .claim .which .involves .a .per .capita .distribution .of .policy
.proceeds .would .be .payable .to .the .- .CORRECT .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) .- .CORRECT .ANSWER-
Association .or .labor .group
What .are .an .applicant's .statements .concerning .occupation, .hobbies, .and
.personal .health .history .regarded .as? .- .CORRECT .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? .- .CORRECT .ANSWER-$5,000
The ._________ .must .provide .an .insured .with .proper .disclosure .concerning .the
.replacement .of .a .life .insurance .policy .- .CORRECT .ANSWER-Producer
Within .how .many .days .must .a .rollover .be .completed .in .order .to .avoid .being
.taxed .as .current .income? .- .CORRECT .ANSWER-60 .days .to .complete .the
.rollover .to .another .IRA
