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ARKANSAS LIFE INSURANCE EXAM Questions
and Correct Answers/ Latest Update / Already Graded
J is a producer who has induced an insured through misrepresentation to
surrender an existing insurance policy. What is J guilty of?
Ans: Twisting
What is implied authority defined as?
Ans: 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?
Ans: Preferred
Which of the following is considered to be the period when the accumulated
value in an annuity is paid out?
Ans: Annuitization phase
An insurers claim settlement practices are regulated by the:
Ans: State insurance departments
An insurers ability to make unpredictable payouts to policy owners is called:
Ans: Liquidity
Which of the following pertains to the analysis of an applicants personal
information and determining whether insurance should be issued or declined?
© 2025/ 2026 | ® All rights reserved
, 2 | Page
Ans: Underwriting
What does the Group Life underwriting risk selection process help protect
insurance companies from?
Ans: 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:
Ans: 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?
Ans: Claim will be paid if application is approved
A life insurance policy owner does NOT have the right to:
Ans: Revoke an absolute assignment
An employee under a group insurance policy has the right to name a beneficiary
and the right to:
Ans: 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
Ans: Provide evidence of insurability, past due premiums
© 2025/ 2026 | ® All rights reserved
, 3 | Page
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the
following statements is true?
Ans: 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?
Ans: $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?
Ans: The face amount and premium will remain constant over the 10-year
period
What is Arkansas' REQUIRED grace period for a life insurance contract?
Ans: 31 days
A domestic insurance company in Arkansas MUST
Ans: 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
Ans: Income period
What kind of life insurance policy issued by a mutual insurer provides a return of
divisible surplus?
© 2025/ 2026 | ® All rights reserved
, 4 | Page
Ans: Participating life insurance policy
No one is allowed to act as a producer for any insurance company in Arkansas
that
Ans: Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related test?
Ans: 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?
Ans: Human life value approach
If the annuitant dies before the annuity start date,
Ans: The premiums paid plus interest earned will be given to the beneficiary
If dividends are illustrated, the advertisement MUST state that the dividends are:
Ans: Not guaranteed
Intentional withholding of material facts that would affect an insurance policy's
validity is called a(n)
Ans: Concealment
Field underwriting performed by the producer involves
Ans: Completing the application and collecting initial premium
© 2025/ 2026 | ® All rights reserved
ARKANSAS LIFE INSURANCE EXAM Questions
and Correct Answers/ Latest Update / Already Graded
J is a producer who has induced an insured through misrepresentation to
surrender an existing insurance policy. What is J guilty of?
Ans: Twisting
What is implied authority defined as?
Ans: 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?
Ans: Preferred
Which of the following is considered to be the period when the accumulated
value in an annuity is paid out?
Ans: Annuitization phase
An insurers claim settlement practices are regulated by the:
Ans: State insurance departments
An insurers ability to make unpredictable payouts to policy owners is called:
Ans: Liquidity
Which of the following pertains to the analysis of an applicants personal
information and determining whether insurance should be issued or declined?
© 2025/ 2026 | ® All rights reserved
, 2 | Page
Ans: Underwriting
What does the Group Life underwriting risk selection process help protect
insurance companies from?
Ans: 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:
Ans: 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?
Ans: Claim will be paid if application is approved
A life insurance policy owner does NOT have the right to:
Ans: Revoke an absolute assignment
An employee under a group insurance policy has the right to name a beneficiary
and the right to:
Ans: 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
Ans: Provide evidence of insurability, past due premiums
© 2025/ 2026 | ® All rights reserved
, 3 | Page
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the
following statements is true?
Ans: 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?
Ans: $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?
Ans: The face amount and premium will remain constant over the 10-year
period
What is Arkansas' REQUIRED grace period for a life insurance contract?
Ans: 31 days
A domestic insurance company in Arkansas MUST
Ans: 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
Ans: Income period
What kind of life insurance policy issued by a mutual insurer provides a return of
divisible surplus?
© 2025/ 2026 | ® All rights reserved
, 4 | Page
Ans: Participating life insurance policy
No one is allowed to act as a producer for any insurance company in Arkansas
that
Ans: Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related test?
Ans: 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?
Ans: Human life value approach
If the annuitant dies before the annuity start date,
Ans: The premiums paid plus interest earned will be given to the beneficiary
If dividends are illustrated, the advertisement MUST state that the dividends are:
Ans: Not guaranteed
Intentional withholding of material facts that would affect an insurance policy's
validity is called a(n)
Ans: Concealment
Field underwriting performed by the producer involves
Ans: Completing the application and collecting initial premium
© 2025/ 2026 | ® All rights reserved
