Arkansas Life Insurance Exam Questions With 100% Correct Answers | Latest Update | 2025/2026

Arkansas Life Insurance Exam Questions With 100% Correct Answers | Latest Update | 2025/2026 J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? - answer-Twisting What is implied authority defined as? - 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? - answer-Preferred Which of the following is considered to be the period when the accumulated value in an annuity is paid out? - answer-Annuitization phase An insurers claim settlement practices are regulated by the: - answer-State insurance departments An insurers ability to make unpredictable payouts to policy owners is called: - answer-Liquidity Which of the following pertains to the analysis of an applicants personal information and determining whether insurance should be issued or declined? - answer-Underwriting What does the Group Life underwriting risk selection process help protect insurance companies from? - answer-Adverse SelectionThe 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: - 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? - answer-Claim will be paid if application is approved A life insurance policy owner does NOT have the right to: - answer-Revoke an absolute assignment An employee under a group insurance policy has the right to name a beneficiary and the right to: - 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 - answer-Provide evidence of insurability, past due premiums