ARKANSAS LIFE INSURANCE ACTUAL
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
⩥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 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:
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
,⩥Pat owns a 20-pay life policy with a paid-up dividend option. Which of
the following statements is true? 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? 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? 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? Answer: 31 days
⩥A domestic insurance company in Arkansas MUST 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 Answer:
Income period
, ⩥What kind of life insurance policy issued by a mutual insurer provides
a return of divisible surplus? Answer: Participating life insurance policy
⩥No one is allowed to act as a producer for any insurance company in
Arkansas that Answer: Is unauthorized to do business in Arkansas
⩥What MUST the company do prior to conducting an HIV related test?
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? Answer:
Human life value approach
⩥If the annuitant dies before the annuity start date, 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: Answer: Not guaranteed
⩥Intentional withholding of material facts that would affect an insurance
policy's validity is called a(n) Answer: Concealment
⩥Field underwriting performed by the producer involves Answer:
Completing the application and collecting initial premium
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
⩥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 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:
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
,⩥Pat owns a 20-pay life policy with a paid-up dividend option. Which of
the following statements is true? 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? 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? 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? Answer: 31 days
⩥A domestic insurance company in Arkansas MUST 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 Answer:
Income period
, ⩥What kind of life insurance policy issued by a mutual insurer provides
a return of divisible surplus? Answer: Participating life insurance policy
⩥No one is allowed to act as a producer for any insurance company in
Arkansas that Answer: Is unauthorized to do business in Arkansas
⩥What MUST the company do prior to conducting an HIV related test?
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? Answer:
Human life value approach
⩥If the annuitant dies before the annuity start date, 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: Answer: Not guaranteed
⩥Intentional withholding of material facts that would affect an insurance
policy's validity is called a(n) Answer: Concealment
⩥Field underwriting performed by the producer involves Answer:
Completing the application and collecting initial premium
