ARKANSAS LIFE INSURANCE REVIEW
SHEET FULL SOLUTION ACTUAL
QUESTIONS WITH VERIFIED RESPONSES
ALREADY PASSED
⩥ An applicant's character and personal habits can be obtained for
underwriting purposes from which source?
Answer: Investigative consumer report
*detailed report that contains information on a consumer's character,
general reputation, personal characteristics, or mode of living and is
obtained through personal interviews with neighbors, friends, or
associates of the consumer
⩥ A foreign insurance company is defined as one that is
Answer: Formed under the laws of a state other than Arkansas
⩥ A policy owner may exercise which of these dividend options that
uses the dividend to pay all or part of the next premium due?
Answer: Reduction of premium dividend option
⩥ Which of these is NOT considered to be a nonforfeiture option in a
whole life insurance policy?
,Answer: Interest only
⩥ Which is NOT an example of a Business Continuation Plan
Answer: Deferred Compensation
⩥ A limited payment whole life policy provides
Answer: Lifetime protection
⩥ A whole life insurance policy accumulates cash value that becomes
Answer: The policy loan value which the insured may borrow against
⩥ The Do Not Call Registry offers exemptions for everything EXCEPT
Answer: Insurance sales calls
⩥ Which is true about an insurer's right to screen applicants for HIV?
Answer: An insurer can require a blood test for HIV
⩥ Which is NOT considered to be a nonforfeiture option available to a
policy owner?
Answer: Reduction of Premium
⩥ How does life insurance create an immediate estate?
, Answer: After first premium is paid, the face amount may be available to
the beneficiary
⩥ Which dividend option would an insurer invest the policyowner's
money and add any interest earnings as the dividends accrue?
Answer: Accumulation at Interest Option
*invests the policyowner's money and adds interest earnings to the initial
amount of the dividends
⩥ In an insurance contract, the insurer is the only party legally obligated
to perform. Because of this, an insurance contract is considered
Answer: Unilateral
⩥ Which type of life insurance is normally associated with a Payor
Benefit rider?
Answer: Juvenile insurance
*a Payor Benefit rider waives the premium ONLY in connection with
juvenile insurance
⩥ A beneficiary charge can occur
Answer: Normally at any time during the policy term
SHEET FULL SOLUTION ACTUAL
QUESTIONS WITH VERIFIED RESPONSES
ALREADY PASSED
⩥ An applicant's character and personal habits can be obtained for
underwriting purposes from which source?
Answer: Investigative consumer report
*detailed report that contains information on a consumer's character,
general reputation, personal characteristics, or mode of living and is
obtained through personal interviews with neighbors, friends, or
associates of the consumer
⩥ A foreign insurance company is defined as one that is
Answer: Formed under the laws of a state other than Arkansas
⩥ A policy owner may exercise which of these dividend options that
uses the dividend to pay all or part of the next premium due?
Answer: Reduction of premium dividend option
⩥ Which of these is NOT considered to be a nonforfeiture option in a
whole life insurance policy?
,Answer: Interest only
⩥ Which is NOT an example of a Business Continuation Plan
Answer: Deferred Compensation
⩥ A limited payment whole life policy provides
Answer: Lifetime protection
⩥ A whole life insurance policy accumulates cash value that becomes
Answer: The policy loan value which the insured may borrow against
⩥ The Do Not Call Registry offers exemptions for everything EXCEPT
Answer: Insurance sales calls
⩥ Which is true about an insurer's right to screen applicants for HIV?
Answer: An insurer can require a blood test for HIV
⩥ Which is NOT considered to be a nonforfeiture option available to a
policy owner?
Answer: Reduction of Premium
⩥ How does life insurance create an immediate estate?
, Answer: After first premium is paid, the face amount may be available to
the beneficiary
⩥ Which dividend option would an insurer invest the policyowner's
money and add any interest earnings as the dividends accrue?
Answer: Accumulation at Interest Option
*invests the policyowner's money and adds interest earnings to the initial
amount of the dividends
⩥ In an insurance contract, the insurer is the only party legally obligated
to perform. Because of this, an insurance contract is considered
Answer: Unilateral
⩥ Which type of life insurance is normally associated with a Payor
Benefit rider?
Answer: Juvenile insurance
*a Payor Benefit rider waives the premium ONLY in connection with
juvenile insurance
⩥ A beneficiary charge can occur
Answer: Normally at any time during the policy term
