ARKANSAS LIFE INSURANCE STUDY GUIDE
LATEST PRACTICE PROBLEMS AND
COMPLETE ACCURATE ANSWERS
GUARANTEED PASS
⩥ Death Benefit.
Answer: The amount paid upon the death of the insured in a life
insurance policy.
⩥ Insurance Policy.
Answer: A contract between a policyowner/insured and an insurance
company which agrees to pay the insured or the beneficiary for loss
caused by specific events.
⩥ Insured.
Answer: Person covered by the insurance policy; may or may not be the
policyowner
⩥ Insurer (Principle).
Answer: The company who issues an insurance policy.
⩥ Lapse.
,Answer: Policy termination due to nonpayment of premium.
⩥ Life Insurance.
Answer: Coverage on human lives.
⩥ Policyowner.
Answer: The person entitled to exercise the rights and privileges in the
policy.
⩥ Premium.
Answer: The money paid to the insurance company for the insurance
policy.
⩥ Insurance transfers what?.
Answer: The risk of loss from and individual to and insurance company.
⩥ Elements of a Legal Contract.
Answer: 1. Agreement (offer and acceptance)
2. Consideration
3. Competent Parties
4. Legal Purpose
,⩥ Offer and Acceptance.
Answer: Offer happens when application is submitted.
Acceptance takes place when an insurer's underwriter approves the
application and issues a policy.
⩥ Consideration.
Answer: Binding force.
Something of value that each party gives to the other.
⩥ Competent Parties.
Answer: Both parties be of legal age, mentally competent to understand
the contract, and not under the influence of drugs/alcohol.
⩥ Aleatory Contract.
Answer: There is an exchange of unequal amounts/values. The premium
paid by the insured is small in relation to the amount that will be paid by
the insurer in the event of loss.
⩥ Unilateral Contract.
Answer: The insured makes no legally binding promises.
Insurer is legally bound to pay losses covered by a policy in force.
⩥ Conditional Contract.
, Answer: Certain conditions must be met by the policyowner and the
company in order the the contract to be executed, and before each party
fulfills its obligations.
(Pay premium and provide proof of loss for an insurer to cover claim.)
⩥ Part 1 - General Information.
Answer: Part of the application that includes the general questions about
the applicant.
⩥ Part 2 - Medical Information.
Answer: Part of the application that includes information on the
prospective insured's medical background, present health, any medical
visits in recent years, medical status of living relatives, and causes of
death of deceased relatives.
⩥ Agents Report.
Answer: Provides the agent's personal observations concerning the
proposed insured.
⩥ Required Signatures.
Answer: Both the agent and the proposed insured are required to sign the
application.
⩥ Changes to the Application.
LATEST PRACTICE PROBLEMS AND
COMPLETE ACCURATE ANSWERS
GUARANTEED PASS
⩥ Death Benefit.
Answer: The amount paid upon the death of the insured in a life
insurance policy.
⩥ Insurance Policy.
Answer: A contract between a policyowner/insured and an insurance
company which agrees to pay the insured or the beneficiary for loss
caused by specific events.
⩥ Insured.
Answer: Person covered by the insurance policy; may or may not be the
policyowner
⩥ Insurer (Principle).
Answer: The company who issues an insurance policy.
⩥ Lapse.
,Answer: Policy termination due to nonpayment of premium.
⩥ Life Insurance.
Answer: Coverage on human lives.
⩥ Policyowner.
Answer: The person entitled to exercise the rights and privileges in the
policy.
⩥ Premium.
Answer: The money paid to the insurance company for the insurance
policy.
⩥ Insurance transfers what?.
Answer: The risk of loss from and individual to and insurance company.
⩥ Elements of a Legal Contract.
Answer: 1. Agreement (offer and acceptance)
2. Consideration
3. Competent Parties
4. Legal Purpose
,⩥ Offer and Acceptance.
Answer: Offer happens when application is submitted.
Acceptance takes place when an insurer's underwriter approves the
application and issues a policy.
⩥ Consideration.
Answer: Binding force.
Something of value that each party gives to the other.
⩥ Competent Parties.
Answer: Both parties be of legal age, mentally competent to understand
the contract, and not under the influence of drugs/alcohol.
⩥ Aleatory Contract.
Answer: There is an exchange of unequal amounts/values. The premium
paid by the insured is small in relation to the amount that will be paid by
the insurer in the event of loss.
⩥ Unilateral Contract.
Answer: The insured makes no legally binding promises.
Insurer is legally bound to pay losses covered by a policy in force.
⩥ Conditional Contract.
, Answer: Certain conditions must be met by the policyowner and the
company in order the the contract to be executed, and before each party
fulfills its obligations.
(Pay premium and provide proof of loss for an insurer to cover claim.)
⩥ Part 1 - General Information.
Answer: Part of the application that includes the general questions about
the applicant.
⩥ Part 2 - Medical Information.
Answer: Part of the application that includes information on the
prospective insured's medical background, present health, any medical
visits in recent years, medical status of living relatives, and causes of
death of deceased relatives.
⩥ Agents Report.
Answer: Provides the agent's personal observations concerning the
proposed insured.
⩥ Required Signatures.
Answer: Both the agent and the proposed insured are required to sign the
application.
⩥ Changes to the Application.
