ARKANSAS LIFE INSURANCE EXAM REVIEW
STUDY NOTES
◉ Agent's Authority.
Answer: Special powers granted to an agent by his or her agency
contract.
◉ Aleatory.
Answer: A contract in which participating parties exchange unequal
amounts. Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the insurer
will pay in the event of a loss.
◉ Alien Insurer.
Answer: An insurance company that is incorporated outside the
United States.
◉ Alzheimer's disease.
Answer: A disease that causes the victim to become dysfunctional
due to degeneration of brain cells and severe memory loss.
◉ Annual Statement.
, Answer: A detailed financial report that an insurance company must
submit every year to the insurance department of state(s) in which
it conducts business.
◉ Annuity.
Answer: A contract that provides income for a specified period of
years, or for life.
◉ Apparent Authority.
Answer: The appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of
circumstances the principal created.
◉ Applicant.
Answer: A person making application for, or offering him/herself or
another to be insured under an insurance contract.
◉ Application.
Answer: A document that provides information for underwriting
purposes. After the policy is issued, any unanswered questions are
considered waived by the insurer.
◉ Assignment.
STUDY NOTES
◉ Agent's Authority.
Answer: Special powers granted to an agent by his or her agency
contract.
◉ Aleatory.
Answer: A contract in which participating parties exchange unequal
amounts. Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the insurer
will pay in the event of a loss.
◉ Alien Insurer.
Answer: An insurance company that is incorporated outside the
United States.
◉ Alzheimer's disease.
Answer: A disease that causes the victim to become dysfunctional
due to degeneration of brain cells and severe memory loss.
◉ Annual Statement.
, Answer: A detailed financial report that an insurance company must
submit every year to the insurance department of state(s) in which
it conducts business.
◉ Annuity.
Answer: A contract that provides income for a specified period of
years, or for life.
◉ Apparent Authority.
Answer: The appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of
circumstances the principal created.
◉ Applicant.
Answer: A person making application for, or offering him/herself or
another to be insured under an insurance contract.
◉ Application.
Answer: A document that provides information for underwriting
purposes. After the policy is issued, any unanswered questions are
considered waived by the insurer.
◉ Assignment.
