ARKANSAS LIFE INSURANCE EXAM WITH 100% CORRECT ANSWERS

ARKANSAS LIFE INSURANCE EXAM WITH 100% CORRECT ANSWERS .Is NOT a source of information that can assist an underwriter in determining whether or not to accept a risk - Answer-National Association of Insurance Underwriters .1035 exchange plan - Answer- .A beneficiary charge can occur - Answer-Normally at any time during the policy term .A domestic insurance company in Arkansas MUST - Answer-Be organized under Arkansas Insurance laws .A foreign insurance company is defined as one that is - Answer-Formed under the laws of a state other than Arkansas .A guaranteed issue insurance policy has no - Answer-Medical underwriting .A licensee who is required to take continuing education must complete _____ hours of continuing education coursework? - Answer-24 hours *3 of which must be related to ethics .A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the - Answer-Named living primary beneficiaries .A life insurance policy owner does NOT have the right to: - Answer-Revoke an absolute assignment .A life policy loan in Arkansas cannot charge a fixed rate of interest higher than - Answer-8% .A limited payment whole life policy provides - Answer-Lifetime protection .A non-contributory health insurance plan helps the insurer avoid - Answer-Adverse selection .A person must be at least ____________ years of age to enter into an insurance agreement in the state of Arkansas - Answer-18 .A person who is a nonsmoker, average weight, excellent health would fall into what risk classification? - Answer-Preferred .A policy owner is prohibited from making any changes to the policy without the beneficiary's written consent under which beneficiary designation? - Answer-Irrevocable beneficiary .A policy owner may change two policy features on what type of life insurance? - Answer-Adjustable life *allows for changes on premium and face amount .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 .A producer may begin to solicit insurance ONLY when - Answer-Appointed by insurer *a producer may not sell, solicit, or negotiate insurance on behalf of an insurer unless the producer has an appointment from the insurer .A producer must complete continuing education every ____ years in order to maintain their license in Arkansas - Answer-2 .A producer who knowingly submits FALSE statements in support of a claim may be found guilty of - Answer-Fraud .A producer's license CANNOT be revoked without - Answer-A hearing given to the producer .A professional liability for which producers can be sued for mistakes of putting a policy into effect is called - Answer-Errors and omissions .A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) - Answer-Collateral assignment *allows a person to temporarily give up a portion of their ownership to secure a loan .A Renewable Term Life insurance policy can be renewed - Answer-At a pre-determined date or age, regardless of the insured's health .A Roth IRA owner must be at least what age in order to make tax-free withdrawals? - Answer-59 1/2 and owned an account for a minimum of 5 years .A stock insurance company - Answer-is owned exclusively by its shareholders .A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n) - Answer-Association or labor group .A type of insurer that is owned by its policyowners is called - Answer-Mutual .A whole life insurance policy accumulates cash value that becomes - Answer-The policy loan value which the insured may borrow against .A(n) _____ license is issued by the Commissioner of Insurance to allow the personal representative of a deceased producer to provide service to existing policyowners - Answer-Temporary .accelerated death benefits rider - Answer-allows insureds who are terminally ill to collect part or all of their life insurance benefits before they die .Accidental Death Rider - Answer-pays some multiple of the face amount if death is the result of an accident as defined in the policy .Accumulation at Interest Option - Answer-A dividend option under which the policy owner allows dividends to accumulate at interest with the company. Only the interest on the dividends is taxable as income (participating policies only). .Advertising records are subject to examination by the Arkansas Insurance Department, and must be maintained for at least - Answer-4 years or until the next regular examination by the Department, whichever is longer