Arkansas Health Insurance Exam |
270+ Practice Questions and Correct
Answers | Rated A+ | 2025 Latest
ABC Insurance Company transfers part of their risk to XYZ Insurance
Company. This situation is called
reciprocity
reinsurance
conservation
risk transfer - Correct Answer - Reinsurance
A nonparticipating policy will
provide a return of premium
provide tax advantages
not pay dividends
give policyowners special privileges - Correct Answer - not pay dividends
Which of the following is NOT considered advertising?
A rating from a rating service company, such as A.M. Best
An illustration
,A sales presentation
Direct mailing from an agency - Correct Answer - A rating from a rating
service company, such as A.M. Best
A(n) ___ company is owned by its shareholders.
mixed
interactive
stock
mutual - Correct Answer - stock
A plan in which an emplover pavs insurance benefits from a fund derived
from the emplover's current revenues is called
A self-derived plan
A multiple-employer plan
A blanket plan
A self-funded plan - Correct Answer - A self-funded plan
The Do Not Call Registry offers exemptions for calls placed from all of
the following EXCEPT
,charities
political organizations
insurance sales calls
Survey - Correct Answer - Insurance sales call
Ken s a producer who has obtained Consumer Information Reports
under false pretenses. Under the Fair Credit Reporting Act, what is the
maximum penalty that may be imposed on Ken?
$1,000
$3,000
$5,000
$7,000 - Correct Answer - $5,000
A type of insurer that is owned by its policyowners is called
domestic
mutual
stock
in-house - Correct Answer - mutual
Why are dividends from a mutual insurer not subiect to taxation?
, Because insurance premiums are tax-deductible
Because dividends are already subject to capital gains
Because dividends are payable directly to the policyholder
Because dividends are considered to be a return of premium - Correct
Answer - Because dividends are considered to be a return of premium
Under the subrogation clause, legal action can be taken by the insurer
against the
responsible third party
beneficiary
policyowner
State - Correct Answer - responsible third party
Key Person Disability Insurance pays benefits to the
hospital
employee
employer
employee's creditors - Correct Answer - employer
270+ Practice Questions and Correct
Answers | Rated A+ | 2025 Latest
ABC Insurance Company transfers part of their risk to XYZ Insurance
Company. This situation is called
reciprocity
reinsurance
conservation
risk transfer - Correct Answer - Reinsurance
A nonparticipating policy will
provide a return of premium
provide tax advantages
not pay dividends
give policyowners special privileges - Correct Answer - not pay dividends
Which of the following is NOT considered advertising?
A rating from a rating service company, such as A.M. Best
An illustration
,A sales presentation
Direct mailing from an agency - Correct Answer - A rating from a rating
service company, such as A.M. Best
A(n) ___ company is owned by its shareholders.
mixed
interactive
stock
mutual - Correct Answer - stock
A plan in which an emplover pavs insurance benefits from a fund derived
from the emplover's current revenues is called
A self-derived plan
A multiple-employer plan
A blanket plan
A self-funded plan - Correct Answer - A self-funded plan
The Do Not Call Registry offers exemptions for calls placed from all of
the following EXCEPT
,charities
political organizations
insurance sales calls
Survey - Correct Answer - Insurance sales call
Ken s a producer who has obtained Consumer Information Reports
under false pretenses. Under the Fair Credit Reporting Act, what is the
maximum penalty that may be imposed on Ken?
$1,000
$3,000
$5,000
$7,000 - Correct Answer - $5,000
A type of insurer that is owned by its policyowners is called
domestic
mutual
stock
in-house - Correct Answer - mutual
Why are dividends from a mutual insurer not subiect to taxation?
, Because insurance premiums are tax-deductible
Because dividends are already subject to capital gains
Because dividends are payable directly to the policyholder
Because dividends are considered to be a return of premium - Correct
Answer - Because dividends are considered to be a return of premium
Under the subrogation clause, legal action can be taken by the insurer
against the
responsible third party
beneficiary
policyowner
State - Correct Answer - responsible third party
Key Person Disability Insurance pays benefits to the
hospital
employee
employer
employee's creditors - Correct Answer - employer
