ARKANSAS LIFE INSURANCE EXAM |
200+ QUESTIONS AND ANSWERS
RATED A+ | 2025 LATEST GUIDE
A provision that allows a policyowner to temporarily give up ownership
rights to secure a loan is called a(n)
- Correct Answer - Collateral assignment
*allows a person to temporarily give up a portion of their ownership to
secure a loan
Which is NOT a legitimate insurance company in the same state?
- Correct Answer - Domestic and foreign
The Commissioner MUST give a MINIMUM of how many days' notice of
a disciplinary hearing?
- Correct Answer - 10 days
*notice of hearing must be given to the person cited at least 10 days
prior to the designated date
A life policy loan in Arkansas cannot charge a fixed rate of interest higher
than
- Correct Answer - 8%
All of these are settlement options for life insurance policies EXCEPT
- Correct Answer - Extended term
What is the purpose of the Medical Information Bureau (MIB)?
- Correct Answer - To help underwriters evaluate risk
,A producer's license CANNOT be revoked without
- Correct Answer - A hearing given to the producer
What will the beneficiary receive if an annuitant dies during the
accumulation period?
- Correct Answer - The greater of the accumulated cash value or the
total premium paid
Advertising records are subject to examination by the Arkansas
Insurance Department, and must be maintained for at least
- Correct Answer - 4 years or until the next regular examination by the
Department, whichever is longer
Defamation occurs when a producer makes a false statement intended
to
- Correct Answer - Malign another insurer
*producers making false statements intended to malign another
insurance company may be found guilty of defamation
Which is considered to be a document that describes the critical
segments of a life insurance policy?
- Correct Answer - Policy summary
What factors would an insurer consider when determining whether to
accept a group life plan?
- Correct Answer - Average age
A producer who knowingly submits FALSE statements in support of a
claim may be found guilty of
,- Correct Answer - Fraud
A licensee who is required to take continuing education must complete
_____ hours of continuing education coursework?
- Correct Answer - 24 hours
*3 of which must be related to ethics
What is a corridor in relation to a Universal Life insurance policy?
- Correct Answer - The gap between the total death benefit and the
policy's cash value
In what part of an insurance policy are policy benefits found?
- Correct Answer - Declarations
*declaration page is like a quick guide to the insurance policy, providing
all the basic information the policyholder needs to know
Which of the following is a reinstatement condition?
- Correct Answer - Proof of insurability
Which is NOT part of an insurance contract?
- Correct Answer - Certificate of Authority
*allows an insurer to conduct business in a state
Who were Keogh plans designed to provide pension benefits for?
- Correct Answer - Self-employed individuals
The period in which there are no Social Security benefits for the
surviving spouse is called the
- Correct Answer - Blackout period
, A guaranteed issue insurance policy has no
- Correct Answer - Medical underwriting
Under a Traditional IRA, interest earned is taxed
- Correct Answer - Upon distribution
When a producer is replacing an existing ordinary life insurance policy,
the producer must do all EXCEPT:
- Correct Answer - Obtain the beneficiary's signature
Which is NOT considered to be a common life insurance nonforfeiture
option? - Correct Answer - Life income annuity
A producer must complete continuing education every ____ years in
order to maintain their license in Arkansas
- Correct Answer - 2
An example of a tax-qualified retirement plan would be a(n)
- Correct Answer - Defined contribution plan
Which would NOT be a factor that is taken into account when
determining an applicant's life insurance needs?
- Correct Answer - Automobile
Which is NOT a reason for the commissioner to deny or refuse a
producer license application?
- Correct Answer - Unintentionally misrepresented a material fact on the
application
200+ QUESTIONS AND ANSWERS
RATED A+ | 2025 LATEST GUIDE
A provision that allows a policyowner to temporarily give up ownership
rights to secure a loan is called a(n)
- Correct Answer - Collateral assignment
*allows a person to temporarily give up a portion of their ownership to
secure a loan
Which is NOT a legitimate insurance company in the same state?
- Correct Answer - Domestic and foreign
The Commissioner MUST give a MINIMUM of how many days' notice of
a disciplinary hearing?
- Correct Answer - 10 days
*notice of hearing must be given to the person cited at least 10 days
prior to the designated date
A life policy loan in Arkansas cannot charge a fixed rate of interest higher
than
- Correct Answer - 8%
All of these are settlement options for life insurance policies EXCEPT
- Correct Answer - Extended term
What is the purpose of the Medical Information Bureau (MIB)?
- Correct Answer - To help underwriters evaluate risk
,A producer's license CANNOT be revoked without
- Correct Answer - A hearing given to the producer
What will the beneficiary receive if an annuitant dies during the
accumulation period?
- Correct Answer - The greater of the accumulated cash value or the
total premium paid
Advertising records are subject to examination by the Arkansas
Insurance Department, and must be maintained for at least
- Correct Answer - 4 years or until the next regular examination by the
Department, whichever is longer
Defamation occurs when a producer makes a false statement intended
to
- Correct Answer - Malign another insurer
*producers making false statements intended to malign another
insurance company may be found guilty of defamation
Which is considered to be a document that describes the critical
segments of a life insurance policy?
- Correct Answer - Policy summary
What factors would an insurer consider when determining whether to
accept a group life plan?
- Correct Answer - Average age
A producer who knowingly submits FALSE statements in support of a
claim may be found guilty of
,- Correct Answer - Fraud
A licensee who is required to take continuing education must complete
_____ hours of continuing education coursework?
- Correct Answer - 24 hours
*3 of which must be related to ethics
What is a corridor in relation to a Universal Life insurance policy?
- Correct Answer - The gap between the total death benefit and the
policy's cash value
In what part of an insurance policy are policy benefits found?
- Correct Answer - Declarations
*declaration page is like a quick guide to the insurance policy, providing
all the basic information the policyholder needs to know
Which of the following is a reinstatement condition?
- Correct Answer - Proof of insurability
Which is NOT part of an insurance contract?
- Correct Answer - Certificate of Authority
*allows an insurer to conduct business in a state
Who were Keogh plans designed to provide pension benefits for?
- Correct Answer - Self-employed individuals
The period in which there are no Social Security benefits for the
surviving spouse is called the
- Correct Answer - Blackout period
, A guaranteed issue insurance policy has no
- Correct Answer - Medical underwriting
Under a Traditional IRA, interest earned is taxed
- Correct Answer - Upon distribution
When a producer is replacing an existing ordinary life insurance policy,
the producer must do all EXCEPT:
- Correct Answer - Obtain the beneficiary's signature
Which is NOT considered to be a common life insurance nonforfeiture
option? - Correct Answer - Life income annuity
A producer must complete continuing education every ____ years in
order to maintain their license in Arkansas
- Correct Answer - 2
An example of a tax-qualified retirement plan would be a(n)
- Correct Answer - Defined contribution plan
Which would NOT be a factor that is taken into account when
determining an applicant's life insurance needs?
- Correct Answer - Automobile
Which is NOT a reason for the commissioner to deny or refuse a
producer license application?
- Correct Answer - Unintentionally misrepresented a material fact on the
application
