ARKANSAS LIFE INSURANCE RETAKE EXAM MOSTLY TESTED COMPLETE QUESTIONS AND ANSWERS
2025!! GRADED A+| 100% VERIFIED !!
J is a producer who has induced an insured through misrepresentation to surrender an existing
insurance policy. What is J guilty of? - correct answer Twisting
What is implied authority defined as? - correct answer Authority that is not specifically given to
an agent contract, but that an agent can reasonably assume to carry out his/her duties
A person who is a nonsmoker, average weight, excellent health would fall into what risk
classification? - correct answer Preferred
Which of the following is considered to be the period when the accumulated value in an
annuity is paid out? - correct answer Annuitization phase
An insurers claim settlement practices are regulated by the: - correct answer State insurance
departments
An insurers ability to make unpredictable payouts to policy owners is called: - correct answer
Liquidity
Which of the following pertains to the analysis of an applicants personal information and
determining whether insurance should be issued or declined? - correct answer Underwriting
What does the Group Life underwriting risk selection process help protect insurance companies
from? - correct answer Adverse Selection
The Arkansas Life & Disability Insurance Guaranty Association assures payment of benefits from
insurance policies for insolvent insurers, and covers all of the following insured policies,
EXCEPT: - correct answer Liability Insurance
What would happen if a life insurance applicant is given a conditional receipt from an insurance
agent and then dies the next day? - correct answer Claim will be paid if application is approved
A life insurance policy owner does NOT have the right to: - correct answer Revoke an absolute
assignment
An employee under a group insurance policy has the right to name a beneficiary and the right
to: - correct answer Convert to an individual policy in the event of employment termination
The two major actions required for a policyholder to comply with the Reinstatement Clause are
- correct answer Provide evidence of insurability, past due premiums
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements
is true? - correct answer The policy may be paid up early by using policy dividends
Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the
consumer price index has gone up 4%, how much may Ron increase the face value of the
policy? - correct answer $4,000
,ARKANSAS LIFE INSURANCE RETAKE EXAM MOSTLY TESTED COMPLETE QUESTIONS AND ANSWERS
2025!! GRADED A+| 100% VERIFIED !!
($100,000 X .04 = $4,000)
Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000.
Which of these statements is true? - correct answer The face amount and premium will remain
constant over the 10-year period
What is Arkansas' REQUIRED grace period for a life insurance contract? - correct answer 31
days
A domestic insurance company in Arkansas MUST - correct answer Be organized under
Arkansas Insurance laws
Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon
principal, interest, and the contract's - correct answer Income period
What kind of life insurance policy issued by a mutual insurer provides a return of divisible
surplus? - correct answer Participating life insurance policy
No one is allowed to act as a producer for any insurance company in Arkansas that - correct
answer Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related test? - correct answer Obtain a
written consent from the proposed insured
Which approach predicts a person's earning potential and determines how much of that
amount would be devoted to dependents? - correct answer Human life value approach
If the annuitant dies before the annuity start date, - correct answer The premiums paid plus
interest earned will be given to the beneficiary
If dividends are illustrated, the advertisement MUST state that the dividends are: - correct
answer Not guaranteed
Intentional withholding of material facts that would affect an insurance policy's validity is called
a(n) - correct answer Concealment
Field underwriting performed by the producer involves - correct answer Completing the
application and collecting initial premium
Which of the following statements is CORRECT regarding an individual applying for life or health
insurance? - correct answer The applicants medical history may be analyzed and reported
Life insurance policies will normally pay for losses arising from - correct answer Commercial
aviation
An example of rebating would be - correct answer Offering a client something of value not
stated in the contract in exchange for their business
, ARKANSAS LIFE INSURANCE RETAKE EXAM MOSTLY TESTED COMPLETE QUESTIONS AND ANSWERS
2025!! GRADED A+| 100% VERIFIED !!
Which type of insurance company allows their policyowners to elect governing body? - correct
answer Mutual
Which type of life insurance policy pays the face amount at the end of the specified period if
the insured is still alive? - correct answer Endowment policy
A life insurance claim which involves a per capita distribution of policy proceeds would be
payable to the - correct answer Named living primary beneficiaries
A type of group that has a constitution and bylaws and has been organized for purposes other
than obtaining insurance is called a(n) - correct answer Association or labor group
What are an applicant's statements concerning occupation, hobbies, and personal health
history regarded as? - correct answer Representation
Ken is 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? - correct answer $5,000
The _________ must provide an insured with proper disclosure concerning the replacement of
a life insurance policy - correct answer Producer
Within how many days must a rollover be completed in order to avoid being taxed as current
income? - correct answer 60 days to complete the rollover to another IRA
Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering
all three of their lives. If Mike dies first, the policy proceeds - correct answer Will no longer
provide insurance protection
An insurer may pay commissions directly to any person for services as a producer provided the
producer is licensed and ________ - correct answer Appointed
The principle of insurable interest, in regards to a life insurance contract, is accurately described
in which statement? - correct answer Insurable interest can be based on the love and affection
of individuals related by blood or law
Andy the annuitant dies before the annuity start date. Which of the following is a TRUE
statement? - correct answer Premiums paid plus interest earned is returned to the beneficiary
All of these are considered key factors in underwriting life insurance EXCEPT - correct answer
Marital status
The promise of a discount in premium as an inducement to purchase insurance is an Unfair
Trade Practice known as: - correct answer Rebating
2025!! GRADED A+| 100% VERIFIED !!
J is a producer who has induced an insured through misrepresentation to surrender an existing
insurance policy. What is J guilty of? - correct answer Twisting
What is implied authority defined as? - correct answer Authority that is not specifically given to
an agent contract, but that an agent can reasonably assume to carry out his/her duties
A person who is a nonsmoker, average weight, excellent health would fall into what risk
classification? - correct answer Preferred
Which of the following is considered to be the period when the accumulated value in an
annuity is paid out? - correct answer Annuitization phase
An insurers claim settlement practices are regulated by the: - correct answer State insurance
departments
An insurers ability to make unpredictable payouts to policy owners is called: - correct answer
Liquidity
Which of the following pertains to the analysis of an applicants personal information and
determining whether insurance should be issued or declined? - correct answer Underwriting
What does the Group Life underwriting risk selection process help protect insurance companies
from? - correct answer Adverse Selection
The Arkansas Life & Disability Insurance Guaranty Association assures payment of benefits from
insurance policies for insolvent insurers, and covers all of the following insured policies,
EXCEPT: - correct answer Liability Insurance
What would happen if a life insurance applicant is given a conditional receipt from an insurance
agent and then dies the next day? - correct answer Claim will be paid if application is approved
A life insurance policy owner does NOT have the right to: - correct answer Revoke an absolute
assignment
An employee under a group insurance policy has the right to name a beneficiary and the right
to: - correct answer Convert to an individual policy in the event of employment termination
The two major actions required for a policyholder to comply with the Reinstatement Clause are
- correct answer Provide evidence of insurability, past due premiums
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements
is true? - correct answer The policy may be paid up early by using policy dividends
Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the
consumer price index has gone up 4%, how much may Ron increase the face value of the
policy? - correct answer $4,000
,ARKANSAS LIFE INSURANCE RETAKE EXAM MOSTLY TESTED COMPLETE QUESTIONS AND ANSWERS
2025!! GRADED A+| 100% VERIFIED !!
($100,000 X .04 = $4,000)
Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000.
Which of these statements is true? - correct answer The face amount and premium will remain
constant over the 10-year period
What is Arkansas' REQUIRED grace period for a life insurance contract? - correct answer 31
days
A domestic insurance company in Arkansas MUST - correct answer Be organized under
Arkansas Insurance laws
Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon
principal, interest, and the contract's - correct answer Income period
What kind of life insurance policy issued by a mutual insurer provides a return of divisible
surplus? - correct answer Participating life insurance policy
No one is allowed to act as a producer for any insurance company in Arkansas that - correct
answer Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related test? - correct answer Obtain a
written consent from the proposed insured
Which approach predicts a person's earning potential and determines how much of that
amount would be devoted to dependents? - correct answer Human life value approach
If the annuitant dies before the annuity start date, - correct answer The premiums paid plus
interest earned will be given to the beneficiary
If dividends are illustrated, the advertisement MUST state that the dividends are: - correct
answer Not guaranteed
Intentional withholding of material facts that would affect an insurance policy's validity is called
a(n) - correct answer Concealment
Field underwriting performed by the producer involves - correct answer Completing the
application and collecting initial premium
Which of the following statements is CORRECT regarding an individual applying for life or health
insurance? - correct answer The applicants medical history may be analyzed and reported
Life insurance policies will normally pay for losses arising from - correct answer Commercial
aviation
An example of rebating would be - correct answer Offering a client something of value not
stated in the contract in exchange for their business
, ARKANSAS LIFE INSURANCE RETAKE EXAM MOSTLY TESTED COMPLETE QUESTIONS AND ANSWERS
2025!! GRADED A+| 100% VERIFIED !!
Which type of insurance company allows their policyowners to elect governing body? - correct
answer Mutual
Which type of life insurance policy pays the face amount at the end of the specified period if
the insured is still alive? - correct answer Endowment policy
A life insurance claim which involves a per capita distribution of policy proceeds would be
payable to the - correct answer Named living primary beneficiaries
A type of group that has a constitution and bylaws and has been organized for purposes other
than obtaining insurance is called a(n) - correct answer Association or labor group
What are an applicant's statements concerning occupation, hobbies, and personal health
history regarded as? - correct answer Representation
Ken is 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? - correct answer $5,000
The _________ must provide an insured with proper disclosure concerning the replacement of
a life insurance policy - correct answer Producer
Within how many days must a rollover be completed in order to avoid being taxed as current
income? - correct answer 60 days to complete the rollover to another IRA
Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering
all three of their lives. If Mike dies first, the policy proceeds - correct answer Will no longer
provide insurance protection
An insurer may pay commissions directly to any person for services as a producer provided the
producer is licensed and ________ - correct answer Appointed
The principle of insurable interest, in regards to a life insurance contract, is accurately described
in which statement? - correct answer Insurable interest can be based on the love and affection
of individuals related by blood or law
Andy the annuitant dies before the annuity start date. Which of the following is a TRUE
statement? - correct answer Premiums paid plus interest earned is returned to the beneficiary
All of these are considered key factors in underwriting life insurance EXCEPT - correct answer
Marital status
The promise of a discount in premium as an inducement to purchase insurance is an Unfair
Trade Practice known as: - correct answer Rebating
