x
x
x
x
x
x
x
x
x
x
x
x
ARKANSAS LIFE INSURANCE EXAM
x x x
x
QUESTIONS AND ANSWERS 100% x x x
x
VERIFIED
x
x
x
x
x
x
x
x
x
x
x
J xis xa xproducer xwho xhas xinduced xan xinsured xthrough xmisrepresentation xto xsurrender
xan x
x
existing xinsurance xpolicy. xWhat xis xJ xguilty xof? x- xcorrect xanswer. x
xTwisting
x
What xis ximplied xauthority xdefined xas? x- xcorrect xanswer. x xAuthority xthat xis xnot
xspecifically xgiven xto xan xagent xcontract, xbut xthat xan xagent xcan xreasonably xassume xto
xcarry xout xhis/her xduties x
x
A xperson xwho xis xa xnonsmoker, xaverage xweight, xexcellent xhealth xwould xfall xinto xwhat
xrisk x
x
classification? x- xcorrect xanswer. x
xPreferred
x
Which xof xthe xfollowing xis xconsidered xto xbe xthe xperiod xwhen xthe xaccumulated xvalue
xin xan x
x
annuity xis xpaid xout? x- xcorrect xanswer. x xAnnuitization
xphase
x
An xinsurers xclaim xsettlement xpractices xare xregulated xby xthe: x- xcorrect xanswer. x
xState x
x
insurance
xdepartments
x
An xinsurers xability xto xmake xunpredictable xpayouts xto xpolicy xowners xis xcalled: x-
xcorrect x
x
answer. x
xLiquidity
x
Which xof xthe xfollowing xpertains xto xthe xanalysis xof xan xapplicants xpersonal xinformation
xand x
, x x
determining xwhether xinsurance xshould xbe xissued xor xdeclined? x- xcorrect
xanswer.
x
Underwriting
x
What xdoes xthe xGroup xLife xunderwriting xrisk xselection xprocess xhelp xprotect
xinsurance x
x
companies xfrom? x- xcorrect xanswer. x xAdverse
xSelection
x
The xArkansas xLife x& xDisability xInsurance xGuaranty xAssociation xassures xpayment xof
xbenefits xfrom xinsurance xpolicies xfor xinsolvent xinsurers, xand xcovers xall xof xthe
xfollowing xinsured xpolicies, xEXCEPT: x- xcorrect xanswer. x xLiability xInsurance x
x
What xwould xhappen xif xa xlife xinsurance xapplicant xis xgiven xa xconditional xreceipt xfrom
xan x
x
insurance xagent xand xthen xdies xthe xnext xday? x- xcorrect xanswer. x xClaim xwill xbe
xpaid xif
x
application xis
xapproved
x
A xlife xinsurance xpolicy xowner xdoes xNOT xhave xthe xright xto: x- xcorrect xanswer. x
xRevoke xan x
x
absolute
xassignment
x
An xemployee xunder xa xgroup xinsurance xpolicy xhas xthe xright xto xname xa xbeneficiary
xand xthe xright xto: x- xcorrect xanswer. x xConvert xto xan xindividual xpolicy xin xthe xevent xof
xemployment xtermination x
x
The xtwo xmajor xactions xrequired xfor xa xpolicyholder xto xcomply xwith xthe xReinstatement
xClause xare x- xcorrect xanswer. x xProvide xevidence xof xinsurability, xpast xdue xpremiums x
x
Pat xowns xa x20-pay xlife xpolicy xwith xa xpaid-up xdividend xoption. xWhich xof xthe xfollowing
xstatements xis xtrue? x- xcorrect xanswer. x xThe xpolicy xmay xbe xpaid xup xearly xby xusing
xpolicy xdividends x
x
Ron xhas xa xlife xinsurance xpolicy xwith xa xface xvalue xof x$100,000 xand xa xcost xof xliving
xrider. xIf x
the xconsumer xprice xindex xhas xgone xup x4%, xhow xmuch xmay xRon xincrease xthe xface
xvalue
x
of xthe xpolicy? x- xcorrect xanswer. x
x$4,000
x
($100,000 xX x.04 x= x$4,000) x
x
Krissa xpurchases xa x10-year xlevel xterm xlife xinsurance xpolicy xthat xhas xa xdeath
xbenefit xof x
$200,000. xWhich xof xthese xstatements xis xtrue? x- xcorrect xanswer. x xThe xface xamount
xand x
, x
premium xwill xremain xconstant xover xthe x10-year
xperiod
x
What xis xArkansas' xREQUIRED xgrace xperiod xfor xa xlife xinsurance xcontract? x-
xcorrect x
x
answer. x x31
xdays
x
A xdomestic xinsurance xcompany xin xArkansas xMUST x- xcorrect xanswer. x x Be
xorganized x
x
under xArkansas xInsurance
xlaws
x
x
Simon xhas xpurchased xa xfixed ximmediate xannuity. xHis xpayment xamount xwill
xbe
dependent xupon xprincipal, xinterest, xand xthe xcontract's x- xcorrect xanswer. x xIncome
xperiod
x
What xkind xof xlife xinsurance xpolicy xissued xby xa xmutual xinsurer xprovides xa
xreturn xof x
x
divisible xsurplus? x- xcorrect xanswer. x xParticipating xlife xinsurance
xpolicy
x
No xone xis xallowed xto xact xas xa xproducer xfor xany xinsurance xcompany xin xArkansas
xthat x-
x
correct xanswer. x xIs xunauthorized xto xdo xbusiness xin
xArkansas
x
What xMUST xthe xcompany xdo xprior xto xconducting xan xHIV xrelated xtest? x- xcorrect
xanswer. x x
x
Obtain xa xwritten xconsent xfrom xthe xproposed
xinsured
x
Which xapproach xpredicts xa xperson's xearning xpotential xand xdetermines xhow xmuch xof
xthat
amount xwould xbe xdevoted xto xdependents? x- xcorrect xanswer. x xHuman xlife xvalue
xapproach
x
If xthe xannuitant xdies xbefore xthe xannuity xstart xdate, x- xcorrect xanswer. x xThe xpremiums
xpaid x
x
plus xinterest xearned xwill xbe xgiven xto xthe
xbeneficiary
x
If xdividends xare xillustrated, xthe xadvertisement xMUST xstate xthat xthe xdividends
xare: x-
x
correct xanswer. x x Not
xguaranteed
x
x
x
x
x
x
x
x
x
x
x
x
ARKANSAS LIFE INSURANCE EXAM
x x x
x
QUESTIONS AND ANSWERS 100% x x x
x
VERIFIED
x
x
x
x
x
x
x
x
x
x
x
J xis xa xproducer xwho xhas xinduced xan xinsured xthrough xmisrepresentation xto xsurrender
xan x
x
existing xinsurance xpolicy. xWhat xis xJ xguilty xof? x- xcorrect xanswer. x
xTwisting
x
What xis ximplied xauthority xdefined xas? x- xcorrect xanswer. x xAuthority xthat xis xnot
xspecifically xgiven xto xan xagent xcontract, xbut xthat xan xagent xcan xreasonably xassume xto
xcarry xout xhis/her xduties x
x
A xperson xwho xis xa xnonsmoker, xaverage xweight, xexcellent xhealth xwould xfall xinto xwhat
xrisk x
x
classification? x- xcorrect xanswer. x
xPreferred
x
Which xof xthe xfollowing xis xconsidered xto xbe xthe xperiod xwhen xthe xaccumulated xvalue
xin xan x
x
annuity xis xpaid xout? x- xcorrect xanswer. x xAnnuitization
xphase
x
An xinsurers xclaim xsettlement xpractices xare xregulated xby xthe: x- xcorrect xanswer. x
xState x
x
insurance
xdepartments
x
An xinsurers xability xto xmake xunpredictable xpayouts xto xpolicy xowners xis xcalled: x-
xcorrect x
x
answer. x
xLiquidity
x
Which xof xthe xfollowing xpertains xto xthe xanalysis xof xan xapplicants xpersonal xinformation
xand x
, x x
determining xwhether xinsurance xshould xbe xissued xor xdeclined? x- xcorrect
xanswer.
x
Underwriting
x
What xdoes xthe xGroup xLife xunderwriting xrisk xselection xprocess xhelp xprotect
xinsurance x
x
companies xfrom? x- xcorrect xanswer. x xAdverse
xSelection
x
The xArkansas xLife x& xDisability xInsurance xGuaranty xAssociation xassures xpayment xof
xbenefits xfrom xinsurance xpolicies xfor xinsolvent xinsurers, xand xcovers xall xof xthe
xfollowing xinsured xpolicies, xEXCEPT: x- xcorrect xanswer. x xLiability xInsurance x
x
What xwould xhappen xif xa xlife xinsurance xapplicant xis xgiven xa xconditional xreceipt xfrom
xan x
x
insurance xagent xand xthen xdies xthe xnext xday? x- xcorrect xanswer. x xClaim xwill xbe
xpaid xif
x
application xis
xapproved
x
A xlife xinsurance xpolicy xowner xdoes xNOT xhave xthe xright xto: x- xcorrect xanswer. x
xRevoke xan x
x
absolute
xassignment
x
An xemployee xunder xa xgroup xinsurance xpolicy xhas xthe xright xto xname xa xbeneficiary
xand xthe xright xto: x- xcorrect xanswer. x xConvert xto xan xindividual xpolicy xin xthe xevent xof
xemployment xtermination x
x
The xtwo xmajor xactions xrequired xfor xa xpolicyholder xto xcomply xwith xthe xReinstatement
xClause xare x- xcorrect xanswer. x xProvide xevidence xof xinsurability, xpast xdue xpremiums x
x
Pat xowns xa x20-pay xlife xpolicy xwith xa xpaid-up xdividend xoption. xWhich xof xthe xfollowing
xstatements xis xtrue? x- xcorrect xanswer. x xThe xpolicy xmay xbe xpaid xup xearly xby xusing
xpolicy xdividends x
x
Ron xhas xa xlife xinsurance xpolicy xwith xa xface xvalue xof x$100,000 xand xa xcost xof xliving
xrider. xIf x
the xconsumer xprice xindex xhas xgone xup x4%, xhow xmuch xmay xRon xincrease xthe xface
xvalue
x
of xthe xpolicy? x- xcorrect xanswer. x
x$4,000
x
($100,000 xX x.04 x= x$4,000) x
x
Krissa xpurchases xa x10-year xlevel xterm xlife xinsurance xpolicy xthat xhas xa xdeath
xbenefit xof x
$200,000. xWhich xof xthese xstatements xis xtrue? x- xcorrect xanswer. x xThe xface xamount
xand x
, x
premium xwill xremain xconstant xover xthe x10-year
xperiod
x
What xis xArkansas' xREQUIRED xgrace xperiod xfor xa xlife xinsurance xcontract? x-
xcorrect x
x
answer. x x31
xdays
x
A xdomestic xinsurance xcompany xin xArkansas xMUST x- xcorrect xanswer. x x Be
xorganized x
x
under xArkansas xInsurance
xlaws
x
x
Simon xhas xpurchased xa xfixed ximmediate xannuity. xHis xpayment xamount xwill
xbe
dependent xupon xprincipal, xinterest, xand xthe xcontract's x- xcorrect xanswer. x xIncome
xperiod
x
What xkind xof xlife xinsurance xpolicy xissued xby xa xmutual xinsurer xprovides xa
xreturn xof x
x
divisible xsurplus? x- xcorrect xanswer. x xParticipating xlife xinsurance
xpolicy
x
No xone xis xallowed xto xact xas xa xproducer xfor xany xinsurance xcompany xin xArkansas
xthat x-
x
correct xanswer. x xIs xunauthorized xto xdo xbusiness xin
xArkansas
x
What xMUST xthe xcompany xdo xprior xto xconducting xan xHIV xrelated xtest? x- xcorrect
xanswer. x x
x
Obtain xa xwritten xconsent xfrom xthe xproposed
xinsured
x
Which xapproach xpredicts xa xperson's xearning xpotential xand xdetermines xhow xmuch xof
xthat
amount xwould xbe xdevoted xto xdependents? x- xcorrect xanswer. x xHuman xlife xvalue
xapproach
x
If xthe xannuitant xdies xbefore xthe xannuity xstart xdate, x- xcorrect xanswer. x xThe xpremiums
xpaid x
x
plus xinterest xearned xwill xbe xgiven xto xthe
xbeneficiary
x
If xdividends xare xillustrated, xthe xadvertisement xMUST xstate xthat xthe xdividends
xare: x-
x
correct xanswer. x x Not
xguaranteed
x
