ARKANSAS LIFE INSURANCE
EXAM 2025 QUESTIONS AND
ANSWERS
J is a producer who has induced an insured through misrepresentation to
surrender an existing insurance policy. What is J guilty of? - ....ANSWER ...-
Twisting
What is implied authority defined as? - ....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? - ....ANSWER ...-Preferred
Which of the following is considered to be the period when the accumulated value
in an annuity is paid out? - ....ANSWER ...-Annuitization phase
An insurers claim settlement practices are regulated by the: - ....ANSWER ...-
State insurance departments
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,An insurers ability to make unpredictable payouts to policy owners is called: -
....ANSWER ...-Liquidity
Which of the following pertains to the analysis of an applicants personal
information and determining whether insurance should be issued or declined? -
....ANSWER ...-Underwriting
What does the Group Life underwriting risk selection process help protect
insurance companies from? - ....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: - ....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? - ....ANSWER ...-Claim will
be paid if application is approved
A life insurance policy owner does NOT have the right to: - ....ANSWER ...-
Revoke an absolute assignment
An employee under a group insurance policy has the right to name a beneficiary
and the right to: - ....ANSWER ...-Convert to an individual policy in the
event of employment termination
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,The two major actions required for a policyholder to comply with the
Reinstatement Clause are - ....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? - ....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? - ....ANSWER ...-$4,000
($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? - ....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? -
....ANSWER ...-31 days
A domestic insurance company in Arkansas MUST - ....ANSWER ...-Be
organized under Arkansas Insurance laws
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, Simon has purchased a fixed immediate annuity. His payment amount will be
dependent upon principal, interest, and the contract's - ....ANSWER ...-
Income period
What kind of life insurance policy issued by a mutual insurer provides a return of
divisible surplus? - ....ANSWER ...-Participating life insurance policy
No one is allowed to act as a producer for any insurance company in Arkansas that
- ....ANSWER ...-Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related test? -
....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? - ....ANSWER ...-Human life
value approach
If the annuitant dies before the annuity start date, - ....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: -
....ANSWER ...-Not guaranteed
Intentional withholding of material facts that would affect an insurance policy's
validity is called a(n) - ....ANSWER ...-Concealment
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
EXAM 2025 QUESTIONS AND
ANSWERS
J is a producer who has induced an insured through misrepresentation to
surrender an existing insurance policy. What is J guilty of? - ....ANSWER ...-
Twisting
What is implied authority defined as? - ....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? - ....ANSWER ...-Preferred
Which of the following is considered to be the period when the accumulated value
in an annuity is paid out? - ....ANSWER ...-Annuitization phase
An insurers claim settlement practices are regulated by the: - ....ANSWER ...-
State insurance departments
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,An insurers ability to make unpredictable payouts to policy owners is called: -
....ANSWER ...-Liquidity
Which of the following pertains to the analysis of an applicants personal
information and determining whether insurance should be issued or declined? -
....ANSWER ...-Underwriting
What does the Group Life underwriting risk selection process help protect
insurance companies from? - ....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: - ....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? - ....ANSWER ...-Claim will
be paid if application is approved
A life insurance policy owner does NOT have the right to: - ....ANSWER ...-
Revoke an absolute assignment
An employee under a group insurance policy has the right to name a beneficiary
and the right to: - ....ANSWER ...-Convert to an individual policy in the
event of employment termination
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,The two major actions required for a policyholder to comply with the
Reinstatement Clause are - ....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? - ....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? - ....ANSWER ...-$4,000
($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? - ....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? -
....ANSWER ...-31 days
A domestic insurance company in Arkansas MUST - ....ANSWER ...-Be
organized under Arkansas Insurance laws
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, Simon has purchased a fixed immediate annuity. His payment amount will be
dependent upon principal, interest, and the contract's - ....ANSWER ...-
Income period
What kind of life insurance policy issued by a mutual insurer provides a return of
divisible surplus? - ....ANSWER ...-Participating life insurance policy
No one is allowed to act as a producer for any insurance company in Arkansas that
- ....ANSWER ...-Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related test? -
....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? - ....ANSWER ...-Human life
value approach
If the annuitant dies before the annuity start date, - ....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: -
....ANSWER ...-Not guaranteed
Intentional withholding of material facts that would affect an insurance policy's
validity is called a(n) - ....ANSWER ...-Concealment
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
