Life & Health Insurance Exam (Arkansas) Questions with 100% Correct Answers | Updated 2025

Life & Health Insurance Exam (Arkansas) Questions with 100% Correct Answers | Updated 2025 Reserves - answer-Funds held by the company to fullfull future claims. Funds are set by the state department of insurance. Multi-line Insurer - answer-An insurance company selling more than one line of insurance. (Ex. Home, auto, health, etc) Stock Companies - answer-Owned and controlled by stockholders, whose investment set the safety margin. Guaranteed fixed premiums. Nonparticipating policies. nonparticipating policy - answer-Insurance under which the insured is not entitled to share in the divisible surplus of the company. Mutual Companies - answer-Owned by the policy owners and issue participating policies. Participating plan. - answer-A plan under which the policy owner receives shares (dividends) of the divisible surplus of the company. Reinsurer - answer-A company that provides financial protection to insurance companies. Handles risk to large for insurance companies to handle alone. Fraternal Benefit Society - answer-Nonprofit organization that provides insurance to its members. It's agent who sell within the society do not make commission. Stays under specific premiums.Fair Credit Reporting Act - answer-A federal law requiring a person to know if he/she is being investigated by an inspection company, and is notified prior to investigation. The maximum penalty for obtaining consumer information under false pretenses is $5,000 and/or 1 year imprisonment. Buyer's Guide - answer-A booklet that describes insurance policies and concepts, and provides general information to help an applicant make an informed decision. Policy Summary - answer-a written statement describing the features and elements of the policy being issued. Includes conditions, coverage, limitations, and premiums. National Association of Insurance Commissioners (NAIC) - answer-Organization made up of individual state insurance commissioners whose purpose is to promote uniformity in regulation by drafting model laws and regulations.