Arkansas State Life Insurance Exam Questions With 100% Correct Answers 2025

Arkansas State Life Insurance Exam Questions With 100% Correct Answers 2025 Rob has a benefit at work which enables him to defer his current receipt of income and have it paid at a later date, when he will probably be in a lower tax bracket. Which benefit fits this description? - answerIncome deferral option Who were Keogh plans designed to provide pension benefits for? - answer-the self-employed What correctly describes a certificate of authority? - answer-Permits an insurance company to transact business in Arkansas An example of replacement is - answer-canceling a term life policy to buy a whole life policy Loans obtained by a policyowner against the cash value of a life insurance policy - answer-would not be treated as taxable income If an insured dies during the grace period with no premiums paid - answer-the policy would be payable, minus the premium amount Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because - answer-the MEC tends to be an investment vehicle When does an immediate annuity begin making payments? - answer-After the first premium has been paid When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT - answer-obtain the beneficiary's signatureJulie has a $100,000 30-year mortgage on her new home. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? - answer-decreasing term insurance What is a corridor in relation to a Universal Life insurance policy? - answer-The gap between the total death benefit and the policy's cash value