ARKANSAS LIFE INSURANCE UPDATED COMPREHENSIVE
QUESTIONS AND ANSWERS MARKED A+
✔✔Which is NOT considered to be a risk factor in life insurance underwriting? -
✔✔Number of children
✔✔A(n) _____ license is issued by the Commissioner of Insurance to allow the
personal representative of a deceased producer to provide service to existing
policyowners - ✔✔Temporary
✔✔Which is NOT a characteristic of the Accelerated Death Benefit option? - ✔✔The
benefit can be offered as a rider at a specific extra cost or may be at no cost
✔✔The coverage, conditions, and limitations in the master policy of a group contract
can be found in which document? - ✔✔Certificate of coverage and benefits
✔✔_____ is NOT a source of information that can assist an underwriter in determining
whether or not to accept a risk - ✔✔National Association of Insurance Underwriters
✔✔Signatures for an insurance application MUST be obtained by the producer from all
of the following sources EXCEPT - ✔✔The beneficiary
✔✔The standard grace period for a life insurance policy sold in Arkansas is - ✔✔31
days
✔✔Craig purchased a life insurance policy for enabling his heirs to pay estate taxes.
What is this called? - ✔✔Estate conservation
✔✔An insured's status under Social Security can be described as - ✔✔Fully insured
✔✔Which of the following employers is required to follow ERISA regulations? - ✔✔A
local electrical supply company with 12 employees
✔✔Which is an annuity that is linked to a market-related index? - ✔✔Equity-indexed
annuity
✔✔Who's signature is not required on an individual insurance application? - ✔✔Insurer
✔✔A policy owner is prohibited from making any changes to the policy without the
beneficiary's written consent under which beneficiary designation? - ✔✔Irrevocable
beneficiary
, ✔✔The power given to an individual producer that is not specifically addressed in
his/her contract is considered what type of authority? - ✔✔Implied
✔✔An example of replacement is: - ✔✔Canceling a term life policy to buy a whole life
policy
✔✔Variable life insurance and Universal life insurance are very similar. Which of these
features are held exclusively by variable universal life insurance? - ✔✔Policyowner has
the right to select the investment which will provide the greatest return
✔✔A Roth IRA owner must be at least what age in order to make tax-free withdrawals?
- ✔✔59 1/2 and owned an account for a minimum of 5 years
✔✔A professional liability for which producers can be sued for mistakes of putting a
policy into effect is called - ✔✔Errors and omissions
✔✔Converting a group plan to permanent life insurance involves - ✔✔the conversion
being applied within 1 month of termination
✔✔How are contributions made to a Roth IRA handled for tax purposes? - ✔✔Not tax
deductible
✔✔Within how many days must a Traditional IRA be rolled over to another IRA to avoid
tax consequences? - ✔✔60 days
✔✔Which describes the result of a modified endowment contract that failed to meet the
seven-pay test? - ✔✔Pre-death distributions are typically taxable
✔✔An insurance company needs to obtain personal information from a third party
concerning an applicant. Which law do all insurers and their producers need to comply
with? - ✔✔Fair Credit Reporting Act
✔✔Which does a life insurance policy summary normally include? - ✔✔The policy's
cash value
✔✔Insurance premium is determined by each of the following factors EXCEPT -
✔✔Liquidity
✔✔Which situation accurately describes a reduced paid-up nonforfeiture option? -
✔✔Policy has a decreased face amount
QUESTIONS AND ANSWERS MARKED A+
✔✔Which is NOT considered to be a risk factor in life insurance underwriting? -
✔✔Number of children
✔✔A(n) _____ license is issued by the Commissioner of Insurance to allow the
personal representative of a deceased producer to provide service to existing
policyowners - ✔✔Temporary
✔✔Which is NOT a characteristic of the Accelerated Death Benefit option? - ✔✔The
benefit can be offered as a rider at a specific extra cost or may be at no cost
✔✔The coverage, conditions, and limitations in the master policy of a group contract
can be found in which document? - ✔✔Certificate of coverage and benefits
✔✔_____ is NOT a source of information that can assist an underwriter in determining
whether or not to accept a risk - ✔✔National Association of Insurance Underwriters
✔✔Signatures for an insurance application MUST be obtained by the producer from all
of the following sources EXCEPT - ✔✔The beneficiary
✔✔The standard grace period for a life insurance policy sold in Arkansas is - ✔✔31
days
✔✔Craig purchased a life insurance policy for enabling his heirs to pay estate taxes.
What is this called? - ✔✔Estate conservation
✔✔An insured's status under Social Security can be described as - ✔✔Fully insured
✔✔Which of the following employers is required to follow ERISA regulations? - ✔✔A
local electrical supply company with 12 employees
✔✔Which is an annuity that is linked to a market-related index? - ✔✔Equity-indexed
annuity
✔✔Who's signature is not required on an individual insurance application? - ✔✔Insurer
✔✔A policy owner is prohibited from making any changes to the policy without the
beneficiary's written consent under which beneficiary designation? - ✔✔Irrevocable
beneficiary
, ✔✔The power given to an individual producer that is not specifically addressed in
his/her contract is considered what type of authority? - ✔✔Implied
✔✔An example of replacement is: - ✔✔Canceling a term life policy to buy a whole life
policy
✔✔Variable life insurance and Universal life insurance are very similar. Which of these
features are held exclusively by variable universal life insurance? - ✔✔Policyowner has
the right to select the investment which will provide the greatest return
✔✔A Roth IRA owner must be at least what age in order to make tax-free withdrawals?
- ✔✔59 1/2 and owned an account for a minimum of 5 years
✔✔A professional liability for which producers can be sued for mistakes of putting a
policy into effect is called - ✔✔Errors and omissions
✔✔Converting a group plan to permanent life insurance involves - ✔✔the conversion
being applied within 1 month of termination
✔✔How are contributions made to a Roth IRA handled for tax purposes? - ✔✔Not tax
deductible
✔✔Within how many days must a Traditional IRA be rolled over to another IRA to avoid
tax consequences? - ✔✔60 days
✔✔Which describes the result of a modified endowment contract that failed to meet the
seven-pay test? - ✔✔Pre-death distributions are typically taxable
✔✔An insurance company needs to obtain personal information from a third party
concerning an applicant. Which law do all insurers and their producers need to comply
with? - ✔✔Fair Credit Reporting Act
✔✔Which does a life insurance policy summary normally include? - ✔✔The policy's
cash value
✔✔Insurance premium is determined by each of the following factors EXCEPT -
✔✔Liquidity
✔✔Which situation accurately describes a reduced paid-up nonforfeiture option? -
✔✔Policy has a decreased face amount
