©FYNDLAY 2025 ALL RIGHTS RESERVED
ARKANSAS HEALTH INSURANCE Exam
Questions and Answers 100% Pass
In order for a contract to be valid, it must: - ANS Contain an offer & acceptance
When does a nondisabled person first qualify for a Medicare Supplement Policy? - ANS Age
65
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the: - ANS Reinsurer
A common exclusion with vision plans is: - ANS Lasik Surgery
What are applicants statements concerning occupation, hobbies and personal health history? -
ANS Representation
States that have "no loss, no gain" laws require a replacing policy to: - ANS Pay for ongoing
claims under the policy it replaces
A rehabilitation benefit is intended to: - ANS Prepare the insured to return to employment
Which of the following does coordination of benefits allow? - ANS The secondary payor to
reduce their benefit payments so no more than 100% of the claim is paid
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, ©FYNDLAY 2025 ALL RIGHTS RESERVED
An insurer may pay a commission in which of the following scenarios: - ANS To a licensed
producer who is appointed with the insurer
In which of the following situations would the insurer be liable for a loss? - ANS The insured
suffered an injury during a bank robbery
The Fair Credit and Reporting Act's main purpose is to: - ANS Protect consumers with
guidelines regarding credit reporting and distribution
J is a producer who has induced an insured through misrepresentation to surrender an existing
insurance policy. What is J guilty of? - ANS Twisting
What is implied authority defined as? - ANS 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: - ANS Preferred
Which of the following is considered to be the period when the accumulated value in an
annuity is paid out? - ANS Annuitization phase
An insurers claim settlement practices are regulated by the: - ANS State insurance
departments
The two major actions required for a policyholder to comply with the Reinstatement Clause are:
- ANS provide evidence of insurability, pay past due premiums
An insurers ability to make unpredictable payouts to policy owners is called: - ANS Liquidity
Which of the following pertains to the analysis of an applicants personal information and
determining whether insurance should be issued or declined? - ANS Underwriting
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, ©FYNDLAY 2025 ALL RIGHTS RESERVED
What does the Group Life underwriting risk selection process help protect insurance companies
from? - ANS 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: - ANS Liability Insurance
Pat owns a 20-pay life policy with a paid-up dividend option. Which is true? - ANS The policy
may be paid up early by using policy dividends?
What would happen if a life insurance applicant is given a conditional receipt from an insurance
agent and then dies the next day? - ANS Claim will be paid if application is approved
A policy owner can receive a percentage payment of the death benefits prior to death by using
what kind of contract? - ANS Viatical Settlement agreement
A life insurance policy owner does NOT have the right to: - ANS Revoke an absolute
assignment
An employee under a group insurance policy has the right to name a beneficiary and the right
to: - ANS Convert to an individual policy in the event of employment termination
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? - ANS $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? - ANS The face amount and premium will remain
constant over the 10-year period
What is Arkansas required grace period for a life insurance contract? - ANS 31 days
©FYNDLAY 3
ARKANSAS HEALTH INSURANCE Exam
Questions and Answers 100% Pass
In order for a contract to be valid, it must: - ANS Contain an offer & acceptance
When does a nondisabled person first qualify for a Medicare Supplement Policy? - ANS Age
65
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the: - ANS Reinsurer
A common exclusion with vision plans is: - ANS Lasik Surgery
What are applicants statements concerning occupation, hobbies and personal health history? -
ANS Representation
States that have "no loss, no gain" laws require a replacing policy to: - ANS Pay for ongoing
claims under the policy it replaces
A rehabilitation benefit is intended to: - ANS Prepare the insured to return to employment
Which of the following does coordination of benefits allow? - ANS The secondary payor to
reduce their benefit payments so no more than 100% of the claim is paid
©FYNDLAY 1
, ©FYNDLAY 2025 ALL RIGHTS RESERVED
An insurer may pay a commission in which of the following scenarios: - ANS To a licensed
producer who is appointed with the insurer
In which of the following situations would the insurer be liable for a loss? - ANS The insured
suffered an injury during a bank robbery
The Fair Credit and Reporting Act's main purpose is to: - ANS Protect consumers with
guidelines regarding credit reporting and distribution
J is a producer who has induced an insured through misrepresentation to surrender an existing
insurance policy. What is J guilty of? - ANS Twisting
What is implied authority defined as? - ANS 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: - ANS Preferred
Which of the following is considered to be the period when the accumulated value in an
annuity is paid out? - ANS Annuitization phase
An insurers claim settlement practices are regulated by the: - ANS State insurance
departments
The two major actions required for a policyholder to comply with the Reinstatement Clause are:
- ANS provide evidence of insurability, pay past due premiums
An insurers ability to make unpredictable payouts to policy owners is called: - ANS Liquidity
Which of the following pertains to the analysis of an applicants personal information and
determining whether insurance should be issued or declined? - ANS Underwriting
©FYNDLAY 2
, ©FYNDLAY 2025 ALL RIGHTS RESERVED
What does the Group Life underwriting risk selection process help protect insurance companies
from? - ANS 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: - ANS Liability Insurance
Pat owns a 20-pay life policy with a paid-up dividend option. Which is true? - ANS The policy
may be paid up early by using policy dividends?
What would happen if a life insurance applicant is given a conditional receipt from an insurance
agent and then dies the next day? - ANS Claim will be paid if application is approved
A policy owner can receive a percentage payment of the death benefits prior to death by using
what kind of contract? - ANS Viatical Settlement agreement
A life insurance policy owner does NOT have the right to: - ANS Revoke an absolute
assignment
An employee under a group insurance policy has the right to name a beneficiary and the right
to: - ANS Convert to an individual policy in the event of employment termination
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? - ANS $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? - ANS The face amount and premium will remain
constant over the 10-year period
What is Arkansas required grace period for a life insurance contract? - ANS 31 days
©FYNDLAY 3
