ARKANSAS HEALTH INSURANCE
EXAM 2025 QUESTIONS AND
ANSWERS
In order for a contract to be valid, it must: - ....ANSWER ...-Contain an
offer & acceptance
When does a nondisabled person first qualify for a Medicare Supplement Policy? -
....ANSWER ...-Age 65
A life insurance company has transferred some of its risk to another insurer. The
insurer assuming the risk is called the: - ....ANSWER ...-Reinsurer
A common exclusion with vision plans is: - ....ANSWER ...-Lasik Surgery
What are applicants statements concerning occupation, hobbies and personal
health history? - ....ANSWER ...-Representation
States that have "no loss, no gain" laws require a replacing policy to: -
....ANSWER ...-Pay for ongoing claims under the policy it replaces
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,A rehabilitation benefit is intended to: - ....ANSWER ...-Prepare the insured
to return to employment
Which of the following does coordination of benefits allow? -
....ANSWER ...-The secondary payor to reduce their benefit payments so no
more than 100% of the claim is paid
An insurer may pay a commission in which of the following scenarios: -
....ANSWER ...-To a licensed producer who is appointed with the insurer
In which of the following situations would the insurer be liable for a loss? -
....ANSWER ...-The insured suffered an injury during a bank robbery
The Fair Credit and Reporting Act's main purpose is to: - ....ANSWER ...-
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? - ....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
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,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
The two major actions required for a policyholder to comply with the
Reinstatement Clause are: - ....ANSWER ...-provide evidence of insurability,
pay past due premiums
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
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, Pat owns a 20-pay life policy with a paid-up dividend option. Which is true? -
....ANSWER ...-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? - ....ANSWER ...-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? - ....ANSWER ...-Viatical Settlement
agreement
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
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
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
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
EXAM 2025 QUESTIONS AND
ANSWERS
In order for a contract to be valid, it must: - ....ANSWER ...-Contain an
offer & acceptance
When does a nondisabled person first qualify for a Medicare Supplement Policy? -
....ANSWER ...-Age 65
A life insurance company has transferred some of its risk to another insurer. The
insurer assuming the risk is called the: - ....ANSWER ...-Reinsurer
A common exclusion with vision plans is: - ....ANSWER ...-Lasik Surgery
What are applicants statements concerning occupation, hobbies and personal
health history? - ....ANSWER ...-Representation
States that have "no loss, no gain" laws require a replacing policy to: -
....ANSWER ...-Pay for ongoing claims under the policy it replaces
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,A rehabilitation benefit is intended to: - ....ANSWER ...-Prepare the insured
to return to employment
Which of the following does coordination of benefits allow? -
....ANSWER ...-The secondary payor to reduce their benefit payments so no
more than 100% of the claim is paid
An insurer may pay a commission in which of the following scenarios: -
....ANSWER ...-To a licensed producer who is appointed with the insurer
In which of the following situations would the insurer be liable for a loss? -
....ANSWER ...-The insured suffered an injury during a bank robbery
The Fair Credit and Reporting Act's main purpose is to: - ....ANSWER ...-
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? - ....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
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,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
The two major actions required for a policyholder to comply with the
Reinstatement Clause are: - ....ANSWER ...-provide evidence of insurability,
pay past due premiums
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
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, Pat owns a 20-pay life policy with a paid-up dividend option. Which is true? -
....ANSWER ...-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? - ....ANSWER ...-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? - ....ANSWER ...-Viatical Settlement
agreement
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
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
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
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
