ARKANSAS LIFE INSURANCE EXAM (ACTUAL
EXAM)/NEWEST 2024 WITH WELL SORTED QUESTIONS
AND ANSWERS /GRADED A+
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
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
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
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 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
The two major actions required for a policyholder to comply with the Reinstatement Clause are
Ans: Provide evidence of insurability, past due premiums
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?
Ans: The policy may be paid up early by using policy dividends
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
($100,000 X .04 = $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
A domestic insurance company in Arkansas MUST
Ans: Be organized under Arkansas Insurance laws
Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal,
interest, and the contract's
, Ans: Income period
What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?
Ans: Participating life insurance policy
No one is allowed to act as a producer for any insurance company in Arkansas that
Ans: Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related test?
Ans: Obtain a written consent from the proposed insured
Which approach predicts a person's earning potential and determines how much of that amount would
be devoted to dependents?
Ans: Human life value approach
If the annuitant dies before the annuity start date,
Ans: The premiums paid plus interest earned will be given to the beneficiary
If dividends are illustrated, the advertisement MUST state that the dividends are:
Ans: Not guaranteed
Intentional withholding of material facts that would affect an insurance policy's validity is called a(n)
Ans: Concealment
Field underwriting performed by the producer involves
EXAM)/NEWEST 2024 WITH WELL SORTED QUESTIONS
AND ANSWERS /GRADED A+
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
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
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
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 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
The two major actions required for a policyholder to comply with the Reinstatement Clause are
Ans: Provide evidence of insurability, past due premiums
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?
Ans: The policy may be paid up early by using policy dividends
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
($100,000 X .04 = $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
A domestic insurance company in Arkansas MUST
Ans: Be organized under Arkansas Insurance laws
Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal,
interest, and the contract's
, Ans: Income period
What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?
Ans: Participating life insurance policy
No one is allowed to act as a producer for any insurance company in Arkansas that
Ans: Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related test?
Ans: Obtain a written consent from the proposed insured
Which approach predicts a person's earning potential and determines how much of that amount would
be devoted to dependents?
Ans: Human life value approach
If the annuitant dies before the annuity start date,
Ans: The premiums paid plus interest earned will be given to the beneficiary
If dividends are illustrated, the advertisement MUST state that the dividends are:
Ans: Not guaranteed
Intentional withholding of material facts that would affect an insurance policy's validity is called a(n)
Ans: Concealment
Field underwriting performed by the producer involves
