Arkansas Health Insurance Exam Latest Update
Questions & Answers with
Rationales| 100% Correct | Grade.
In order for a contract to be valid, it must:
Answ >Contain an offer & acceptance
Quiz When does a nondisabled person first qualify for a Medicare Supplement Policy?
Answ >Age 65
Quiz A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the:
Answ >Reinsurer
Quiz A common exclusion with vision plans is:
Answ >Lasik Surgery
Quiz What are applicants statements concerning occupation, hobbies and personal health
history?
,Answ >Representation
Quiz States that have "no loss, no gain" laws require a replacing policy to:
Answ >Pay for ongoing claims under the policy it replaces
Quiz A rehabilitation benefit is intended to:
Answ >Prepare the insured to return to employment
Quiz Which of the following does coordination of benefits allow?
Answ >The secondary payor to reduce their benefit payments so no more than 100% of the
claim is paid
Quiz An insurer may pay a commission in which of the following scenarios:
Answ >To a licensed producer who is appointed with the insurer
Quiz In which of the following situations would the insurer be liable for a loss?
Answ >The insured suffered an injury during a bank robbery
Quiz The Fair Credit and Reporting Act's main purpose is to:
Answ >Protect consumers with guidelines regarding credit reporting and distribution
,Quiz J is a producer who has induced an insured through misrepresentation to surrender an
existing insurance policy. What is J guilty of?
Answ >Twisting
Quiz What is implied authority defined as?
Answ >Authority that is not specifically given to an agent contract, but that an agent can
reasonably assume to carry out his/her duties
Quiz A person who is a nonsmoker, average weight, excellent health would fall into what risk
classification:
Answ >Preferred
Quiz Which of the following is considered to be the period when the accumulated value in an
annuity is paid out?
Answ >Annuitization phase
Quiz An insurers claim settlement practices are regulated by the:
Answ >State insurance departments
Quiz The two major actions required for a policyholder to comply with the Reinstatement
Clause are:
Answ >provide evidence of insurability, pay past due premiums
, Quiz An insurers ability to make unpredictable payouts to policy owners is called:
Answ >Liquidity
Quiz Which of the following pertains to the analysis of an applicants personal information and
determining whether insurance should be issued or declined?
Answ >Underwriting
Quiz What does the Group Life underwriting risk selection process help protect insurance
companies from?
Answ >Adverse Selection
Quiz 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:
Answ >Liability Insurance
Quiz Pat owns a 20-pay life policy with a paid-up dividend option. Which is true?
Answ >The policy may be paid up early by using policy dividends?
Quiz What would happen if a life insurance applicant is given a conditional receipt from an
insurance agent and then dies the next day?
Questions & Answers with
Rationales| 100% Correct | Grade.
In order for a contract to be valid, it must:
Answ >Contain an offer & acceptance
Quiz When does a nondisabled person first qualify for a Medicare Supplement Policy?
Answ >Age 65
Quiz A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the:
Answ >Reinsurer
Quiz A common exclusion with vision plans is:
Answ >Lasik Surgery
Quiz What are applicants statements concerning occupation, hobbies and personal health
history?
,Answ >Representation
Quiz States that have "no loss, no gain" laws require a replacing policy to:
Answ >Pay for ongoing claims under the policy it replaces
Quiz A rehabilitation benefit is intended to:
Answ >Prepare the insured to return to employment
Quiz Which of the following does coordination of benefits allow?
Answ >The secondary payor to reduce their benefit payments so no more than 100% of the
claim is paid
Quiz An insurer may pay a commission in which of the following scenarios:
Answ >To a licensed producer who is appointed with the insurer
Quiz In which of the following situations would the insurer be liable for a loss?
Answ >The insured suffered an injury during a bank robbery
Quiz The Fair Credit and Reporting Act's main purpose is to:
Answ >Protect consumers with guidelines regarding credit reporting and distribution
,Quiz J is a producer who has induced an insured through misrepresentation to surrender an
existing insurance policy. What is J guilty of?
Answ >Twisting
Quiz What is implied authority defined as?
Answ >Authority that is not specifically given to an agent contract, but that an agent can
reasonably assume to carry out his/her duties
Quiz A person who is a nonsmoker, average weight, excellent health would fall into what risk
classification:
Answ >Preferred
Quiz Which of the following is considered to be the period when the accumulated value in an
annuity is paid out?
Answ >Annuitization phase
Quiz An insurers claim settlement practices are regulated by the:
Answ >State insurance departments
Quiz The two major actions required for a policyholder to comply with the Reinstatement
Clause are:
Answ >provide evidence of insurability, pay past due premiums
, Quiz An insurers ability to make unpredictable payouts to policy owners is called:
Answ >Liquidity
Quiz Which of the following pertains to the analysis of an applicants personal information and
determining whether insurance should be issued or declined?
Answ >Underwriting
Quiz What does the Group Life underwriting risk selection process help protect insurance
companies from?
Answ >Adverse Selection
Quiz 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:
Answ >Liability Insurance
Quiz Pat owns a 20-pay life policy with a paid-up dividend option. Which is true?
Answ >The policy may be paid up early by using policy dividends?
Quiz What would happen if a life insurance applicant is given a conditional receipt from an
insurance agent and then dies the next day?
