ARKANSAS HEALTH INSURANCE PRACTICE EXAM
QUESTIONS AND ANSWERS (VERIFIED ANSWERS GRADED
A+) LATEST UPDATE 2025-2026
In order for a contract to be valid, it must: - CORRECTANSWER
| | | | | | | | | | | |
Contain an offer & acceptance | | | |
When does a nondisabled person first qualify for a Medicare Supplement
| | | | | | | | | |
Policy? - CORRECT ANSWER Age 65
| | | | | |
Alife insurance company has transferred some of its risk to another insurer.
| | | | | | | | | | | |
The insurer assuming the risk is called the: - CORRECT ANSWER
| | | | | | | | | | |
Reinsurer
|
Acommonexclusion with vision plans is: - CORRECTANSWER
| | | | | | | | |
Lasik Surgery |
What are applicants statements concerning occupation, hobbies and
| | | | | | |
personal health history? - CORRECT ANSWER Representation
| | | | | | |
States that have "no loss, no gain" laws require a replacing policy to: -
| | | | | | | | | | | | |
CORRECT ANSWER Pay for ongoing claims under the policy it replaces
| | | | | | | | | | |
,Arehabilitation benefit is intended to: - CORRECTANSWER Prepare the
| | | | | | | | | |
insured to return to employment
| | | | |
Which of the following does coordination of benefits allow? -
| | | | | | | | |
CORRECTANSWER 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: -
| | | | | | | | | | | |
CORRECT 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? -
| | | | | | | | | | | | | |
CORRECTANSWER The insured suffered an injury during a bank
| | | | | | | | | |
robbery
|
The Fair Credit and Reporting Act's main purpose is to: - CORRECT
| | | | | | | | | | |
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? -
| | | | | | | | | | |
CORRECTANSWER Twisting | |
What is implied authority defined as? - CORRECT ANSWER Authority
| | | | | | | | |
that is not specifically given to an agent contract, but that an agent can
| | | | | | | | | | | | | |
reasonably assume to carry out his/her duties
| | | | | | |
,Aperson who is a nonsmoker, average weight, excellent health would fall
| | | | | | | | | | |
into what risk classification: - CORRECT ANSWER Preferred
| | | | | | | |
Which of the following is considered to be the period when the accumulated
| | | | | | | | | | | |
value in an annuity is paid out? - CORRECTANSWER Annuitization
| | | | | | | | | | |
phase
|
An insurers claim settlement practices are regulated by the: - CORRECT
| | | | | | | | | |
ANSWER State insurance departments
| | | |
The two major actions required for a policyholder to comply with the
| | | | | | | | | | |
Reinstatement Clause are: - CORRECTANSWER provide evidence of
| | | | | | | | |
insurability, pay past due premiums
| | | | |
An insurers ability to make unpredictable payouts to policy owners is called:
| | | | | | | | | | |
- CORRECT ANSWER Liquidity
| | | |
Which of the following pertains to the analysis of an applicants personal
| | | | | | | | | | |
information and determining whether insurance should be issued or
| | | | | | | | |
declined? - CORRECT ANSWER Underwriting
| | | | |
What does the Group Life underwriting risk selection process help
| | | | | | | | |
protect insurance companies from? - CORRECTANSWER Adverse
| | | | | | |
Selection
|
TheArkansas Life & Disability Insurance GuarantyAssociation assures
| | | | | | | |
payment of benefits from insurance policies for insolvent insurers, and
| | | | | | | | | |
, covers all of the following insured policies, EXCEPT: - CORRECT
| | | | | | | | |
ANSWER Liability Insurance
| | |
Pat owns a 20-pay life policy with a paid-up dividend option. Which is
| | | | | | | | | | | |
true? - CORRECTANSWER 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? -
| | | | | | | | | | | |
CORRECTANSWER 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? - CORRECTANSWER Viatical
| | | | | | | | | | | |
Settlement agreement
| |
Alife insurance policy owner does NOT have the right to: - CORRECT
| | | | | | | | | | | |
ANSWER Revoke an absolute assignment
| | | | |
An employee under a group insurance policy has the right to name a
| | | | | | | | | | | |
beneficiary and the right to: - CORRECT 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? - CORRECTANSWER
| | | | | | | | | | |
$4,000
QUESTIONS AND ANSWERS (VERIFIED ANSWERS GRADED
A+) LATEST UPDATE 2025-2026
In order for a contract to be valid, it must: - CORRECTANSWER
| | | | | | | | | | | |
Contain an offer & acceptance | | | |
When does a nondisabled person first qualify for a Medicare Supplement
| | | | | | | | | |
Policy? - CORRECT ANSWER Age 65
| | | | | |
Alife insurance company has transferred some of its risk to another insurer.
| | | | | | | | | | | |
The insurer assuming the risk is called the: - CORRECT ANSWER
| | | | | | | | | | |
Reinsurer
|
Acommonexclusion with vision plans is: - CORRECTANSWER
| | | | | | | | |
Lasik Surgery |
What are applicants statements concerning occupation, hobbies and
| | | | | | |
personal health history? - CORRECT ANSWER Representation
| | | | | | |
States that have "no loss, no gain" laws require a replacing policy to: -
| | | | | | | | | | | | |
CORRECT ANSWER Pay for ongoing claims under the policy it replaces
| | | | | | | | | | |
,Arehabilitation benefit is intended to: - CORRECTANSWER Prepare the
| | | | | | | | | |
insured to return to employment
| | | | |
Which of the following does coordination of benefits allow? -
| | | | | | | | |
CORRECTANSWER 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: -
| | | | | | | | | | | |
CORRECT 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? -
| | | | | | | | | | | | | |
CORRECTANSWER The insured suffered an injury during a bank
| | | | | | | | | |
robbery
|
The Fair Credit and Reporting Act's main purpose is to: - CORRECT
| | | | | | | | | | |
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? -
| | | | | | | | | | |
CORRECTANSWER Twisting | |
What is implied authority defined as? - CORRECT ANSWER Authority
| | | | | | | | |
that is not specifically given to an agent contract, but that an agent can
| | | | | | | | | | | | | |
reasonably assume to carry out his/her duties
| | | | | | |
,Aperson who is a nonsmoker, average weight, excellent health would fall
| | | | | | | | | | |
into what risk classification: - CORRECT ANSWER Preferred
| | | | | | | |
Which of the following is considered to be the period when the accumulated
| | | | | | | | | | | |
value in an annuity is paid out? - CORRECTANSWER Annuitization
| | | | | | | | | | |
phase
|
An insurers claim settlement practices are regulated by the: - CORRECT
| | | | | | | | | |
ANSWER State insurance departments
| | | |
The two major actions required for a policyholder to comply with the
| | | | | | | | | | |
Reinstatement Clause are: - CORRECTANSWER provide evidence of
| | | | | | | | |
insurability, pay past due premiums
| | | | |
An insurers ability to make unpredictable payouts to policy owners is called:
| | | | | | | | | | |
- CORRECT ANSWER Liquidity
| | | |
Which of the following pertains to the analysis of an applicants personal
| | | | | | | | | | |
information and determining whether insurance should be issued or
| | | | | | | | |
declined? - CORRECT ANSWER Underwriting
| | | | |
What does the Group Life underwriting risk selection process help
| | | | | | | | |
protect insurance companies from? - CORRECTANSWER Adverse
| | | | | | |
Selection
|
TheArkansas Life & Disability Insurance GuarantyAssociation assures
| | | | | | | |
payment of benefits from insurance policies for insolvent insurers, and
| | | | | | | | | |
, covers all of the following insured policies, EXCEPT: - CORRECT
| | | | | | | | |
ANSWER Liability Insurance
| | |
Pat owns a 20-pay life policy with a paid-up dividend option. Which is
| | | | | | | | | | | |
true? - CORRECTANSWER 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? -
| | | | | | | | | | | |
CORRECTANSWER 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? - CORRECTANSWER Viatical
| | | | | | | | | | | |
Settlement agreement
| |
Alife insurance policy owner does NOT have the right to: - CORRECT
| | | | | | | | | | | |
ANSWER Revoke an absolute assignment
| | | | |
An employee under a group insurance policy has the right to name a
| | | | | | | | | | | |
beneficiary and the right to: - CORRECT 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? - CORRECTANSWER
| | | | | | | | | | |
$4,000
