Arkansas Health insurance Exam WITH COMPLETE QUESTIONS AND CORRECT DETAILED SOLUTIONS LATEST UPDATED VERSION JUST RELEASED

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Arkansas Health insurance Exam WITH COMPLETE
QUESTIONS AND CORRECT DETAILED SOLUTIONS
LATEST UPDATED VERSION JUST RELEASED


Question: In which of the following situations would the insurer be liable for a loss? -

ANSWER✔✔The insured suffered an injury during a bank robbery




Question: The Fair Credit and Reporting Act's main purpose is to: - ANSWER✔✔Protect

consumers with guidelines regarding credit reporting and distribution




Question: J is a producer who has induced an insured through misrepresentation to surrender

an existing insurance policy. What is J guilty of? - ANSWER✔✔Twisting




Question: 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




Q:In order for a contract to be valid, it must: - ANSWER✔✔Contain an offer & acceptance

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Question: When does a nondisabled person first qualify for a Medicare Supplement Policy? -

ANSWER✔✔Age 65




Question: A life insurance company has transferred some of its risk to another insurer. The

insurer assuming the risk is called the: - ANSWER✔✔Reinsurer




Question: A common exclusion with vision plans is: - ANSWER✔✔Lasik Surgery




Question: What are applicants statements concerning occupation, hobbies and personal health

history? - ANSWER✔✔Representation




Question: States that have "no loss, no gain" laws require a replacing policy to: -

ANSWER✔✔Pay for ongoing claims under the policy it replaces




Question: A rehabilitation benefit is intended to: - ANSWER✔✔Prepare the insured to return

to employment

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Question: 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




Question: An insurer may pay a commission in which of the following scenarios: -

ANSWER✔✔To a licensed producer who is appointed with the insurer




Question: A person who is a nonsmoker, average weight, excellent health would fall into what

risk classification: - ANSWER✔✔Preferred




Question: Which of the following is considered to be the period when the accumulated value

in an annuity is paid out? - ANSWER✔✔Annuitization phase




Question: An insurers claim settlement practices are regulated by the: - ANSWER✔✔State

insurance departments

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Question: The two major actions required for a policyholder to comply with the Reinstatement

Clause are: - ANSWER✔✔provide evidence of insurability, pay past due premiums




Question: An insurers ability to make unpredictable payouts to policy owners is called: -

ANSWER✔✔Liquidity




Question: Which of the following pertains to the analysis of an applicants personal information

and determining whether insurance should be issued or declined? - ANSWER✔✔Underwriting




Question: What does the Group Life underwriting risk selection process help protect insurance

companies from? - ANSWER✔✔Adverse Selection




Question: 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