Arkansas Life Insurance EXAM
(2025/2026) Updated: EXAM QUESTIONS
WITH ACCURATE ANSWERS | GET IT
RIGHT!!
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
,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
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
,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 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
The two major actions required for a policyholder to comply with the
Reinstatement Clause are - 🧠 ANSWER ✔✔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? - 🧠 ANSWER ✔✔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? - 🧠 ANSWER ✔✔$4,000
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, ($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? - 🧠 ANSWER
✔✔The face amount and premium will remain constant over the 10-year
period
What is Arkansas' REQUIRED grace period for a life insurance contract? -
🧠 ANSWER ✔✔31 days
A domestic insurance company in Arkansas MUST - 🧠 ANSWER ✔✔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 - 🧠 ANSWER
✔✔Income period
What kind of life insurance policy issued by a mutual insurer provides a
return of divisible surplus? - 🧠 ANSWER ✔✔Participating life insurance
policy
(2025/2026) Updated: EXAM QUESTIONS
WITH ACCURATE ANSWERS | GET IT
RIGHT!!
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
,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
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
,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 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
The two major actions required for a policyholder to comply with the
Reinstatement Clause are - 🧠 ANSWER ✔✔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? - 🧠 ANSWER ✔✔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? - 🧠 ANSWER ✔✔$4,000
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, ($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? - 🧠 ANSWER
✔✔The face amount and premium will remain constant over the 10-year
period
What is Arkansas' REQUIRED grace period for a life insurance contract? -
🧠 ANSWER ✔✔31 days
A domestic insurance company in Arkansas MUST - 🧠 ANSWER ✔✔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 - 🧠 ANSWER
✔✔Income period
What kind of life insurance policy issued by a mutual insurer provides a
return of divisible surplus? - 🧠 ANSWER ✔✔Participating life insurance
policy
