Arkansas Life Insurance Exam Questions and Answers 100% Pass

Arkansas Life Insurance Exam Questions and Answers 100% Pass Adverse Selection - Correct Answer ️️ -Insuring of risks that are more prone to losses than the average risk. Death Benefit - Correct Answer ️️ -The amount paid upon the death of the insured in a life insurance policy. Insurance Policy - Correct Answer ️️ -A contract between a policyowner/insured and an insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events. Insured - Correct Answer ️️ -Person covered by the insurance policy; may or may not be the policyowner Insurer (Principle) - Correct Answer ️️ -The company who issues an insurance policy. Lapse - Correct Answer ️️ -Policy termination due to nonpayment of premium. Life Insurance - Correct Answer ️️ -Coverage on human lives. Policyowner - Correct Answer ️️ -The person entitled to exercise the rights and privileges in the policy. Premium - Correct Answer ️️ -The money paid to the insurance company for the insurance policy. Insurance transfers what? - Correct Answer ️️ -The risk of loss from and individual to and insurance company. Elements of a Legal Contract - Correct Answer ️️ -1. Agreement (offer and acceptance) 2. Consideration 3. Competent Parties 4. Legal Purpose Offer and Acceptance - Correct Answer ️️ -Offer happens when application is submitted. Acceptance takes place when an insurer's underwriter approves the application and issues a policy. Consideration - Correct Answer ️️ -Binding force.