Arkansas Life Insurance Training Exam Questions With Accurate Answers

Unfair Discrimination - ANSWER-Permitting individuals of the same class and equal life expectancy to be charged different rates for life insurance or annuities. Boycott, Coercion, Intimidation - ANSWER-Entering into action resulting in an unreasonable restraint of, or monopoly in, the business of insurance. False Financial Statements - ANSWER-Making any false or misleading statements about the dividends or share of surplus previously paid on any insurance policy. Churning of Business - ANSWER-Replacing an existing policy of life insurance or accident and health insurance, or both, where the replacement: Does not include the required memorandum comparing the existing coverage to the proposed coverage Is without demonstration by the licensee of the purpose of replacing the policy for the benefit of the insured Defamation - ANSWER-Making of any false or maliciously critical statement regarding the financial condition of any person with the intent to injure such person Right to Examine (Free Look) - ANSWER-The free-look period on individual life insurance policies is 10 days. Grace Period - ANSWER-The grace period for individual life insurance policies must be at least 30 days. Reinstatement - ANSWER-The period within which to reinstate a lapsed life insurance policy is 3 years. Incontestability - ANSWER-An individual life insurance policy is incontestable after it has been in force during the lifetime of the insured for 2 years from its date of issue, except for fraud in procurement and for nonpayment of premiums. Misstatement of Age - ANSWER-If the age of the insured has been misstated, and their age is considered in determining the premium, any amount payable under the policy will be adjusted as if the age of the insured was originally stated correctly. Limitation of Liability - ANSWER-Life insurance policies may exclude coverage for death while the insured is a resident outside the continental United States or