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ARKANSAS LIFE INSURANCE EXAM PRACTICE QUESTIONS AND ANSWERS (100% PASS)
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ARKANSAS LIFE INSURANCE EXAM PRACTICE QUESTIONS AND ANSWERS (100% PASS)
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©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AMARKANSAS LIFE INSURANCE EXAM PRACTICE
QUESTIONS AND ANSWERS (100% PASS)
J is a producer who has induced an insured through misrepresentation to surrender an
existing insurance policy. What is J guilty of? - ✔️✔️Twisting
What is implied authority defined as? - ✔️✔️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? - ✔️✔️Preferred
Which of the following is considered to be the period when the accumulated value in an
annuity is paid out? - ✔️✔️Annuitization phase
An insurers claim settlement practices are regulated by the: - ✔️✔️State insurance
departments
An insurers ability to make unpredictable payouts to policy owners is called: -
✔️✔️Liquidity
Which of the following pertains to the analysis of an applicants personal information and
determining whether insurance should be issued or declined? - ✔️✔️Underwriting
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,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
What does the Group Life underwriting risk selection process help protect insurance
companies from? - ✔️✔️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: - ✔️✔️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? - ✔️✔️Claim will be paid if application is
approved
A life insurance policy owner does NOT have the right to: - ✔️✔️Revoke an absolute
assignment
An employee under a group insurance policy has the right to name a beneficiary and
the right to: - ✔️✔️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 - ✔️✔️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? - ✔️✔️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? - ✔️✔️$4,000
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,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
($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? - ✔️✔️The face amount and premium will
remain constant over the 10-year period
What is Arkansas' REQUIRED grace period for a life insurance contract? - ✔️✔️31 days
A domestic insurance company in Arkansas MUST - ✔️✔️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 - ✔️✔️Income period
What kind of life insurance policy issued by a mutual insurer provides a return of
divisible surplus? - ✔️✔️Participating life insurance policy
No one is allowed to act as a producer for any insurance company in Arkansas that -
✔️✔️Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related test? - ✔️✔️Obtain a
written consent from the proposed insured
Which approach predicts a person's earning potential and determines how much of that
amount would be devoted to dependents? - ✔️✔️Human life value approach
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, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
If the annuitant dies before the annuity start date, - ✔️✔️The premiums paid plus interest
earned will be given to the beneficiary
If dividends are illustrated, the advertisement MUST state that the dividends are: -
✔️✔️Not guaranteed
Intentional withholding of material facts that would affect an insurance policy's validity is
called a(n) - ✔️✔️Concealment
Field underwriting performed by the producer involves - ✔️✔️Completing the application
and collecting initial premium
Which of the following statements is CORRECT regarding an individual applying for life
or health insurance? - ✔️✔️The applicants medical history may be analyzed and reported
Life insurance policies will normally pay for losses arising from - ✔️✔️Commercial
aviation
An example of rebating would be - ✔️✔️Offering a client something of value not stated in
the contract in exchange for their business
Which type of insurance company allows their policyowners to elect governing body? -
✔️✔️Mutual
Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive? - ✔️✔️Endowment policy
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