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ARKANSAS LIFE INSURANCE EXAM questions well answered to pass
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ARKANSAS LIFE INSURANCE EXAM questions well answered to pass
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ARKANSAS LIFE INSURANCE EXAMquestions well answered to pass
J is a producer who has induced an insured through misrepresentation to surrender an existing insurance
policy. What is J guilty of? - correct answer ✔✔Twisting
What is implied authority defined as? - correct 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? -
correct answer ✔✔Preferred
Which of the following is considered to be the period when the accumulated value in an annuity is paid
out? - correct answer ✔✔Annuitization phase
An insurers claim settlement practices are regulated by the: - correct answer ✔✔State insurance
departments
An insurers ability to make unpredictable payouts to policy owners is called: - correct answer
✔✔Liquidity
Which of the following pertains to the analysis of an applicants personal information and determining
whether insurance should be issued or declined? - correct answer ✔✔Underwriting
What does the Group Life underwriting risk selection process help protect insurance companies from? -
correct 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: - correct
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? - correct answer ✔✔Claim will be paid if application is approved
A life insurance policy owner does NOT have the right to: - correct answer ✔✔Revoke an absolute
assignment
An employee under a group insurance policy has the right to name a beneficiary and the right to: -
correct 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 - correct
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? -
correct 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? - correct answer
✔✔$4,000
($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? - correct 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? - correct answer ✔✔31 days
A domestic insurance company in Arkansas MUST - correct 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 - correct answer ✔✔Income period
, What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? -
correct answer ✔✔Participating life insurance policy
No one is allowed to act as a producer for any insurance company in Arkansas that - correct answer
✔✔Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related test? - correct answer ✔✔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? - correct answer ✔✔Human life value approach
If the annuitant dies before the annuity start date, - correct answer ✔✔The premiums paid plus interest
earned will be given to the beneficiary
If dividends are illustrated, the advertisement MUST state that the dividends are: - correct answer
✔✔Not guaranteed
Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) -
correct answer ✔✔Concealment
Field underwriting performed by the producer involves - correct answer ✔✔Completing the application
and collecting initial premium
Which of the following statements is CORRECT regarding an individual applying for life or health
insurance? - correct answer ✔✔The applicants medical history may be analyzed and reported
Life insurance policies will normally pay for losses arising from - correct answer ✔✔Commercial aviation
An example of rebating would be - correct answer ✔✔Offering a client something of value not stated in
the contract in exchange for their business
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