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ARKANSAS LIFE INSURANCE EXAM /
LATEST QUESTIONS & DETAILED
ANSWERS (A+ GUIDE SOLUTIONS) 2025 /
_____________Quiz____________? J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? -
Answer ✓✓
Twisting _____________Quiz____________? What is implied authority defined as? -
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Authority that is not specifically given to an agent contract, but that an agent can reasonably assume to carry out his/her duties _____________Quiz____________? A person who is a nonsmoker, average weight, excellent health would fall into what risk classification? -
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Preferred _____________Quiz____________?
Which of the following is considered to be the period when the accumulated value in an annuity is paid out? -
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Annuitization phase _____________Quiz____________? An insurers claim settlement practices are regulated by the: -
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State insurance departments _____________Quiz____________? An insurers ability to make unpredictable payouts to policy owners is called: -
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Liquidity _____________Quiz____________? Which of the following pertains to the analysis of an applicants personal information and determining whether insurance should be issued or declined? -
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Underwriting _____________Quiz____________? What does the Group Life underwriting risk selection process help protect insurance companies from? -
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Adverse Selection _____________Quiz____________?
_____________Quiz____________? Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true? -
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The policy may be paid up early by using policy dividends _____________Quiz____________? 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 ✓✓
($100,000 X .04 = $4,000)
_____________Quiz____________? 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 _____________Quiz____________? What is Arkansas' REQUIRED grace period for a life insurance contract? -
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31 days _____________Quiz____________? A domestic insurance company in Arkansas MUST -
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Be organized under Arkansas Insurance laws _____________Quiz____________? Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contract's -
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Income period _____________Quiz____________? What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? -
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Participating life insurance policy _____________Quiz____________? No one is allowed to act as a producer for any insurance company in Arkansas that -
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Is unauthorized to do business in Arkansas _____________Quiz____________? What MUST the company do prior to conducting an HIV related test? -
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Obtain a written consent from the proposed insured _____________Quiz____________? Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents? -
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_____________Quiz____________? Life insurance policies will normally pay for losses arising from -
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Commercial aviation _____________Quiz____________? An example of rebating would be -
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Offering a client something of value not stated in the contract in exchange for their business _____________Quiz____________? Which type of insurance company allows their policyowners to elect governing body? -
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Mutual _____________Quiz____________? Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? -
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Endowment policy _____________Quiz____________? A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the -
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Named living primary beneficiaries
_____________Quiz____________? A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n) -
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Association or labor group _____________Quiz____________? What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? -
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Representation _____________Quiz____________? Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? -
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_____________Quiz____________? The _________ must provide an insured with proper disclosure concerning the replacement of a life insurance policy -
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Producer _____________Quiz____________? Within how many days must a rollover be completed in order to avoid being taxed as current income? -
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Marital status _____________Quiz____________? The promise of a discount in premium as an inducement to purchase insurance is an Unfair Trade Practice known as: -
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Rebating _____________Quiz____________? Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this? -
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Child term rider _____________Quiz____________? Which of the following basics is a producer's fiduciary responsibility? -
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Collecting premiums and paying them to the insurance company _____________Quiz____________? Donald is the primary insured of a life insurance policy and adds a children's term rider. What is the advantage of adding this rider? -
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Can be converted to permanent coverage without evidence of insurability _____________Quiz____________? In Arkansas, replacement forms are required to be obtained for the replacement of which of the following -
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Annual Renewable Term (ART) insurance _____________Quiz____________? What is involved when a life insurance policy has been backdated? -
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Making the policy effective on an earlier date than the present _____________Quiz____________? Elizabeth is the beneficiary of a life insurance policy. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which option was chosen? -
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Fixed amount _____________Quiz____________? In Arkansas, which of the following is considered an Unfair Trade Practice? -
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Coercion _____________Quiz____________? Shirley has a $500,000 10-year non-renewable level term life policy. If she dies 15 years after the policy's inception date, how much will her beneficiary receive? -
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Nothing _____________Quiz____________? Level premium term life insurance policies -
_____________Quiz____________? An underwriter's primary responsibility to an insurer is to protect against -
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Adverse Selection _____________Quiz____________? Which is NOT considered to be a risk factor in life insurance underwriting? -
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Number of children _____________Quiz____________? A(n) _____ license is issued by the Commissioner of Insurance to allow the personal representative of a deceased producer to provide service to existing policyowners -
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Temporary _____________Quiz____________? Which is NOT a characteristic of the Accelerated Death Benefit option? -
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The benefit can be offered as a rider at a specific extra cost or may be at no cost _____________Quiz____________? The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? -
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Certificate of coverage and benefits
_____________Quiz____________? _____ is NOT a source of information that can assist an underwriter in determining whether or not to accept a risk -
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National Association of Insurance Underwriters _____________Quiz____________? Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT -
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The beneficiary _____________Quiz____________? The standard grace period for a life insurance policy sold in Arkansas is -
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31 days _____________Quiz____________? Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called? -
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Estate conservation _____________Quiz____________? An insured's status under Social Security can be described as -
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Fully insured
An example of replacement is: -
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Canceling a term life policy to buy a whole life policy _____________Quiz____________? Variable life insurance and Universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance? -
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Policyowner has the right to select the investment which will provide the greatest return _____________Quiz____________? A Roth IRA owner must be at least what age in order to make tax-free withdrawals? -
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59 1/2 and owned an account for a minimum of 5 years _____________Quiz____________? A professional liability for which producers can be sued for mistakes of putting a policy into effect is called -
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Errors and omissions _____________Quiz____________? Converting a group plan to permanent life insurance involves -
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the conversion being applied within 1 month of termination _____________Quiz____________? How are contributions made to a Roth IRA handled for tax purposes? -
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Not tax deductible _____________Quiz____________? Within how many days must a Traditional IRA be rolled over to another IRA to avoid tax consequences? -
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60 days _____________Quiz____________? Which describes the result of a modified endowment contract that failed to meet the seven- pay test? -
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Pre-death distributions are typically taxable _____________Quiz____________? An insurance company needs to obtain personal information from a third party concerning an applicant. Which law do all insurers and their producers need to comply with? -
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Fair Credit Reporting Act _____________Quiz____________? Which does a life insurance policy summary normally include? -
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The policy's cash value _____________Quiz____________? Insurance premium is determined by each of the following factors EXCEPT -
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Formed under the laws of a state other than Arkansas _____________Quiz____________? A policy owner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? -
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Reduction of premium dividend option _____________Quiz____________? Which of these is NOT considered to be a nonforfeiture option in a whole life insurance policy? -
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Interest only _____________Quiz____________? Which is NOT an example of a Business Continuation Plan -
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Deferred Compensation _____________Quiz____________? A limited payment whole life policy provides -
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Lifetime protection _____________Quiz____________? A whole life insurance policy accumulates cash value that becomes -
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The policy loan value which the insured may borrow against _____________Quiz____________? The Do Not Call Registry offers exemptions for everything EXCEPT -
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Insurance sales calls _____________Quiz____________? Which is true about an insurer's right to screen applicants for HIV? -
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An insurer can require a blood test for HIV _____________Quiz____________? Which is NOT considered to be a nonforfeiture option available to a policy owner? -
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Reduction of Premium _____________Quiz____________? How does life insurance create an immediate estate? -
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After first premium is paid, the face amount may be available to the beneficiary _____________Quiz____________? Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? -
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Accumulation at Interest Option
