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Arkansas insurance exam Questions and Answers, Exams of Advanced Education

Arkansas insurance exam Questions and Answers

Typology: Exams

2024/2025

Available from 06/25/2025

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Arkansas insurance exam
what is the purpose of settlement options? - answer They determine how death
proceeds will be paid
which of the following determines the cash value of a variable life policy? - answer The
performance of the policy portfolio
An insured owns a life insurance policy. To be able to pay some of her medical bills, she
withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the
insurer charges a fee. What type of policy does the insured most likely have? - answer
Universal Life
which of the following is the basic source of information used by the company in the risk
selection process? - answer application
which of the following is INCORRECT regarding a $100,000 20 - year level term policy?
- answerAt the end of 20 years, the policy's cash value will equal $100,000.
when a whole life policy lapses or is surrendered prior to maturity, the cash value can
be used to? - answerPurchase a single premium policy for a reduced face amount
In forming an insurance contract, when does acceptance usually occur? - answerWhen
an insurer's underwriter approves coverage
A rider attached to a life insurance policy that provides coverage on the insured's family
members is called the? - answerOther-insured rider
A policy will pay the death benefit if the insured dies during the 20-year premium-paying
period, and nothing if death occurs after the 20-year period. What type of policy is this?
- answerLevel term
all of the following are divided options EXCEPT? - answerfixed - period installments
which of the following is NOT an essential element of an insurance contract? -
answercounteroffer
what describes the specific information about a policy? - answerPolicy summary
all of the following would be different between qualified and nonqualified retirement
plans EXCEPT? - answerTaxation on accumulation
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Arkansas insurance exam

what is the purpose of settlement options? - answer They determine how death proceeds will be paid which of the following determines the cash value of a variable life policy? - answer The performance of the policy portfolio An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have? - answer Universal Life which of the following is the basic source of information used by the company in the risk selection process? - answer application which of the following is INCORRECT regarding a $100,000 20 - year level term policy?

  • answerAt the end of 20 years, the policy's cash value will equal $100,000. when a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to? - answerPurchase a single premium policy for a reduced face amount In forming an insurance contract, when does acceptance usually occur? - answerWhen an insurer's underwriter approves coverage A rider attached to a life insurance policy that provides coverage on the insured's family members is called the? - answerOther-insured rider A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
  • answerLevel term all of the following are divided options EXCEPT? - answerfixed - period installments which of the following is NOT an essential element of an insurance contract? - answercounteroffer what describes the specific information about a policy? - answerPolicy summary all of the following would be different between qualified and nonqualified retirement plans EXCEPT? - answerTaxation on accumulation

which of the following types of policies allows for a flexible premium and a variable investment component? - answerVariable universal life insurance what is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military? - answerWar or military service which of the following is NOT true regarding the annuitant? - answerThe annuitant cannot be the same person as the annuity owner. which of the following is true regarding the annuity period? - answerIt may last for the lifetime of the annuitant The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? - answerAs of the application date what does "level" refer to in level term insurance? - answerface amount which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members? - answerTerm rider which of the following is true regarding the accumulation period of annuity? - answerIt is a period during which the payments into the annuity grow tax deferred. Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary? - answerLife income with period certain all of the following statements concerning dividends are true EXCEPT? - answerDividend amounts are guaranteed in the policy the minimum interest rate on equity indexed annuity is often based on? - answeran index like Standard & Poor's 500 the Ownership provision entitles the policyowner to do all of the following EXCEPT? - answerSet premium rates which of the following policies would be classified as traditional level premium contract?

  • answerStraight life Why should the producer personally deliver the policy when the first premium has already been paid? - answerTo help the insured understand all aspects of the contract

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of? - answerMisrepresentation An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an - answerAuthorized insurer once a claim is processed, and all claim investigations are completed, within how many days must the insurer mail or deliver a claim check? - answer10 working days