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
