Arkansas State life insurance exam
Rob has a benefit at work which enables him to defer his current receipt of income and
have it paid at a later date, when he will probably be in a lower tax bracket. Which
benefit fits this description? - answer Income deferral option
Who were Keogh plans designed to provide pension benefits for? - answer the self-
employed
What correctly describes a certificate of authority? - answer Permits an insurance
company to transact business in Arkansas
An example of replacement is - answer canceling a term life policy to buy a whole life
policy
Loans obtained by a policyowner against the cash value of a life insurance policy -
answer would not be treated as taxable income
If an insured dies during the grace period with no premiums paid - answer the policy
would be payable, minus the premium amount
Pre-death distributions from a modified endowment contract (MEC) receive different tax
treatment than other life insurance policies because - answerthe MEC tends to be an
investment vehicle
When does an immediate annuity begin making payments? - answerAfter the first
premium has been paid
When a producer is replacing an existing ordinary life insurance policy, the producer
must take all of the following actions EXCEPT - answerobtain the beneficiary's signature
Julie has a $100,000 30-year mortgage on her new home. What type of life insurance
could she purchase that is designed to pay off the loan balance if she dies within the 30-
year period? - answerdecreasing term insurance
What is a corridor in relation to a Universal Life insurance policy? - answerThe gap
between the total death benefit and the policy's cash value
The automatic premium loan provision authorizes an insurer to withdraw from a policy's
cash value the amount of - answerpast due premiums that have not been paid by the
end of the grace period
