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Chapter Exam Arkansas Laws and Rules Questions and Answers 2025
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The Misstatement of Age provision requires that if the age of the insured is misstated, then any amount payable is - answer an amount that the premiums paid would have purchased at the current age or ages In Arkansas, a domestic insurance company is defined as a company that - answer is incorporated and formed in Arkansas What MUST an insurance company use in its advertising? - answerIts true corporate name Which of the following is NOT an example of a producer's breach of fiduciary duty? - answer allowing premiums to be submitted electronically Which of the following is an example of defamation? - answerA brochure including an untrue statement regarding a competitor's ability to pay claims The PRIMARY purpose of the life insurance replacement regulation is to protect the - answerinterests of policyowners A temporary license is issued by the Commissioner to allow - answerthe personal representative of a deceased producer to provide service to existing policyowners A stock insurance company is owned by it's - answerstockholders A producer must have how many hours of ethics per continuing education reporting period? - answer Before holding a hearing that may lead to suspension or revocation of a producer's license, the Commissioner MUST give - answerwritten notice to the producer Which of the following actions by an insurance company is considered an unfair claims settlement practice? - answerDenying an insured's claim without indicating the basis of denial under the policy In Arkansas, the Commissioner may place on probation, suspend, revoke, refuse to renew, or deny a license for all of the following reasons EXCEPT: - answerFiling bankruptcy To be eligible for a group life policy, a group MUST meet which of the following requirements? - answerBe formed for a purpose other than obtaining insurance
Insurance producer licenses normally must be renewed every - answertwo years A foreign company operating in Arkansas is a company incorporated or organized under the laws of - answerFlorida Which of the following is an unfair claims practice? - answerFailing to effectuate prompt, fair, and equitable settlements of claims An organization that solicits insurance only among its members is known as a - answerfraternal benefit society The Commissioner may examine the records of an insurance company in order to - answerdetermine the solvency of the company Which of the following parties must provide an insured with proper disclosure concerning the replacement of an insurance company - answerProducer Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are prohibited under the Arkansas insurance laws covering - answerunfair trade practices One of the stated purposes of the Life and Health Insurance Guaranty Association is to
The purpose of the Rules Governing Life Insurance and Annuity Replacements is to - answerreduce the opportunity for misrepresentation and incomplete disclosure All of the following are Nonforfeiture Options EXCEPT - answerAutomatic Premium Loan Option What is the minimum age for a person to enter in to an insurance agreement in the state of Arkansas? - answer A certificate of authority does which of the following? - answerAuthorizes the insurance company to transact business in Arkansas A insurance producer does NOT have fiduciary responsibilities to - answerother producers Which of the following would be considered misrepresentation by an insurance producer? - answerStating that dividends are guaranteed Policyholders elect the governing bodies of which of the following types of insurance companies? - answerMutual A producer may share commissions with which of the following individuals? - answerA licensed producer According to Arkansas law, group life insurance conversion privileges must NOT - answerrequire evidence of insurability Which of the following violations is considered an unfair trade practice? - answerCoercion An individual covered under a Group Life insurance policy is considered to be a(n) - answercertificate holder Which of the following is NOT an unfair claim settlement practice? - answerNeeding written documentation of claim details In Arkansas, the Commissioner may place on probation, suspend, revoke, refuse to renew, or deny a license for all of the following reasons EXCEPT: - answerFiling bankruptcy When must a written disclosure be given to the applicant or policy holder regarding administrative fees charged by the producer? - answerPrior to any services being rendered
Anyone who makes a fraudulent statement on an insurance application in order to obtain money benefits from an insurance company has committed an act of - answermisrepresentation An individual who is appointed by an insurance company to transact insurance is referred to as - answera producer A creditor who requires a debtor to obtain insurance from a particular company or producer as a condition for a loan is guilty of - answercoercion A temporary license may be issued for a MAXIMUM period of how many days? - answer In Arkansas, the minimum number of days the insurance company must allow for a grace period on a life policy is - answer30 days What is the maximum tax rate a named beneficiary will be charged on proceeds collected in the state of Arkansas? - answer0% An insurance company licensed in Arkansas and domiciled in Pennsylvania is known as
All of the following actions are considered rebating EXCEPT - answersharing commissions with other licensed and appointed producers Under the Nonforfeiture Law, a cash surrender value payment may be deferred by the insurance company for NO LONGER than how many months? - answer Which of the following individuals MUST be licensed as a producer? - answerA person who places insurance on behalf of anyone seeking insurance An insurer may pay commissions directly to any person for services as a producer provided the producer - answeris licensed and appointed The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of the - answerpolicyowner Before holding a hearing regarding a producer's unfair or deceptive practice, the Commissioner MUST give how many days notice? - answer When an existing life insurance policy is being reissued with a reduction in cash value, the producer must sign the - answerNotice Regarding Replacement of Life Insurance or Annuity Under the Arkansas insurance code, an insurance company must pay death benefits for suicide if the policy has been in force for a MINIMUM of - answertwo years Any administration service fees charged by an insurance producer require the written signature by a consumer - answerin all instances The Life and Health Insurance Guaranty Association is - answerfunded by admitted insurance companies through assessments If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for life insurance, the company will most likely - answerpay the policy proceeds in the amount the premiums would have purchased at the insured's actual age Which of the following BEST describes Credit Life insurance? - answerInsurance issued on a debtor to cover outstanding balances on installment loans In Arkansas, a producer who moves to a new address must notify the Commissioner of the address change within how many days? - answer30 days All of the following provisions must be included in life insurance policies EXCEPT - answerExtended Term
In Arkansas, what is the maximum amount of interest an insurance company can charge a consumer on a policy loan? - answer8.00% A policy loan provision is NOT required in which of the following types of policies? - answerTerm Life