ARKANSAS LIFE INSURANCE EXAM EXAM QUESTIONS

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ARKANSAS LIFE INSURANCE EXAM EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Within how many days must a Traditional IRA be rolled over to another IRA to avoid tax consequences?

Answer:

60 days Question 2: What is Arkansas' REQUIRED grace period for a life insurance contract?

Answer:

31 days Question 3: If dividends are illustrated, the advertisement MUST state that the dividends are:

Answer:

Not guaranteed Question 4: All of these are considered key factors in underwriting life insurance EXCEPT

Answer:

Marital status Question 5: _____ is NOT a source of information that can assist an underwriter in determining whether or not to accept a risk

Answer:

National Association of Insurance Underwriters

Question 6: Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents?

Answer:

Human life value approach

Question 7: If the annuitant dies before the annuity start date,

Answer:

The premiums paid plus interest earned will be given to the beneficiary

Question 8: Which does a life insurance policy summary normally include?

Answer:

The policy's cash value Question 9: A Roth IRA owner must be at least what age in order to make tax-free withdrawals?

Answer:

59 1/2 and owned an account for a minimum of 5 years Question 10: Which describes the result of a modified endowment contract that failed to meet the seven-pay test?

Answer:

Pre-death distributions are typically taxable

Question 11: How does life insurance create an immediate estate?

Answer:

After first premium is paid, the face amount may be available to the beneficiary Question 12: Which of the following basics is a producer's fiduciary responsibility?

Answer:

Collecting premiums and paying them to the insurance company Question 13: Which is NOT considered to be a nonforfeiture option available to a policy owner?

Answer:

Reduction of Premium

Question 14: A domestic insurance company in Arkansas MUST

Answer:

Be organized under Arkansas Insurance laws

Question 15: A limited payment whole life policy provides

Answer:

Lifetime protection Question 16: Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contract's

Answer:

Income period Question 17: The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement?

Answer:

Insurable interest can be based on the love and affection of individuals related by blood or law

Question 18: Which is true regarding the annuitant?

Answer:

The annuitants life expectancy determines the annuity payments Question 19: An insurer may pay commissions directly to any person for services as a producer provided the producer is licensed and ________

Answer:

Appointed

Question 20: Which is NOT an example of a Business Continuation Plan

Answer:

Deferred Compensation Question 21: Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT

Answer:

The beneficiary

Question 22: What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day?

Answer:

Claim will be paid if application is approved Question 23: Intentional withholding of material facts that would affect an insurance policy's validity is called a(n)

Answer:

Concealment

Question 24: Level premium term life insurance policies

Answer:

Have premiums that are averaged over the policy period Question 25: 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?

Answer:

Nothing Question 26: 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?

Answer:

$5,000

Question 27: Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive?

Answer:

Endowment policy Question 28: In Arkansas, replacement forms are required to be obtained for the replacement of which of the following

Answer:

Annual Renewable Term (ART) insurance