Arkansas Exam Bundle Questions With Complete Solutions!!/Latest Update

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? - ANSWER-Its true corporate name Which of the following is NOT an example of a producer's breach of fiduciary duty? - A...

A.irrevocable beneficiary B.revocable beneficiary C.secondary beneficiary - ANSWER-B A contract that has as its basic function the systematic liquidation of accumulated assets through periodic payments is called an: A.indemnity contract B.investment contract C.endowment D.annuit...

Accident Insurance - ANSWER-A type of insurance that protects the insured against loss due to accidental bodily injury. Accidental Bodily Injury - ANSWER-Unplanned, unforeseen traumatic injury to the body. Accidental Death and Dismemberment - ANSWER-An insurance policy which pays a specified a...

Accident Insurance - ANSWER-A type of insurance that protects the insured against loss due to accidental bodily injury. Accidental Bodily Injury - ANSWER-Unplanned, unforeseen traumatic injury to the body. Accidental Death and Dismemberment - ANSWER-An insurance policy which pays a specified a...

Integrity of Contract and Alteration of Contract Provision - ANSWER-States that the policy and the application constitute the entire contract between the parties, and all statements in the application are considered representation and not warranties Dividend Provision 3rd policy year - ANSWER-N...

For repairs after a loss. -For coverage for bodily injury and property damage of others. -For replacement parts. -For inspections and examinations. - ANSWER-For inspections and examinations. #3. The party to a surety or fidelity bond who promises to fulfill the obligation is the a) Principa...

Who is responsible for assembling the policy forms for insureds? - ANSWER-Insurance carriers All of these are valid policy dividend options for a life insurance policy owner EXCEPT - ANSWER-accumulate without interest What is the primary feature of a viatical settlement? - ANSWER-Reduced death...

Who elects the governing body of a mutual insurance company? - ANSWER-policyholders An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the - ANSWER-Fair Credit Reporting Act What type of reinsurance contract involves two companie...

a. The insurance Commissioner may update the insurance code (law) as needed b. The Commissioner regulates premium rates c. The Commissioner may institute court proceedings to enforce the Insurance Code d. The Commissioner has the authority to make necessary rules and regulations - ANSWER-a....

Accumulating Risk - ANSWER-Which of the following is not a reaction to risk? An increase in the possibility that a loss may occur. - ANSWER-Which of the following describes a hazard? Requiring the policyholder to carry insurance to value. - ANSWER-Which of the following best meets the test of ...

The minimum amount of Uninsured Motorist coverage required in AR is? - ANSWER-25,000PP, 50,000 per accident The common Policy declaration of the commercial package policy would provide what information? - ANSWER-Insureds Business Description How does the dwelling policy provide theft coverage?...

During hearing proceedings, if a person files a waiver of immunity or privilege, and the testimony is produced before court or jury, the person loses their _____________. - ANSWER-immunity A producer who shares commissions with a client may be guilty of: - ANSWER-rebating All insurers must be ...

Which of these is the automatic mode of settlement for life insurance policy proceeds? - ANSWER-lump sum Which of the following best describes the statement "the more times an event is repeated, the more predictable the outcome becomes"? - ANSWER-Law of large numbers What area of group healt...

What is Risk? - ANSWER-Chance of loss occuring What are 3 types of Hazzards? - ANSWER-Physical, Moral, Morale What is a Peril? - ANSWER-Causes of loss insured against What does Indemnify mean? - ANSWER-Right for Reimbursement but only to the extent of the loss. Cannot gain from loss. Def...

Representations - ANSWER-Statements in the application for insurance that are believed to be true to the best of the applicants knowledge are Provide the annuitant with an interest rate that is lesser of the guaranteed or current rate - ANSWER-An annuity is considered fixed when it does all of th...

J has a life policy with the Guaranteed Insurability rider. J has just celebrated their 42nd birthday and realizes that she wants to use her rider and buy more death benefit. Which of the following will apply to J's request? A: The insurer will allow J to add more insurance without proving insurab...

How is the Arkansas Insurance Commissioner appointed? - ANSWER-By the governor with advise from Senate. What is the Maximum fines imposed for the first known rule violation? - ANSWER-$5,000.00 What is the best description of Meridian ? - ANSWER-Set of imaginary lines running North & South that...

Which of the following is not a reaction to risk? - ANSWER-Accumulating Risk Which of the following describes a hazard? - ANSWER-An increase in the possibility that a loss may occur. Which of the following best meets the test of the "Principle of Indemnity"? - ANSWER-Requiring the policyhold...