Arkansas Life Insurance Exam With 100% Correct Answers 2023

Which Unfair Trade Practice involves a producer telling a prospective client that a policy's dividends are guaranteed? {Ans: Misrepresentation}Irrevocable Beneficiary {Ans: one that cannot be changed without the beneficiary's consent}Which of the following is a reinstatement condition? {Ans: Proof of insurability}Converting a group plan to permanent life insurance involves {Ans: the conversion being applied within 1 month of termination}Of the following dividend options, which of these is taxable? {Ans: Accumulation at interest}A life insurance policy owner does NOT have the right to: {Ans: Revoke an absolute assignment}How do interest earnings accumulate in a deferred annuity? {Ans: On a tax-deferred basis}Paid-Up Additions Option {Ans: Additional single-premium Life insurance paid for by policy dividends and added to the face amount. For example, your mutual insurer declares a $100 dividend, which you could have taken as cash. Instead, you ask them to use the money to buy you an additional Whole life policy, which is paid up to age 100. Although this additional policy is small, no physical exam is required, so this option is very popular with clients who have health problems. Over a period of time, you can obtain substantial additional coverage.}An employee