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Life and Health Insurance Producer Exam

Conduct (AR): practice questions

Our Life & Health Insurance bank has 7 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Arkansas

What civil penalty may the Commissioner impose for each violation of the Arkansas insurance fraud subchapter?

  1. Exactly $500 per violation, with no possible license action
  2. Up to $1 million, but only if a court first convicts the person
  3. Up to $2,500 per year, regardless of the number of violations
  4. Up to $10,000 per violation, with or without license action
Show the answer

D. Up to $10,000 per violation, with or without license action — Ark. Code Ann. 23-66-512(1)(A).

Question 2 · Arkansas

A bank teller who is not licensed refers a customer to a licensed producer. How may the teller be compensated?

  1. Only a one-time nominal fixed fee, paid whether or not a sale results
  2. Any amount, as long as the bank discloses it to the customer
  3. A percentage of the first year's premium on any policy sold
  4. A share of the producer's commission on any sale
Show the answer

A. Only a one-time nominal fixed fee, paid whether or not a sale results — Ark. Code Ann. 23-66-609(4).

Question 3 · Arkansas

Which charge is a life insurer allowed to collect in addition to the premium?

  1. A flat service fee for processing every new application form
  2. Interest on any premium that the agent chooses to advance for the client
  3. A bonus for the agent if the policy is issued without delay
  4. Amounts actually spent for the applicant's medical exam
Show the answer

D. Amounts actually spent for the applicant's medical exam — Ark. Code Ann. 23-66-310(a)-(b).

Question 4 · Arkansas

Under Arkansas's life insurance disclosure rule, when must the insurer give a prospective purchaser the Buyer's Guide if the policy has no free-look of at least ten days?

  1. Only when the applicant asks for it in writing after delivery
  2. At the first policy anniversary, with the annual report
  3. Within 30 days after the policy has been issued and delivered
  4. Before accepting the applicant's initial premium or premium deposit
Show the answer

D. Before accepting the applicant's initial premium or premium deposit — AID Rule 17, Sec. 6(A)(1).

Question 5 · Arkansas

Which statement by a producer selling life insurance is prohibited by Arkansas's disclosure rule?

  1. Calling the premium a deposit, an investment or savings
  2. Giving the buyer a written policy summary for the policy
  3. Telling the buyer the name of the insurer represented
  4. Explaining to the buyer that the policy has a free-look period
Show the answer

A. Calling the premium a deposit, an investment or savings — AID Rule 17, Sec. 7(J).

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