ExamFX Chapter 6 Arkansas Statutes, Rules, And Regulations for Life and Health

How long is the licensing period in Arkansas?

2 years

Which of the following persons is required to hold an insurance license

A person who negotiates insurance contract

This state provided for a temporary license for all of the following EXCEPT

A producer's retirement

Which of the following would be required to hold a license as an insurance producer?

An employee of an insurer who receives commissions only on a few policies a year

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association that would be considered

An unfair trade practice

In order to get a non-resident license in this state, producers must

Apply and pay a fee to a non-resident state the reciprocates

How is the commissioner selected for the office?

Appointed by the governor

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?

Discrimination

The requirement that producers must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to commingle those funds with their own funds, is also known as

Fiduciary responsibility

An insurance company is domiciled in Montana and transacts insurance in Wyoming, which term best describes the insurer's classification in Wyoming?

Foreign

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?

Illegal under any circumstances

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium paid

All of the following would be considered an insurance transaction EXCEPT

Obtaining an insurance license

A temporary license may be issued without examination to all of the following, EXCEPT

The Spouse of a retired producer

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of

Twisting