Arkansas Life and Health Insurance Practice Exam

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Prepare for the Arkansas Life and Health Insurance Exam. Utilize flashcards and multiple-choice questions with hints and explanations for each question. Get thoroughly ready for your certification test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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A Whole Life policyowner elects to use dividends to pay off the policy sooner than originally planned. Which option allows this to occur?

Accumulation Option
Paid-Up Option
Dividend Purchase Option
Cash Option

The correct answer is: Accumulation Option

In this scenario, the option that allows a Whole Life policyowner to use dividends to pay off the policy sooner than originally planned is the Accumulation Option. By choosing the Accumulation Option, the policyowner can instruct the insurer to accumulate the dividends and use them to pay off the policy earlier. The Paid-Up Option would allow the policyowner to use dividends to purchase paid-up additional insurance, the Dividend Purchase Option would allow the policyowner to use dividends to purchase additional insurance, and the Cash Option would provide the dividends in cash to the policyowner.