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!

Practice this question and more.

If a policyowner unintentionally pays premiums in excess of the MEC guidelines, the excess premium can be refunded by the insurer within 60 days after the ________.

Anniversary date
Claims submission
End of the contract year
Initial premium payment

The correct answer is: Anniversary date

If a policyowner unintentionally pays premiums in excess of the MEC guidelines, the excess premium can be refunded by the insurer within 60 days after the Anniversary date. This is because the MEC (Modified Endowment Contract) guidelines are based on the anniversary date of the policy. Refunding within 60 days after the anniversary date allows the policyowner to correct the excess payment without any negative tax implications related to the MEC status of the policy. Options B, C, and D are not correct because they do not align with the specific timeframe related to MEC guidelines and premium refunds.