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.

In a replacement transaction, which of the following is NOT a duty or responsibility of the insurer?

Assure no twist or cuttlings have occured
Provide a 30-day cancellation period
Contact the client to assure that they understand the transaction
Notify each insurer who wrote the existing policies within 5 business days

The correct answer is: Assure no twist or cuttlings have occured

In a replacement transaction, the insurer is not responsible for assuring that no twists or cuttlings have occurred. This is because twists or cuttlings are unethical practices done by insurance agents, and it is their responsibility to ensure that such practices do not take place. The other options are responsibilities of the insurer in a replacement transaction: - Providing a 30-day cancellation period allows the policyholder to review the new policy and make changes if necessary. - Contacting the client to assure that they understand the transaction helps in ensuring that the policyholder is fully informed of the changes being made. - Notifying each insurer who wrote the existing policies within 5 business days is important to ensure that all parties involved are aware of the replacement transaction taking place.