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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Which of the following entities determines what benefits are payable under an insurance policy?

State Legislature
Insurance Commissioner
Underwriter
Actuary

The correct answer is: State Legislature

The other options are incorrect because they do not have the authority or responsibility to determine what benefits are payable under an insurance policy. The State Legislature is responsible for creating laws and regulations that govern insurance policies, making them the ultimate decision-makers. The Insurance Commissioner oversees insurance companies and enforces laws and regulations, but does not determine specific benefits. The Underwriter assesses risk and sets premiums for insurance policies, but does not have the authority to determine benefits. The Actuary calculates risk and sets premiums, but does not have the authority to determine benefits either.