Arkansas Life and Health Insurance Practice Exam

Which of the following statements regarding individual life insurance policy provisions is correct?

1. A life insurance policy must be reviewed annually by the insured.

2. Policy loans must be repaid only upon the policyholder's death.

3. The death benefit under a policy of life insurance is exempt from the claims of creditors.

4. There is a mandatory waiting period before benefits can be claimed.

The correct answer is: A life insurance policy must be reviewed annually by the insured.

The correct answer is A because it highlights the importance of reviewing a life insurance policy regularly, providing the insured with an opportunity to ensure that the coverage still meets their needs and to make any necessary adjustments. This proactive approach can help individuals stay informed about their policy details, such as coverage amount, beneficiaries, and any potential changes in premiums or benefits. Regularly reviewing the policy can also help the insured address any questions or concerns they may have with their insurance provider.