Arkansas Life and Health Insurance Practice Exam

In order to convert a term policy to a permanent policy as of the original issue age, which of the following is not required?

1. Meeting the insurability requirements

2. Filing for conversion within the appropriate timeline

3. Paying appropriate conversion premiums

4. The cash values will have to be paid out first before the conversion can be effected

The correct answer is: Meeting the insurability requirements

In order to convert a term policy to a permanent policy as of the original issue age, meeting the insurability requirements is not required. This is because the conversion privilege typically allows the policyholder to convert the policy to a permanent one without the need for proof of insurability, regardless of any changes in health or other factors since the original policy was issued. Options B and C are necessary for converting a term policy to a permanent policy within the appropriate timeline and paying the appropriate conversion premiums. Option D is not accurate because cash values do not need to be paid out first before the conversion can be effected. Converting a term policy to a permanent policy usually involves paying the necessary conversion premiums outlined in the policy terms, not cashing out any cash values first.