Arkansas Life and Health Insurance Practice Exam

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Prepare for the Arkansas Life and Health Insurance Exam with our comprehensive quiz featuring multiple-choice questions and detailed explanations. Gain the knowledge and confidence you need to succeed on your test!

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The Arkansas Life and Health Insurance Guaranty Association will assume the contractual obligations of an insolvent life insurer up to what amount?

$500,000
$100,000
$200,000
$300,000

The correct answer is: $500,000

The Arkansas Life and Health Insurance Guaranty Association is a state-run program that protects policyholders in the event that their insurance company becomes financially insolvent. This means that the company is unable to fulfill their contractual obligations to policyholders. The Association will cover the policy's contractual obligations, such as death benefits or cash values, up to a certain amount. In this case, the correct answer is $500,000. This amount varies by state, but typically ranges from $100,000 to $500,000. The other options provided are incorrect because they are either too low or too high and do not accurately represent the coverage amount of the Association. Therefore, the correct answer is $500,000.