Arkansas Life and Health Insurance Practice Exam 2025 - Free Life and Health Insurance Practice Questions and Study Guide

Question: 1 / 400

Failure to repay a loan or loan interest will void a life insurance policy:

If the total amount due exceeds the policy's death benefit

Failure to repay a loan or loan interest can void a life insurance policy when the total amount due exceeds the policy's death benefit. In this scenario, the outstanding loan amount is higher than the amount that would be paid out upon the insured's death, thus jeopardizing the insurer's ability to fulfill the policy obligations. Therefore, it is important to monitor loan repayments to prevent the policy from being voided due to financial discrepancies.

Options B, C, and D are not correct because they do not accurately reflect the conditions under which failure to repay a loan or loan interest would void a life insurance policy.

Get further explanation with Examzify DeepDiveBeta

If the total amount due equals or exceeds the policy's cash values

If the total amount due is below the policy's cash values

If the total amount due is less than the premiums paid

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy