Under Arkansas's Life Insurance and Annuities Replacement Rule, 23 CAR § 128-103, when a producer completes an application involving a replacement transaction, what must the producer generally leave with the applicant at that time?
A. The original or a copy of all sales material used in the transaction
B. Nothing; sales material only needs to be retained in the producer's file
C. A verbal summary only, with written materials to follow within 90 days
D. Only the insurer's toll-free complaint phone number
Show answer and reasoning
Correct answer: A. The original or a copy of all sales material used in the transaction
Correct. Under 23 CAR § 128-103, in connection with a replacement transaction, the producer must leave with the applicant, at the time the application is completed, the original or a copy of all sales material used in the transaction.
- B: Incorrect. The rule requires the applicant to actually receive the sales material at application time, not merely have it retained internally in the producer's file.
- C: Incorrect. The rule requires the material itself to be left with the applicant at application time; a delayed 90-day follow-up does not satisfy this requirement.
- D: Incorrect. A complaint phone number alone does not satisfy the requirement to leave the actual sales material used in the replacement transaction with the applicant.
Source: 23 CAR § 128-103 (Arkansas Life Insurance and Annuities Replacement Rule)
Under 23 CAR § 128-103, when sales material for a replacement transaction is presented to the applicant electronically, when must it be provided to the policy or contract owner in printed form?
A. Immediately upon the producer's first phone contact with the applicant
B. No later than at the time of policy or contract delivery
C. Printed material is never required if the presentation was electronic
D. Only if the applicant is over age 65
Show answer and reasoning
Correct answer: B. No later than at the time of policy or contract delivery
Correct. Under 23 CAR § 128-103, electronically presented sales material must be provided to the policy or contract owner in printed form no later than at the time of policy or contract delivery.
- A: Incorrect. The rule ties the printed-form deadline to policy or contract delivery, not to the first phone contact.
- C: Incorrect. The rule specifically requires printed material by delivery even when the original presentation was electronic; it does not exempt electronic presentations from ever producing a printed copy.
- D: Incorrect. This printed-form requirement applies generally to replacement transactions and is not limited to applicants over a particular age.
Source: 23 CAR § 128-103 (Arkansas Life Insurance and Annuities Replacement Rule)
Under 23 CAR § 128-103, the written replacement notice must list which of the following?
A. The producer's total commission on the new policy
B. The insurer's home office street address only
C. All life insurance policies or annuities proposed to be replaced, properly identified, and whether each will be replaced or used as a source of financing
D. The applicant's Social Security number and bank account number
Show answer and reasoning
Correct answer: C. All life insurance policies or annuities proposed to be replaced, properly identified, and whether each will be replaced or used as a source of financing
Correct. Under 23 CAR § 128-103, the replacement notice must list all life insurance policies or annuities proposed to be replaced, properly identified, along with a statement as to whether each will be replaced or used as a source of financing for the new policy or contract.
- A: Incorrect. Commission disclosure is not the listing requirement imposed by this section of the replacement rule.
- B: Incorrect. A bare corporate address does not satisfy the rule's requirement to identify the specific policies or contracts being replaced.
- D: Incorrect. The rule requires identification of the policies or contracts being replaced, not collection of unrelated personal financial identifiers such as a bank account number.
Source: 23 CAR § 128-103 (Arkansas Life Insurance and Annuities Replacement Rule)
Under 23 CAR § 128-103, what must happen with the replacement memorandum in an Arkansas life insurance replacement transaction?
A. It is completed by the replacing insurer only, with no applicant involvement
B. It replaces the need for any replacement notice altogether
C. It is optional and used only if the applicant specifically requests it
D. It must be completed and signed by both the producer and the applicant
Show answer and reasoning
Correct answer: D. It must be completed and signed by both the producer and the applicant
Correct. Under 23 CAR § 128-103, a replacement memorandum must be completed and signed by both parties in connection with any replacement of life insurance or annuities.
- A: Incorrect. The rule requires the memorandum to be signed by both parties, meaning the applicant is directly involved, not excluded from the process.
- B: Incorrect. The replacement memorandum and the replacement notice are separate required elements of the transaction; one does not substitute for the other.
- C: Incorrect. The replacement memorandum is a required document under 23 CAR § 128-103 in a replacement transaction, not an optional item triggered only by applicant request.
Source: 23 CAR § 128-103 (Arkansas Life Insurance and Annuities Replacement Rule)
Under 23 CAR § 128-103, what must a producer submit to the insurer receiving a replacement application?
A. A copy of each required replacement document, a statement identifying sales materials used, and copies of any individualized sales materials or illustrations related to the specific policy or contract purchased
B. Nothing further, since the applicant's signature alone satisfies all submission requirements
C. Only the producer's personal license number, with no transaction documentation
D. A summary written entirely from memory with no supporting documents
Show answer and reasoning
Correct answer: A. A copy of each required replacement document, a statement identifying sales materials used, and copies of any individualized sales materials or illustrations related to the specific policy or contract purchased
Correct. Under 23 CAR § 128-103, the producer must submit to the insurer to which the application is presented a copy of each required replacement document, a statement identifying any company-approved sales materials used, and copies of any individualized sales materials or illustrations tied to the specific policy or contract purchased.
- B: Incorrect. The rule requires the producer to affirmatively submit specific documentation to the insurer; the applicant's signature on other paperwork does not substitute for this submission.
- C: Incorrect. A bare license number does not satisfy the rule's requirement to submit the actual replacement documents and sales material statements.
- D: Incorrect. The rule requires actual copies of the required documents and sales materials, not an unsupported recollection-based summary.
Source: 23 CAR § 128-103 (Arkansas Life Insurance and Annuities Replacement Rule)
