Arkansas Life and Health Insurance Practice Exam 2025 – Complete Study Guide

Question: 1 / 400

All of the following are Dividend Options, EXCEPT:

Reduced paid-up

Dividend Options allow policyholders to choose how they would like to receive any dividends earned on their participating life insurance policy. The options include cash, premium reduction, and paid-up additions.

Option A, Reduced paid-up, is not a Dividend Option. Reduced paid-up allows policyholders to use any dividends to stop making premium payments and instead have a fully paid-up policy for a reduced face amount. This is not a Dividend Option but a nonforfeiture option available in some policies.

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Cash

Premium reduction

Paid-up additions

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