Alabama Life and Health Exam || || || || ||
Questions With Answers || || ||
In reference to the standard Medicare Supplement
|| || || || || || ||
benefits plans, what does the term standard mean?
|| || || || || || ||
a) All plans must include basic benefits A-N.
|| || || || || || ||
b) Coverage options and conditions are developed for
|| || || || || || || ||
average individuals. ||
c) All providers will have the same coverage options and
|| || || || || || || || || ||
conditions for each plan. || || ||
d) Coverage options and conditions comply with the law,
|| || || || || || || || ||
but will vary from provider to provider. - CORRECT
|| || || || || || || || ||
ANSWER(S)✔✔C
Which of the following is true regarding a single life
|| || || || || || || || || ||
settlement option? ||
a) Payments continue until the entire principal is
|| || || || || || || ||
exhausted.
b) Proceeds are paid out in a lump sum.
|| || || || || || || ||
c) It provides income for a specified period of time.
|| || || || || || || || ||
d) It provides income the beneficiary cannot outlive. -
|| || || || || || || || ||
CORRECT ANSWER(S)✔✔D ||
,What is the maximum penalty for habitual willful
|| || || || || || || ||
noncompliance with the Fair Credit Reporting Act? || || || || || ||
a) Revocation of license
|| || ||
b) $2,500
||
c) $1,000
||
d) $100 per violation - CORRECT ANSWER(S)✔✔B
|| || || || || ||
Which of the following is NOT an allowable 1035
|| || || || || || || || ||
exchange?
a) A whole life insurance policy is exchanged for a term
|| || || || || || || || || || ||
insurance policy. ||
b) A whole life insurance policy is exchanged for a
|| || || || || || || || || ||
Universal life insurance policy. || || ||
c) An annuity is exchanged for another annuity.
|| || || || || || ||
d) A life insurance policy is exchanged for an annuity. -
|| || || || || || || || || || ||
CORRECT ANSWER(S)✔✔A ||
Most insurers issue health insurance policies for delivery
|| || || || || || ||
in many states. Because each state regulates and
|| || || || || || || || ||
mandates the requirement for policies delivered to their
|| || || || || || || ||
residents, instead of having a policy form for each state,
|| || || || || || || || || ||
the insurer attaches
|| ||
a) A waiver of other state requirements.
|| || || || || ||
,b) Nothing. An insurer's policy only needs to conform to
|| || || || || || || || || ||
the regulations of the state where the insurer is
|| || || || || || || || ||
domiciled.
c) Conformity with State Statutes provision.
|| || || || ||
d) Miscellaneous optional provision. - CORRECT
|| || || || || ||
ANSWER(S)✔✔C
Which concept is associated with "exclusion ratio"?
|| || || || || ||
a) Dividend distribution
|| ||
b) How exclusion riders affect an insurance premium
|| || || || || || ||
c) Policy provisions
|| ||
d) Annuities payments - CORRECT ANSWER(S)✔✔D
|| || || || ||
When a homeowner purchases insurance on his home,
|| || || || || || || ||
what risk management technique is he practicing?
|| || || || || ||
a) Retention
||
b) Transfer
||
c) Avoidance
||
d) Sharing - CORRECT ANSWER(S)✔✔B
|| || || ||
Officers who manage stock insurance companies are
|| || || || || ||
a) Appointed by the Department of Insurance.
|| || || || || ||
b) Elected by the stockholders.
|| || || ||
, c) Hired through an application process.
|| || || || ||
d) Appointed by other company officials. - CORRECT
|| || || || || || || ||
ANSWER(S)✔✔B
At what point must an Outline of Coverage be delivered?
|| || || || || || || || ||
a) At the time of application or upon delivery of the
|| || || || || || || || || || ||
policy
b) At any point up to 30 days after policy delivery
|| || || || || || || || || ||
c) At the time of application only
|| || || || || ||
d) Upon delivery of the policy only - CORRECT
|| || || || || || || || ||
ANSWER(S)✔✔A
Which of the following is TRUE about a class
|| || || || || || || || ||
designation?
a) Beneficiaries must be part of the insured's immediate
|| || || || || || || || ||
family.
b) It is not allowed.
|| || || ||
c) It determines the succession of beneficiaries.
|| || || || || ||
d) Beneficiaries are not identified by name. - CORRECT
|| || || || || || || || ||
ANSWER(S)✔✔D
Which of the following is NOT true regarding the
|| || || || || || || || ||
accumulation period of an annuity? || || || ||
a) It would not occur in a deferred annuity.
|| || || || || || || ||
Questions With Answers || || ||
In reference to the standard Medicare Supplement
|| || || || || || ||
benefits plans, what does the term standard mean?
|| || || || || || ||
a) All plans must include basic benefits A-N.
|| || || || || || ||
b) Coverage options and conditions are developed for
|| || || || || || || ||
average individuals. ||
c) All providers will have the same coverage options and
|| || || || || || || || || ||
conditions for each plan. || || ||
d) Coverage options and conditions comply with the law,
|| || || || || || || || ||
but will vary from provider to provider. - CORRECT
|| || || || || || || || ||
ANSWER(S)✔✔C
Which of the following is true regarding a single life
|| || || || || || || || || ||
settlement option? ||
a) Payments continue until the entire principal is
|| || || || || || || ||
exhausted.
b) Proceeds are paid out in a lump sum.
|| || || || || || || ||
c) It provides income for a specified period of time.
|| || || || || || || || ||
d) It provides income the beneficiary cannot outlive. -
|| || || || || || || || ||
CORRECT ANSWER(S)✔✔D ||
,What is the maximum penalty for habitual willful
|| || || || || || || ||
noncompliance with the Fair Credit Reporting Act? || || || || || ||
a) Revocation of license
|| || ||
b) $2,500
||
c) $1,000
||
d) $100 per violation - CORRECT ANSWER(S)✔✔B
|| || || || || ||
Which of the following is NOT an allowable 1035
|| || || || || || || || ||
exchange?
a) A whole life insurance policy is exchanged for a term
|| || || || || || || || || || ||
insurance policy. ||
b) A whole life insurance policy is exchanged for a
|| || || || || || || || || ||
Universal life insurance policy. || || ||
c) An annuity is exchanged for another annuity.
|| || || || || || ||
d) A life insurance policy is exchanged for an annuity. -
|| || || || || || || || || || ||
CORRECT ANSWER(S)✔✔A ||
Most insurers issue health insurance policies for delivery
|| || || || || || ||
in many states. Because each state regulates and
|| || || || || || || || ||
mandates the requirement for policies delivered to their
|| || || || || || || ||
residents, instead of having a policy form for each state,
|| || || || || || || || || ||
the insurer attaches
|| ||
a) A waiver of other state requirements.
|| || || || || ||
,b) Nothing. An insurer's policy only needs to conform to
|| || || || || || || || || ||
the regulations of the state where the insurer is
|| || || || || || || || ||
domiciled.
c) Conformity with State Statutes provision.
|| || || || ||
d) Miscellaneous optional provision. - CORRECT
|| || || || || ||
ANSWER(S)✔✔C
Which concept is associated with "exclusion ratio"?
|| || || || || ||
a) Dividend distribution
|| ||
b) How exclusion riders affect an insurance premium
|| || || || || || ||
c) Policy provisions
|| ||
d) Annuities payments - CORRECT ANSWER(S)✔✔D
|| || || || ||
When a homeowner purchases insurance on his home,
|| || || || || || || ||
what risk management technique is he practicing?
|| || || || || ||
a) Retention
||
b) Transfer
||
c) Avoidance
||
d) Sharing - CORRECT ANSWER(S)✔✔B
|| || || ||
Officers who manage stock insurance companies are
|| || || || || ||
a) Appointed by the Department of Insurance.
|| || || || || ||
b) Elected by the stockholders.
|| || || ||
, c) Hired through an application process.
|| || || || ||
d) Appointed by other company officials. - CORRECT
|| || || || || || || ||
ANSWER(S)✔✔B
At what point must an Outline of Coverage be delivered?
|| || || || || || || || ||
a) At the time of application or upon delivery of the
|| || || || || || || || || || ||
policy
b) At any point up to 30 days after policy delivery
|| || || || || || || || || ||
c) At the time of application only
|| || || || || ||
d) Upon delivery of the policy only - CORRECT
|| || || || || || || || ||
ANSWER(S)✔✔A
Which of the following is TRUE about a class
|| || || || || || || || ||
designation?
a) Beneficiaries must be part of the insured's immediate
|| || || || || || || || ||
family.
b) It is not allowed.
|| || || ||
c) It determines the succession of beneficiaries.
|| || || || || ||
d) Beneficiaries are not identified by name. - CORRECT
|| || || || || || || || ||
ANSWER(S)✔✔D
Which of the following is NOT true regarding the
|| || || || || || || || ||
accumulation period of an annuity? || || || ||
a) It would not occur in a deferred annuity.
|| || || || || || || ||
