ALABAMA LIFE INSURANCE 2026
TEST BANK TESTED QUESTIONS
CORRECT ANSWERS
◉ Which of the following situations constitutes an insurable interest?.
Answer: The policyowner must expect to suffer a loss when the insured
dies or becomes disabled.
◉ Term Life Insurance. Answer: Not based on the waiver of premium
rider
◉ Loaded Premium. Answer: The gross premium
◉ Twisting. Answer: Making misrepresentations to induce a
policyowner to lapse or surrender a policy.
◉ Time of Payment of Claims Provision. Answer: Requires that claims
must be paid immediately after the insurer receives a written proof of
loss.
◉ Commissioner of Insurance Responsibilities. Answer: Enforced all
laws that relate to insurance in Alabama. Issuing license to insurers and
agents and may conduct hearings and investigations.
◉ How often must the Commissioner examine domestic insurers?.
Answer: At least every 5 years
,◉ fixed-amount option. Answer: Provides for the payment of a policy's
death benefit in specific amounts at regular intervals
◉ What is the maximum number of days of skilled nursing facility care
for which Medicare will pay benefits?. Answer: 100 days
◉ What elements of an adjustable life policy are adjustable?. Answer:
Cash Value / Face Amount / Premium
◉ What is Medicare designed to pay for?. Answer: A large portion of
the health care bill for eligible persons.
◉ The guaranteed insurability option provides the ability to purchase
additional insurance when?. Answer: At 3-year intervals between ages
25 and 40.
◉ What are the 3 examples of unfair trade practice?. Answer:
Circulating false statements about another insurer / inflating dividend
amounts / and rebating premiums.
◉ Who must initial the corrections on an insurance application?.
Answer: The Applicant
◉ Name the 3 distinct categories of basic health coverage. Answer:
Medical Expense, Disability Income, and Accident-Only.
, ◉ What happens if a claim arises during the grace period of an
individual life insurance policy?. Answer: Benefits will be paid, but
unpaid premiums can be deducted from the policy proceeds.
◉ What are the premiums like for a modified whole life policy?.
Answer: Premiums are generally lower in the first years of the policy
and higher in later years.
◉ What policies are not covered by the Alabama Life and Disability
Insurance Guaranty Association?. Answer: Policies issued by a fraternal
benefit society.
◉ Can a spouse maintain coverage after a divorce?. Answer: Yes, for up
to 3 years. provided she notifies the employer within 30 days. She must
pay up to 102% of the applicable premium.
◉ For a beneficiary to receive accidental death benefits, the death of the
insured generally must occur within how many days following the
accident?. Answer: 90 days
◉ Noncancealable health insurance policies prevent what?. Answer: The
insurer from changing the premium or modifying the coverage in any
way.
TEST BANK TESTED QUESTIONS
CORRECT ANSWERS
◉ Which of the following situations constitutes an insurable interest?.
Answer: The policyowner must expect to suffer a loss when the insured
dies or becomes disabled.
◉ Term Life Insurance. Answer: Not based on the waiver of premium
rider
◉ Loaded Premium. Answer: The gross premium
◉ Twisting. Answer: Making misrepresentations to induce a
policyowner to lapse or surrender a policy.
◉ Time of Payment of Claims Provision. Answer: Requires that claims
must be paid immediately after the insurer receives a written proof of
loss.
◉ Commissioner of Insurance Responsibilities. Answer: Enforced all
laws that relate to insurance in Alabama. Issuing license to insurers and
agents and may conduct hearings and investigations.
◉ How often must the Commissioner examine domestic insurers?.
Answer: At least every 5 years
,◉ fixed-amount option. Answer: Provides for the payment of a policy's
death benefit in specific amounts at regular intervals
◉ What is the maximum number of days of skilled nursing facility care
for which Medicare will pay benefits?. Answer: 100 days
◉ What elements of an adjustable life policy are adjustable?. Answer:
Cash Value / Face Amount / Premium
◉ What is Medicare designed to pay for?. Answer: A large portion of
the health care bill for eligible persons.
◉ The guaranteed insurability option provides the ability to purchase
additional insurance when?. Answer: At 3-year intervals between ages
25 and 40.
◉ What are the 3 examples of unfair trade practice?. Answer:
Circulating false statements about another insurer / inflating dividend
amounts / and rebating premiums.
◉ Who must initial the corrections on an insurance application?.
Answer: The Applicant
◉ Name the 3 distinct categories of basic health coverage. Answer:
Medical Expense, Disability Income, and Accident-Only.
, ◉ What happens if a claim arises during the grace period of an
individual life insurance policy?. Answer: Benefits will be paid, but
unpaid premiums can be deducted from the policy proceeds.
◉ What are the premiums like for a modified whole life policy?.
Answer: Premiums are generally lower in the first years of the policy
and higher in later years.
◉ What policies are not covered by the Alabama Life and Disability
Insurance Guaranty Association?. Answer: Policies issued by a fraternal
benefit society.
◉ Can a spouse maintain coverage after a divorce?. Answer: Yes, for up
to 3 years. provided she notifies the employer within 30 days. She must
pay up to 102% of the applicable premium.
◉ For a beneficiary to receive accidental death benefits, the death of the
insured generally must occur within how many days following the
accident?. Answer: 90 days
◉ Noncancealable health insurance policies prevent what?. Answer: The
insurer from changing the premium or modifying the coverage in any
way.
