ALABAMA LIFE INSURANCE EXAM
SCRIPT 2026 COMPLETE QUESTIONS
ACCURATE ANSWERS
◉ 1. spouses in each other
2. parents in their children
3. creditors in their debtors. Answer: Which of the following would be
considered proper establishment of insurable interest in the life
insurance area?
◉ It is called the mortality rate. Answer: Which of the following
statements about the average number of people who die each year is
true?
◉ Equal value is not necessarily given by both parties to the contract.
Answer: An insurance contract is an aleatory contract. This means:
◉ Only the insurance company is bound to live up to its side of the
agreement. Answer: A life insurance policy is a unilateral contract
because:
◉ 1. Legal purpose
2. Offer and acceptance
3. Consideration. Answer: All of the following are elements of a contract
,◉ Unauthorized company. Answer: A company that has not received
permission from an Insurance Commissioner to do business in his or her
state is called a/an:
◉ A written or oral statement which is false. Answer: Misrepresentation
is:
◉ Adverse Selection. Answer: The chance that a person who anticipates
a loss will purchase insurance is:
◉ Assumption of risk. Answer: Assuming a deductible with your
insurance policy is which type of risk management technique?
◉ Morbidity tables. Answer: In the Health-Disability area we use what
type data to produce rates?
◉ An authorized company. Answer: A company that is licensed to sell
insurance in a particular state is:
◉ To have the applicant pay the initial premium at the time of
application. Answer: he most effective way to ensure that the applicant
will accept the policy when it is issued is:
◉ A mutual insurance company. Answer: Which is the proper term for a
company owned by its policy owner?
,◉ Fines, imprisonment or both. Answer: The punishment for fraud or
making false statements may include:
◉ Always the insurer. Answer: A producer who is acting as an agent is
representing:
◉ consideration. Answer: The premium paid and the statements on the
application to the insurance company is called
◉ the policy owner must expect to suffer a loss if the insured dies..
Answer: In life insurance the insurable interest requirements is generally
satisfied if:
◉ 1. Statements relied upon by a second party who then suffers a loss
2. Intent to gain advantage
3. An intentional misrepresentation made by the applicant. Answer:
Each of the following would be an element in the definition of fraud
◉ The uncertainty of loss. Answer: Risk may be defined as:
◉ prove this was both intentional and material. Answer: A father did not
reveal that his daughter suffers from asthma on the application for a
health policy. In order to avoid paying a claim the insurer must
, ◉ competent parties. Answer: In order to be valid, a contract must be
between individuals considered legally able to enter into an agreement.
This principle is known as:
◉ Making a formal request to the company for an insurance policy..
Answer: When signing the application form, the proposed insured is:
◉ The policy, its endorsements, and any attached papers. Answer: What
constitutes an entire insurance contract?
◉ True. Answer: T/F Misrepresentations on the part of an applicant as to
the health or other conditions of the applicant must be deliberate and
material for an insurer to avoid coverage.
◉ True. Answer: T/F Misrepresentation is a deliberate false
representation on the part of the agent or insurer as to the terms and
conditions of the policy its terms and benefits.
◉ True. Answer: T/F Warranties are not used in the life-health-disability
area.
◉ generally presents no possibility of financial gain.. Answer: A pure
risk
SCRIPT 2026 COMPLETE QUESTIONS
ACCURATE ANSWERS
◉ 1. spouses in each other
2. parents in their children
3. creditors in their debtors. Answer: Which of the following would be
considered proper establishment of insurable interest in the life
insurance area?
◉ It is called the mortality rate. Answer: Which of the following
statements about the average number of people who die each year is
true?
◉ Equal value is not necessarily given by both parties to the contract.
Answer: An insurance contract is an aleatory contract. This means:
◉ Only the insurance company is bound to live up to its side of the
agreement. Answer: A life insurance policy is a unilateral contract
because:
◉ 1. Legal purpose
2. Offer and acceptance
3. Consideration. Answer: All of the following are elements of a contract
,◉ Unauthorized company. Answer: A company that has not received
permission from an Insurance Commissioner to do business in his or her
state is called a/an:
◉ A written or oral statement which is false. Answer: Misrepresentation
is:
◉ Adverse Selection. Answer: The chance that a person who anticipates
a loss will purchase insurance is:
◉ Assumption of risk. Answer: Assuming a deductible with your
insurance policy is which type of risk management technique?
◉ Morbidity tables. Answer: In the Health-Disability area we use what
type data to produce rates?
◉ An authorized company. Answer: A company that is licensed to sell
insurance in a particular state is:
◉ To have the applicant pay the initial premium at the time of
application. Answer: he most effective way to ensure that the applicant
will accept the policy when it is issued is:
◉ A mutual insurance company. Answer: Which is the proper term for a
company owned by its policy owner?
,◉ Fines, imprisonment or both. Answer: The punishment for fraud or
making false statements may include:
◉ Always the insurer. Answer: A producer who is acting as an agent is
representing:
◉ consideration. Answer: The premium paid and the statements on the
application to the insurance company is called
◉ the policy owner must expect to suffer a loss if the insured dies..
Answer: In life insurance the insurable interest requirements is generally
satisfied if:
◉ 1. Statements relied upon by a second party who then suffers a loss
2. Intent to gain advantage
3. An intentional misrepresentation made by the applicant. Answer:
Each of the following would be an element in the definition of fraud
◉ The uncertainty of loss. Answer: Risk may be defined as:
◉ prove this was both intentional and material. Answer: A father did not
reveal that his daughter suffers from asthma on the application for a
health policy. In order to avoid paying a claim the insurer must
, ◉ competent parties. Answer: In order to be valid, a contract must be
between individuals considered legally able to enter into an agreement.
This principle is known as:
◉ Making a formal request to the company for an insurance policy..
Answer: When signing the application form, the proposed insured is:
◉ The policy, its endorsements, and any attached papers. Answer: What
constitutes an entire insurance contract?
◉ True. Answer: T/F Misrepresentations on the part of an applicant as to
the health or other conditions of the applicant must be deliberate and
material for an insurer to avoid coverage.
◉ True. Answer: T/F Misrepresentation is a deliberate false
representation on the part of the agent or insurer as to the terms and
conditions of the policy its terms and benefits.
◉ True. Answer: T/F Warranties are not used in the life-health-disability
area.
◉ generally presents no possibility of financial gain.. Answer: A pure
risk
