ALABAMA LIFE INSURANCE TEST
2026 COMPLETE QUESTIONS AND
VERIFIED ANSWERS
◉ When the gross premium of a life insurance policy is computed,
which of these factors is NOT included?
Number of beneficiaries
Operating expenses
Mortality factor
Interest income. Answer: Number of beneficiaries
◉ A retirement plan intended for a sole proprietor and his/her employees
would be a(n):
Keogh Plan
403(b) Plan
SIMPLE Plan
Individual Retirement Plan (IRA). Answer: Keogh Plan
◉ Which of these will NOT result in an increase in life insurance policy
dividends?
Higher interest earnings
Lower expenses
Lower mortality
,Higher reserves. Answer: Higher Reserves
◉ Pat the producer just sold an insurance policy to a client, explaining
that he has authority to issue the policy. Pat was not specifically granted
this power from the insurance company. Pat is exercising:
express authority
implied authority
apparent authority
conditional authority. Answer: Implied Authority
◉ Pat applies for insurance, pays the initial premium, and receives a
document from the agent. This document indicates that if the policy is
issued, coverage begins on the date of the document. This document is
called a(n):
conditional receipt
binding receipt
unconditional receipt
warranty receipt. Answer: Conditional Receipt
◉ Rodney applies for an insurance policy and pays the first premium.
The receipt given for the first premium is called a(n):
unconditional receipt
conditional receipt
interim receipt
initial receipt. Answer: Conditional Receipt
, ◉ What is a defined benefit plan?
A retirement plan that promises a specified benefit to the employee at
retirement
A retirement plan that promises a specified payment to the plan by the
employer
A retirement plan that only invests in tax-sheltered annuities
A retirement plan that only pays benefits to a corporation's officers.
Answer: A retirement plan that promises a specified benefit to the
employee at retirement
◉ What kind of risk are amateur pilots normally classified as?
Standard risks
Acceptable risks
Special class risks
Uninsurable risks. Answer: Special Class Risks
◉ The period of time during which a surviving spouse does not qualify
for Social Security survivor or retirement benefits is called:
The Restricted Period
The Waiting Period
The Elimination Period
The Blackout Period. Answer: Blackout Period
2026 COMPLETE QUESTIONS AND
VERIFIED ANSWERS
◉ When the gross premium of a life insurance policy is computed,
which of these factors is NOT included?
Number of beneficiaries
Operating expenses
Mortality factor
Interest income. Answer: Number of beneficiaries
◉ A retirement plan intended for a sole proprietor and his/her employees
would be a(n):
Keogh Plan
403(b) Plan
SIMPLE Plan
Individual Retirement Plan (IRA). Answer: Keogh Plan
◉ Which of these will NOT result in an increase in life insurance policy
dividends?
Higher interest earnings
Lower expenses
Lower mortality
,Higher reserves. Answer: Higher Reserves
◉ Pat the producer just sold an insurance policy to a client, explaining
that he has authority to issue the policy. Pat was not specifically granted
this power from the insurance company. Pat is exercising:
express authority
implied authority
apparent authority
conditional authority. Answer: Implied Authority
◉ Pat applies for insurance, pays the initial premium, and receives a
document from the agent. This document indicates that if the policy is
issued, coverage begins on the date of the document. This document is
called a(n):
conditional receipt
binding receipt
unconditional receipt
warranty receipt. Answer: Conditional Receipt
◉ Rodney applies for an insurance policy and pays the first premium.
The receipt given for the first premium is called a(n):
unconditional receipt
conditional receipt
interim receipt
initial receipt. Answer: Conditional Receipt
, ◉ What is a defined benefit plan?
A retirement plan that promises a specified benefit to the employee at
retirement
A retirement plan that promises a specified payment to the plan by the
employer
A retirement plan that only invests in tax-sheltered annuities
A retirement plan that only pays benefits to a corporation's officers.
Answer: A retirement plan that promises a specified benefit to the
employee at retirement
◉ What kind of risk are amateur pilots normally classified as?
Standard risks
Acceptable risks
Special class risks
Uninsurable risks. Answer: Special Class Risks
◉ The period of time during which a surviving spouse does not qualify
for Social Security survivor or retirement benefits is called:
The Restricted Period
The Waiting Period
The Elimination Period
The Blackout Period. Answer: Blackout Period
