Xcel Life and Health Insurance Exam Alabama
The State Government
Regulates the Insurance Industry for the most part
The Commissioner of Insurance
enforces the insurance laws in Alabama and may: organize, supervise, and administer
the Insurance.
enforce all provisions in the Insurance Code.
Issue Insurance licenses to qualified.
Conduct investigations and examinations of insurance matters.
Invoke any legal actions necessary to enforce Insurance laws.
The Insurance Commissioner can conduct a financial conduct of any insurance
company as often as deemed but at least once every
5 years
The Commissioner can hold hearings for any of the following reasons
Commissioner considers it necessary.
Commissioner received a written request from a person who is the victim of a violation
of the insurance code.
Insurance law require that Commissioner must hold a hearing.
Within how many days must the Insurance Commissioner hold a hearing after
receiving a written request
30 Days
How many days notice must the Commissioner give before a hearing?
10 Days
Insurance Transaction includes any of the following:
Solicitation or inducement to purchase insurance.
Negotiations toward the sale of insurance.
Executing a contract of insurance.
Advising on coverage and claims.
A licensee may ______ transact insurance business in Alabama until the licensee
is __________ by an Insurer.
NOT; Appointed
An Insurance Producer
A individual who in any manner sells, solicits, or negotiates insurance on behalf of
insurance companies for compensation
In Alabama, an individual represents the
Insurance Company
Any individual who has failed the License exam two times must wait ________ to
retake the test
3 Months
A producer who holds a resident license in a different state may apply for a
_________________ in Alabama, as long as both states have a
_________________.
Nonresident license; Reciprocal agreement
Nonresident Producer
,Applicants do not have to take the the state licensing exam, but must have not
committed any act for which the license could be denied, suspended, or revoked.
The Commissioner may issue a temporary license for a MAXIMUM of
6 Months
Resident Producers
Must complete 24 hours of continuing education every 2 years to keep their license.
A producer who allows their license to lapse may, within ___ months of the
renewal date, reinstate the license without having to complete the prelicense
course or pass the state examination.
12 Months
An Insurance Producer may NOT apply for any insurance license for a minimum
of
3 years
Producers/Businesses must report a change in address or name to the
Commissioner within
30 days
Producers must report felony convictions to the Director within ___ days
30
An insurance producer must keep complete records pertaining to transactions
under the producers license for at least
3 Years
Insurers are responsible for submitting a appointment notice to the Department
of Insurance within __________ of signing an agency contract or submission of
first insurance application
15 days
The ________ of the soliciting insurance producer must appear on the application
Name
When the policy is cancelled within ______ of the inception date, the producer
MUST refund to the consumer a prorated portion of any fee charged within
________ of receiving notification of cancelation.
90 days; 30 days
An Insurer who violates the Alabama rules on commission payments may be
fined up to
3 times the amount of the commissions paid.
Controlled business
policies written on people that the licensed producer has direct influence over: including
family, employers, and/or any company to which the producer has stock control
Obtaining a license for the primary purpose of ____________ _______________
____________ is prohibited
Writing controlled business
An insurance company that authorizes a producer to collect premiums on its
behalf may hold them NO more than
90 days
All alterations on an insurance application must be
Consented to in writing
, Any funds from applicants or policy owners that will be held 15 days or longer
must be deposited in a
Premium Fund Trust Account (PFTA)
Domestic Insurance Company
A company that resides and is incorporated under the laws of the state in which its
home office is located.
Foreign Insurance Company
A company whose home office is located in another state.
Alien Insurance Company
A company that is chartered and organized in any other country other than the United
States
Admitted Insurer
An insurance company that has qualified and received a Certificate of Authority from the
Department of Insurance to sell insurance in this state. (authorized insurance company)
Nonadmitted Insurer
An Insurance Company that has been denied or not yet applied for a Certificate of
Authority and may not sell insurance in this state. (unauthorized company)
Stock Insurance Company
An insurance company that is owned and controlled by stockholders. (shareholders)
The stockholders provide the capital and share in profits or losses.
Stock Insurance Companies are considered ____________ because the policy
owners do not share in the profits of the company
Nonparticipating
Stock insurance companies that issues both participating and nonparticipating
policies are referred to as a company doing business on a
Mixed plan
Mutual life insurance companies
An insurance owned and controlled by its policy owners. These policy holders elect a
board of trustees or governing body to manage the firm.
The profits of of a mutual insurance company are returned to the policyowners in
the form of
Dividends or retained as surplus to meet future obligations
Mutual insurance companies are considered ____________ because the policy
owners do share in the profits of the company
Participating
Defamation
An illegal practice to make any statement or advertisement that contains false info or
unsubstantiated criticisms about an insurance company intended to harm or malign
It is fair to discriminate in the amount of benefits for life and health policies
between
Individuals of different classes
Rebating
The illegal practice to offer a prospective client something of value that is not specified
in a contract to induce the purchase of an insurance policy
The Alabama Life and Disability Insurance Guaranty Association is able to pay
claims or continue coverage for insolvent life and disability insurers by
The State Government
Regulates the Insurance Industry for the most part
The Commissioner of Insurance
enforces the insurance laws in Alabama and may: organize, supervise, and administer
the Insurance.
enforce all provisions in the Insurance Code.
Issue Insurance licenses to qualified.
Conduct investigations and examinations of insurance matters.
Invoke any legal actions necessary to enforce Insurance laws.
The Insurance Commissioner can conduct a financial conduct of any insurance
company as often as deemed but at least once every
5 years
The Commissioner can hold hearings for any of the following reasons
Commissioner considers it necessary.
Commissioner received a written request from a person who is the victim of a violation
of the insurance code.
Insurance law require that Commissioner must hold a hearing.
Within how many days must the Insurance Commissioner hold a hearing after
receiving a written request
30 Days
How many days notice must the Commissioner give before a hearing?
10 Days
Insurance Transaction includes any of the following:
Solicitation or inducement to purchase insurance.
Negotiations toward the sale of insurance.
Executing a contract of insurance.
Advising on coverage and claims.
A licensee may ______ transact insurance business in Alabama until the licensee
is __________ by an Insurer.
NOT; Appointed
An Insurance Producer
A individual who in any manner sells, solicits, or negotiates insurance on behalf of
insurance companies for compensation
In Alabama, an individual represents the
Insurance Company
Any individual who has failed the License exam two times must wait ________ to
retake the test
3 Months
A producer who holds a resident license in a different state may apply for a
_________________ in Alabama, as long as both states have a
_________________.
Nonresident license; Reciprocal agreement
Nonresident Producer
,Applicants do not have to take the the state licensing exam, but must have not
committed any act for which the license could be denied, suspended, or revoked.
The Commissioner may issue a temporary license for a MAXIMUM of
6 Months
Resident Producers
Must complete 24 hours of continuing education every 2 years to keep their license.
A producer who allows their license to lapse may, within ___ months of the
renewal date, reinstate the license without having to complete the prelicense
course or pass the state examination.
12 Months
An Insurance Producer may NOT apply for any insurance license for a minimum
of
3 years
Producers/Businesses must report a change in address or name to the
Commissioner within
30 days
Producers must report felony convictions to the Director within ___ days
30
An insurance producer must keep complete records pertaining to transactions
under the producers license for at least
3 Years
Insurers are responsible for submitting a appointment notice to the Department
of Insurance within __________ of signing an agency contract or submission of
first insurance application
15 days
The ________ of the soliciting insurance producer must appear on the application
Name
When the policy is cancelled within ______ of the inception date, the producer
MUST refund to the consumer a prorated portion of any fee charged within
________ of receiving notification of cancelation.
90 days; 30 days
An Insurer who violates the Alabama rules on commission payments may be
fined up to
3 times the amount of the commissions paid.
Controlled business
policies written on people that the licensed producer has direct influence over: including
family, employers, and/or any company to which the producer has stock control
Obtaining a license for the primary purpose of ____________ _______________
____________ is prohibited
Writing controlled business
An insurance company that authorizes a producer to collect premiums on its
behalf may hold them NO more than
90 days
All alterations on an insurance application must be
Consented to in writing
, Any funds from applicants or policy owners that will be held 15 days or longer
must be deposited in a
Premium Fund Trust Account (PFTA)
Domestic Insurance Company
A company that resides and is incorporated under the laws of the state in which its
home office is located.
Foreign Insurance Company
A company whose home office is located in another state.
Alien Insurance Company
A company that is chartered and organized in any other country other than the United
States
Admitted Insurer
An insurance company that has qualified and received a Certificate of Authority from the
Department of Insurance to sell insurance in this state. (authorized insurance company)
Nonadmitted Insurer
An Insurance Company that has been denied or not yet applied for a Certificate of
Authority and may not sell insurance in this state. (unauthorized company)
Stock Insurance Company
An insurance company that is owned and controlled by stockholders. (shareholders)
The stockholders provide the capital and share in profits or losses.
Stock Insurance Companies are considered ____________ because the policy
owners do not share in the profits of the company
Nonparticipating
Stock insurance companies that issues both participating and nonparticipating
policies are referred to as a company doing business on a
Mixed plan
Mutual life insurance companies
An insurance owned and controlled by its policy owners. These policy holders elect a
board of trustees or governing body to manage the firm.
The profits of of a mutual insurance company are returned to the policyowners in
the form of
Dividends or retained as surplus to meet future obligations
Mutual insurance companies are considered ____________ because the policy
owners do share in the profits of the company
Participating
Defamation
An illegal practice to make any statement or advertisement that contains false info or
unsubstantiated criticisms about an insurance company intended to harm or malign
It is fair to discriminate in the amount of benefits for life and health policies
between
Individuals of different classes
Rebating
The illegal practice to offer a prospective client something of value that is not specified
in a contract to induce the purchase of an insurance policy
The Alabama Life and Disability Insurance Guaranty Association is able to pay
claims or continue coverage for insolvent life and disability insurers by
