Alabama Life and Health Insurance Final Exam
2023 - 2024 (Verified)
1. John has recently died and it was discovered that he was actually ten
years older than what was listed on his life insurance policy. What will the
insurer pay his beneficiary? ANS The amount of insurance that his
premiums would have purchased at his correct age
2. Which of the following is considered the "automatic" Nonforfeiture
Option that most insurers will use? ANS Extended term
3. Susan owns a life insurance policy that has accumulated $10,000 in
cash value in which she can no longer pay its premiums. If she elects to
take
the extended term option, which of these actions would she take? ANS Uses
the
$10,000 to buy term insurance of the same face amount as her original
policy
4. What kind of risk are amateur pilots normally classified as? ANS Special
class risks
,5. The monthly benefit of an Annuity Certain is determined by ANS The
annuitant's payout period selection
6. Shawn has a waiver of premium rider on his life insurance policy. He
becomes disabled for 3 years, during which the insurance company
waives
$3,000 in premiums. When Shawn recovers, he must ANS Resume paying
premiums again
7. Alabama's annuity disclosure regulation ANS Requires the delivery of a
buyer's guide and a disclosure document to an annuity's applicant
8. A policyowner can collect the face amount on what type of policy? ANS
Endow- ment policy
9. On November 10, Ozzie's Major Medical policy is reinstated. He is later
injured in an automobile accident on November 13 and immediately
hospital- ized. Ozzie is eligible for ANS Full benefits
10.In Alabama, when are newborns covered under a health policy? ANS
The mo- ment of birth
, 11.Alabama's continuing education law states that an insurance
producer must report how many classroom hours every two years? ANS
24
12.Mortgage protection is typically covered with ANS Decreasing term
13.A departing employee has decided to continue his group coverage
through COBRA. Who pays the premium in this situation? ANS Employee
14.Kim has purchased a straight life annuity. What will this type of
annuity provide her with? ANS A periodic income to the annuitant for
life
15.According to Required Provision 4, when an insured applies for
reinstate- ment of a health policy and receives a conditional receipt, how
long does the insurer have to approve or deny? ANS Within 45 days of the
date of application
16.An example of a life insurance beneficiary is a(n) ANS Child, spouse, or
compa- ny of the insured.
2023 - 2024 (Verified)
1. John has recently died and it was discovered that he was actually ten
years older than what was listed on his life insurance policy. What will the
insurer pay his beneficiary? ANS The amount of insurance that his
premiums would have purchased at his correct age
2. Which of the following is considered the "automatic" Nonforfeiture
Option that most insurers will use? ANS Extended term
3. Susan owns a life insurance policy that has accumulated $10,000 in
cash value in which she can no longer pay its premiums. If she elects to
take
the extended term option, which of these actions would she take? ANS Uses
the
$10,000 to buy term insurance of the same face amount as her original
policy
4. What kind of risk are amateur pilots normally classified as? ANS Special
class risks
,5. The monthly benefit of an Annuity Certain is determined by ANS The
annuitant's payout period selection
6. Shawn has a waiver of premium rider on his life insurance policy. He
becomes disabled for 3 years, during which the insurance company
waives
$3,000 in premiums. When Shawn recovers, he must ANS Resume paying
premiums again
7. Alabama's annuity disclosure regulation ANS Requires the delivery of a
buyer's guide and a disclosure document to an annuity's applicant
8. A policyowner can collect the face amount on what type of policy? ANS
Endow- ment policy
9. On November 10, Ozzie's Major Medical policy is reinstated. He is later
injured in an automobile accident on November 13 and immediately
hospital- ized. Ozzie is eligible for ANS Full benefits
10.In Alabama, when are newborns covered under a health policy? ANS
The mo- ment of birth
, 11.Alabama's continuing education law states that an insurance
producer must report how many classroom hours every two years? ANS
24
12.Mortgage protection is typically covered with ANS Decreasing term
13.A departing employee has decided to continue his group coverage
through COBRA. Who pays the premium in this situation? ANS Employee
14.Kim has purchased a straight life annuity. What will this type of
annuity provide her with? ANS A periodic income to the annuitant for
life
15.According to Required Provision 4, when an insured applies for
reinstate- ment of a health policy and receives a conditional receipt, how
long does the insurer have to approve or deny? ANS Within 45 days of the
date of application
16.An example of a life insurance beneficiary is a(n) ANS Child, spouse, or
compa- ny of the insured.
