Alabama Life and Health Insurance Final Exam
2023 - 2024 (Verified)
1.Under a health maintenance organization HMO service providers are paid
a fixed monthly fee for each member. This concept is called ANS Capitation
2.When can a lapsed life insurance policy usually be reinstated ANS Within
three to five years of the policy lapsing
3.All of these statements concerning the coordination of benefits are true
ex- cept ANS The secondary insurance does not pay benefits. Which
means the secondary insurer does pay benefits
4.The period of time during which a surviving spouse does not qualify for
Social Security survivor or retirement benefits is called ANS The blackout
period
5.Peggy surrenders a permanent life policy with a cash value of $15,000
and then outstanding policy loan of $5,000. If she chooses the reduced
paid-up option what will be the result? ANS A paid up permanent policy
purchased with
,$10,000
6.Total disability can be defined as the insureds inability to perform the
occupation for which he or she is reasonably qualified by education
training or experience for disability income insurance purposes this
definition is what ANS Own occupation
7.Why are insurance contracts said to be contracts of adhesion ANS The
contract has been prepared by one party the insurer and the other
party which is the insured must accept the contract as written
8. Catherine is a retiring and was recently hospitalized for 10 days. Which
type of insurance policy would best cover her for excess Hospital
expenses-
ANS Medicare supplement. A Medicare supplement policy will provide a
subscriber the best coverage for excess charges
9. What do major medical policies typically cover ANS Usual, customary,
and nec- essary expenses
10.At what point does a whole life policy pay the face amount? ANS
Upon the insureds death or reaching the age of 100
11.Which type of Term policy allows the policyowner to switch to
, permanent insurance ANS Convertible term
12.Trent has a permanent partial disability where he is paid 50% of
his previous income. Trent is covered by a ANS Residual disability
benefit
13.Which of these actions could result in a lapsed policy ANS Premium
was not paid during the grace period
2023 - 2024 (Verified)
1.Under a health maintenance organization HMO service providers are paid
a fixed monthly fee for each member. This concept is called ANS Capitation
2.When can a lapsed life insurance policy usually be reinstated ANS Within
three to five years of the policy lapsing
3.All of these statements concerning the coordination of benefits are true
ex- cept ANS The secondary insurance does not pay benefits. Which
means the secondary insurer does pay benefits
4.The period of time during which a surviving spouse does not qualify for
Social Security survivor or retirement benefits is called ANS The blackout
period
5.Peggy surrenders a permanent life policy with a cash value of $15,000
and then outstanding policy loan of $5,000. If she chooses the reduced
paid-up option what will be the result? ANS A paid up permanent policy
purchased with
,$10,000
6.Total disability can be defined as the insureds inability to perform the
occupation for which he or she is reasonably qualified by education
training or experience for disability income insurance purposes this
definition is what ANS Own occupation
7.Why are insurance contracts said to be contracts of adhesion ANS The
contract has been prepared by one party the insurer and the other
party which is the insured must accept the contract as written
8. Catherine is a retiring and was recently hospitalized for 10 days. Which
type of insurance policy would best cover her for excess Hospital
expenses-
ANS Medicare supplement. A Medicare supplement policy will provide a
subscriber the best coverage for excess charges
9. What do major medical policies typically cover ANS Usual, customary,
and nec- essary expenses
10.At what point does a whole life policy pay the face amount? ANS
Upon the insureds death or reaching the age of 100
11.Which type of Term policy allows the policyowner to switch to
, permanent insurance ANS Convertible term
12.Trent has a permanent partial disability where he is paid 50% of
his previous income. Trent is covered by a ANS Residual disability
benefit
13.Which of these actions could result in a lapsed policy ANS Premium
was not paid during the grace period
