ALABAMA INSURANCE PRODUCER LICENSE TEST (ACTAUL
2025/2026) QUESTIONS WITH VERIFIED ANSWERS
Most policies will pay the accident death benefits as long as
the death is caused by the accident and occurs within - ---
Answers----90 days
The risk management technique that is used to prevent a
specific loss by not exposing oneself to that activity is called -
---Answers----avoidance
all of the following applicants for an insurance producer
license are exempt from prelicensing education requirements
EXCEPT: - ---Answers----an applicant for a dealer's license
the insurer must be able to rely on the statements in the
application, and the insured must be able to rely on the insurer
to pay valid claims. this is referred to as - ---Answers----
Utmost good faith
Which statement is NOT true regarding a Straight Life Policy ?
- ---Answers----It's premium steadily decreases over time, in
response to its growing cash value
Which of the following refers to the amount of retirement
benefits a worker receives under SS based on the worker's
earnings and retirement age - ---Answers----PIA
, Who might receive dividends from a mutual insurer? - ---
Answers----Policyholders
Who determines the eligibility and contribution limits in a HRA
(Health reimbursement arrangement) - ---Answers----The
employer determines both
certain conditions, such as dismemberment or total and
permanent blindness, will automatically qualify the insured for
full disability benefits. What policy does this discribe? - ---
Answers----Presumptive Disability
Which of the following is NOT a characteristic or service of an
HMO plan? - ---Answers----contracting with insurance
companies
Which renewal option does NOT guarantee renewal and allows
the insurance company to refuse renewal of a policy at any
premium due date? - ---Answers----optionally renewable
Because of the history of cancer in her family, Julie purchased
a policy that specifically covers the expense of treating cancer.
What is it? - ---Answers----Dread Disease Policy
regarding long term care policies, which of the following
would NOT be included in activities of daily living? - ---
Answers----Sleeping
2025/2026) QUESTIONS WITH VERIFIED ANSWERS
Most policies will pay the accident death benefits as long as
the death is caused by the accident and occurs within - ---
Answers----90 days
The risk management technique that is used to prevent a
specific loss by not exposing oneself to that activity is called -
---Answers----avoidance
all of the following applicants for an insurance producer
license are exempt from prelicensing education requirements
EXCEPT: - ---Answers----an applicant for a dealer's license
the insurer must be able to rely on the statements in the
application, and the insured must be able to rely on the insurer
to pay valid claims. this is referred to as - ---Answers----
Utmost good faith
Which statement is NOT true regarding a Straight Life Policy ?
- ---Answers----It's premium steadily decreases over time, in
response to its growing cash value
Which of the following refers to the amount of retirement
benefits a worker receives under SS based on the worker's
earnings and retirement age - ---Answers----PIA
, Who might receive dividends from a mutual insurer? - ---
Answers----Policyholders
Who determines the eligibility and contribution limits in a HRA
(Health reimbursement arrangement) - ---Answers----The
employer determines both
certain conditions, such as dismemberment or total and
permanent blindness, will automatically qualify the insured for
full disability benefits. What policy does this discribe? - ---
Answers----Presumptive Disability
Which of the following is NOT a characteristic or service of an
HMO plan? - ---Answers----contracting with insurance
companies
Which renewal option does NOT guarantee renewal and allows
the insurance company to refuse renewal of a policy at any
premium due date? - ---Answers----optionally renewable
Because of the history of cancer in her family, Julie purchased
a policy that specifically covers the expense of treating cancer.
What is it? - ---Answers----Dread Disease Policy
regarding long term care policies, which of the following
would NOT be included in activities of daily living? - ---
Answers----Sleeping
