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Alabama State Insurance Exam FX
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
If a producer changes his residential address who must he/she notify?
Ans: This change will need to be reported to the Commissioner.
Which of the following is NOT true regarding minors purchasing insurance
policies in this state?
Ans: Minors at the age of 14 are allowed to buy their own policies.
What is the penalty for IRA distributions that are below the required minimum
for the year?
Ans: 50%
All of the following are business uses of life insurance EXCEPT
Ans: Funding against general company financial loss.
Which of the following is called a "second-to-die" policy?
Ans: Survivorship life
The term "fiduciary capacity" deals with a producer's
Ans: Position of financial trust.
Which is NOT true about beneficiary designations?
Ans: The beneficiary must have insurable interest in the insured.
An IRA purchased by a small employer to cover employees is known as a
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Ans:
All of the following applicants for an insurance producer license are exempt
from prelicensing education requirements EXCEPT
Ans: An applicant for a dealer's license.
An agent accepts the premium payment 35 days after it is due, telling the
insured that there will not be a problem keeping the policy in force. This is an
example of what type of agent authority?
Ans: apparant
Which of the following determines the length of time that benefits will be
received under the Fixed-Amount settlement option?
Ans: Size of each installment
What is a major problem with naming a trust as the beneficiary of a life
insurance policy?
Ans: They are expensive to administer.
Contracts that are prepared by one party and submitted to the other party on a
take-it-or-leave-it basis are classified as
Ans: Contracts of adhesion.
All of the following statements concerning the use of life insurance as an
Executive Bonus are correct EXCEPT
Ans: The policy is owned by the company.
Which of the following is considered to be a morale hazard?
Ans: Driving recklessly
When transacting business in this state an insurer formed under the laws of
another country is known as a/an
Ans: Alien Insurer
Click here for more: Preppass - Stuvia
Alabama State Insurance Exam FX
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
If a producer changes his residential address who must he/she notify?
Ans: This change will need to be reported to the Commissioner.
Which of the following is NOT true regarding minors purchasing insurance
policies in this state?
Ans: Minors at the age of 14 are allowed to buy their own policies.
What is the penalty for IRA distributions that are below the required minimum
for the year?
Ans: 50%
All of the following are business uses of life insurance EXCEPT
Ans: Funding against general company financial loss.
Which of the following is called a "second-to-die" policy?
Ans: Survivorship life
The term "fiduciary capacity" deals with a producer's
Ans: Position of financial trust.
Which is NOT true about beneficiary designations?
Ans: The beneficiary must have insurable interest in the insured.
An IRA purchased by a small employer to cover employees is known as a
, Page | 2
Click here for more: Preppass - Stuvia
Ans:
All of the following applicants for an insurance producer license are exempt
from prelicensing education requirements EXCEPT
Ans: An applicant for a dealer's license.
An agent accepts the premium payment 35 days after it is due, telling the
insured that there will not be a problem keeping the policy in force. This is an
example of what type of agent authority?
Ans: apparant
Which of the following determines the length of time that benefits will be
received under the Fixed-Amount settlement option?
Ans: Size of each installment
What is a major problem with naming a trust as the beneficiary of a life
insurance policy?
Ans: They are expensive to administer.
Contracts that are prepared by one party and submitted to the other party on a
take-it-or-leave-it basis are classified as
Ans: Contracts of adhesion.
All of the following statements concerning the use of life insurance as an
Executive Bonus are correct EXCEPT
Ans: The policy is owned by the company.
Which of the following is considered to be a morale hazard?
Ans: Driving recklessly
When transacting business in this state an insurer formed under the laws of
another country is known as a/an
Ans: Alien Insurer
