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AL Life Insurance Test 2025 Test Bank with 350
Recently Tested Questions and Correct Verified
Answers/ Alabama Life and Health License Exam /
AL Life Exam
Insurers offering individual life insurance policies or
annuities to senior citizens that use non guaranteed
elements in illustration must provide a statement to that
effect. Which of the following correct regarding this
statement?
A. Non-guaranteed elements must be in bold print.
B. Guaranteed and non-guaranteed elements must be in
bold print, at the discretion of the agent.
C. Guaranteed elements must be in bold print and non-
guaranteed element must be in plain type
D. All the statement must be in plain type. -
...✔✔ANSWER✔✔...A. Non-guaranteed elements must be
in bold print.
*Life insurance illustration showing premiums, valued,
credits or charges that are not determined at issue are
demonstrating
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A. Non-guaranteed elements
B. supplemental illustrations
C. Guaranteed elements
D. Minimum assumed expenses - ...✔✔ANSWER✔✔...D.
Minimum assumed expenses
*The rule regarding life insurance policy illustrations are
intended to ensure of all following EXCEPT:
A. Ensure that illustration are understandable by
prescribing standard formats to be followed when
illustrations are used.
B. Ensure that illustrations do not misled purchasers of
life insurance are specified.
C. Ensure that the disclosures that are required in
connection to illustrations are specified.
D. Ensure that the illustration specifies that both
guaranteed and non-guaranteed elements will continue
unchanged of all years shown. - ...✔✔ANSWER✔✔...D.
Ensure that the illustration specifies that both guaranteed
and non-guaranteed elements will continue unchanged of
all years shown.
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All of the following are required to be included in life
insurance illustrations, EXCEPT:
A. The name of the insured.
B. The page number showing its relationship to the total
number of pages in the illustration.
C.The page number
D. A statement that the benefits in the illustration are
guaranteed. - ...✔✔ANSWER✔✔...D. A statement that the
benefits in the illustration are guaranteed.
*IF an insurer indicated that an illustration will be used,
they must do which of the following?
A. Send the form to the Commissioner for approval.
B. Update and revise the policy number.
C. Send a summary status report to the policy owner
annually.
D. Send a summary status report to the policy owner at
least every 6 months. - ...✔✔ANSWER✔✔...C. Send a
summary status report to the policy owner annually.
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*According to California Insurance Code, an illustration
used to sell life insurance must include all the following
information EXCEPT:
A) Generic policy name and form number
B) Name and address of the producer
C) A label that identifies it's as an illustration
D) The probability that illustrated non-guaranteed
scenarios will occur - ...✔✔ANSWER✔✔...D) The
probability that illustrated non-guaranteed scenarios will
occur
Preprinted illustration used to sell non guaranteed
individual annuity and life policies must show:
A) Non guaranteed values in bold print
AL Life Insurance Test 2025 Test Bank with 350
Recently Tested Questions and Correct Verified
Answers/ Alabama Life and Health License Exam /
AL Life Exam
Insurers offering individual life insurance policies or
annuities to senior citizens that use non guaranteed
elements in illustration must provide a statement to that
effect. Which of the following correct regarding this
statement?
A. Non-guaranteed elements must be in bold print.
B. Guaranteed and non-guaranteed elements must be in
bold print, at the discretion of the agent.
C. Guaranteed elements must be in bold print and non-
guaranteed element must be in plain type
D. All the statement must be in plain type. -
...✔✔ANSWER✔✔...A. Non-guaranteed elements must be
in bold print.
*Life insurance illustration showing premiums, valued,
credits or charges that are not determined at issue are
demonstrating
,2|Page
A. Non-guaranteed elements
B. supplemental illustrations
C. Guaranteed elements
D. Minimum assumed expenses - ...✔✔ANSWER✔✔...D.
Minimum assumed expenses
*The rule regarding life insurance policy illustrations are
intended to ensure of all following EXCEPT:
A. Ensure that illustration are understandable by
prescribing standard formats to be followed when
illustrations are used.
B. Ensure that illustrations do not misled purchasers of
life insurance are specified.
C. Ensure that the disclosures that are required in
connection to illustrations are specified.
D. Ensure that the illustration specifies that both
guaranteed and non-guaranteed elements will continue
unchanged of all years shown. - ...✔✔ANSWER✔✔...D.
Ensure that the illustration specifies that both guaranteed
and non-guaranteed elements will continue unchanged of
all years shown.
,3|Page
All of the following are required to be included in life
insurance illustrations, EXCEPT:
A. The name of the insured.
B. The page number showing its relationship to the total
number of pages in the illustration.
C.The page number
D. A statement that the benefits in the illustration are
guaranteed. - ...✔✔ANSWER✔✔...D. A statement that the
benefits in the illustration are guaranteed.
*IF an insurer indicated that an illustration will be used,
they must do which of the following?
A. Send the form to the Commissioner for approval.
B. Update and revise the policy number.
C. Send a summary status report to the policy owner
annually.
D. Send a summary status report to the policy owner at
least every 6 months. - ...✔✔ANSWER✔✔...C. Send a
summary status report to the policy owner annually.
, 4|Page
*According to California Insurance Code, an illustration
used to sell life insurance must include all the following
information EXCEPT:
A) Generic policy name and form number
B) Name and address of the producer
C) A label that identifies it's as an illustration
D) The probability that illustrated non-guaranteed
scenarios will occur - ...✔✔ANSWER✔✔...D) The
probability that illustrated non-guaranteed scenarios will
occur
Preprinted illustration used to sell non guaranteed
individual annuity and life policies must show:
A) Non guaranteed values in bold print
