Alabama State Insurance Exam | Latest
Exam 2026.
1.10-pay life policy - ✓✓✓Which policy accumulates cash value at the fastest rate?
1. Estoppel - ✓✓✓The legal doctrine that prevents one from exercising a right of
privilege is called
2. contains a grace period. - ✓✓✓If the consideration clause states that the
premium payment keeps the policy in force until the next premium is due plus 30
days thereafter, the policy
3. The Commissioner can immediately cancel the producer's license based upon
the Company's allegation of wrong doing by the producer. - ✓✓✓If an insurance
carrier decides to cancel a producer's appointment, each of the following is true
EXCEPT:
4. All premiums paid by the policyholder during the waiting period are typically
refunded. - ✓✓✓Under the waiver of premium provision of a life insurance policy,
if a disability proves total and permanent, what happens to any premiums paid by
the policyowner during the waiting period
5. Foreign - ✓✓✓A company chartered in Alabama would be considered what type
of insurance company in Ohio?
6. Any verbal changes made by the agent are permissible if in writing. - ✓✓✓The
Entire Contract Provision stipulates each of the following EXCEPT:
7. the premium will be higher than for a normal risk. - ✓✓✓If the insurance company
accepts a special class risk
8. the insurer is not liable for claims arising under the conditions described in these
provisions. - ✓✓✓The Optional Provisions of a standard Health policy address
the issue of claims arising from "illegal occupations," "commission of felonies,"
and "use of narcotics." According to these provisions
9. General information about the applicant. - ✓✓✓The application has two parts.
Part 1 is?
10. . Insurers may decide which claim forms they will accept - ✓✓✓All Health
Insurers must pay claims as prescribed by Alabama law. Which of these
statements is FALSE?
pg. 1
, 11. $49,500, which is the face amount less the premium owed. - ✓✓✓Darlene dies
without having paid the $500 premium on her $50,000 policy that was due a
week before her death. With no outstanding policy loans, Darlene's beneficiary
can expect to receive
12. only the company - ✓✓✓Legally, who does an insurance agent (producer)
represent?
13. The benefits are non-taxable to the employee, but the premiums are taxable as
remuneration to the employee. - ✓✓✓Benefits paid under an employer-paid
Group Health Insurance policy are?
14. conversion privilege - ✓✓✓When a dependent child covered under the parents'
major medical policy reaches the limiting age, what is the provision that allows
the child to purchase his or her own policy without establishing insurability?
15. The company will pay only the amount of insurance that Jonas' premiums would
have purchased at his correct age. - ✓✓✓When Jonas died, it was discovered
that he was actually six years older than he had claimed when applying for an
insurance policy. Upon his death what will the insurance company pay?
16. all of the above - ✓✓✓If you qualify for COBRA, coverage under the group health
plan
17. . Represent the State of Alabama in any legal proceedings. - ✓✓✓The duties of
the Alabama Insurance Commissioner include all of the following EXCEPT:
18. cannot be replaced as beneficiary without his consent - ✓✓✓If Todd has been
named the irrevocable beneficiary of a life insurance policy, he
19. One party writes the contract and the other party must accept or reject the
contract as written. - ✓✓✓Why are insurance contracts said to be contracts of
adhesion?
20. Both of the above. - ✓✓✓How can 'Key Employee' disability income insurance
purchased by a business be used by the business?
21. an airline insuring the lives of its passengers. - ✓✓✓All of the following are
examples of insurable interest EXCEPT:
22. The person named to receive the sum specified in a life insurance contract when
the insured dies. - ✓✓✓A beneficiary is always which of the following?
pg. 2
Exam 2026.
1.10-pay life policy - ✓✓✓Which policy accumulates cash value at the fastest rate?
1. Estoppel - ✓✓✓The legal doctrine that prevents one from exercising a right of
privilege is called
2. contains a grace period. - ✓✓✓If the consideration clause states that the
premium payment keeps the policy in force until the next premium is due plus 30
days thereafter, the policy
3. The Commissioner can immediately cancel the producer's license based upon
the Company's allegation of wrong doing by the producer. - ✓✓✓If an insurance
carrier decides to cancel a producer's appointment, each of the following is true
EXCEPT:
4. All premiums paid by the policyholder during the waiting period are typically
refunded. - ✓✓✓Under the waiver of premium provision of a life insurance policy,
if a disability proves total and permanent, what happens to any premiums paid by
the policyowner during the waiting period
5. Foreign - ✓✓✓A company chartered in Alabama would be considered what type
of insurance company in Ohio?
6. Any verbal changes made by the agent are permissible if in writing. - ✓✓✓The
Entire Contract Provision stipulates each of the following EXCEPT:
7. the premium will be higher than for a normal risk. - ✓✓✓If the insurance company
accepts a special class risk
8. the insurer is not liable for claims arising under the conditions described in these
provisions. - ✓✓✓The Optional Provisions of a standard Health policy address
the issue of claims arising from "illegal occupations," "commission of felonies,"
and "use of narcotics." According to these provisions
9. General information about the applicant. - ✓✓✓The application has two parts.
Part 1 is?
10. . Insurers may decide which claim forms they will accept - ✓✓✓All Health
Insurers must pay claims as prescribed by Alabama law. Which of these
statements is FALSE?
pg. 1
, 11. $49,500, which is the face amount less the premium owed. - ✓✓✓Darlene dies
without having paid the $500 premium on her $50,000 policy that was due a
week before her death. With no outstanding policy loans, Darlene's beneficiary
can expect to receive
12. only the company - ✓✓✓Legally, who does an insurance agent (producer)
represent?
13. The benefits are non-taxable to the employee, but the premiums are taxable as
remuneration to the employee. - ✓✓✓Benefits paid under an employer-paid
Group Health Insurance policy are?
14. conversion privilege - ✓✓✓When a dependent child covered under the parents'
major medical policy reaches the limiting age, what is the provision that allows
the child to purchase his or her own policy without establishing insurability?
15. The company will pay only the amount of insurance that Jonas' premiums would
have purchased at his correct age. - ✓✓✓When Jonas died, it was discovered
that he was actually six years older than he had claimed when applying for an
insurance policy. Upon his death what will the insurance company pay?
16. all of the above - ✓✓✓If you qualify for COBRA, coverage under the group health
plan
17. . Represent the State of Alabama in any legal proceedings. - ✓✓✓The duties of
the Alabama Insurance Commissioner include all of the following EXCEPT:
18. cannot be replaced as beneficiary without his consent - ✓✓✓If Todd has been
named the irrevocable beneficiary of a life insurance policy, he
19. One party writes the contract and the other party must accept or reject the
contract as written. - ✓✓✓Why are insurance contracts said to be contracts of
adhesion?
20. Both of the above. - ✓✓✓How can 'Key Employee' disability income insurance
purchased by a business be used by the business?
21. an airline insuring the lives of its passengers. - ✓✓✓All of the following are
examples of insurable interest EXCEPT:
22. The person named to receive the sum specified in a life insurance contract when
the insured dies. - ✓✓✓A beneficiary is always which of the following?
pg. 2
