Alabama State Life & Health Insurance Exam
(6 Sets of Exam’s)
Alabama State Life & Health Insurance Exam
Set 1
1. Which policy accumulates cash value at the fastest rate? ANS A. 10-pay life policy
2. The legal doctrine that prevents one from exercising a right of privilege is
called ANS Estoppel
3. If the consideration clause states that the premium payment keeps thepolicy
in force until the next premium is due plus 30 days thereafter, the policy ANS
contains a grace period.
4. If an insurance carrier decides to cancel a producer's appointment, each ofthe
following is true EXCEPT ANS The Commissioner can immediately cancel the
producer's license based upon the Company's allegation of wrong doing by the producer.
5. Under the waiver of premium provision of a life insurance policy, if a dis- ability
,proves total and permanent, what happens to any premiums paid by the
policyowner during the waiting period ANS All premiums paid by the policyholder
during the waiting period are typically refunded.
6. A company chartered in Alabama would be considered what type of insur-ance
company in Ohio? ANS Foreign
7. The Entire Contract Provision stipulates each of the following EXCEPT ANS Any
verbal changes made by the agent are permissible if in writing.
8. If the insurance company accepts a special class risk ANS the premium will be
higher than for a normal risk.
9. The Optional Provisions of a standard Health policy address the issue of claims
arising from "illegal occupations," "commission of felonies," and "useof
narcotics." According to these provisions ANS the insurer is not liable for claims
arising under the conditions described in these provisions.
10. The application has two parts. Part 1 is? ANS General information about the
applicant.
11. All Health Insurers must pay claims as prescribed by Alabama law. Which of
these statements is FALSE? ANS . Insurers may decide which claim forms they will
accept
12. Darlene dies without having paid the $500 premium on her $50,000 policythat
, was due a week before her death. With no outstanding policy loans, Darlene's
beneficiary can expect to receive ANS $49,500, which is the face amountless the
premium owed.
13. Legally, who does an insurance agent (producer) represent? ANS only the com-
pany
14. Benefits paid under an employer-paid Group Health Insurance policy are?-
ANS The benefits are non-taxable to the employee, but the premiums are taxable as
remuneration to the employee.
(6 Sets of Exam’s)
Alabama State Life & Health Insurance Exam
Set 1
1. Which policy accumulates cash value at the fastest rate? ANS A. 10-pay life policy
2. The legal doctrine that prevents one from exercising a right of privilege is
called ANS Estoppel
3. If the consideration clause states that the premium payment keeps thepolicy
in force until the next premium is due plus 30 days thereafter, the policy ANS
contains a grace period.
4. If an insurance carrier decides to cancel a producer's appointment, each ofthe
following is true EXCEPT ANS The Commissioner can immediately cancel the
producer's license based upon the Company's allegation of wrong doing by the producer.
5. Under the waiver of premium provision of a life insurance policy, if a dis- ability
,proves total and permanent, what happens to any premiums paid by the
policyowner during the waiting period ANS All premiums paid by the policyholder
during the waiting period are typically refunded.
6. A company chartered in Alabama would be considered what type of insur-ance
company in Ohio? ANS Foreign
7. The Entire Contract Provision stipulates each of the following EXCEPT ANS Any
verbal changes made by the agent are permissible if in writing.
8. If the insurance company accepts a special class risk ANS the premium will be
higher than for a normal risk.
9. The Optional Provisions of a standard Health policy address the issue of claims
arising from "illegal occupations," "commission of felonies," and "useof
narcotics." According to these provisions ANS the insurer is not liable for claims
arising under the conditions described in these provisions.
10. The application has two parts. Part 1 is? ANS General information about the
applicant.
11. All Health Insurers must pay claims as prescribed by Alabama law. Which of
these statements is FALSE? ANS . Insurers may decide which claim forms they will
accept
12. Darlene dies without having paid the $500 premium on her $50,000 policythat
, was due a week before her death. With no outstanding policy loans, Darlene's
beneficiary can expect to receive ANS $49,500, which is the face amountless the
premium owed.
13. Legally, who does an insurance agent (producer) represent? ANS only the com-
pany
14. Benefits paid under an employer-paid Group Health Insurance policy are?-
ANS The benefits are non-taxable to the employee, but the premiums are taxable as
remuneration to the employee.
