ALABAMA INSURANCE TEST EXAM |
QUESTIONS & ANSWERS (VERIFIED) |
2026/2027 LATEST UPDATE |
GRADED A+
Which welfare program provides assistance to the needy?
Correct Answer: Medicaid
Barbara has the right to change the beneficiary designation on her life insurance policy.
Barbara's beneficiary is a(n):
Correct Answer: revocable beneficiary
Within how many calendar days must all clean electronic health insurance claims be
paid in Alabama?
Correct Answer: 30
Which type of term policy allows the policyowner to switch to permanent insurance?
Correct Answer: Convertible term
What does renewable term guarantee?
Correct Answer: The insured's insurability
,If an insured commits suicide, a life insurance policy's face amount will be paid only
after the policy has been in force for at least:
Correct Answer: two years
Which of the following statements concerning a life insurance policy is TRUE?
Correct Answer: An issued policy can never be changed by a producer
The proceeds of a life insurance policy can be paid in a form other than a lump-sum
payment. These forms of payment are called:
Correct Answer: settlement options
The withholding of facts in an insurance application is called:
Correct Answer: concealment
A licensed Alabama insurance producer would NOT be disciplined by the Commissioner
of Insurance for:
Correct Answer: being convicted of a misdemeanor
The option to convert term life insurance to a permanent form of coverage can normally
be executed:
Correct Answer: without proof of insurability
, Which type of life insurance rider allows a policyowner to increase the level of coverage
to keep up with inflation?
Correct Answer: cost of living rider
What is the minimum age requirement for a minor in Alabama to purchase a life
insurance policy?
Correct Answer: 15
Which of the following best describes a Health Maintenance Organization (HMO)?
Correct Answer: Provides full medical services that stress preventative medicine
Medicare Advantage (Medicare Part C) allows the utilization of benefits through a(n):
Correct Answer: HMO, PPO, or traditional insurer
Pat the producer just sold an insurance policy to a client, explaining that he has
authority to issue the policy. Pat was not specifically granted this power from the
insurance company. Pat is exercising:
Correct Answer: implied authority
A disability policy that must be renewed, cannot be cancelled until age 65, and may not
have an increase in premium for any reason is called a(n):
Correct Answer: noncancellable policy
QUESTIONS & ANSWERS (VERIFIED) |
2026/2027 LATEST UPDATE |
GRADED A+
Which welfare program provides assistance to the needy?
Correct Answer: Medicaid
Barbara has the right to change the beneficiary designation on her life insurance policy.
Barbara's beneficiary is a(n):
Correct Answer: revocable beneficiary
Within how many calendar days must all clean electronic health insurance claims be
paid in Alabama?
Correct Answer: 30
Which type of term policy allows the policyowner to switch to permanent insurance?
Correct Answer: Convertible term
What does renewable term guarantee?
Correct Answer: The insured's insurability
,If an insured commits suicide, a life insurance policy's face amount will be paid only
after the policy has been in force for at least:
Correct Answer: two years
Which of the following statements concerning a life insurance policy is TRUE?
Correct Answer: An issued policy can never be changed by a producer
The proceeds of a life insurance policy can be paid in a form other than a lump-sum
payment. These forms of payment are called:
Correct Answer: settlement options
The withholding of facts in an insurance application is called:
Correct Answer: concealment
A licensed Alabama insurance producer would NOT be disciplined by the Commissioner
of Insurance for:
Correct Answer: being convicted of a misdemeanor
The option to convert term life insurance to a permanent form of coverage can normally
be executed:
Correct Answer: without proof of insurability
, Which type of life insurance rider allows a policyowner to increase the level of coverage
to keep up with inflation?
Correct Answer: cost of living rider
What is the minimum age requirement for a minor in Alabama to purchase a life
insurance policy?
Correct Answer: 15
Which of the following best describes a Health Maintenance Organization (HMO)?
Correct Answer: Provides full medical services that stress preventative medicine
Medicare Advantage (Medicare Part C) allows the utilization of benefits through a(n):
Correct Answer: HMO, PPO, or traditional insurer
Pat the producer just sold an insurance policy to a client, explaining that he has
authority to issue the policy. Pat was not specifically granted this power from the
insurance company. Pat is exercising:
Correct Answer: implied authority
A disability policy that must be renewed, cannot be cancelled until age 65, and may not
have an increase in premium for any reason is called a(n):
Correct Answer: noncancellable policy
