Alabama Life & Health Insurance Test 2026
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Expected Questions and Answers
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(Verified by Expert) v v
1. Which welfare program provides assistance to the needy? ANS Medicaid v v
2. Barbara has the right to change the beneficiary designation on her lifeinsurance po
licy. Barbara's beneficiary is a(n) ANS revocable beneficiary
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3. Within how many calendar days must all clean electronic health insuranceclaims be pai
d in Alabama? ANS 30
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4. Which type of term policy allows the policyowner to switch to permanentinsurance? A v
NS Convertible term
5. What does renewable term guarantee? ANS The insured's insurability
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6. If an insured commits suicide, a life insurance policy's face amount will bepaid only afte
r the policy has been in force for at least ANS two years
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,7. Which of the following statements concerning a life insurance policy isTRUE? ANS A
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n issued policy can never be changed by a producer
8. The proceeds of a life insurance policy can be paid in a form other than alump-
sum payment.These forms of payment are called ANS settlement options
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9. The withholding of facts in an insurance application is called ANS concealment
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10. A licensed Alabama insurance producer would NOT be disciplined by theCommission
er of Insurance for ANS being convicted of a misdemeanor
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11. The option to convert term life insurance to a permanent formof coveragecan normally
be executed ANS without proof of insurability
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12. Whichtypeoflifeinsuranceriderallowsapolicyownertoincreasethelevelof coverage to
keep up with inflation? ANS cost of living rider
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13. What is the minimum age requirement for a minor in Alabama to purchasea life insuran
ce policy? ANS 15
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14. Which of the following best describes a Health Maintenance Organization(HMO)? AN v
S Provides full medical services that stress preventative medicine
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15. Medicare Advantage (Medicare Part C) allows the utilization of benefitsthrough a(n
, ) ANS HMO, PPO, or traditional insurer
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16. Pattheproducerjustsoldaninsurancepolicytoaclient,explainingthathehas authority t
o issue the policy. Pat was not specifically granted this powerfrom the insurance company
. Pat is exercising ANS implied authority
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17. 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) ANS non-cancellable policy
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18. Benefits under a health insurance policy may (with the insured's writtenrequest) be p
ayable to ANS a hospital, physician, or surgeon
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19. Bart is injured and provides notice of a health claim to his insurer. He laterreceives the re
quired claims forms. Within how many days of the loss must Bart file proof of loss with the
insurance company? ANS 90 v v
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Expected Questions and Answers
v v v v
(Verified by Expert) v v
1. Which welfare program provides assistance to the needy? ANS Medicaid v v
2. Barbara has the right to change the beneficiary designation on her lifeinsurance po
licy. Barbara's beneficiary is a(n) ANS revocable beneficiary
v
3. Within how many calendar days must all clean electronic health insuranceclaims be pai
d in Alabama? ANS 30
v v
4. Which type of term policy allows the policyowner to switch to permanentinsurance? A v
NS Convertible term
5. What does renewable term guarantee? ANS The insured's insurability
v
6. If an insured commits suicide, a life insurance policy's face amount will bepaid only afte
r the policy has been in force for at least ANS two years
v
,7. Which of the following statements concerning a life insurance policy isTRUE? ANS A
v v
n issued policy can never be changed by a producer
8. The proceeds of a life insurance policy can be paid in a form other than alump-
sum payment.These forms of payment are called ANS settlement options
v v
9. The withholding of facts in an insurance application is called ANS concealment
v v
10. A licensed Alabama insurance producer would NOT be disciplined by theCommission
er of Insurance for ANS being convicted of a misdemeanor
v
11. The option to convert term life insurance to a permanent formof coveragecan normally
be executed ANS without proof of insurability
v v
12. Whichtypeoflifeinsuranceriderallowsapolicyownertoincreasethelevelof coverage to
keep up with inflation? ANS cost of living rider
v v
13. What is the minimum age requirement for a minor in Alabama to purchasea life insuran
ce policy? ANS 15
v v
14. Which of the following best describes a Health Maintenance Organization(HMO)? AN v
S Provides full medical services that stress preventative medicine
v
15. Medicare Advantage (Medicare Part C) allows the utilization of benefitsthrough a(n
, ) ANS HMO, PPO, or traditional insurer
v v
16. Pattheproducerjustsoldaninsurancepolicytoaclient,explainingthathehas authority t
o issue the policy. Pat was not specifically granted this powerfrom the insurance company
. Pat is exercising ANS implied authority
v v
17. 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) ANS non-cancellable policy
v
18. Benefits under a health insurance policy may (with the insured's writtenrequest) be p
ayable to ANS a hospital, physician, or surgeon
v v
19. Bart is injured and provides notice of a health claim to his insurer. He laterreceives the re
quired claims forms. Within how many days of the loss must Bart file proof of loss with the
insurance company? ANS 90 v v
