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ALABAMA INSURANCE TEST EXAM 2026|
BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
1. Julio, the insurance producer, has allowed his license to lapse. He would
like to reinstate his license without retaking a prelicense course or
passing a written examination. To do this, Julio must reinstate the
license within months from the renewal date. - correct answer - 12
2. An insurance producer who offers a potential client something of value
as an incentive to purchase insurance is engaging in: - correct answer -
rebating
3. Carol is a life insurance policyowner who has transferred her ownership
to a third party in exchange for a percentage of the death benefit. What
is this called? - correct answer - Viatical settlement agreement
4. In Alabama, when are newborns covered under a health policy? -
correct answer - The moment of birth
5. Which of the following is a TRUE statement regarding dental insurance?
- correct answer - Comprehensive dental care policies usually cover a
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percentage of reasonable and customary charges for non-routine
treatment
6. What use does a business have for a key employee disability insurance
policy? - correct answer - Temporarily replace a disabled key employee
7. The period of time during which a surviving spouse does not qualify for
Social Security survivor or retirement benefits is called: - correct answer
- The Blackout Period
8. Required Provision 3 states that the minimum grace period for all
policies (except those with monthly or weekly premium modes) is: -
correct answer - 31 days
9. Which statement concerning Alabama's life insurance solicitation
regulations is true? - correct answer - All of these
10. Which of the following dividend options allows the continuation of
cash value accumulation? - correct answer - Reduced paid-up insurance
11. Medicare eligibility is typically based on: - correct answer - age
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12. What is vesting? - correct answer - The employee's right to the
employer's contributions in a retirement plan if employment terminates
prior to retirement
13. Katherine is a retiree and was recently hospitalized for 10 days.
Which type of insurance policy would best cover her for excess hospital
expenses? - correct answer -
14. What kind of risk are amateur pilots normally classified as? - correct
answer - Special class risks
15. What does Disability Buy-Sell insurance provide? - correct answer -
lump-sum benefits
16. When medical expenses reach a certain dollar amount, the insured is
no longer responsible for sharing the cost of expenses. The insurance
company then pays 100% of the covered expenses. This major medical
policy provision is called a(n): - correct answer - stop-loss limit
17. Which of the following statements is NOT correct? - correct answer -
Agents are allowed to waive certain policy provisions
ALABAMA INSURANCE TEST EXAM 2026|
BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
1. Julio, the insurance producer, has allowed his license to lapse. He would
like to reinstate his license without retaking a prelicense course or
passing a written examination. To do this, Julio must reinstate the
license within months from the renewal date. - correct answer - 12
2. An insurance producer who offers a potential client something of value
as an incentive to purchase insurance is engaging in: - correct answer -
rebating
3. Carol is a life insurance policyowner who has transferred her ownership
to a third party in exchange for a percentage of the death benefit. What
is this called? - correct answer - Viatical settlement agreement
4. In Alabama, when are newborns covered under a health policy? -
correct answer - The moment of birth
5. Which of the following is a TRUE statement regarding dental insurance?
- correct answer - Comprehensive dental care policies usually cover a
, Page | 2
percentage of reasonable and customary charges for non-routine
treatment
6. What use does a business have for a key employee disability insurance
policy? - correct answer - Temporarily replace a disabled key employee
7. The period of time during which a surviving spouse does not qualify for
Social Security survivor or retirement benefits is called: - correct answer
- The Blackout Period
8. Required Provision 3 states that the minimum grace period for all
policies (except those with monthly or weekly premium modes) is: -
correct answer - 31 days
9. Which statement concerning Alabama's life insurance solicitation
regulations is true? - correct answer - All of these
10. Which of the following dividend options allows the continuation of
cash value accumulation? - correct answer - Reduced paid-up insurance
11. Medicare eligibility is typically based on: - correct answer - age
, Page | 3
12. What is vesting? - correct answer - The employee's right to the
employer's contributions in a retirement plan if employment terminates
prior to retirement
13. Katherine is a retiree and was recently hospitalized for 10 days.
Which type of insurance policy would best cover her for excess hospital
expenses? - correct answer -
14. What kind of risk are amateur pilots normally classified as? - correct
answer - Special class risks
15. What does Disability Buy-Sell insurance provide? - correct answer -
lump-sum benefits
16. When medical expenses reach a certain dollar amount, the insured is
no longer responsible for sharing the cost of expenses. The insurance
company then pays 100% of the covered expenses. This major medical
policy provision is called a(n): - correct answer - stop-loss limit
17. Which of the following statements is NOT correct? - correct answer -
Agents are allowed to waive certain policy provisions
