AL Life Insurance Test 2025/2026 Test Bank with 350
Recently Tested Questions and Correct Verified Answers/
Alabama Life and Health License Exam / AL Life
Exam.Latest!!
Gramm-Leach-Bliley Act (GLBA) - ANSWER..Consumer - An individual about whom
a company collects information is a consumer.
Minimum Age to receive a license - ANSWER..18
Continuing Education Hours - ANSWER..24 Hours every 2 years (3 Hours must be
in ethics)
Insurer must respond to claimant communications within how many days? -
ANSWER..15 days
Commissioner Powers and duties include: - ANSWER..Imposing penalties,
including fines, suspensions, and revocations.
All insurance forms (riders, policies, applications, endorsements, and contracts)
must be filed and approved by the Commissioner.
Customer - A customer is a consumer that has developed an ongoing relationship
with a financial institution.
1|Page
,Privacy Notices must explain: - ANSWER..What info the company gathers about
the customer.
Where that info is shared
How the company safeguards that info
Fair Credit Reporting Act - ANSWER..Responsible for the opt-out opportunity, but
the privacy notice must inform the customer of this right under the GLBA.
Insurance Consultants - ANSWER..To become licensed as an insurance consultant,
a producer must have been licensed and actively transacted inurance for at least
three of the four years immediately preceding the application for a consultants
license.
License Requirements - ANSWER..18 years old at least.
Appointments - ANSWER..All producers must be appointed by at least one
insurer.
Misrepresentation - ANSWER..It is illegal to make any written or oral statement,
sales presentation, or comparison that; misrepresents the dividends, benefits,
advantages, conditions, or terms of any policy.
Example: uses a name of any insurance policy that misrepresents its true nature.
False Advertising - ANSWER..It is illegal for any producer to formulate or use an
advertisement or statement that is untrue, deceptive, or misleading regarding any
insurance company or persons associated with that company.
2|Page
, Defamation - ANSWER..Making any statement, written or oral, that is false or
maliciously critical of the financial condition of an insurance company or a
producer representing that company is illegal.
Rebating - ANSWER..Offering valuable consideration, other than that which is
offered in the contract as an inducement to purchase a policy is illegal.
Coercion - ANSWER..Forcing a person to buy insurance through a particular
company or producer.
Unfair Discrimination - ANSWER..It is illegal to unfairly discriminate between
individuals of the same class and equal life expectancy in the rates, dividends,
benefits, or terms of any life or life annuity contract. Unfairly discriminate
between neighborhoods within a municipality and of essentially the same hazard.
Use sexual orientation in the underwriting process or in the determination of
insurability.
A producer cannot share commissions with: - ANSWER..Someone that is not a life
insurance agent. Monies may not be commingled with the producer's personal
funds.
Insurance Fraud: - ANSWER..Anyone who knowingly misappropriates insurance
premiums, makes any material false statement of an insurance application, or
makes a false insurance claim commits insurance fraud.
McCarran Ferguson Act - ANSWER..The fed govt had the right to regulate the
business of insurance but only to the extent that such business is not regulated by
3|Page
Recently Tested Questions and Correct Verified Answers/
Alabama Life and Health License Exam / AL Life
Exam.Latest!!
Gramm-Leach-Bliley Act (GLBA) - ANSWER..Consumer - An individual about whom
a company collects information is a consumer.
Minimum Age to receive a license - ANSWER..18
Continuing Education Hours - ANSWER..24 Hours every 2 years (3 Hours must be
in ethics)
Insurer must respond to claimant communications within how many days? -
ANSWER..15 days
Commissioner Powers and duties include: - ANSWER..Imposing penalties,
including fines, suspensions, and revocations.
All insurance forms (riders, policies, applications, endorsements, and contracts)
must be filed and approved by the Commissioner.
Customer - A customer is a consumer that has developed an ongoing relationship
with a financial institution.
1|Page
,Privacy Notices must explain: - ANSWER..What info the company gathers about
the customer.
Where that info is shared
How the company safeguards that info
Fair Credit Reporting Act - ANSWER..Responsible for the opt-out opportunity, but
the privacy notice must inform the customer of this right under the GLBA.
Insurance Consultants - ANSWER..To become licensed as an insurance consultant,
a producer must have been licensed and actively transacted inurance for at least
three of the four years immediately preceding the application for a consultants
license.
License Requirements - ANSWER..18 years old at least.
Appointments - ANSWER..All producers must be appointed by at least one
insurer.
Misrepresentation - ANSWER..It is illegal to make any written or oral statement,
sales presentation, or comparison that; misrepresents the dividends, benefits,
advantages, conditions, or terms of any policy.
Example: uses a name of any insurance policy that misrepresents its true nature.
False Advertising - ANSWER..It is illegal for any producer to formulate or use an
advertisement or statement that is untrue, deceptive, or misleading regarding any
insurance company or persons associated with that company.
2|Page
, Defamation - ANSWER..Making any statement, written or oral, that is false or
maliciously critical of the financial condition of an insurance company or a
producer representing that company is illegal.
Rebating - ANSWER..Offering valuable consideration, other than that which is
offered in the contract as an inducement to purchase a policy is illegal.
Coercion - ANSWER..Forcing a person to buy insurance through a particular
company or producer.
Unfair Discrimination - ANSWER..It is illegal to unfairly discriminate between
individuals of the same class and equal life expectancy in the rates, dividends,
benefits, or terms of any life or life annuity contract. Unfairly discriminate
between neighborhoods within a municipality and of essentially the same hazard.
Use sexual orientation in the underwriting process or in the determination of
insurability.
A producer cannot share commissions with: - ANSWER..Someone that is not a life
insurance agent. Monies may not be commingled with the producer's personal
funds.
Insurance Fraud: - ANSWER..Anyone who knowingly misappropriates insurance
premiums, makes any material false statement of an insurance application, or
makes a false insurance claim commits insurance fraud.
McCarran Ferguson Act - ANSWER..The fed govt had the right to regulate the
business of insurance but only to the extent that such business is not regulated by
3|Page
