1|Page
Alabama Life & Health Insurance Exam , Most Recent
Exam Actual Complete Real Exam Questions And
Correct Answers ||Verified Exam!!!(Verified Answers)
Already Graded A+ | Guaranteed Success | Newest
Exam!!!
To address adverse selection what can an insurer legally
do? - Answers-Establish and enforce sound underwriting
practices
Underwriting helps to protect the insurer against adverse
selection and accepting risks that are more likely than
average to suffer losses.
A contract that is drafted by an insurer and receives no
input or alteration from the insured, is considered a(n): -
Answers-Contract of Adhesion
_________ refers to the jurisdiction where an insurer was
formed or incorporated. - Answers-Domicile: Domicile
refers to the jurisdiction either state or country where an
insurer was formed or incorporated.
,2|Page
_____________ insurance allows for insurance coverage
to be obtained when not available from admitted carriers. -
Answers-Surplus Lines
Insurance can be obtained through surplus lines brokers
(producers) from non-admitted insurers.
To make insurance more affordable and protect the
insurance company from paying out too much in claims,
insurers will: - Answers-Reinsure the risk
Reinsurance is what makes insurance affordable.
Reinsurance companies are insurance companies that
accept all or a portion of the financial risk of loss from the
insurance company.
The field underwriter is the _________ and is not a
determiner of insurability. - Answers-Producer
The producer is in the field soliciting applications for
insurance and in effect is another pair of eyes and ears for
the insurer in helping to issue policies to insurable
prospects.
,3|Page
Third-party ownership refers to: - Answers-A situation
where the policyowner is someone other than the insured
Which statement best describes the term reserve? -
Answers-That amount that, when increased by future
premiums on outstanding policies, and interest on those
premiums will enable the company to meet future death
claims
The applicant, if other than the proposed insured, must
have: - Answers-An insurable interest in the life of the
insured
Controlled business may be defined as insurance sold: -
Answers-To the producer, the producer's family and
friends, and the producer's business associates
With regard to life insurance policies, loading refers to: -
Answers-Assignment of the appropriate share of the
company's operating expenses to each policy
, 4|Page
Which of the following statements about the average
number of people who die each year is true? - Answers-It
is called the mortality rate
Mortality Rate: which is the statistical probability of death
in a large population of insureds.
Which of the following would be considered a speculative
risk? - Answers-The possibility the painting you bought
might be a long-lost masterpiece
A speculative risk is one in which there is a chance for
either loss or gain. Example: Gambling, Casino's, Lottery,
etc. All of the other choices describe pure risk, where there
is no chance of gain, only a chance of loss exists.
Which is the proper term for a company owned by its
policy owners? - Answers-A mutual insurance company
A producer who is acting as an agent is representing: -
Answers-Always the insurer
All of the following are elements of a contract, except: -
Answers-Authority
Alabama Life & Health Insurance Exam , Most Recent
Exam Actual Complete Real Exam Questions And
Correct Answers ||Verified Exam!!!(Verified Answers)
Already Graded A+ | Guaranteed Success | Newest
Exam!!!
To address adverse selection what can an insurer legally
do? - Answers-Establish and enforce sound underwriting
practices
Underwriting helps to protect the insurer against adverse
selection and accepting risks that are more likely than
average to suffer losses.
A contract that is drafted by an insurer and receives no
input or alteration from the insured, is considered a(n): -
Answers-Contract of Adhesion
_________ refers to the jurisdiction where an insurer was
formed or incorporated. - Answers-Domicile: Domicile
refers to the jurisdiction either state or country where an
insurer was formed or incorporated.
,2|Page
_____________ insurance allows for insurance coverage
to be obtained when not available from admitted carriers. -
Answers-Surplus Lines
Insurance can be obtained through surplus lines brokers
(producers) from non-admitted insurers.
To make insurance more affordable and protect the
insurance company from paying out too much in claims,
insurers will: - Answers-Reinsure the risk
Reinsurance is what makes insurance affordable.
Reinsurance companies are insurance companies that
accept all or a portion of the financial risk of loss from the
insurance company.
The field underwriter is the _________ and is not a
determiner of insurability. - Answers-Producer
The producer is in the field soliciting applications for
insurance and in effect is another pair of eyes and ears for
the insurer in helping to issue policies to insurable
prospects.
,3|Page
Third-party ownership refers to: - Answers-A situation
where the policyowner is someone other than the insured
Which statement best describes the term reserve? -
Answers-That amount that, when increased by future
premiums on outstanding policies, and interest on those
premiums will enable the company to meet future death
claims
The applicant, if other than the proposed insured, must
have: - Answers-An insurable interest in the life of the
insured
Controlled business may be defined as insurance sold: -
Answers-To the producer, the producer's family and
friends, and the producer's business associates
With regard to life insurance policies, loading refers to: -
Answers-Assignment of the appropriate share of the
company's operating expenses to each policy
, 4|Page
Which of the following statements about the average
number of people who die each year is true? - Answers-It
is called the mortality rate
Mortality Rate: which is the statistical probability of death
in a large population of insureds.
Which of the following would be considered a speculative
risk? - Answers-The possibility the painting you bought
might be a long-lost masterpiece
A speculative risk is one in which there is a chance for
either loss or gain. Example: Gambling, Casino's, Lottery,
etc. All of the other choices describe pure risk, where there
is no chance of gain, only a chance of loss exists.
Which is the proper term for a company owned by its
policy owners? - Answers-A mutual insurance company
A producer who is acting as an agent is representing: -
Answers-Always the insurer
All of the following are elements of a contract, except: -
Answers-Authority
