Alabama Life and Health Insurance Exam
Questions and Answers (Verified
Answers) Most Recent exam COMPLETE
(2026) (Latest Update 2026) UPDATE!!
what law protects consumers from the circulation of inaccurate or obsolete information? - (
answers)The Fair Credit Reporting Act
Insurers are classified according to their domicile. What are the 3 types of insurers? - (
answers)domestic, foreign, and alien
what type of insurer is a voluntarily formed organization that provides religious organizations
with a representative form of government? - ( answers)Fraternal insurer
the type of insurance company organized to return any surplus money to its policyholders is
known as what? - ( answers)mutual company
when agents act within the scope of their contract, their actions will be assumed to be the
actions of whom? - ( answers)Insurer
what is the name of the process that insurance companies use to determine if an applicant is
insurable? - ( answers)underwriting
if an insurer needs to obtain information about the applicant from investigators, what is the
insurer required to do? - ( answers)provide the aplicant with a Disclosure Authorization Notice
what type of insurer is formed under the laws of another country? - ( answers)Alien
1
, when risks with higher probability of loss are seeking insurance more often than other risks, is
known as what? - ( answers)adverse selection
when does an insurance policy go into effect? - ( answers)when to policy is delivered and the
premium is paid.
according to the Law of Agency, a principal is represented by whom? - ( answers)an agent or
producer
what type of risk is insurable? - ( answers)pure
who owns stock companies? - ( answers)stockholders
what entities make up the Medical Information Bureau? - ( answers)Insurers
when a change needs to be made on the application for insurance, which is the best method for
correcting the information? - ( answers)complete a new application of ask the applicant to
initial the correction on the original application
in order to transact insurance within a given sate, an alien insurer must first obtain what? - (
answers)Certificate of Authority
Insurance is a contract that protects the insured from what? - ( answers)Loss
in insurance, when is the offer usually made on a contract? - ( answers)when the application is
submitted
2
Questions and Answers (Verified
Answers) Most Recent exam COMPLETE
(2026) (Latest Update 2026) UPDATE!!
what law protects consumers from the circulation of inaccurate or obsolete information? - (
answers)The Fair Credit Reporting Act
Insurers are classified according to their domicile. What are the 3 types of insurers? - (
answers)domestic, foreign, and alien
what type of insurer is a voluntarily formed organization that provides religious organizations
with a representative form of government? - ( answers)Fraternal insurer
the type of insurance company organized to return any surplus money to its policyholders is
known as what? - ( answers)mutual company
when agents act within the scope of their contract, their actions will be assumed to be the
actions of whom? - ( answers)Insurer
what is the name of the process that insurance companies use to determine if an applicant is
insurable? - ( answers)underwriting
if an insurer needs to obtain information about the applicant from investigators, what is the
insurer required to do? - ( answers)provide the aplicant with a Disclosure Authorization Notice
what type of insurer is formed under the laws of another country? - ( answers)Alien
1
, when risks with higher probability of loss are seeking insurance more often than other risks, is
known as what? - ( answers)adverse selection
when does an insurance policy go into effect? - ( answers)when to policy is delivered and the
premium is paid.
according to the Law of Agency, a principal is represented by whom? - ( answers)an agent or
producer
what type of risk is insurable? - ( answers)pure
who owns stock companies? - ( answers)stockholders
what entities make up the Medical Information Bureau? - ( answers)Insurers
when a change needs to be made on the application for insurance, which is the best method for
correcting the information? - ( answers)complete a new application of ask the applicant to
initial the correction on the original application
in order to transact insurance within a given sate, an alien insurer must first obtain what? - (
answers)Certificate of Authority
Insurance is a contract that protects the insured from what? - ( answers)Loss
in insurance, when is the offer usually made on a contract? - ( answers)when the application is
submitted
2
