ALABAMA LIFE AND HEALTH INSURANCE
CERTIFICATION EVALUATION 2026 QUESTIONS
WITH PRACTICE SOLUTION GRADED A+
◉ the option to convert term life insurance to a permanent form of
coverage can normally be executed Answer: without proof of
insurability
◉ with term life insurance, which of the following types of premium
remains the same for the entire policy period? Answer: level
premium
◉ mortgage protection is typically covered with: Answer: decreasing
term
◉ with renewable term insurance Answer: the premium increases at
renewal
◉ paula has an insurance policy that has a guaranteed minimum
cash value, a guaranteed death benefit, fixed premiums, and grows
at a rate reflected by a selected fund index. which type of life policy
fits this description? Answer: equity indexed life
,◉ what does renewable term guarantee Answer: The insured's
insurability
◉ an insurance producer must have which of the following in order
to sell variable life insurance policies Answer: registered with the
FINRA, license for variable life and annuities contracts, and a valid
insurance license.
◉ which of the following life insurance policies will build up cash
value the fastest Answer: single premium
◉ at what age is an insured for life insurance considered statistically
"dead" Answer: 100
◉ michael has a universal life policy with an increasing death benefit
option. with the initial face amount of $50,000 and a value of $5,000,
what would the actual death benefit be? Answer: $55,000
◉ which type of life insurance policy combines insurance protection
with an accumulation of cash value Answer: permanent insurance
◉ tim has a universal life policy. the cash value growth in his policy
is: Answer: interest sensitive
,◉ in which of the following ways does term life insurance and whole
life insurance differ? Answer: term life insurance does not build cash
value
◉ which type of policy allows the policyowner to switch to
permanent insurance Answer: convertible term
◉ which of these statements accurately portray a whole life policy
Answer: endows at age 100 and paid up a stated time
◉ at what point does a whole life policy pay the face amount
Answer: upon the insureds death or reaching age 100
◉ which describes a level term policy? Answer: the premium and
protection remain constant for the term of the policy
◉ albert surrenders his whole life policy ten years after it was
purchased. what can he expect? Answer: to pay taxes on the cash
value in excess of the premium paid
◉ a husband and wife purchases a life insurance policy that covers
both of them. the policy paid nothing when the husband died. two
years later, the wife dies and a death benefit is paid to the
beneficiary. which type of policy is this? Answer: survivorship life
policy
, ◉ which of the following provisions may not be adjusted in an
adjustable life policy? Answer: the insured
◉ which of the following dividend options allows the continuation of
cash value accumulation Answer: reduced paid-up insurance
◉ ron turned over all rights in his policy to an assignee. this is called
Answer: an absolute assignment
◉ an aviation exclusion: Answer: excludes coverage when the
insured is riding in certain kids of air travel
◉ which type of assignment transfers a portion of the policy owners
right to another party in order to secure a debt to that party?
Answer: collateral assignment
◉ A policyowner with a $100,000 whole life policy has a cash value
of $10,000. There is an outstanding loan of $5,000 and a past-due
premium of $250. If the policyowner chooses the reduced paid-up
option and then later dies, what will the beneficiary receive?
Answer: the reduced paid-up coverage amount minus $5,250
CERTIFICATION EVALUATION 2026 QUESTIONS
WITH PRACTICE SOLUTION GRADED A+
◉ the option to convert term life insurance to a permanent form of
coverage can normally be executed Answer: without proof of
insurability
◉ with term life insurance, which of the following types of premium
remains the same for the entire policy period? Answer: level
premium
◉ mortgage protection is typically covered with: Answer: decreasing
term
◉ with renewable term insurance Answer: the premium increases at
renewal
◉ paula has an insurance policy that has a guaranteed minimum
cash value, a guaranteed death benefit, fixed premiums, and grows
at a rate reflected by a selected fund index. which type of life policy
fits this description? Answer: equity indexed life
,◉ what does renewable term guarantee Answer: The insured's
insurability
◉ an insurance producer must have which of the following in order
to sell variable life insurance policies Answer: registered with the
FINRA, license for variable life and annuities contracts, and a valid
insurance license.
◉ which of the following life insurance policies will build up cash
value the fastest Answer: single premium
◉ at what age is an insured for life insurance considered statistically
"dead" Answer: 100
◉ michael has a universal life policy with an increasing death benefit
option. with the initial face amount of $50,000 and a value of $5,000,
what would the actual death benefit be? Answer: $55,000
◉ which type of life insurance policy combines insurance protection
with an accumulation of cash value Answer: permanent insurance
◉ tim has a universal life policy. the cash value growth in his policy
is: Answer: interest sensitive
,◉ in which of the following ways does term life insurance and whole
life insurance differ? Answer: term life insurance does not build cash
value
◉ which type of policy allows the policyowner to switch to
permanent insurance Answer: convertible term
◉ which of these statements accurately portray a whole life policy
Answer: endows at age 100 and paid up a stated time
◉ at what point does a whole life policy pay the face amount
Answer: upon the insureds death or reaching age 100
◉ which describes a level term policy? Answer: the premium and
protection remain constant for the term of the policy
◉ albert surrenders his whole life policy ten years after it was
purchased. what can he expect? Answer: to pay taxes on the cash
value in excess of the premium paid
◉ a husband and wife purchases a life insurance policy that covers
both of them. the policy paid nothing when the husband died. two
years later, the wife dies and a death benefit is paid to the
beneficiary. which type of policy is this? Answer: survivorship life
policy
, ◉ which of the following provisions may not be adjusted in an
adjustable life policy? Answer: the insured
◉ which of the following dividend options allows the continuation of
cash value accumulation Answer: reduced paid-up insurance
◉ ron turned over all rights in his policy to an assignee. this is called
Answer: an absolute assignment
◉ an aviation exclusion: Answer: excludes coverage when the
insured is riding in certain kids of air travel
◉ which type of assignment transfers a portion of the policy owners
right to another party in order to secure a debt to that party?
Answer: collateral assignment
◉ A policyowner with a $100,000 whole life policy has a cash value
of $10,000. There is an outstanding loan of $5,000 and a past-due
premium of $250. If the policyowner chooses the reduced paid-up
option and then later dies, what will the beneficiary receive?
Answer: the reduced paid-up coverage amount minus $5,250
