ALABAMA LIFE HEALTH TEST PAPER UPDATED
QUESTIONS AND ANSWERS SURE A+
✔✔Making a formal request to the company for an insurance policy. - ✔✔When signing
the application form, the proposed insured is:
✔✔The policy, its endorsements, and any attached papers - ✔✔What constitutes an
entire insurance contract?
✔✔True - ✔✔T/F Misrepresentations on the part of an applicant as to the health or
other conditions of the applicant must be deliberate and material for an insurer to avoid
coverage.
✔✔True - ✔✔T/F Misrepresentation is a deliberate false representation on the part of
the agent or insurer as to the terms and conditions of the policy its terms and benefits.
✔✔True - ✔✔T/F Warranties are not used in the life-health-disability area.
✔✔generally presents no possibility of financial gain. - ✔✔A pure risk
✔✔The possibility the painting you bought might be a long lost masterpiece - ✔✔Which
of the following would be considered a speculative risk?
,✔✔The principle of life insurance - ✔✔To what does the statement spreading the result
of financial loss created by an individual's death among many persons, so the cost for
each individual is small refer?
✔✔A producer is never permitted to make a change in policy wording - ✔✔Select the
correct statement.
✔✔Both the insured and the insurer - ✔✔The policy conditions represent the obligations
of:
✔✔Developed from the deaths of millions of persons over long periods of time. -
✔✔Mortality figures are normally developed by studying and interpreting statistics:
✔✔1. The advanced premium payment for each application
2. Minimum number of applications for insurance
3. A surplus as specified by the state - ✔✔To be able to start operations, a mutual
company must have all of the following
✔✔1. in marine insurance
2. in insuring famous people
3. in the reinsurance business - ✔✔Lloyd's of London is involved
✔✔the insured does have to accept the contract as written by the insurer so all
ambiguities will be resolved in favor of the insured. - ✔✔The legal concept of Adhesion
is a bit of a problem to insurers because.
✔✔Reduction of risk - ✔✔Living a healthy life style is an example of which risk
management technique?
✔✔A transfer of risk - ✔✔Purchasing a life policy is a good example of:
✔✔In the state where its home office is located - ✔✔A company is domiciled:
✔✔One promiser unilateral and one author adhesion. - ✔✔Contract law terms unilateral
and adhesion have a common element?
✔✔1.estate creation
2.survivor protection
3.estate protection - ✔✔What is the basic purpose of life insurance?
✔✔1. statements made on the on the application
2. premium
, 3. promise to pay if a loss occurs - ✔✔In insurance and contract law in general the term
consideration means?
✔✔the agent or producer - ✔✔Under your agency contract you are know as?
✔✔Rebating - ✔✔Offering any inducement of valuable consideration whatever not
specified in the terms of the contract.
✔✔Licensed Alabama Producer. - ✔✔Life-Health and Disability policies written or
subjects of insurance in Alabama must be issued by and through a:
✔✔1. Denial of an insurance license.
2. Suspension of an insurance license.
3. Revocation of an insurance license. - ✔✔A violation of the Alabama Insurance Code
may result in the following:
✔✔Certificate of Authority. - ✔✔Insurers in Alabama authorized and approved to do
business in this state receive this in a:
✔✔Rebating - ✔✔A producer offered to give half his commission to a client if he would
buy a policy from him,this is illegal and is called?
✔✔24 hours. - ✔✔A producer who is subject to the continuing education requirement
will be required to show they have complete at least ___ ____ of continuing education
every two years.
✔✔Consultant. - ✔✔Which type of insurance person does not actually sell insurance
but sells advice about insurance?
✔✔Salaried service representatives who receive commissions - ✔✔Alabama law
exempts the following from license requirement except:
✔✔A producer - ✔✔A business entity in Alabama may be licensed as:
✔✔Being over 45 days late in remitting funds to an insurer. - ✔✔Good cause as
grounds for refusal, revocation or suspension of a license includes all the following
except:
✔✔180 days (6 months) - ✔✔A temporary license may be issued for a period not to
exceed:
✔✔Set fire and casualty rates charged in Alabama - ✔✔Commissioner of Insurance has
all of the following authority except:
QUESTIONS AND ANSWERS SURE A+
✔✔Making a formal request to the company for an insurance policy. - ✔✔When signing
the application form, the proposed insured is:
✔✔The policy, its endorsements, and any attached papers - ✔✔What constitutes an
entire insurance contract?
✔✔True - ✔✔T/F Misrepresentations on the part of an applicant as to the health or
other conditions of the applicant must be deliberate and material for an insurer to avoid
coverage.
✔✔True - ✔✔T/F Misrepresentation is a deliberate false representation on the part of
the agent or insurer as to the terms and conditions of the policy its terms and benefits.
✔✔True - ✔✔T/F Warranties are not used in the life-health-disability area.
✔✔generally presents no possibility of financial gain. - ✔✔A pure risk
✔✔The possibility the painting you bought might be a long lost masterpiece - ✔✔Which
of the following would be considered a speculative risk?
,✔✔The principle of life insurance - ✔✔To what does the statement spreading the result
of financial loss created by an individual's death among many persons, so the cost for
each individual is small refer?
✔✔A producer is never permitted to make a change in policy wording - ✔✔Select the
correct statement.
✔✔Both the insured and the insurer - ✔✔The policy conditions represent the obligations
of:
✔✔Developed from the deaths of millions of persons over long periods of time. -
✔✔Mortality figures are normally developed by studying and interpreting statistics:
✔✔1. The advanced premium payment for each application
2. Minimum number of applications for insurance
3. A surplus as specified by the state - ✔✔To be able to start operations, a mutual
company must have all of the following
✔✔1. in marine insurance
2. in insuring famous people
3. in the reinsurance business - ✔✔Lloyd's of London is involved
✔✔the insured does have to accept the contract as written by the insurer so all
ambiguities will be resolved in favor of the insured. - ✔✔The legal concept of Adhesion
is a bit of a problem to insurers because.
✔✔Reduction of risk - ✔✔Living a healthy life style is an example of which risk
management technique?
✔✔A transfer of risk - ✔✔Purchasing a life policy is a good example of:
✔✔In the state where its home office is located - ✔✔A company is domiciled:
✔✔One promiser unilateral and one author adhesion. - ✔✔Contract law terms unilateral
and adhesion have a common element?
✔✔1.estate creation
2.survivor protection
3.estate protection - ✔✔What is the basic purpose of life insurance?
✔✔1. statements made on the on the application
2. premium
, 3. promise to pay if a loss occurs - ✔✔In insurance and contract law in general the term
consideration means?
✔✔the agent or producer - ✔✔Under your agency contract you are know as?
✔✔Rebating - ✔✔Offering any inducement of valuable consideration whatever not
specified in the terms of the contract.
✔✔Licensed Alabama Producer. - ✔✔Life-Health and Disability policies written or
subjects of insurance in Alabama must be issued by and through a:
✔✔1. Denial of an insurance license.
2. Suspension of an insurance license.
3. Revocation of an insurance license. - ✔✔A violation of the Alabama Insurance Code
may result in the following:
✔✔Certificate of Authority. - ✔✔Insurers in Alabama authorized and approved to do
business in this state receive this in a:
✔✔Rebating - ✔✔A producer offered to give half his commission to a client if he would
buy a policy from him,this is illegal and is called?
✔✔24 hours. - ✔✔A producer who is subject to the continuing education requirement
will be required to show they have complete at least ___ ____ of continuing education
every two years.
✔✔Consultant. - ✔✔Which type of insurance person does not actually sell insurance
but sells advice about insurance?
✔✔Salaried service representatives who receive commissions - ✔✔Alabama law
exempts the following from license requirement except:
✔✔A producer - ✔✔A business entity in Alabama may be licensed as:
✔✔Being over 45 days late in remitting funds to an insurer. - ✔✔Good cause as
grounds for refusal, revocation or suspension of a license includes all the following
except:
✔✔180 days (6 months) - ✔✔A temporary license may be issued for a period not to
exceed:
✔✔Set fire and casualty rates charged in Alabama - ✔✔Commissioner of Insurance has
all of the following authority except:
