Final exam Alabama life insurance Questions and Answers Solved 100% Correct!!

The minimum grace period for a life insurance policy sold in Alabama is: - 30 days Alabama's annuity disclosure regulation: - Requires the delivery of a buyer's guide and a disclosure document to annuity applicant An insurer pays a large claim for medical expenses after the insured has only made one premium payment. This is an example of an: - Aleatory contract Which of the following is NOT guaranteed by a whole life policy? - policy dividends Any individual who has failed two Alabama insurance licensing examinations must wait how long before retaking it a third time? - 3 months When an estate is named beneficiary to a life insurance policy, the policy proceeds are: - distributed according to state law Which of the following statements concerning a life insurance policy is TRUE? -an issued policy can never be changed by a producer Julio, the insurance producer, has allowed his license to lapse. He would like to reinstate his licenses without retaking a pre license course or passing a written examination. To do this, Julio must reinstate the license within ___ months from the renewal date. - 12 months Janet is retired and looking to invest a lump-sum of money through an insurance company. Which product would be best suited for this? - annuity Tina has an insurance policy with a 10-day free look provision. Which of these statements is correct? - Her policy can be returned for 100% refund of the premium within 10 days from the date the policy is delivered A collateral assignment allows a policy owner to assign: - A portion of the policy proceeds to the assigneeA licensed Alabama insurance producer would NOT be disciplined by the Commissioner of Insurance for: - Being convicted of a misdemeanor What is a defined benefit plan? - a retirement plan that promises a specified benefit to the employee at retirement Which of these is NOT considered a form of advertisement in Alabama? - A producer sending a Christmas card to a client Buying land with the anticipation of it going up in value is an example of: - Speculative risk If an individual would like to sell insurance for an insurance company , he/she must: A. Have passed the state exam for the lines of authority in which licensure is sought B. Be licensed as an insurance producer C. Be appointed by an insurer D. All of these - D. All of these Paula has an insurance policy that has a guaranteed minimum cash value, a guaranteed death benefit, fixed premiums, ad grows at a rate reflected by a selected fund index. Which type of life policy fits this description? - Equity indexed life Insurance policies issued by companies which are owned by stockholders and do not pay policy dividends are known as: - non-participating policies Albert surrenders his whole life policy ten years after it was purchased. What can he expect? - to pay taxes on the cash value in excess of premium paid In Alabama, an insurer who violates state laws for the payment of insurance commissions may be fined up to: - Three times the amount off the commissions paid All of these are correct concerning group life insurance , EXCEPT: - Whole life insurance is the form of insurance typically used in group life insuranceAn insured should be restored to the approximate financial condition occupied before the loss occurred. This is called the: - principle of indemnity