©SOPHIABENNETT@2024-2025 Saturday, August 24, 2024 8:52 AM
ALABAMA INSURANCE TEST
QUESTIONS AND ANSWERS
Which welfare program provides assistance to the needy? - Answer✔️✔️-
Medicaid
Barbara has the right to change the beneficiary designation on her life
insurance policy. Barbara's beneficiary is a(n): - Answer✔️✔️-revocable
beneficiary
Within how many calendar days must all clean electronic health insurance
claims be paid in Alabama? - Answer✔️✔️-30
Which type of term policy allows the policyowner to switch to permanent
insurance? - Answer✔️✔️-Convertible term
What does renewable term guarantee? - Answer✔️✔️-The insured's
insurability
If an insured commits suicide, a life insurance policy's face amount will be
paid only after the policy has been in force for at least: - Answer✔️✔️-two
years
Which of the following statements concerning a life insurance policy is
TRUE? - Answer✔️✔️-An issued policy can never be changed by a producer
1
, ©SOPHIABENNETT@2024-2025 Saturday, August 24, 2024 8:52 AM
The proceeds of a life insurance policy can be paid in a form other than a
lump-sum payment. These forms of payment are called: - Answer✔️✔️-
settlement options
The withholding of facts in an insurance application is called: - Answer✔️✔️-
concealment
A licensed Alabama insurance producer would NOT be disciplined by the
Commissioner of Insurance for: - Answer✔️✔️-being convicted of a
misdemeanor
The option to convert term life insurance to a permanent form of coverage
can normally be executed: - Answer✔️✔️-without proof of insurability
Which type of life insurance rider allows a policyowner to increase the
level of coverage to keep up with inflation? - Answer✔️✔️-cost of living
rider
What is the minimum age requirement for a minor in Alabama to purchase
a life insurance policy? - Answer✔️✔️-15
Which of the following best describes a Health Maintenance Organization
(HMO)? - Answer✔️✔️-Provides full medical services that stress
preventative medicine
Medicare Advantage (Medicare Part C) allows the utilization of benefits
through a(n): - Answer✔️✔️-HMO, PPO, or traditional insurer
Pat the producer just sold an insurance policy to a client, explaining that he
has authority to issue the policy. Pat was not specifically granted this
2
, ©SOPHIABENNETT@2024-2025 Saturday, August 24, 2024 8:52 AM
power from the insurance company. Pat is exercising: - Answer✔️✔️-implied
authority
A disability policy that must be renewed, cannot be cancelled until age 65,
and may not have an increase in premium for any reason is called a(n): -
Answer✔️✔️-noncancellable policy
Benefits under a health insurance policy may (with the insured's written
request) be payable to: - Answer✔️✔️-a hospital, physician, or surgeon
Bart is injured and provides notice of a health claim to his insurer. He later
receives the required claims forms. Within how many days of the loss must
Bart file proof of loss with the insurance company? - Answer✔️✔️-90
Which of these statements regarding an insurance application is true? -
Answer✔️✔️-A representation is valid as long as it is true
An insurance company licensed to solicit insurance in a specific state is
called: - Answer✔️✔️-an admitted company
John purchases insurance because he expects to experience a loss. This is
known as: - Answer✔️✔️-adverse selection
Who would most likely own a Medicare Supplement policy? - Answer✔️✔️-
69-year old female covered by Medicare
Amy owns a disability income policy with a noncancellable renewal
provision. Which of the following is guaranteed in her policy? -
Answer✔️✔️-The coverage and premium rate are guaranteed
3
ALABAMA INSURANCE TEST
QUESTIONS AND ANSWERS
Which welfare program provides assistance to the needy? - Answer✔️✔️-
Medicaid
Barbara has the right to change the beneficiary designation on her life
insurance policy. Barbara's beneficiary is a(n): - Answer✔️✔️-revocable
beneficiary
Within how many calendar days must all clean electronic health insurance
claims be paid in Alabama? - Answer✔️✔️-30
Which type of term policy allows the policyowner to switch to permanent
insurance? - Answer✔️✔️-Convertible term
What does renewable term guarantee? - Answer✔️✔️-The insured's
insurability
If an insured commits suicide, a life insurance policy's face amount will be
paid only after the policy has been in force for at least: - Answer✔️✔️-two
years
Which of the following statements concerning a life insurance policy is
TRUE? - Answer✔️✔️-An issued policy can never be changed by a producer
1
, ©SOPHIABENNETT@2024-2025 Saturday, August 24, 2024 8:52 AM
The proceeds of a life insurance policy can be paid in a form other than a
lump-sum payment. These forms of payment are called: - Answer✔️✔️-
settlement options
The withholding of facts in an insurance application is called: - Answer✔️✔️-
concealment
A licensed Alabama insurance producer would NOT be disciplined by the
Commissioner of Insurance for: - Answer✔️✔️-being convicted of a
misdemeanor
The option to convert term life insurance to a permanent form of coverage
can normally be executed: - Answer✔️✔️-without proof of insurability
Which type of life insurance rider allows a policyowner to increase the
level of coverage to keep up with inflation? - Answer✔️✔️-cost of living
rider
What is the minimum age requirement for a minor in Alabama to purchase
a life insurance policy? - Answer✔️✔️-15
Which of the following best describes a Health Maintenance Organization
(HMO)? - Answer✔️✔️-Provides full medical services that stress
preventative medicine
Medicare Advantage (Medicare Part C) allows the utilization of benefits
through a(n): - Answer✔️✔️-HMO, PPO, or traditional insurer
Pat the producer just sold an insurance policy to a client, explaining that he
has authority to issue the policy. Pat was not specifically granted this
2
, ©SOPHIABENNETT@2024-2025 Saturday, August 24, 2024 8:52 AM
power from the insurance company. Pat is exercising: - Answer✔️✔️-implied
authority
A disability policy that must be renewed, cannot be cancelled until age 65,
and may not have an increase in premium for any reason is called a(n): -
Answer✔️✔️-noncancellable policy
Benefits under a health insurance policy may (with the insured's written
request) be payable to: - Answer✔️✔️-a hospital, physician, or surgeon
Bart is injured and provides notice of a health claim to his insurer. He later
receives the required claims forms. Within how many days of the loss must
Bart file proof of loss with the insurance company? - Answer✔️✔️-90
Which of these statements regarding an insurance application is true? -
Answer✔️✔️-A representation is valid as long as it is true
An insurance company licensed to solicit insurance in a specific state is
called: - Answer✔️✔️-an admitted company
John purchases insurance because he expects to experience a loss. This is
known as: - Answer✔️✔️-adverse selection
Who would most likely own a Medicare Supplement policy? - Answer✔️✔️-
69-year old female covered by Medicare
Amy owns a disability income policy with a noncancellable renewal
provision. Which of the following is guaranteed in her policy? -
Answer✔️✔️-The coverage and premium rate are guaranteed
3
