ALABAMA INSURANCE TEST.pdf file:///C:/Users/Admin/Downloads/ALABAMA%20INSURANCE%
Alabama Life & Health Insurance Test
Questions and Answers
1. Which welfare program provides assistance to the needy? ANS Medicaid
2. Barbara has the right to change the beneficiary designation on her lifeinsurance
policy. Barbara's beneficiary is a(n) ANS revocable beneficiary
3. Within how many calendar days must all clean electronic health insuranceclaims be paid
in Alabama? ANS 30
4. Which type of term policy allows the policyowner to switch to permanentinsurance?
ANS Convertible term
5. What does renewable term guarantee? ANS The insured's insurability
6. If an insured commits suicide, a life insurance policy's face amount will bepaid only after
the policy has been in force for at least ANS two years
1 of 20 9/10/2024, 9:37
,ALABAMA INSURANCE TEST.pdf file:///C:/Users/Admin/Downloads/ALABAMA%20INSURANCE%
7. Which of the following statements concerning a life insurance policy isTRUE? ANS An
issued policy can never be changed by a producer
8. The proceeds of a life insurance policy can be paid in a form other than alump-sum
payment. These forms of payment are called ANS settlement options
9. The withholding of facts in an insurance application is called ANS concealment
10. A licensed Alabama insurance producer would NOT be disciplined by theCommissioner
of Insurance for ANS being convicted of a misdemeanor
11. The option to convert term life insurance to a permanent form of coveragecan normally
be executed ANS without proof of insurability
12. Which type of life insurance rider allows a policyowner to increase the levelof coverage
to keep up with inflation? ANS cost of living rider
13. What is the minimum age requirement for a minor in Alabama to purchasea life
insurance policy? ANS 15
14. Which of the following best describes a Health Maintenance Organization(HMO)? ANS
Provides full medical services that stress preventative medicine
2 of 20 9/10/2024, 9:37
,ALABAMA INSURANCE TEST.pdf file:///C:/Users/Admin/Downloads/ALABAMA%20INSURANCE%
15. Medicare Advantage (Medicare Part C) allows the utilization of benefitsthrough a(n)
ANS HMO, PPO, or traditional insurer
16. Pat the producer just sold an insurance policy to a client, explaining that hehas authority to
issue the policy. Pat was not specifically granted this powerfrom the insurance company.
Pat is exercising ANS implied authority
17. 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) ANS non-cancellable policy
18. Benefits under a health insurance policy may (with the insured's writtenrequest) be
payable to ANS a hospital, physician, or surgeon
19. Bart is injured and provides notice of a health claim to his insurer. He laterreceives the
required claims forms. Within how many days of the loss must Bart file proof of loss with the
insurance company? ANS 90
3 of 20 9/10/2024, 9:37
Alabama Life & Health Insurance Test
Questions and Answers
1. Which welfare program provides assistance to the needy? ANS Medicaid
2. Barbara has the right to change the beneficiary designation on her lifeinsurance
policy. Barbara's beneficiary is a(n) ANS revocable beneficiary
3. Within how many calendar days must all clean electronic health insuranceclaims be paid
in Alabama? ANS 30
4. Which type of term policy allows the policyowner to switch to permanentinsurance?
ANS Convertible term
5. What does renewable term guarantee? ANS The insured's insurability
6. If an insured commits suicide, a life insurance policy's face amount will bepaid only after
the policy has been in force for at least ANS two years
1 of 20 9/10/2024, 9:37
,ALABAMA INSURANCE TEST.pdf file:///C:/Users/Admin/Downloads/ALABAMA%20INSURANCE%
7. Which of the following statements concerning a life insurance policy isTRUE? ANS An
issued policy can never be changed by a producer
8. The proceeds of a life insurance policy can be paid in a form other than alump-sum
payment. These forms of payment are called ANS settlement options
9. The withholding of facts in an insurance application is called ANS concealment
10. A licensed Alabama insurance producer would NOT be disciplined by theCommissioner
of Insurance for ANS being convicted of a misdemeanor
11. The option to convert term life insurance to a permanent form of coveragecan normally
be executed ANS without proof of insurability
12. Which type of life insurance rider allows a policyowner to increase the levelof coverage
to keep up with inflation? ANS cost of living rider
13. What is the minimum age requirement for a minor in Alabama to purchasea life
insurance policy? ANS 15
14. Which of the following best describes a Health Maintenance Organization(HMO)? ANS
Provides full medical services that stress preventative medicine
2 of 20 9/10/2024, 9:37
,ALABAMA INSURANCE TEST.pdf file:///C:/Users/Admin/Downloads/ALABAMA%20INSURANCE%
15. Medicare Advantage (Medicare Part C) allows the utilization of benefitsthrough a(n)
ANS HMO, PPO, or traditional insurer
16. Pat the producer just sold an insurance policy to a client, explaining that hehas authority to
issue the policy. Pat was not specifically granted this powerfrom the insurance company.
Pat is exercising ANS implied authority
17. 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) ANS non-cancellable policy
18. Benefits under a health insurance policy may (with the insured's writtenrequest) be
payable to ANS a hospital, physician, or surgeon
19. Bart is injured and provides notice of a health claim to his insurer. He laterreceives the
required claims forms. Within how many days of the loss must Bart file proof of loss with the
insurance company? ANS 90
3 of 20 9/10/2024, 9:37
