Alabama Life and Health (Exam FX Simulation.pdf file:///C:/Users/Admin/Downloads/Alabama%20Life%20and%20He
Alabama Life and Health Insurance Exam FX Simulation
1. Which of the following is NOT an allowable 1035 exchange ANS A whole life
insurance policy is exchanged for a term insurance policy.
2. Which of the following is NOT a type of information that needs to be gatheredin order to
determine the value of someone's life when using the needs approach? ANS Estimated
longevity
3. Which of the following would be the basic source of information used by thecompany in the
risk selection process? ANS Application
4. underwriting is a major consideration when an insured wishes to replace her current
policy for all of the following reasons EXCEPT ANS Premiums alwaysstay the same
5. What is the clause that describes the method of paying the death benefitin the event
that the insured and beneficiary are both killed in the same accident? ANS Common
Disaster Clause
6. The insured under a $100,000 life insurance policy with a triple indemnity rider for
accidental death was killed in a car accident. It was determined thatthe accident was his
fault. The triple indemnity rider in the policy specifies that the death must not be contributed
to by the insured in any manner. In thiscase what will the policy beneficiary receive? ANS
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,Alabama Life and Health (Exam FX Simulation.pdf file:///C:/Users/Admin/Downloads/Alabama%20Life%20and%20He
$100,000
7. How often must the Commissioner or an examiner designated by the Com-missioner
examine domestic insurance companies? ANS As often as the commis-sioner deems
necessary, but not less frequently than once every 5 years
8. Which of the following provisions is mandatory for health insurance poli-cies? ANS
Physical examination and autopsy
9. At what point must an outline of coverage be delivered ANS At the time of the
application or upon delivery of the policy
10. Attempting to determine how much insurance an individual would require based upon
their financial objectives is known as ANS Needs Approach
11. On its advertisement, a company claims that it has funds in its possessionthat are, in fact,
not available for the payment of losses or claims. What is the company guilty of? ANS
Misrepresentation
12. An insured has medical insurance coverage through 2 different providers,both covering
the same expenses on an expense-incurred basis. Neither company knows in advance that
the insured has coverage through any otherinsurers. The insured submits a claim to both
insurers. How should the claimbe handled? ANS Each insurer should pay a proportionate
share of the claim
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,Alabama Life and Health (Exam FX Simulation.pdf file:///C:/Users/Admin/Downloads/Alabama%20Life%20and%20He
13. Which is the appropriate action by the insurer if a prospective insured submitted an
incomplete application? ANS Return the application to the applicant forcompletion
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Alabama Life and Health Insurance Exam FX Simulation
1. Which of the following is NOT an allowable 1035 exchange ANS A whole life
insurance policy is exchanged for a term insurance policy.
2. Which of the following is NOT a type of information that needs to be gatheredin order to
determine the value of someone's life when using the needs approach? ANS Estimated
longevity
3. Which of the following would be the basic source of information used by thecompany in the
risk selection process? ANS Application
4. underwriting is a major consideration when an insured wishes to replace her current
policy for all of the following reasons EXCEPT ANS Premiums alwaysstay the same
5. What is the clause that describes the method of paying the death benefitin the event
that the insured and beneficiary are both killed in the same accident? ANS Common
Disaster Clause
6. The insured under a $100,000 life insurance policy with a triple indemnity rider for
accidental death was killed in a car accident. It was determined thatthe accident was his
fault. The triple indemnity rider in the policy specifies that the death must not be contributed
to by the insured in any manner. In thiscase what will the policy beneficiary receive? ANS
1/7
1 of 16 9/10/2024, 10:04
,Alabama Life and Health (Exam FX Simulation.pdf file:///C:/Users/Admin/Downloads/Alabama%20Life%20and%20He
$100,000
7. How often must the Commissioner or an examiner designated by the Com-missioner
examine domestic insurance companies? ANS As often as the commis-sioner deems
necessary, but not less frequently than once every 5 years
8. Which of the following provisions is mandatory for health insurance poli-cies? ANS
Physical examination and autopsy
9. At what point must an outline of coverage be delivered ANS At the time of the
application or upon delivery of the policy
10. Attempting to determine how much insurance an individual would require based upon
their financial objectives is known as ANS Needs Approach
11. On its advertisement, a company claims that it has funds in its possessionthat are, in fact,
not available for the payment of losses or claims. What is the company guilty of? ANS
Misrepresentation
12. An insured has medical insurance coverage through 2 different providers,both covering
the same expenses on an expense-incurred basis. Neither company knows in advance that
the insured has coverage through any otherinsurers. The insured submits a claim to both
insurers. How should the claimbe handled? ANS Each insurer should pay a proportionate
share of the claim
2/7
2 of 16 9/10/2024, 10:04
,Alabama Life and Health (Exam FX Simulation.pdf file:///C:/Users/Admin/Downloads/Alabama%20Life%20and%20He
13. Which is the appropriate action by the insurer if a prospective insured submitted an
incomplete application? ANS Return the application to the applicant forcompletion
3/7
3 of 16 9/10/2024, 10:04
