Alabama Insurance Final Exam
Questions with Verified Answers
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? - ANSWERS90
Which welfare program provides assistance to the needy? - ANSWERSmedicaid
Who is considered the individual that retains all rights, values, and options of an
insurance policy? - ANSWERSthe policy owner
Long Term Care policies normally provide benefits for: - ANSWERShome health care
A Long-Term Care (TLC) policy has a minimum renewability level of: -
ANSWERSguaranteed renewable
Which of these statements accurately portray a whole life policy?
No cash value accumulates
Requires a conversion for coverage extending past age 70
Endows at age 70 and paid up at a stated time
Endows at age 100 and paid up at a stated time - ANSWERSendows at age 100 and
paid up at a stated time
Paula has an insurance policy that has a guaranteed minimum cash value, a
guaranteed death benefit, fixed premiums, and grows at a rate reflected by a selected
fund index. Which type of life policy fits this description? - ANSWERSequity indexed life
How long must a producer keep complete records pertaining to his/her insurance
transactions? - ANSWERSthree years
A policyowner can collect the face amount on what type of policy? -
ANSWERSendowment policy
Which of these statements regarding an insurance application is true?
, All statements made on an application are considered to be warranties
A representation is valid as long as it is true
A representation made by an applicant is guaranteed to be true
A warranty is not guaranteed to be true - ANSWERSa representation is valid as long as
it is true
A life insurance producer's agency agreement normally authorizes the license to do all
of the following, EXCEPT:
solicit insurance
sell insurance
issue policies
collect premiums - ANSWERSissue policies
What will the insurance company pay once the stop-loss is exceeded on a Major
Medical policy? - ANSWERS100% of covered expenses
With Renewable Term Insurance, - ANSWERSthe premium increases at renewal
The Alabama Life and Disability Insurance Guaranty has the power to:
loan money to an insolvent insurance company
guarantee the obligations of an insurance company
provide money to satisfy the obligations of an insurance company
all of these - ANSWERSall of these
Periodic benefit payments must be made no less frequently than: - ANSWERSmonthly
Which of these statements concerning COBRA is correct? - ANSWERSUnder COBRA,
dependents of employees covered by group plans have the same extension and
conversion privileges available to them as the employee
Medicare supplement policies marketed in Alabama:
cannot offer benefits that simply duplicate Medicare benefits
cannot be more restrictive than Medicare
cannot treat a loss due to injury differently than a loss due to illness
all of these - ANSWERSall of these
If an individual would like to sell insurance for an insurance company, he/she must:
have passed the state exam for the lines of authority in which licensure is sought
be licensed as an insurance producer
be appointed by an insurer
all of these - ANSWERSall of these
Questions with Verified Answers
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? - ANSWERS90
Which welfare program provides assistance to the needy? - ANSWERSmedicaid
Who is considered the individual that retains all rights, values, and options of an
insurance policy? - ANSWERSthe policy owner
Long Term Care policies normally provide benefits for: - ANSWERShome health care
A Long-Term Care (TLC) policy has a minimum renewability level of: -
ANSWERSguaranteed renewable
Which of these statements accurately portray a whole life policy?
No cash value accumulates
Requires a conversion for coverage extending past age 70
Endows at age 70 and paid up at a stated time
Endows at age 100 and paid up at a stated time - ANSWERSendows at age 100 and
paid up at a stated time
Paula has an insurance policy that has a guaranteed minimum cash value, a
guaranteed death benefit, fixed premiums, and grows at a rate reflected by a selected
fund index. Which type of life policy fits this description? - ANSWERSequity indexed life
How long must a producer keep complete records pertaining to his/her insurance
transactions? - ANSWERSthree years
A policyowner can collect the face amount on what type of policy? -
ANSWERSendowment policy
Which of these statements regarding an insurance application is true?
, All statements made on an application are considered to be warranties
A representation is valid as long as it is true
A representation made by an applicant is guaranteed to be true
A warranty is not guaranteed to be true - ANSWERSa representation is valid as long as
it is true
A life insurance producer's agency agreement normally authorizes the license to do all
of the following, EXCEPT:
solicit insurance
sell insurance
issue policies
collect premiums - ANSWERSissue policies
What will the insurance company pay once the stop-loss is exceeded on a Major
Medical policy? - ANSWERS100% of covered expenses
With Renewable Term Insurance, - ANSWERSthe premium increases at renewal
The Alabama Life and Disability Insurance Guaranty has the power to:
loan money to an insolvent insurance company
guarantee the obligations of an insurance company
provide money to satisfy the obligations of an insurance company
all of these - ANSWERSall of these
Periodic benefit payments must be made no less frequently than: - ANSWERSmonthly
Which of these statements concerning COBRA is correct? - ANSWERSUnder COBRA,
dependents of employees covered by group plans have the same extension and
conversion privileges available to them as the employee
Medicare supplement policies marketed in Alabama:
cannot offer benefits that simply duplicate Medicare benefits
cannot be more restrictive than Medicare
cannot treat a loss due to injury differently than a loss due to illness
all of these - ANSWERSall of these
If an individual would like to sell insurance for an insurance company, he/she must:
have passed the state exam for the lines of authority in which licensure is sought
be licensed as an insurance producer
be appointed by an insurer
all of these - ANSWERSall of these
