Ch. 15 Life and health
The Commissioner may do all of the following, except:
A
Enforce insurance law
B
Examine and investigate insurance matters
C
Manage and supervise the department of insurance
D
Change insurance laws for the good of the general public - ANS-Change insurance laws for the
good of the general public
Under Alabama law, you cannot pay any valuable consideration to a person if they are not
licensed as a producer. If a producer violates this provision, they are subject to a fine of up to: -
ANS-3 times the commission paid
If an insurer violates the provisions, they are subject to a fine of up to: - ANS-of 3 times the
premium paid
Which of the following IS NOT a type of illustration under the Alabama regulation governing life
insurance illustrations?
A
Annualized Illustration
B
Basic illustration
C
Supplemental illustration
D
In force illustration - ANS-annualized illustration
The Commissioner may grant or deny an agent a request for an extension to comply with the
continuing education requirements. Which of the following describes the time required to
comply? - ANS-90 days if granted, 30 days if denied
Which of the following would be defined as a replacement under Alabama State Law?
A
A policyowner is covered by a group term policy and decides to cancel an existing permanent
policy
B
All of the answers listed
C
A policyowner cancels a policy in order to purchase a new policy
, D
A policyowner converts a term policy to a permanent policy - ANS-A policyowner cancels a
policy in order to purchase a new policy
An insurer may reserve the right to defer the payment of a cash surrender value for up to
_________ months after demand is made and the policy is surrendered. - ANS-6 months
You may NEVER imply in an advertisement that: - ANS-Dividends are guaranteed,
Dividends will pay for the policy at some point,
and/or that dividends are anything other than a return of unused premiums
twisting means: - ANS-policy replacement
When replacement is involved, an agent must present the applicant with a Notice Regarding
Replacement of Life Insurance no later than: - ANS-the time of taking the application
To be able to start operations, a mutual company must have all of the following, except:
A
A minimum number of stockholders
B
A minimum number of applications for insurance
C
A minimum surplus as specified by the state
D
The advanced premium payment for each application - ANS-a minimum number of stockholders
All of the following would be considered replacement in life insurance and subject to
replacement guidelines, except:
A
A term policy converted to whole life insurance
B
A policy that will be lapsed or surrendered in order to purchase a new policy
C
A policy that has been converted to reduced paid up or extended term insurance to purchase a
new policy
D
A policy amended with reduced benefits to purchase a new policy - ANS-A term policy
converted to whole life insurance
A producer who violates the Alabama long-term care insurance regulation may be fined up to 3
times the amount of any commissions paid for each policy involved or up to ________,
whichever is greater. - ANS-$10,000
An annuity or pure endowment contract must provide a grace period of:
The Commissioner may do all of the following, except:
A
Enforce insurance law
B
Examine and investigate insurance matters
C
Manage and supervise the department of insurance
D
Change insurance laws for the good of the general public - ANS-Change insurance laws for the
good of the general public
Under Alabama law, you cannot pay any valuable consideration to a person if they are not
licensed as a producer. If a producer violates this provision, they are subject to a fine of up to: -
ANS-3 times the commission paid
If an insurer violates the provisions, they are subject to a fine of up to: - ANS-of 3 times the
premium paid
Which of the following IS NOT a type of illustration under the Alabama regulation governing life
insurance illustrations?
A
Annualized Illustration
B
Basic illustration
C
Supplemental illustration
D
In force illustration - ANS-annualized illustration
The Commissioner may grant or deny an agent a request for an extension to comply with the
continuing education requirements. Which of the following describes the time required to
comply? - ANS-90 days if granted, 30 days if denied
Which of the following would be defined as a replacement under Alabama State Law?
A
A policyowner is covered by a group term policy and decides to cancel an existing permanent
policy
B
All of the answers listed
C
A policyowner cancels a policy in order to purchase a new policy
, D
A policyowner converts a term policy to a permanent policy - ANS-A policyowner cancels a
policy in order to purchase a new policy
An insurer may reserve the right to defer the payment of a cash surrender value for up to
_________ months after demand is made and the policy is surrendered. - ANS-6 months
You may NEVER imply in an advertisement that: - ANS-Dividends are guaranteed,
Dividends will pay for the policy at some point,
and/or that dividends are anything other than a return of unused premiums
twisting means: - ANS-policy replacement
When replacement is involved, an agent must present the applicant with a Notice Regarding
Replacement of Life Insurance no later than: - ANS-the time of taking the application
To be able to start operations, a mutual company must have all of the following, except:
A
A minimum number of stockholders
B
A minimum number of applications for insurance
C
A minimum surplus as specified by the state
D
The advanced premium payment for each application - ANS-a minimum number of stockholders
All of the following would be considered replacement in life insurance and subject to
replacement guidelines, except:
A
A term policy converted to whole life insurance
B
A policy that will be lapsed or surrendered in order to purchase a new policy
C
A policy that has been converted to reduced paid up or extended term insurance to purchase a
new policy
D
A policy amended with reduced benefits to purchase a new policy - ANS-A term policy
converted to whole life insurance
A producer who violates the Alabama long-term care insurance regulation may be fined up to 3
times the amount of any commissions paid for each policy involved or up to ________,
whichever is greater. - ANS-$10,000
An annuity or pure endowment contract must provide a grace period of:
