ALABAMA INSURANCE END OF COURSE 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔A retirement plan intended for a sole proprietor can his/her employees would be
a(n): - ✔✔Keogh Plan
✔✔Who is considered the individual that retains all rights, values, and options of an
insurance policy? - ✔✔the policyowner
✔✔Which type of life insurance policy combines insurance protection with an
accumulation of cash value? - ✔✔Permanent insurance
✔✔Nick has a Major Medical insurance policy with a $1,000 deductible, 80%
coinsurance clause, and a $1,500 stop-loss feature. He is hospitalized and incurs the
following covered expenses: $10,000 hospital room and board, $2,500 surgeon's fee.
What is Nick responsible for paying? - ✔✔$1,500
✔✔What is vesting? - ✔✔the employee's right to the employer's contributions in a
retirement plan if employment terminates prior to retirement
✔✔Carol is a life insurance policy owner who has transferred her ownership to a third
party in exchange of a percentage of the death benefit. What is this called? - ✔✔Viatical
settlement agreement
✔✔The waiver of premium provision normally excludes which of the following disabling
acts? - ✔✔injuries sustained while committing a felony, injuries sustained while serving
in the military, & self-inflicted injuries
✔✔What do Major medical policies typically cover? - ✔✔usual, customary, and
necessary expenses
✔✔A waiver of premium: - ✔✔wavies the premiums when the policy owner becomes
totally disabled
✔✔A business owner has disability coverage that covers business expenses (other than
income, the cost of capital goods, and other specified expenses). What kind of disability
coverage is this? - ✔✔business overhead expense insurance
✔✔What is the minimum age requirement for a minor in Alabama to purchase a life
insurance policy? - ✔✔15
, ✔✔Terry owns a 20 year life annuity certain and dies before the period of 20 years has
elapsed. What happens to any monies left? - ✔✔Paid to the beneficiary for the rest of
the certain period
✔✔In which of the following ways does term life insurance and whole life insurance
differ? - ✔✔term insurance does not build cash value
✔✔Which of the following statements is NOT correct? - ✔✔Agents are allowed to waive
certain policy provisions
✔✔What is a certificate of insurance? - ✔✔a certificate issued to each individual
covered by the group life insurance
✔✔A long term care (LTC) policy has a minimum renewability level of: - ✔✔guaranteed
renewable
✔✔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? - ✔✔90
✔✔Within how many calendar days must all clean electronic health insurance claims be
paid in Alabama? - ✔✔30
✔✔The monthly benefit of an Annuity Certain is determined by: - ✔✔the annuitant's
payout period selection
✔✔A policy owner with an automatic premium loan provision must: - ✔✔pay back the
loan amount to keep the policy's cash value at its maximum
✔✔XYZ insurance company issued a new life policy to an insured that replaced an
existing policy. XYZ insurance company is considered to be the: - ✔✔Replacing insurer
✔✔Susan owns a life insurance policy that has accumulated $10,000 in cash value in
which she can no longer pay its premiums. If she elects to take the extended term
option, which of these actions would she take? - ✔✔uses the $10,000 to buy term
insurance of the same face amount as her original policy
✔✔Who would most likely own a Medicare Supplement policy? - ✔✔69-year old female
covered by Medicare
✔✔Which of the following life insurance policies will build up cash value the faster? -
✔✔single premium
QUESTIONS WITH SOLUTIONS RATED A+
✔✔A retirement plan intended for a sole proprietor can his/her employees would be
a(n): - ✔✔Keogh Plan
✔✔Who is considered the individual that retains all rights, values, and options of an
insurance policy? - ✔✔the policyowner
✔✔Which type of life insurance policy combines insurance protection with an
accumulation of cash value? - ✔✔Permanent insurance
✔✔Nick has a Major Medical insurance policy with a $1,000 deductible, 80%
coinsurance clause, and a $1,500 stop-loss feature. He is hospitalized and incurs the
following covered expenses: $10,000 hospital room and board, $2,500 surgeon's fee.
What is Nick responsible for paying? - ✔✔$1,500
✔✔What is vesting? - ✔✔the employee's right to the employer's contributions in a
retirement plan if employment terminates prior to retirement
✔✔Carol is a life insurance policy owner who has transferred her ownership to a third
party in exchange of a percentage of the death benefit. What is this called? - ✔✔Viatical
settlement agreement
✔✔The waiver of premium provision normally excludes which of the following disabling
acts? - ✔✔injuries sustained while committing a felony, injuries sustained while serving
in the military, & self-inflicted injuries
✔✔What do Major medical policies typically cover? - ✔✔usual, customary, and
necessary expenses
✔✔A waiver of premium: - ✔✔wavies the premiums when the policy owner becomes
totally disabled
✔✔A business owner has disability coverage that covers business expenses (other than
income, the cost of capital goods, and other specified expenses). What kind of disability
coverage is this? - ✔✔business overhead expense insurance
✔✔What is the minimum age requirement for a minor in Alabama to purchase a life
insurance policy? - ✔✔15
, ✔✔Terry owns a 20 year life annuity certain and dies before the period of 20 years has
elapsed. What happens to any monies left? - ✔✔Paid to the beneficiary for the rest of
the certain period
✔✔In which of the following ways does term life insurance and whole life insurance
differ? - ✔✔term insurance does not build cash value
✔✔Which of the following statements is NOT correct? - ✔✔Agents are allowed to waive
certain policy provisions
✔✔What is a certificate of insurance? - ✔✔a certificate issued to each individual
covered by the group life insurance
✔✔A long term care (LTC) policy has a minimum renewability level of: - ✔✔guaranteed
renewable
✔✔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? - ✔✔90
✔✔Within how many calendar days must all clean electronic health insurance claims be
paid in Alabama? - ✔✔30
✔✔The monthly benefit of an Annuity Certain is determined by: - ✔✔the annuitant's
payout period selection
✔✔A policy owner with an automatic premium loan provision must: - ✔✔pay back the
loan amount to keep the policy's cash value at its maximum
✔✔XYZ insurance company issued a new life policy to an insured that replaced an
existing policy. XYZ insurance company is considered to be the: - ✔✔Replacing insurer
✔✔Susan owns a life insurance policy that has accumulated $10,000 in cash value in
which she can no longer pay its premiums. If she elects to take the extended term
option, which of these actions would she take? - ✔✔uses the $10,000 to buy term
insurance of the same face amount as her original policy
✔✔Who would most likely own a Medicare Supplement policy? - ✔✔69-year old female
covered by Medicare
✔✔Which of the following life insurance policies will build up cash value the faster? -
✔✔single premium
