ALABAMA INSURANCE EXAM SCRIPT 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Alabama's head of the department of insurance does NOT have the power to:
A) promulgate insurance laws
B) conduct examinations and investigations of insurance matters
C) issue insurance licenses to qualified individuals
D) enforce Alabama's insurance laws - ✔✔A)
✔✔An insurance producer who offers a potential client something of value as an
incentive to purchase insurance is engaging in:
A) rebating
B) coercion
C) defamation
D) intimidation - ✔✔A
✔✔Under Alabama's annuity disclosure regulation, the disclosure must be mailed to the
applicant within ___ days if the application is taken over the telephone.
A) 4
B) 5
C) 6
D) 7 - ✔✔B
✔✔Alabama's annuity disclosure regulation:
A) establishes maximum disclosure standards to annuitants
B) requires the delivery of a buyer's guide and a disclosure document to an annuity
applicant - ✔✔B
✔✔Which of the following Long-Term Care (LTC) practices is permitted in Alabama?
A) inducing the purchase of of an LTC policy through force, fright, or threat, or undue
pressure
B) misrepresenting a material fact in selling an LTC policy
C) using direct mail to market an LTC policy
D) failing to disclose that the purpose of the marketing effort is insurance solicitation
(cold lead advertising) - ✔✔C
✔✔How long must a producer keep complete records pertaining to his/her insurance
transactions?
A) one year
B) two years
C) three years
D) four years - ✔✔C)
✔✔Replacement regulation in Alabama does NOT apply to:
, A) decreasing term life insurance
B) adjustable life insurance
C) universal life insurance
D) credit life insurance - ✔✔D
✔✔An insurance producer represents the:
A) insurance company
B) client
C) client and insurance company
D) state of Alabama - ✔✔A
✔✔In Alabama, all Health Maintenance Organizations must:
A) be regulated by the National Association of Health Organizations
B) have a complaint system to resolve written complaints from enrollees
C) be examined by the insurance Commissioner every six months
D) be regulated by the insurance Commissioner, but cannot be assessed an
administrative penalty for violations of the law - ✔✔B
✔✔Julio. The insurance producer, has allowed his license to lapse. He would like to
reinstate his license without retaking a pre license course or passing a written
examination. To do this, Julio must reinstate the license within __ months from the
renewal date.
A) 6
B) 12
C) 24
D) 36 - ✔✔B
✔✔Medicare supplement policies marketed in Alabama:
A) cannot offer benefits that simply duplicate Medicare benefits
B) cannot be more restrictive than Medicare
C) cannot treat a loss due to injury differently than a loss due to illness
D) all the above - ✔✔D
✔✔In Alabama, an insurer who violates state laws for the payment of insurance
commissions may be fine up to: - ✔✔3 times the amount of the commissions paid
✔✔An insurance producer who offers a potential client something of value as an
incentive to purchase insurance is engaging in: - ✔✔Rebating
✔✔A disability policy in Alabama that is paid on a monthly basis is required to have a
grace period of - ✔✔10 days
✔✔Within how many days of a written demand must the commissioner of insurance
hold a hearing? - ✔✔30 days
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Alabama's head of the department of insurance does NOT have the power to:
A) promulgate insurance laws
B) conduct examinations and investigations of insurance matters
C) issue insurance licenses to qualified individuals
D) enforce Alabama's insurance laws - ✔✔A)
✔✔An insurance producer who offers a potential client something of value as an
incentive to purchase insurance is engaging in:
A) rebating
B) coercion
C) defamation
D) intimidation - ✔✔A
✔✔Under Alabama's annuity disclosure regulation, the disclosure must be mailed to the
applicant within ___ days if the application is taken over the telephone.
A) 4
B) 5
C) 6
D) 7 - ✔✔B
✔✔Alabama's annuity disclosure regulation:
A) establishes maximum disclosure standards to annuitants
B) requires the delivery of a buyer's guide and a disclosure document to an annuity
applicant - ✔✔B
✔✔Which of the following Long-Term Care (LTC) practices is permitted in Alabama?
A) inducing the purchase of of an LTC policy through force, fright, or threat, or undue
pressure
B) misrepresenting a material fact in selling an LTC policy
C) using direct mail to market an LTC policy
D) failing to disclose that the purpose of the marketing effort is insurance solicitation
(cold lead advertising) - ✔✔C
✔✔How long must a producer keep complete records pertaining to his/her insurance
transactions?
A) one year
B) two years
C) three years
D) four years - ✔✔C)
✔✔Replacement regulation in Alabama does NOT apply to:
, A) decreasing term life insurance
B) adjustable life insurance
C) universal life insurance
D) credit life insurance - ✔✔D
✔✔An insurance producer represents the:
A) insurance company
B) client
C) client and insurance company
D) state of Alabama - ✔✔A
✔✔In Alabama, all Health Maintenance Organizations must:
A) be regulated by the National Association of Health Organizations
B) have a complaint system to resolve written complaints from enrollees
C) be examined by the insurance Commissioner every six months
D) be regulated by the insurance Commissioner, but cannot be assessed an
administrative penalty for violations of the law - ✔✔B
✔✔Julio. The insurance producer, has allowed his license to lapse. He would like to
reinstate his license without retaking a pre license course or passing a written
examination. To do this, Julio must reinstate the license within __ months from the
renewal date.
A) 6
B) 12
C) 24
D) 36 - ✔✔B
✔✔Medicare supplement policies marketed in Alabama:
A) cannot offer benefits that simply duplicate Medicare benefits
B) cannot be more restrictive than Medicare
C) cannot treat a loss due to injury differently than a loss due to illness
D) all the above - ✔✔D
✔✔In Alabama, an insurer who violates state laws for the payment of insurance
commissions may be fine up to: - ✔✔3 times the amount of the commissions paid
✔✔An insurance producer who offers a potential client something of value as an
incentive to purchase insurance is engaging in: - ✔✔Rebating
✔✔A disability policy in Alabama that is paid on a monthly basis is required to have a
grace period of - ✔✔10 days
✔✔Within how many days of a written demand must the commissioner of insurance
hold a hearing? - ✔✔30 days
