ALABAMA INSURANCE STUDY GUIDE 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔the income period when a surviving spouse does not qualify for social security
survivor or retirement benefits is called the - ✔✔blackout period
✔✔in noncontributory group insurance plans, what percentage of eligible employees
must be covered by the plan? - ✔✔100%
✔✔a company chartered in alabama would be considered what type of insurance
company in ohio? - ✔✔foreign
✔✔which life insurance nonforfeiture option provides the same amount of death
protection as the original policy, but decreases the time coverage will remain in effect? -
✔✔extended term
✔✔which of the following is a tax advantage of a qualified retirement plan? - ✔✔all of
the above
✔✔Joe, whose life insurance policy has a waiver of premium rider, becomes disabled
for two years, during which time the company pays over $1,500 in premiums. Joe
recovers and now must - ✔✔begin paying the premiums again as they become due
✔✔A policy owner decides to pay life insurance premiums quarterly instead of annually.
Select the correct statement. - ✔✔the total outlay of annual premium dollars will be
increased
✔✔what are "nonforfeiture values"? - ✔✔when a policy owner stops paying premiums
on a limited pay policy, he or she is entitled to receive its face amount in cash
✔✔who must meet alabamas requirements to earn 24 hours of continuing education
hours every two years? - ✔✔a producer who only sells property and casualty insurance
✔✔which of the following riders could decrease the amount of the policy death benefit if
utilized? - ✔✔automatic premium loan rider
✔✔according to the alabama insurance regulations, when using an illustration in the
sale of a life insurance policy, an insurance producer may legally do which of the
following? - ✔✔use an illustration which has "non-guaranteed" elements
✔✔the fundamental insurance concept that an insured should not profit from a loss but
should be restored in whole or in part to the approximate financial condition occupied
before the loss is known as the principle of - ✔✔indemnity
, ✔✔this rider can be attached to a permanent life insurance policy to add more coverage
for a limited time - ✔✔term rider
✔✔the waiver of premium rider suspends premium payments without penalty for what
situations? - ✔✔long term disability
✔✔a straight life annuity pays a periodic income - ✔✔during the annuitants lifetime with
no refund upon death
✔✔the purpose for social security is - ✔✔to help working Americans with financial
problems brought on by retirement, death and disability
✔✔Factors commonly used by health insurers to classify risk include all of the following
except - ✔✔education
✔✔to sell a variable life insurance policy, an insurance producer must - ✔✔all of the
above
✔✔all of the following provisions of an adjustable life policy may be adjusted to meet the
policyholders changing needs except: - ✔✔the insured
✔✔if the premium is not paid during the grace period of a Term Policy, what will occur?
- ✔✔the policy will lapse
✔✔under a disability income rider of a life insurance policy, the benefit amount paid to
an insured is based on which of the following? - ✔✔the face amount of the policy
✔✔the insurance company that issues a new life policy to an insured to replace an
existing policy is called the - ✔✔replacing insurer
✔✔mortality figures are usually developed by the analysis of statistics - ✔✔relating to
the deaths of millions of individuals over extended periods of time
✔✔which of the following statements is true - ✔✔policy dividends cannot be guaranteed
✔✔who is the chief executive officer of the alabama department of insurance? - ✔✔the
insurance commissioner
✔✔when a policy is written so that no one may change the beneficiary, the policy has -
✔✔an irrevocable beneficiary
QUESTIONS WITH SOLUTIONS RATED A+
✔✔the income period when a surviving spouse does not qualify for social security
survivor or retirement benefits is called the - ✔✔blackout period
✔✔in noncontributory group insurance plans, what percentage of eligible employees
must be covered by the plan? - ✔✔100%
✔✔a company chartered in alabama would be considered what type of insurance
company in ohio? - ✔✔foreign
✔✔which life insurance nonforfeiture option provides the same amount of death
protection as the original policy, but decreases the time coverage will remain in effect? -
✔✔extended term
✔✔which of the following is a tax advantage of a qualified retirement plan? - ✔✔all of
the above
✔✔Joe, whose life insurance policy has a waiver of premium rider, becomes disabled
for two years, during which time the company pays over $1,500 in premiums. Joe
recovers and now must - ✔✔begin paying the premiums again as they become due
✔✔A policy owner decides to pay life insurance premiums quarterly instead of annually.
Select the correct statement. - ✔✔the total outlay of annual premium dollars will be
increased
✔✔what are "nonforfeiture values"? - ✔✔when a policy owner stops paying premiums
on a limited pay policy, he or she is entitled to receive its face amount in cash
✔✔who must meet alabamas requirements to earn 24 hours of continuing education
hours every two years? - ✔✔a producer who only sells property and casualty insurance
✔✔which of the following riders could decrease the amount of the policy death benefit if
utilized? - ✔✔automatic premium loan rider
✔✔according to the alabama insurance regulations, when using an illustration in the
sale of a life insurance policy, an insurance producer may legally do which of the
following? - ✔✔use an illustration which has "non-guaranteed" elements
✔✔the fundamental insurance concept that an insured should not profit from a loss but
should be restored in whole or in part to the approximate financial condition occupied
before the loss is known as the principle of - ✔✔indemnity
, ✔✔this rider can be attached to a permanent life insurance policy to add more coverage
for a limited time - ✔✔term rider
✔✔the waiver of premium rider suspends premium payments without penalty for what
situations? - ✔✔long term disability
✔✔a straight life annuity pays a periodic income - ✔✔during the annuitants lifetime with
no refund upon death
✔✔the purpose for social security is - ✔✔to help working Americans with financial
problems brought on by retirement, death and disability
✔✔Factors commonly used by health insurers to classify risk include all of the following
except - ✔✔education
✔✔to sell a variable life insurance policy, an insurance producer must - ✔✔all of the
above
✔✔all of the following provisions of an adjustable life policy may be adjusted to meet the
policyholders changing needs except: - ✔✔the insured
✔✔if the premium is not paid during the grace period of a Term Policy, what will occur?
- ✔✔the policy will lapse
✔✔under a disability income rider of a life insurance policy, the benefit amount paid to
an insured is based on which of the following? - ✔✔the face amount of the policy
✔✔the insurance company that issues a new life policy to an insured to replace an
existing policy is called the - ✔✔replacing insurer
✔✔mortality figures are usually developed by the analysis of statistics - ✔✔relating to
the deaths of millions of individuals over extended periods of time
✔✔which of the following statements is true - ✔✔policy dividends cannot be guaranteed
✔✔who is the chief executive officer of the alabama department of insurance? - ✔✔the
insurance commissioner
✔✔when a policy is written so that no one may change the beneficiary, the policy has -
✔✔an irrevocable beneficiary
