Page | 1
ALU 202 EXAM 2026 QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
When paying a life insurance death claim, additions to the basic
death benefit can include all the following EXCEPT:
1. accidental death benefits
2. interest on policy loans
3. paid-up additional insurance
4. interest on delayed claims payment - correct answer -Answer
2: interest on policy loans - page 304.
An agreement made between two or more individuals to defraud
another individual is:
1. estoppel
2. collusion
3. rescission
4. reformation - correct answer -Answer 2: collusion - page 301.
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Name the limitations that an accidental death benefit (ADB) can
have. - correct answer -Refer to page 296.
Why are international claims more difficult to process? - correct
answer -Refer to page 303.
Compare and contrast the binding premium receipt and the
insurability premium receipt. - correct answer -Refer to page 299.
An important underwriting style that involves taking a 'big picture'
approach to risk assessment is:
1. skeptism
2. holism
3. humanism
4. absolutism - correct answer -Answer 2: holism - page 312.
To assess risk appropriately, some topics underwriters should
have general knowledge of include which of the following?
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A. medical advancements
B. regulatory requirements
C. current events
Answer Options:
1. A only is correct.
2. B only is correct.
3. A and C only are correct.
4. A, B, and C are correct. - correct answer -Answer 2: A, B and C
are correct - page 313.
Describe the typical jobs that will be found in a modern
underwriting department. - correct answer -Refer to page 313.
What are the challenges and nuances to consider with the holistic
approach to managing the new and more interactive relationship
between consumers and underwriters? - correct answer -Refer to
page 321.
With the increased complexity of underwriting roles, describe how
companies will train and grow underwriters. - correct answer -
Refer to pages 316-317.
, Page | 4
The amount of time an application is in underwriting is:
1. policy administration time
2. audit time
3. cycle time
4. underwriting time - correct answer -Answer 3: cycle time - page
320.
With the advent of modern tools, describe what a company's risk
management infrastructure might include. - correct answer -Refer
to page 317.
With data and technological changes, give examples that require
underwriter skill sets to support new considerations for risk
assessments. - correct answer -Refer to page 315.
Which of the following statements regarding the underwriter's
responsibility when developing predictive models is/are correct?
A. Model risk recommendations are managed by the underwriter.
ALU 202 EXAM 2026 QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
When paying a life insurance death claim, additions to the basic
death benefit can include all the following EXCEPT:
1. accidental death benefits
2. interest on policy loans
3. paid-up additional insurance
4. interest on delayed claims payment - correct answer -Answer
2: interest on policy loans - page 304.
An agreement made between two or more individuals to defraud
another individual is:
1. estoppel
2. collusion
3. rescission
4. reformation - correct answer -Answer 2: collusion - page 301.
, Page | 2
Name the limitations that an accidental death benefit (ADB) can
have. - correct answer -Refer to page 296.
Why are international claims more difficult to process? - correct
answer -Refer to page 303.
Compare and contrast the binding premium receipt and the
insurability premium receipt. - correct answer -Refer to page 299.
An important underwriting style that involves taking a 'big picture'
approach to risk assessment is:
1. skeptism
2. holism
3. humanism
4. absolutism - correct answer -Answer 2: holism - page 312.
To assess risk appropriately, some topics underwriters should
have general knowledge of include which of the following?
, Page | 3
A. medical advancements
B. regulatory requirements
C. current events
Answer Options:
1. A only is correct.
2. B only is correct.
3. A and C only are correct.
4. A, B, and C are correct. - correct answer -Answer 2: A, B and C
are correct - page 313.
Describe the typical jobs that will be found in a modern
underwriting department. - correct answer -Refer to page 313.
What are the challenges and nuances to consider with the holistic
approach to managing the new and more interactive relationship
between consumers and underwriters? - correct answer -Refer to
page 321.
With the increased complexity of underwriting roles, describe how
companies will train and grow underwriters. - correct answer -
Refer to pages 316-317.
, Page | 4
The amount of time an application is in underwriting is:
1. policy administration time
2. audit time
3. cycle time
4. underwriting time - correct answer -Answer 3: cycle time - page
320.
With the advent of modern tools, describe what a company's risk
management infrastructure might include. - correct answer -Refer
to page 317.
With data and technological changes, give examples that require
underwriter skill sets to support new considerations for risk
assessments. - correct answer -Refer to page 315.
Which of the following statements regarding the underwriter's
responsibility when developing predictive models is/are correct?
A. Model risk recommendations are managed by the underwriter.
