ALABAMA LIFE HEALTH STUDY EXAMS GUIDE
QUESTIONS AND ANSWERS SURE A+
✔✔To standardize the regulation of insurance in the various states. - ✔✔The National
Association of Insurance Commissioners exists:
✔✔12 months. - ✔✔A producer who allows his license to lapse, may reinstate the
license if the request is made within how many months from the due date of the renewal
fee?
✔✔premium - ✔✔The initial payment for an insurance policy can be described in an
advertisement only as a(n)
✔✔Hearings, Notice - ✔✔The concept of due process requires which of the following
elements?
✔✔Solicitor. - ✔✔In Alabama any individual who is appointed by a company to solicit
applications for insurance as representative of another producer/agent is called a:
✔✔Receive good salaries from insurance companies. - ✔✔Independent agents
generally may do all the following except:
✔✔1. Assist in the detection and prevention of insolvencies.
,2. To avoid delays in the payment of claims by insolvent insurers.
3. To provide a method of paying claims for insolvent insurers.
4. To provide a method of assessment of cost of claims due to insolvent insurers. -
✔✔The purpose of the Alabama Insurance Guarantee Association is to:
✔✔A producer. - ✔✔In Alabama any person who is authorized or acknowledged by an
insurer to act in the solicitation of, negotiation for, or pronouncement of making of a
contract of insurance is termed:
✔✔3o days and 15 days - ✔✔Producer terminations require the insurer to notify the
Commissioner's office and the producers in how many days?
✔✔1. Be a U. S. citizen.
2. Be an Alabama resident for at least 6 months
3. Be of good moral character and not convicted of any felony.
4. Have satisfied the 40 hour pre-licensing educational requirement - ✔✔Alabama law
requires an applicant for an insurance producers license to:
✔✔Yes, some states have mandatory forms or rates for certain coverage's. - ✔✔Can
states require insurance companies to use certain forms or rates in connection with
certain types of insurance?
✔✔An authorized company. - ✔✔A state insurance department licensed company that
is permitted to do business in the state is called:
✔✔1. A fine.
2. Imprisonment.
3. Suspension or revocation of license. - ✔✔The penalty for a producer who over
charges or fails to return premiums to persons so entitled is:
✔✔1. Issue or countersign policies.
2. Sell insurance unless they are licensed.
3. Sign an insurance policy. - ✔✔Solicitors may not:
✔✔If the insurer is an eligible surplus line insurer and has been placed on the
Commissioner's approved list of unauthorized insurers. - ✔✔A licensed producer may
procure insurance in an unauthorized company:
✔✔Evaluate an insured's financial condition. - ✔✔All of the following are duties of a
producer except:
✔✔Direct Writer. - ✔✔ABC Insurance Company, agents are employees of the company
who are paid a salary plus commissions. This an example of what type of insurance
marketing system?
, ✔✔Appointed by the governor for a four year term. - ✔✔The Commissioner of
Insurance, who is the chief officer and head of the department of insurance, is:
✔✔the promulgation of insurance laws - ✔✔The Commissioner of Insurance specific
duties are all of the following except:
✔✔Is appointed by a company as an agent to solicit applications for insurance as a
representative of another agent - ✔✔A solicitor:
✔✔Is an independent businessperson. - ✔✔A nonexclusive agent:
✔✔Involves inducing any policyholder to lapse a contract of insurance for the purpose
of replacing the policy to the detriment of the policyholder. - ✔✔The practice of twisting:
✔✔The applicant is a resident of state which permits the licensing of Alabama residents
under basically the same conditions as provided for the licensing of nonresidents of
Alabama. - ✔✔The written examination given to applicants for a nonresident producer's
license can be waived provided that:
✔✔Contract of Adhesion concept - ✔✔Insurance contracts found to have ambiguous
language will all ways have the ambiguous language interpreted in the favor of the
policyholder. This is know as
✔✔30 days - ✔✔The Insurance Commissioner may hold a hearing upon written
demand of an aggrieved person within how many days?
✔✔Writing the provisions of a customer's policy. - ✔✔Which of the following is not one
of an insurance producer's duties?
✔✔Domestic companies. - ✔✔Insurance companies incorporated under Alabama state
law are:
✔✔Issuing a statement which is not entirely true about the terms of a policy. - ✔✔One
of the following is considered misrepresentation and is illegal
✔✔Change the law to meet the public's best interest - ✔✔The Commissioner of
insurance in Alabama may do all the following except:
✔✔30 days. - ✔✔An insurer will have how many days to respond to the state under
obligations from the Alabama Insurance Guarantee Association?
✔✔State insurance department. - ✔✔Who is responsible for licensing insurance
producers?
QUESTIONS AND ANSWERS SURE A+
✔✔To standardize the regulation of insurance in the various states. - ✔✔The National
Association of Insurance Commissioners exists:
✔✔12 months. - ✔✔A producer who allows his license to lapse, may reinstate the
license if the request is made within how many months from the due date of the renewal
fee?
✔✔premium - ✔✔The initial payment for an insurance policy can be described in an
advertisement only as a(n)
✔✔Hearings, Notice - ✔✔The concept of due process requires which of the following
elements?
✔✔Solicitor. - ✔✔In Alabama any individual who is appointed by a company to solicit
applications for insurance as representative of another producer/agent is called a:
✔✔Receive good salaries from insurance companies. - ✔✔Independent agents
generally may do all the following except:
✔✔1. Assist in the detection and prevention of insolvencies.
,2. To avoid delays in the payment of claims by insolvent insurers.
3. To provide a method of paying claims for insolvent insurers.
4. To provide a method of assessment of cost of claims due to insolvent insurers. -
✔✔The purpose of the Alabama Insurance Guarantee Association is to:
✔✔A producer. - ✔✔In Alabama any person who is authorized or acknowledged by an
insurer to act in the solicitation of, negotiation for, or pronouncement of making of a
contract of insurance is termed:
✔✔3o days and 15 days - ✔✔Producer terminations require the insurer to notify the
Commissioner's office and the producers in how many days?
✔✔1. Be a U. S. citizen.
2. Be an Alabama resident for at least 6 months
3. Be of good moral character and not convicted of any felony.
4. Have satisfied the 40 hour pre-licensing educational requirement - ✔✔Alabama law
requires an applicant for an insurance producers license to:
✔✔Yes, some states have mandatory forms or rates for certain coverage's. - ✔✔Can
states require insurance companies to use certain forms or rates in connection with
certain types of insurance?
✔✔An authorized company. - ✔✔A state insurance department licensed company that
is permitted to do business in the state is called:
✔✔1. A fine.
2. Imprisonment.
3. Suspension or revocation of license. - ✔✔The penalty for a producer who over
charges or fails to return premiums to persons so entitled is:
✔✔1. Issue or countersign policies.
2. Sell insurance unless they are licensed.
3. Sign an insurance policy. - ✔✔Solicitors may not:
✔✔If the insurer is an eligible surplus line insurer and has been placed on the
Commissioner's approved list of unauthorized insurers. - ✔✔A licensed producer may
procure insurance in an unauthorized company:
✔✔Evaluate an insured's financial condition. - ✔✔All of the following are duties of a
producer except:
✔✔Direct Writer. - ✔✔ABC Insurance Company, agents are employees of the company
who are paid a salary plus commissions. This an example of what type of insurance
marketing system?
, ✔✔Appointed by the governor for a four year term. - ✔✔The Commissioner of
Insurance, who is the chief officer and head of the department of insurance, is:
✔✔the promulgation of insurance laws - ✔✔The Commissioner of Insurance specific
duties are all of the following except:
✔✔Is appointed by a company as an agent to solicit applications for insurance as a
representative of another agent - ✔✔A solicitor:
✔✔Is an independent businessperson. - ✔✔A nonexclusive agent:
✔✔Involves inducing any policyholder to lapse a contract of insurance for the purpose
of replacing the policy to the detriment of the policyholder. - ✔✔The practice of twisting:
✔✔The applicant is a resident of state which permits the licensing of Alabama residents
under basically the same conditions as provided for the licensing of nonresidents of
Alabama. - ✔✔The written examination given to applicants for a nonresident producer's
license can be waived provided that:
✔✔Contract of Adhesion concept - ✔✔Insurance contracts found to have ambiguous
language will all ways have the ambiguous language interpreted in the favor of the
policyholder. This is know as
✔✔30 days - ✔✔The Insurance Commissioner may hold a hearing upon written
demand of an aggrieved person within how many days?
✔✔Writing the provisions of a customer's policy. - ✔✔Which of the following is not one
of an insurance producer's duties?
✔✔Domestic companies. - ✔✔Insurance companies incorporated under Alabama state
law are:
✔✔Issuing a statement which is not entirely true about the terms of a policy. - ✔✔One
of the following is considered misrepresentation and is illegal
✔✔Change the law to meet the public's best interest - ✔✔The Commissioner of
insurance in Alabama may do all the following except:
✔✔30 days. - ✔✔An insurer will have how many days to respond to the state under
obligations from the Alabama Insurance Guarantee Association?
✔✔State insurance department. - ✔✔Who is responsible for licensing insurance
producers?
