ALABAMA LIFE HEALTH TIPS TEST QUESTIONS AND
ANSWERS SURE A+
✔✔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
✔✔which statement regarding insurance producer license appointments is TRUE? -
✔✔a licensed insurance producer must be licensed and appointed by the insurer to act
as the insurers agent
✔✔in a traditional whole life policy, cash value - ✔✔grows on a tax-deferred basis
✔✔The type of premium for term life insurance that remains the same throughout the
policy period is - ✔✔level premium
✔✔which of the following is the settlement option of a life policy that provides periodic
payments of a specified amount as long as the proceeds plus interest last? - ✔✔fixed
amount option
✔✔legally, who does an insurance agent (producer) represent? - ✔✔only the company
✔✔which of the following describes a multiple employer trust (MET)? - ✔✔a legal entity
that small employers may join to become eligible for group insurance
✔✔what term describes a situation where a policy owner transfers a portion of his or her
rights in an insurance policy to another party in order to secure a debt to that party? -
✔✔collateral assignment
✔✔a company domiciled in another state that has received permission from the
insurance commissioner to do business in this state is called a/an - ✔✔foreign admitted
company
ANSWERS SURE A+
✔✔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
✔✔which statement regarding insurance producer license appointments is TRUE? -
✔✔a licensed insurance producer must be licensed and appointed by the insurer to act
as the insurers agent
✔✔in a traditional whole life policy, cash value - ✔✔grows on a tax-deferred basis
✔✔The type of premium for term life insurance that remains the same throughout the
policy period is - ✔✔level premium
✔✔which of the following is the settlement option of a life policy that provides periodic
payments of a specified amount as long as the proceeds plus interest last? - ✔✔fixed
amount option
✔✔legally, who does an insurance agent (producer) represent? - ✔✔only the company
✔✔which of the following describes a multiple employer trust (MET)? - ✔✔a legal entity
that small employers may join to become eligible for group insurance
✔✔what term describes a situation where a policy owner transfers a portion of his or her
rights in an insurance policy to another party in order to secure a debt to that party? -
✔✔collateral assignment
✔✔a company domiciled in another state that has received permission from the
insurance commissioner to do business in this state is called a/an - ✔✔foreign admitted
company
