ALABAMA LIFE AND HEALTH INSURANCE
EXAM 2026 COMPLETE PRACTICE
QUESTIONS AND CORRECT ANSWERS
WITH DETAILED EXPLANATIONS LATEST
ALABAMA LIFE AND HEALTH INSURANCE
LICENSING EXAM STUDY GUIDE GRADE
A+ 2026 EDITION
An individual long-term care insurance policy may not be terminated for
nonpayment of premium unless the insurer has give notice to the insured
and any designated persons at least _____ days before the effective date of
the termination. - CORRECT ANSWER -30
The notice must provide a 30 day grace period from the date of its mailing.
Every insured may designate at least 1 additional person to receive notice of
a lapse or of termination for nonpayment of premium.
An insurer may reserve the right to defer the payment of a cash surrender
value for up to _________ months after demand is made and the policy is
surrendered. - CORRECT ANSWER -6 months
All of the following are true regarding advertising in life insurance, except: -
CORRECT ANSWER -Premiums cannot be mentioned in an advertisement at
all
,Premiums MAY be mentioned, but only as premiums. NOT as Deposits,
Deposit premiums or Investments. Advertisements MUST indicate clearly
what the product is advertising. Dividends MUST state that they are Not
Guaranteed.
TRUE:
Premiums cannot be referred to as 'deposits', 'deposit premiums', or
'investments', they may be referred to as 'premiums' only
Advertisements may not omit the words 'life insurance' or 'annuity' from a
policy's name
Any reference to policy dividends must state that they are not guaranteed
An annuity or pure endowment contract may be reinstated within
__________ from the default in premium payments, unless the cash
surrender value has been paid. - CORRECT ANSWER -1 year
A licensee must inform the Commissioner of a change of legal name or
address within ______ days of the change. - CORRECT ANSWER -30
The head of the state department of insurance has all of the following
powers, except: - CORRECT ANSWER -Creating and establishing new
premium rates for insurance companies operating in the state
Powers:
,Imposing penalties for violations of the insurance code, including but not
limited to fines, suspensions or revocations of licenses and Certificates of
Authority, and requesting that the Attorney General prosecute a violator
Approving rates and rate increases for regulated lines of insurance
Subpoenaing witnesses and administering oaths in order to further any
examination, investigation, or hearing on insurance matters
Which of the following can be listed on an illustration? - CORRECT ANSWER
-The insurer's name, producers name, address, and the policy generic name
The proposed insured's name, age, gender, and the initial death benefit
The dividend option selected or any nonguaranteed elements
Non-financial regulatory activities are known as: - CORRECT ANSWER -
Market conduct
Non-financial regulatory activities of an insurance department fall under
the broad heading of market conduct. Proper market conduct means
conducting insurance business fairly and responsibly.
Which of the following IS true about an HMO under Alabama Law? -
CORRECT ANSWER -The Commissioner of insurance can regulate them but
cannot impose a fine
, HMOs are already Government regulated both at the State and Federal
levels. However, the Commissioner does have the right to regulate all
insurers in their state, but they cannot impose a fine. That would be
equivalent to the State government issuing a fine to themselves and the
federal government. The Commissioner may certainly accept an
examination from the HMO's home states insurance commissioner and
may examine any company in its own state as it relates to protecting the
general public
Which of the following IS NOT a type of illustration under the Alabama
regulation governing life insurance illustrations? - CORRECT ANSWER -
Annualized Illustration
TYPES:
In force illustration
Supplemental illustration
Basic illustration
Which of the following provided the federal government the right to
regulate the insurance industry, regarding fraud and false statements? -
CORRECT ANSWER -McCarran/Ferguson Act
Jay, who is employed by Carson Company, is assigned to work temporarily
in another state. While in the other state, Jay is injured on the job. He is
EXAM 2026 COMPLETE PRACTICE
QUESTIONS AND CORRECT ANSWERS
WITH DETAILED EXPLANATIONS LATEST
ALABAMA LIFE AND HEALTH INSURANCE
LICENSING EXAM STUDY GUIDE GRADE
A+ 2026 EDITION
An individual long-term care insurance policy may not be terminated for
nonpayment of premium unless the insurer has give notice to the insured
and any designated persons at least _____ days before the effective date of
the termination. - CORRECT ANSWER -30
The notice must provide a 30 day grace period from the date of its mailing.
Every insured may designate at least 1 additional person to receive notice of
a lapse or of termination for nonpayment of premium.
An insurer may reserve the right to defer the payment of a cash surrender
value for up to _________ months after demand is made and the policy is
surrendered. - CORRECT ANSWER -6 months
All of the following are true regarding advertising in life insurance, except: -
CORRECT ANSWER -Premiums cannot be mentioned in an advertisement at
all
,Premiums MAY be mentioned, but only as premiums. NOT as Deposits,
Deposit premiums or Investments. Advertisements MUST indicate clearly
what the product is advertising. Dividends MUST state that they are Not
Guaranteed.
TRUE:
Premiums cannot be referred to as 'deposits', 'deposit premiums', or
'investments', they may be referred to as 'premiums' only
Advertisements may not omit the words 'life insurance' or 'annuity' from a
policy's name
Any reference to policy dividends must state that they are not guaranteed
An annuity or pure endowment contract may be reinstated within
__________ from the default in premium payments, unless the cash
surrender value has been paid. - CORRECT ANSWER -1 year
A licensee must inform the Commissioner of a change of legal name or
address within ______ days of the change. - CORRECT ANSWER -30
The head of the state department of insurance has all of the following
powers, except: - CORRECT ANSWER -Creating and establishing new
premium rates for insurance companies operating in the state
Powers:
,Imposing penalties for violations of the insurance code, including but not
limited to fines, suspensions or revocations of licenses and Certificates of
Authority, and requesting that the Attorney General prosecute a violator
Approving rates and rate increases for regulated lines of insurance
Subpoenaing witnesses and administering oaths in order to further any
examination, investigation, or hearing on insurance matters
Which of the following can be listed on an illustration? - CORRECT ANSWER
-The insurer's name, producers name, address, and the policy generic name
The proposed insured's name, age, gender, and the initial death benefit
The dividend option selected or any nonguaranteed elements
Non-financial regulatory activities are known as: - CORRECT ANSWER -
Market conduct
Non-financial regulatory activities of an insurance department fall under
the broad heading of market conduct. Proper market conduct means
conducting insurance business fairly and responsibly.
Which of the following IS true about an HMO under Alabama Law? -
CORRECT ANSWER -The Commissioner of insurance can regulate them but
cannot impose a fine
, HMOs are already Government regulated both at the State and Federal
levels. However, the Commissioner does have the right to regulate all
insurers in their state, but they cannot impose a fine. That would be
equivalent to the State government issuing a fine to themselves and the
federal government. The Commissioner may certainly accept an
examination from the HMO's home states insurance commissioner and
may examine any company in its own state as it relates to protecting the
general public
Which of the following IS NOT a type of illustration under the Alabama
regulation governing life insurance illustrations? - CORRECT ANSWER -
Annualized Illustration
TYPES:
In force illustration
Supplemental illustration
Basic illustration
Which of the following provided the federal government the right to
regulate the insurance industry, regarding fraud and false statements? -
CORRECT ANSWER -McCarran/Ferguson Act
Jay, who is employed by Carson Company, is assigned to work temporarily
in another state. While in the other state, Jay is injured on the job. He is
