Alabama Life and Health Insurance Exam With Complete Solution

industrial life insurance is also referred to as - Answer debt policy Based upon Optional Uniform Provisions, an insurer would have the right to deny claim payment in all of the following circumstances, except: - Answer misstatement of age on the application Insurable interest for life insurance is necessary only at the time of: - Answer application Which of the following types of policies would a sports team purchase to obtain coverage for a season? - Answer blanket If the insurer cancels an individual health plan, what happens to the unearned premium? - Answer it is refunded on a pro rata basis Policy replacement is the process of: - Answer Cancelling an existing policy and issuing a new policy Electing a _____________ option for an annuity means that the annuitant will receive an income for life or for a temporary period of time. - Answer settlement The statements and descriptions in an application for a life insurance policy or annuity are: - Answer representations and not warranties Under the Modified Endowment Contract rules the 7-Pay Test is defined as: - Answer The comparison of premiums paid during the first 7 years with the net level premiums that would have been paid on a 7 year pay whole life of the same death benefit When there is enough cash value within a life policy to pay the premium, the Automatic Premium Loan provision prevents the policy from: - Answer lapsing A retiree elected the Life Income with 10 Year Period Certain. He/she dies the day after receiving 119 monthly payments. The beneficiary will receive _______ more payment(s): - Answer 1Which of the following traditional whole life policies has the highest first-year annual premium, all other factors being equal? A. 40-pay life B. 30-pay life C. 20-pay life D. 10-pay life - Answer D. 10-pay life