ALABAMA LIFE INSURANCE EXAM 2 2024 WITH 100% CORRECT ANSWERS UPDATED

ALABAMA LIFE INSURANCE EXAM 2 2024 WITH 100% CORRECT ANSWERS UPDATED Dividend options are defined as ways in which the policy owner can: - ANSWERS receives dividends paid on any stock held A life insurance company may pay a death claim for less than the face amount of a policy under which of the following conditions? - ANSWERS All of the above Which policy will have immediate cash? - ANSWERS single premium The process of underwriting primarily involves what two key steps? - ANSWERS risk selection and pricing Sherwood has no valid will but has named his estate as the beneficiary of his life insurance policy. As a result, he can expect that the policy proceeds - ANSWERS are distributed according to state law the disability income rider of a life insurance policy normally - ANSWERS all of the above Oliver has a life insurance policy with a $50,000 death benefit. At his death, there is a $5000 policy loan outstanding. Which of the following statement is CORRECT? - ANSWERS the insurer will subtract the amount of the loan and pay $45,000 to the beneficiary. which statement is correct? - ANSWERS Concealment is the withholding of information that should have been provided to an insurer all of the following are requirements to receive an Alabama insurance producer license EXCEPT: - ANSWERS An applicant must have a diploma from an approved college or university You can withdraw money from an annuity without penalty(assuming no surrender penalty) beginning at what age? - ANSWERS 59.5 years of age Which of the following factors determines the amount of each payment under the fixed period settlement option? - ANSWERS all of the above a parent who purchases a policy on the life of a minor child and wishes to retain complete control of the policy until the child reaches age 18 may do so by means of - ANSWERS the ownership clause A payor rider protects against death or disability of the policy owner when the insured is a minor. Once the minor reached a specified age, what typically happens? - ANSWERS The insured is offered the opportunity to make premium payments According to the Alabama Insurance regulations, all of the following are included as advertisements except: - ANSWERS a birthday card sent to a policyholder by his or her agent Alabama law regulates life insurance benefits with respect to minors. What statement is FALSE? - ANSWERS 18-year olds may receive a limit of $3000 in life benefits in any one year Should an insured die while a policy is in its grace period, the amount of past-due premium is - ANSWERS deducted from the face amount of the policy before payment is made to the beneficiary the "entire contract" law in Alabama says - ANSWERS the policy and the application (or a summary of the application) consults the entire contract The Incontestable Clause has what effect on coverage? - ANSWERS Misstatements on the application will not negate coverage if a loss occurs following the incontestable period In general, advertising would include each of the following EXCEPT: - ANSWERS Communication of administrative matters the authority of an insurance producer included in the agreement between the producer and the company is known as - ANSWERS expressed authority if you decided to start withdrawing money at the end of the Accumulation Period, your choices are each of the following EXCEPT: - ANSWERS Tax-free stream of payments at 75% Most life insurance policies - ANSWERS will pay the face amount if the insured is killed while a a passenger of a regularly scheduled commercial airliner the kind of life insurance that acquires no cash value is - ANSWERS term life Offering to give a prospect anything of value not specified in the contract to persuade the prospect to purchase the insurance is: A) rebating. B) twisting. C) allowed. D) encouraged. - ANSWERS rebating in the life insurance agency relationship, what party is the principal? - ANSWERS the insurance company an individual otherwise qualified except for having taken and passed the examination can be issued a temporary insurance producer license, which is valid for a maximum period of - ANSWERS six months a term policy in which the protection remains constant for the term of the policy is - ANSWERS level term with the "reduce premium" dividend option, dividends will be used to - ANSWERS apply to the next premium due a 20-pay life policy would indicate what? - ANSWERS the premiums are paid for 20 years the income period when a surviving spouse does not qualify for social security survivor or retirement benefits is called the - ANSWERS blackout period in noncontributory group insurance plans, what percentage of eligible employees must be covered by the plan? - ANSWERS 100% a company chartered in alabama would b