ALABAMA LIFE AND HEALTH
INSURANCE EXAM 2024-2025
COMPLETE 350 QUESTIONS WITH
100% DETAILED VERIFIED AND
CORRECT ANSWERS ACTUAL
BRAND-NEW EXAM ALREADY
GRADED A+
Susan owns a life insurance policy that has accumulated
$10,000 in cash value in which she can no longer pay its
premiums. If she elects to take the extended term option,
which of these actions would she take? -
....ANSWER...Uses the $10,000 to buy term insurance
of the same face amount as her original policy
Which of the following is considered the "automatic"
Nonforfeiture Option that most insurers will use? -
....ANSWER...extended term
An accidental death rider claim is usually paid if the
insured - ....ANSWER...dies within 90 days of the
accident
1
,Shawn has a waiver of premium ride on his life
insurance policy. He becomes disabled for 3 years,
during which the insurance company waives $3,000 in
premiums. When Shawn recovers, he must -
....ANSWER...resume paying premiums again
An insurance company may cancel a life insurance
policy under which of the following conditions? -
....ANSWER...the outstanding policy loan exceeds the
cash value of the policy
Jan is named irrevocable beneficiary of Jim's life
insurance policy. Which of the following statements is
correct? - ....ANSWER...Jim needs Jan's permission to
borrow the policy's loan value
Carol is a life insurance policyowner who has
transferred her ownership to a third party in exchange for
a percentage of the death benefit. What is this called? -
....ANSWER...Viatical settlement agreement
i the insurance premiums are paid more frequently than
annually, the policyowner can expect to: -
....ANSWER...have a higher total outlay of dollars for
the coverage for that year
2
,when an estate is named beneficiary to a life insurance
policy, the policy proceeds are: -
....ANSWER...distributed according to state law
3
, an example of a life insurance beneficiary is a(n) -
....ANSWER...child of the insured, spouse of the
insured, and company
when the gross premium of a life insurance policy is
computed, which of these factors is not included? -
....ANSWER...number of beneficiaries
which of these will not result in an increase in life
insurance policy dividends? - ....ANSWER...higher
reserves
the premium payment mode which results in the highest
total premium is: - ....ANSWER...monthly
which of the following is true concerning the fixed
period option? - ....ANSWER...the principal amount
gradually decreases to zero
Paula has an insurance policy that has a guaranteed
minimum cash value, a guaranteed death benefit, fixed
premiums, and grows at a rate reflected by a selected
fund index. which type of life policy fits this
description? - ....ANSWER...equity indexed life
4
INSURANCE EXAM 2024-2025
COMPLETE 350 QUESTIONS WITH
100% DETAILED VERIFIED AND
CORRECT ANSWERS ACTUAL
BRAND-NEW EXAM ALREADY
GRADED A+
Susan owns a life insurance policy that has accumulated
$10,000 in cash value in which she can no longer pay its
premiums. If she elects to take the extended term option,
which of these actions would she take? -
....ANSWER...Uses the $10,000 to buy term insurance
of the same face amount as her original policy
Which of the following is considered the "automatic"
Nonforfeiture Option that most insurers will use? -
....ANSWER...extended term
An accidental death rider claim is usually paid if the
insured - ....ANSWER...dies within 90 days of the
accident
1
,Shawn has a waiver of premium ride on his life
insurance policy. He becomes disabled for 3 years,
during which the insurance company waives $3,000 in
premiums. When Shawn recovers, he must -
....ANSWER...resume paying premiums again
An insurance company may cancel a life insurance
policy under which of the following conditions? -
....ANSWER...the outstanding policy loan exceeds the
cash value of the policy
Jan is named irrevocable beneficiary of Jim's life
insurance policy. Which of the following statements is
correct? - ....ANSWER...Jim needs Jan's permission to
borrow the policy's loan value
Carol is a life insurance policyowner who has
transferred her ownership to a third party in exchange for
a percentage of the death benefit. What is this called? -
....ANSWER...Viatical settlement agreement
i the insurance premiums are paid more frequently than
annually, the policyowner can expect to: -
....ANSWER...have a higher total outlay of dollars for
the coverage for that year
2
,when an estate is named beneficiary to a life insurance
policy, the policy proceeds are: -
....ANSWER...distributed according to state law
3
, an example of a life insurance beneficiary is a(n) -
....ANSWER...child of the insured, spouse of the
insured, and company
when the gross premium of a life insurance policy is
computed, which of these factors is not included? -
....ANSWER...number of beneficiaries
which of these will not result in an increase in life
insurance policy dividends? - ....ANSWER...higher
reserves
the premium payment mode which results in the highest
total premium is: - ....ANSWER...monthly
which of the following is true concerning the fixed
period option? - ....ANSWER...the principal amount
gradually decreases to zero
Paula has an insurance policy that has a guaranteed
minimum cash value, a guaranteed death benefit, fixed
premiums, and grows at a rate reflected by a selected
fund index. which type of life policy fits this
description? - ....ANSWER...equity indexed life
4
