Alabama Life & Health Insurance Exam2024
r r r r r r
Expected Questions and Answers
r r r r
(Verified by Expert) r r
1. Insurancerisrdefinedrasrthertransferrof
riskrtortherinsurancercompanyrinrconsiderationrforrarpremium.rANSrrPure
2. Therchancerofrlossrwithoutranyrchancerofrgainrisrcalled
ANSrrPurerRisk
r
3. hasrtherpossibilityrforrgainrorrlossrandrisrnotrinsurable.rANSrrSpeculativerRisk
4. isrdefinedrasrtherchancerofrloss.rANSrrRisk
5. ArconditionrthatrcouldrresultrinrarlossrisrknownrasrANSrrExposure
6. isrsomethingrthatrincreasesrtherchancerofrloss.rANSrrHazard
7. Therpresencerofra increasesrtherchancerofrarlossroccurring.-
ANSrrPhysicalrHazard
r
8. definedrasrarcauserofrloss,rsuchrasrfire.rANSrrPeril
,9. Torberinsurable,rlossesrmustrbe .rANSrrCalculable
10. allowsrinsurersrtorpredictrclaimsrmoreraccurately.rANSrrLawrofrLargerNumbers
11. Therlawrofrlargernumbersrappliesrto
.rANSrrGroupsrofrpeople,rnotrindividuals
12. Therlawrofrlargernumbersrappliesrtorgroupsrofrpeople,rnotrtorindividuals.rThermorerpeopleri
nrthergroup .rANSrrthermoreraccuratertherpredic-
tionsrare
r
13. Mostrinsurersrbuy torprotectrthemselvesrinrthereventrofra
.rANSrrreinsurancer,rcatastrophicrloss
14. arernotrrequiredrtorberuniformrfromronerstatertoranother.rANSrrInsurancerlaws
15. dividendsrtoritsrshareholdersr(stockholders),rbutrtheyrmayrnotrberguaran-
teed.rANSrrStockrinsurerrmayrpay
r
16. Stockrinsurersrpayrtherdividendsrtoritsrshareholdersr(stockholders),rarertheyrguaranteed.rA
NSrrNo
17. ArreciprocalrinsurancercompanyrisrmanagedrbyranrANSrrattorney-in-fact
,18. AnrunincorporatedrassociationrofrindividualsrwhorinsurereachrotherrisrknownrasrarANSrrRe
ciprocalrInsurers
19. ThergovernmentroffersrinsurancerprimarilyrbasedruponrANSrrsocialrneeds,rsuchrasrfloodrinsur
ancerandrworkersrcompensation
20. ThergovernmentroffersrinsurancerprimarilyrbasedruponrsocialrneedsrandrnotrANSrrpreventin
grfraud
21. companyrhasrtheirrhomerofficerinranotherrstaterANSrrForeign
22. companyrhasrtheirrhomerofficerinranotherrcountryrANSrrAlien
23. KeyrPersonrdisabilityrincomerpolicy,rpremiumrpaymentsrANSrrArermaderbyrtherbusinessrandr
arernotrtax-deductible
24. Claimsrotherrthanrdeathrbenefitsrarertorberpaidrtorthe
,runlessrotherwiserassignedrbyrtherinsured.rANSrrinsuredrorrtherinsured'srestate
, 25. Anrinsurancercontractris
inrthatronlyronerofrtherpartiesrtorthercontractrisrlegallyrboundrtordoranything.rANSrrunilateral
26. insurerrANSrrIfrformsrarernotrfurnished,rwrittenrproofrofrtheroccurrence,rnaturerofrtherloss,randr
extentrofrlossrmustrbersubmittedrtorthe
27. Ifrardistributionrisrmaderforrarreasonrotherrthanrtorpayrforrqualifiedrmedicalrexpenses,rtheram
ountrwithdrawnrwillrbersubjectrtoranrincomertaxrandranradditionalrANSrr20%rtax
28. Medicarersupplementrpoliciesr(Medigap)rdornotrcoverrthercostrofrANSrrextendedrnursingrhom
ercare
29. torfillrthergaprinrcoveragerattributablertorMedicare'srdeductibles,rcopay-
mentrrequirements,randrbenefitrperiods.rTheserplansrarerissuedrbyrprivaterinsurancercompani
r
es.rANSrrMedigaprplansrarerdesigned
30. toreitherrcontinuergrouprcoveragerandrdeferrMedicareruntilrretirement,rorrswitchrtorMedica
re.rANSrrIfrarpersonrisrstillremployedratrtheragerofr65,rherorrshermayrchoose
31. non-controlledrbusinessrANSrrTherpurposerofrarlicenserisrtorprimarilyrwrite
32. Whenrproducerrwasrreviewingrarpotentialrcustomersrcoveragerwrittenrbyranotherrcompan
yrtherproducerrmaderseveralrremarksrthatrwerermaliciouslyrcriticalrofrthatrotherrinsurer.rTherpro
ducerrcountrberfoundrguiltyrofr(oralrorrwrittenrremarks)rANSrrDefamation
33. WhatrpolicyrcharacteristicsrofrarMajorrMedicalrExpenserdon'trEXCEPTrANSrrLowrmaximumrlimit
s
34. CharacteristicsrofrarMajorrMedicalrExpenserANSrrHighrMaximumrLimits
35. CharacteristicsrofrarMajorrMedicalrExpenserANSrrBlanketrCoverage
36. CharacteristicsrofrarMajorrMedicalrExpenserANSrrCoinsurance
37. CharacteristicsrofrarMajorrMedicalrExpenserANSrrDeductible
r r r r r r
Expected Questions and Answers
r r r r
(Verified by Expert) r r
1. Insurancerisrdefinedrasrthertransferrof
riskrtortherinsurancercompanyrinrconsiderationrforrarpremium.rANSrrPure
2. Therchancerofrlossrwithoutranyrchancerofrgainrisrcalled
ANSrrPurerRisk
r
3. hasrtherpossibilityrforrgainrorrlossrandrisrnotrinsurable.rANSrrSpeculativerRisk
4. isrdefinedrasrtherchancerofrloss.rANSrrRisk
5. ArconditionrthatrcouldrresultrinrarlossrisrknownrasrANSrrExposure
6. isrsomethingrthatrincreasesrtherchancerofrloss.rANSrrHazard
7. Therpresencerofra increasesrtherchancerofrarlossroccurring.-
ANSrrPhysicalrHazard
r
8. definedrasrarcauserofrloss,rsuchrasrfire.rANSrrPeril
,9. Torberinsurable,rlossesrmustrbe .rANSrrCalculable
10. allowsrinsurersrtorpredictrclaimsrmoreraccurately.rANSrrLawrofrLargerNumbers
11. Therlawrofrlargernumbersrappliesrto
.rANSrrGroupsrofrpeople,rnotrindividuals
12. Therlawrofrlargernumbersrappliesrtorgroupsrofrpeople,rnotrtorindividuals.rThermorerpeopleri
nrthergroup .rANSrrthermoreraccuratertherpredic-
tionsrare
r
13. Mostrinsurersrbuy torprotectrthemselvesrinrthereventrofra
.rANSrrreinsurancer,rcatastrophicrloss
14. arernotrrequiredrtorberuniformrfromronerstatertoranother.rANSrrInsurancerlaws
15. dividendsrtoritsrshareholdersr(stockholders),rbutrtheyrmayrnotrberguaran-
teed.rANSrrStockrinsurerrmayrpay
r
16. Stockrinsurersrpayrtherdividendsrtoritsrshareholdersr(stockholders),rarertheyrguaranteed.rA
NSrrNo
17. ArreciprocalrinsurancercompanyrisrmanagedrbyranrANSrrattorney-in-fact
,18. AnrunincorporatedrassociationrofrindividualsrwhorinsurereachrotherrisrknownrasrarANSrrRe
ciprocalrInsurers
19. ThergovernmentroffersrinsurancerprimarilyrbasedruponrANSrrsocialrneeds,rsuchrasrfloodrinsur
ancerandrworkersrcompensation
20. ThergovernmentroffersrinsurancerprimarilyrbasedruponrsocialrneedsrandrnotrANSrrpreventin
grfraud
21. companyrhasrtheirrhomerofficerinranotherrstaterANSrrForeign
22. companyrhasrtheirrhomerofficerinranotherrcountryrANSrrAlien
23. KeyrPersonrdisabilityrincomerpolicy,rpremiumrpaymentsrANSrrArermaderbyrtherbusinessrandr
arernotrtax-deductible
24. Claimsrotherrthanrdeathrbenefitsrarertorberpaidrtorthe
,runlessrotherwiserassignedrbyrtherinsured.rANSrrinsuredrorrtherinsured'srestate
, 25. Anrinsurancercontractris
inrthatronlyronerofrtherpartiesrtorthercontractrisrlegallyrboundrtordoranything.rANSrrunilateral
26. insurerrANSrrIfrformsrarernotrfurnished,rwrittenrproofrofrtheroccurrence,rnaturerofrtherloss,randr
extentrofrlossrmustrbersubmittedrtorthe
27. Ifrardistributionrisrmaderforrarreasonrotherrthanrtorpayrforrqualifiedrmedicalrexpenses,rtheram
ountrwithdrawnrwillrbersubjectrtoranrincomertaxrandranradditionalrANSrr20%rtax
28. Medicarersupplementrpoliciesr(Medigap)rdornotrcoverrthercostrofrANSrrextendedrnursingrhom
ercare
29. torfillrthergaprinrcoveragerattributablertorMedicare'srdeductibles,rcopay-
mentrrequirements,randrbenefitrperiods.rTheserplansrarerissuedrbyrprivaterinsurancercompani
r
es.rANSrrMedigaprplansrarerdesigned
30. toreitherrcontinuergrouprcoveragerandrdeferrMedicareruntilrretirement,rorrswitchrtorMedica
re.rANSrrIfrarpersonrisrstillremployedratrtheragerofr65,rherorrshermayrchoose
31. non-controlledrbusinessrANSrrTherpurposerofrarlicenserisrtorprimarilyrwrite
32. Whenrproducerrwasrreviewingrarpotentialrcustomersrcoveragerwrittenrbyranotherrcompan
yrtherproducerrmaderseveralrremarksrthatrwerermaliciouslyrcriticalrofrthatrotherrinsurer.rTherpro
ducerrcountrberfoundrguiltyrofr(oralrorrwrittenrremarks)rANSrrDefamation
33. WhatrpolicyrcharacteristicsrofrarMajorrMedicalrExpenserdon'trEXCEPTrANSrrLowrmaximumrlimit
s
34. CharacteristicsrofrarMajorrMedicalrExpenserANSrrHighrMaximumrLimits
35. CharacteristicsrofrarMajorrMedicalrExpenserANSrrBlanketrCoverage
36. CharacteristicsrofrarMajorrMedicalrExpenserANSrrCoinsurance
37. CharacteristicsrofrarMajorrMedicalrExpenserANSrrDeductible
