Alabama Life & Health Exam 2024 Expected Questions and Answers (Verified by Expert)

Alabama Life & Health Insurance XCEL Testing Solutions2024 i i i i i i i i




Expected Questions and Answers i i i i




(Verified by Expert) i i




1. The life and health insurance marketing system utilizing non-
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employee agents that represent just one insurance company and are often paid an allowance
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to cover office expense and staffing is known as what? ANS the generalagency system.
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2. Dividendspayabletoapolicyowneraredeclaredby? ANStheinsurancecompany i i i i i i i i i i i




3. A nonprofit incorporated society that doesn't have capital stock and operates for the sole b
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enefit of its members is known as what? ANS fraternal benefit society
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4. Insurance policies issued by companies which are owned by stockholdersand do not pay p
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olicy dividends are known as what? ANS non-participating policies
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5. Insurance policies issued by companies which allow their policyowners toparticipate in th
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e favorable experience of the company through payment of dividends are known as what? A
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NS participating policies
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6. A life insurance producer's agency agreement normally authorizes the li-
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censee to do what? ANS Solicit and sell insurance, collect premiums
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7. Who issues policies? ANS the insurer
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,8. People with higher loss exposure have the tendency to purchase insurancemore often than t
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hose at average risk.This is called? ANS adverse selection
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9. With respect to an insurance application.... ANS a representation is valid as longas its true.
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10. Pattheproducerjustsoldaninsurancepolicytoaclient,explainingthathehas authority to is
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sue the policy. Pat was not specifically granted this powerfrom the insurance company. Pat is
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exercising what? ANS implied authority i i i i




11. Why are insurance contracts said to be contracts of adhesion? ANS One partywrites the con
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tract, and the other party must accept the contract as written.
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12. The agreement between a producer and the insurance company specifiesthe authority gi
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ven to a producer to act on behalf of the insurer. What is this called? ANS Expressed authority
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13. Howdotermlifeinsuranceandwholelifeinsurancediffer? ANS Terminsurancedoes not buil
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d cash value.
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14. Who can collect the face amount on an endowment policy? ANS the policyown-er.
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15. Apolicyownercancollectthefaceamountonwhatkindofpolicy? ANSendow-ment policy
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16. What life insurance policy would build up cash value the fastest? ANSsinglepremium
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,17. Mortgage protection is typically covered with? ANSdecreasing term life insur-ance
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, 18. With an initial face amount of $50,000, and a value of $5,000, the actualdeath benefit
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would be? ANS $55,000 i i i




19. Which option would the beneficiary receive the death benefit plus theaccumulated c
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ash value? ANS increasing death benefit option
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20. At what age does a whole life policy endow? ANS 100
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21. Tim has a Universal Life policy.What is the cash value growth in hispolicy? ANS int
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22. Inanadjustablelifepolicy,whatmaybeadjustedtomeetthepolicyholder'sneeds? ANS fre
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quencyofpremiumpayments,amountofpayment,policy'sfaceamount
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23. What can NOT be adjusted in an adjustable life policy? ANS the insured
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24. Which of the following combines insurance protection with a cash accu-
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mulation? ANS permanent insurance
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25. With term life insurance, what remains the same throughout the policyperiod? ANS a l
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26. Thepremiumand theprotectionremainconstantfor thetermof thepolicy.What kind of poli
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