AD BANKER CHAPTER 9 AIAF114 EXAM
QUESTIONS WITH CORRECT ANSWERS
Under Alabama Law, it is illegal for an insurance company to accept applications and
premiums from a producer that is not appointed with that company. If you violate this
provision you are subject to a fine of up to:
A
$1,000
B
3 times the commission paid
C
$10,000
D
3 times the premium paid - ANSWER-D
3 times the premium paid
If an insurance company requests additional information regarding a claim, upon
receiving the additional information, how many days does the insurer have to pay or
deny the claim?
A
10
B
21
C
30
D
60 - ANSWER-B
21
All of the following are reasons that the Commissioner may suspend a producers
license, except:
A
Lying on your application for license
B
Conviction of a misdemeanor
C
Failing to comply with a child support order
D
Failing to pay state income tax - ANSWER-B
Conviction of a misdemeanor
, The maximum liability of the Life and Disability Insurance Guaranty Association for all
benefits, including cash values, for any one life is:
A
$250,000
B
$100,000
C
There is no limit
D
$300,000 - ANSWER-D
$300,000
The Commissioner can extend the time you have to complete your continuing education
requirements for up to how long?
A
30 days
B
120 days
C
60 days
D
90 days - ANSWER-D
90 days
An insurer that issues a health insurance policy must pay for services rendered by
Alabama health care providers within ______ calendar days upon receiving a clean
electronic claim.
A
90
B
45
C
30
D
180 - ANSWER-C
30
A producer can reinstate their license once it has lapsed without retaking a prelicensing
course and without taking a new license exam within:
A
18 months
B
12 months
C
24 months
QUESTIONS WITH CORRECT ANSWERS
Under Alabama Law, it is illegal for an insurance company to accept applications and
premiums from a producer that is not appointed with that company. If you violate this
provision you are subject to a fine of up to:
A
$1,000
B
3 times the commission paid
C
$10,000
D
3 times the premium paid - ANSWER-D
3 times the premium paid
If an insurance company requests additional information regarding a claim, upon
receiving the additional information, how many days does the insurer have to pay or
deny the claim?
A
10
B
21
C
30
D
60 - ANSWER-B
21
All of the following are reasons that the Commissioner may suspend a producers
license, except:
A
Lying on your application for license
B
Conviction of a misdemeanor
C
Failing to comply with a child support order
D
Failing to pay state income tax - ANSWER-B
Conviction of a misdemeanor
, The maximum liability of the Life and Disability Insurance Guaranty Association for all
benefits, including cash values, for any one life is:
A
$250,000
B
$100,000
C
There is no limit
D
$300,000 - ANSWER-D
$300,000
The Commissioner can extend the time you have to complete your continuing education
requirements for up to how long?
A
30 days
B
120 days
C
60 days
D
90 days - ANSWER-D
90 days
An insurer that issues a health insurance policy must pay for services rendered by
Alabama health care providers within ______ calendar days upon receiving a clean
electronic claim.
A
90
B
45
C
30
D
180 - ANSWER-C
30
A producer can reinstate their license once it has lapsed without retaking a prelicensing
course and without taking a new license exam within:
A
18 months
B
12 months
C
24 months
