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Final Exam - Alabama Life and Health
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
John has recently died and it was discovered that he was actually ten years
older than what was listed on his life insurance policy. What will the insurer pay
his beneficiary?
Ans: The amount of insurance that his premiums would have purchased at his correct age
Which of the following is considered the "automatic" Nonforfeiture Option that
most insurers will use?
Ans: Extended term
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?
Ans: Uses the $10,000 to buy term insurance of the same face amount as her original policy
What kind of risk are amateur pilots normally classified as?
Ans: Special class risks
The monthly benefit of an Annuity Certain is determined by:
Ans: The annuitant's payout period selection
Shawn has a waiver of premium rider 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:
Ans: Resume paying premiums again
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Alabama's annuity disclosure regulation:
Ans: Requires the delivery of a buyer's guide and a disclosure document to an annuity's
applicant
A policyowner can collect the face amount on what type of policy?
Ans: Endowment policy
On November 10, Ozzie's Major Medical policy is reinstated. He is later injured
in an automobile accident on November 13 and immediately hospitalized. Ozzie
is eligible for:
Ans: Full benefits
In Alabama, when are newborns covered under a health policy?
Ans: The moment of birth
Alabama's continuing education law states that an insurance producer must
report how many classroom hours every two years?
Ans: 24
Mortgage protection is typically covered with:
Ans: Decreasing term
A departing employee has decided to continue his group coverage through
COBRA. Who pays the premium in this situation?
Ans: Employee
Kim has purchased a straight life annuity. What will this type of annuity provide
her with?
Ans: A periodic income to the annuitant for life
According to Required Provision 4, when an insured applies for reinstatement of
a health policy and receives a conditional receipt, how long does the insurer
have to approve or deny?
Ans: Within 45 days of the date of application
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An example of a life insurance beneficiary is a(n):
Ans: Child, spouse, or company of the insured.
A group disability income policy will:
Ans: Usually pay short-term benefits of less than 2 years in duration
A life insurance policyowner has just exercised the policy's reduced paid-up
option. Which of these statements is true?
Ans: The amount of coverage will be much less than the original coverage
The Long Term Care Partnership program is designed to allow seniors to:
Ans: Shelter assets from the spend-down requirement of Medicaid
Rodney applies for an insurance policy and pays the first premium. The receipt
given for the first premium is called a(n):
Ans: Conditional receipt
Michael has a universal life policy with an increasing death benefit option. With
an initial face amount of $50,000 and a value of $5,000, what would the actual
death benefit be?
Ans: $55,000
An insured should be restored to the approximate financial condition occupied
before the loss occurred. This is called the:
Ans: Principle of indemnity
What percentage of eligible employees must be covered by noncontributory
group insurance plans?
Ans: 100%
A written agreement that involves two or more parties and consideration is:
Ans: A contract
Medicare supplement policies marketed in Alabama:
Click here for more: Preppass - Stuvia
Final Exam - Alabama Life and Health
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
John has recently died and it was discovered that he was actually ten years
older than what was listed on his life insurance policy. What will the insurer pay
his beneficiary?
Ans: The amount of insurance that his premiums would have purchased at his correct age
Which of the following is considered the "automatic" Nonforfeiture Option that
most insurers will use?
Ans: Extended term
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?
Ans: Uses the $10,000 to buy term insurance of the same face amount as her original policy
What kind of risk are amateur pilots normally classified as?
Ans: Special class risks
The monthly benefit of an Annuity Certain is determined by:
Ans: The annuitant's payout period selection
Shawn has a waiver of premium rider 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:
Ans: Resume paying premiums again
,Page | 2
Click here for more: Preppass - Stuvia
Alabama's annuity disclosure regulation:
Ans: Requires the delivery of a buyer's guide and a disclosure document to an annuity's
applicant
A policyowner can collect the face amount on what type of policy?
Ans: Endowment policy
On November 10, Ozzie's Major Medical policy is reinstated. He is later injured
in an automobile accident on November 13 and immediately hospitalized. Ozzie
is eligible for:
Ans: Full benefits
In Alabama, when are newborns covered under a health policy?
Ans: The moment of birth
Alabama's continuing education law states that an insurance producer must
report how many classroom hours every two years?
Ans: 24
Mortgage protection is typically covered with:
Ans: Decreasing term
A departing employee has decided to continue his group coverage through
COBRA. Who pays the premium in this situation?
Ans: Employee
Kim has purchased a straight life annuity. What will this type of annuity provide
her with?
Ans: A periodic income to the annuitant for life
According to Required Provision 4, when an insured applies for reinstatement of
a health policy and receives a conditional receipt, how long does the insurer
have to approve or deny?
Ans: Within 45 days of the date of application
, Page | 3
Click here for more: Preppass - Stuvia
An example of a life insurance beneficiary is a(n):
Ans: Child, spouse, or company of the insured.
A group disability income policy will:
Ans: Usually pay short-term benefits of less than 2 years in duration
A life insurance policyowner has just exercised the policy's reduced paid-up
option. Which of these statements is true?
Ans: The amount of coverage will be much less than the original coverage
The Long Term Care Partnership program is designed to allow seniors to:
Ans: Shelter assets from the spend-down requirement of Medicaid
Rodney applies for an insurance policy and pays the first premium. The receipt
given for the first premium is called a(n):
Ans: Conditional receipt
Michael has a universal life policy with an increasing death benefit option. With
an initial face amount of $50,000 and a value of $5,000, what would the actual
death benefit be?
Ans: $55,000
An insured should be restored to the approximate financial condition occupied
before the loss occurred. This is called the:
Ans: Principle of indemnity
What percentage of eligible employees must be covered by noncontributory
group insurance plans?
Ans: 100%
A written agreement that involves two or more parties and consideration is:
Ans: A contract
Medicare supplement policies marketed in Alabama:
