Page | 1
Click here for more: Preppass - Stuvia
Final Exam- Alabama Life Insurance
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
A substandard or special class risk typically results in:
Ans: a premium that is higher than for a normal risk
John purchases insurance because he expects to experience a loss. This is known
as:
Ans: adverse selection
An insurance company may cancel a life insurance policy under which of the
following conditions?
Ans: The outstanding policy loan exceeds the cash value of the policy
Which of the following provisions may NOT be adjusted in an adjustable life
policy?
Ans: The insured
Within how many days of a written demand must the Commissioner of Insurance
hold a hearing
Ans: 30
Any individual who has failed two Alabama insurance licensing examinations
must wait how long before retaking it a third time ?
Ans: three month
Which of the following is NOT guaranteed by a whole life policy?
, Page | 2
Click here for more: Preppass - Stuvia
Ans: Policy dividends
The commissioner of insurance may NOT do which of the following?
Ans: Change insurance laws
What is a defined benefit plan?
Ans: a retirement plan that promises a specified benefit to the employee at retirement
Which statement concerning Alabama's life insurance solicitation regulations is
true?
Ans: All of these
A life insurance illustration must contain information regarding the non guaranteed elements of
a policy over time.A buyers guide explains the purpose and structure of various policies
available.A buyers guide and policy summary must be provided to an applicant prior to
policy delivery.
All of these
When does "adverse selection" exist?
Ans: When the risks accepted for insurance has a HIGHER likelihood of experiencing loss
than an average group
Which of the following terms may be used when describing the premiums for a
life insurance policy advertised in Alabama?
Ans: None of these
Saving, Profit, Deposit
Janet is retired and looking to invest a lump sum of money through an insurance
company. which product would be best suited for this?
Ans: Annuity
A husband and wife purchase a life insurance policy that covers both of them.
The policy paid nothing when the husband died. Two years later, the wife dies
and a death benefits is paid to the beneficiary. Which type of policy is this?
Ans: Survivorship life policy
ABC Company takes out a Key Employee policy on its CEO. The CEO leaves
ABC Company and begins working for XYZ Company five years later. If this
Click here for more: Preppass - Stuvia
Final Exam- Alabama Life Insurance
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
A substandard or special class risk typically results in:
Ans: a premium that is higher than for a normal risk
John purchases insurance because he expects to experience a loss. This is known
as:
Ans: adverse selection
An insurance company may cancel a life insurance policy under which of the
following conditions?
Ans: The outstanding policy loan exceeds the cash value of the policy
Which of the following provisions may NOT be adjusted in an adjustable life
policy?
Ans: The insured
Within how many days of a written demand must the Commissioner of Insurance
hold a hearing
Ans: 30
Any individual who has failed two Alabama insurance licensing examinations
must wait how long before retaking it a third time ?
Ans: three month
Which of the following is NOT guaranteed by a whole life policy?
, Page | 2
Click here for more: Preppass - Stuvia
Ans: Policy dividends
The commissioner of insurance may NOT do which of the following?
Ans: Change insurance laws
What is a defined benefit plan?
Ans: a retirement plan that promises a specified benefit to the employee at retirement
Which statement concerning Alabama's life insurance solicitation regulations is
true?
Ans: All of these
A life insurance illustration must contain information regarding the non guaranteed elements of
a policy over time.A buyers guide explains the purpose and structure of various policies
available.A buyers guide and policy summary must be provided to an applicant prior to
policy delivery.
All of these
When does "adverse selection" exist?
Ans: When the risks accepted for insurance has a HIGHER likelihood of experiencing loss
than an average group
Which of the following terms may be used when describing the premiums for a
life insurance policy advertised in Alabama?
Ans: None of these
Saving, Profit, Deposit
Janet is retired and looking to invest a lump sum of money through an insurance
company. which product would be best suited for this?
Ans: Annuity
A husband and wife purchase a life insurance policy that covers both of them.
The policy paid nothing when the husband died. Two years later, the wife dies
and a death benefits is paid to the beneficiary. Which type of policy is this?
Ans: Survivorship life policy
ABC Company takes out a Key Employee policy on its CEO. The CEO leaves
ABC Company and begins working for XYZ Company five years later. If this
