ALABAMA LIFE AND HEALTH EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS | LATEST VERSION 2025/2026.
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
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,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
An example of a life insurance beneficiary is a(n): - ANS Child, spouse, or company of the
insured.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, 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: - ANS Cannot offer benefits that simply
duplicate Medicare benefits, cannot be more restrictive than Medicare, and cannot treat a loss
due to injury differently than a loss due to illness
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS WITH 100% CORRECT
ANSWERS | LATEST VERSION 2025/2026.
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
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,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
An example of a life insurance beneficiary is a(n): - ANS Child, spouse, or company of the
insured.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, 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: - ANS Cannot offer benefits that simply
duplicate Medicare benefits, cannot be more restrictive than Medicare, and cannot treat a loss
due to injury differently than a loss due to illness
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
