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AL Life Insurance Test 2025 Test Bank with 350
Recently Tested Questions and Correct Verified
Answers/ Alabama Life and Health License Exam /
AL Life Exam
an example of rebating would be -
...✔✔ANSWER✔✔...Returning a portion of the premium as
inducement to purchase insurance
How long can a cash surrender value payment be
deferred by the insurance company under the
Nonforfeiture Law? - ...✔✔ANSWER✔✔...6 months
During a sales presentation for a participating life
insurance policy, an agent MUST -
...✔✔ANSWER✔✔...make a prospect understand that
dividends are NOT guaranteed
Which life insurance rider typically appears on a Juvenile
life insurance policy? - ...✔✔ANSWER✔✔...A payor benefit
rider
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a promotional advertising item is not considered a rebate
unless it has a value equal to less or less than what
amount? - ...✔✔ANSWER✔✔...$25
Credit life insurance is? - ...✔✔ANSWER✔✔...Insurance
issued on a debtor to cover outstanding loan balances
what is the function of an annuity? -
...✔✔ANSWER✔✔...The systematic liquidation of
accumulated funds
When does a life insurance contract become effective if
the initial premium is not collected during the application
process? - ...✔✔ANSWER✔✔...When producer delivers
policy and collects initial premium
Which of the following actions does the Commissioner of
Insurance NOT have the power to conduct? -
...✔✔ANSWER✔✔...Activate insurance companies'
financial reserves.
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Whose life is covered on a life insurance policy that
contains a payor benefit clause? -
...✔✔ANSWER✔✔...Child
B the insurance agent tells his clients that their rights
may be impaired if they fail to complete a release form
within a given period of time. B may be found guilty of -
...✔✔ANSWER✔✔...Coercion
Which of the following groups may not be issued by a
group life insurance policy? -
...✔✔ANSWER✔✔...Insurance are related by blood
In texas how long must a policy be in force before an
insurance company must pay death benefits for suicide? -
...✔✔ANSWER✔✔...2 years
As a condition for a loan, a bank requires the borrower to
purchase credit insurance from a specific company. What
is the bank guilty of? - ...✔✔ANSWER✔✔...Coercion
A new general property and casualty licensee must
complete at LEAST ___ hours of continuing education
AL Life Insurance Test 2025 Test Bank with 350
Recently Tested Questions and Correct Verified
Answers/ Alabama Life and Health License Exam /
AL Life Exam
an example of rebating would be -
...✔✔ANSWER✔✔...Returning a portion of the premium as
inducement to purchase insurance
How long can a cash surrender value payment be
deferred by the insurance company under the
Nonforfeiture Law? - ...✔✔ANSWER✔✔...6 months
During a sales presentation for a participating life
insurance policy, an agent MUST -
...✔✔ANSWER✔✔...make a prospect understand that
dividends are NOT guaranteed
Which life insurance rider typically appears on a Juvenile
life insurance policy? - ...✔✔ANSWER✔✔...A payor benefit
rider
,2|Page
a promotional advertising item is not considered a rebate
unless it has a value equal to less or less than what
amount? - ...✔✔ANSWER✔✔...$25
Credit life insurance is? - ...✔✔ANSWER✔✔...Insurance
issued on a debtor to cover outstanding loan balances
what is the function of an annuity? -
...✔✔ANSWER✔✔...The systematic liquidation of
accumulated funds
When does a life insurance contract become effective if
the initial premium is not collected during the application
process? - ...✔✔ANSWER✔✔...When producer delivers
policy and collects initial premium
Which of the following actions does the Commissioner of
Insurance NOT have the power to conduct? -
...✔✔ANSWER✔✔...Activate insurance companies'
financial reserves.
, 3|Page
Whose life is covered on a life insurance policy that
contains a payor benefit clause? -
...✔✔ANSWER✔✔...Child
B the insurance agent tells his clients that their rights
may be impaired if they fail to complete a release form
within a given period of time. B may be found guilty of -
...✔✔ANSWER✔✔...Coercion
Which of the following groups may not be issued by a
group life insurance policy? -
...✔✔ANSWER✔✔...Insurance are related by blood
In texas how long must a policy be in force before an
insurance company must pay death benefits for suicide? -
...✔✔ANSWER✔✔...2 years
As a condition for a loan, a bank requires the borrower to
purchase credit insurance from a specific company. What
is the bank guilty of? - ...✔✔ANSWER✔✔...Coercion
A new general property and casualty licensee must
complete at LEAST ___ hours of continuing education
