Alabama Life & Health Insurance Exam Test Bank 2 Newest
2026-2027 Actual Exam With Complete Questions And
Correct Detailed Answers (Verified Answers) |Already
Graded A+
Interest on benefits of a life insurance policy shall begin to accrue
_______ after the insureds death.
30 days
Grace period
Alabama requires a minimum of 30 days during which a policy remains
in force after the premium is due, but not paid
The policy lapses as of the day the premium was originally due unless
It is paid during grace period or insured dies during grace period.
Entire contract Provision includes...
Policy; application, and any riders/waivers
pg. 1
,Incontestability period
policy will be incontestable after it has been in force for a period of 2
years from its date of issue.
Life insurance policies must provide a minimum free-look period of
____ upon policy delivery.
10 days (If policy owner decides not to keep it a full refund will be
given)
premium mode
The frequency in which a policyowner elects to pay premiums.
Insurable Interest
The person acquiring the contract (the applicant) must be subject to loss
upon the death, disability, or illness of the insured. It must occur at the
time the application is taken, but is not required afterwards
Producers must provide applicants and prospects with the _________
and ____________________ at or before delivery of a policy
pg. 2
,Buyers Guide; Policy Summary
Policy Summary
contains an outline of of the critical elements of the policy being
purchased
Buyers guide
A generic document which explains the purpose and structure of various
policies available. It enables applicants to compare different insurance
policies and help them choose which policy is best for their needs.
Illustrations
Charts, graphs, and numerical data that depict the non-guaranteed
elements of the policy overtime. Non-guaranteed elements are
premiums, benefits, values, credits, or charges under a policy of life
insurance that are not guaranteed or not determined when the policy is
issued
Advertisements can be any of these...
A prepared sales talk for use by a producer.
pg. 3
, A brochure issued by an insurer which describes the benefits of life
insurance.
A company's illustration for a life insurance policy.
Descriptive materials in direct mail, newspapers, magazines, billboards,
newspaper, and tv scripts and internet.
Death benefit MUST be paid within ____________ of receipt of proof
of death.
60 days
The basis for requiring a HIV test can NOT be the proposed insureds
Sexual orientation
Viatical Settlement (Life Settlement)
Allows someone with a terminal illness to sell their existing life
insurance policy to a third party for a % of the face value. The new
owner continues to pay the premiums and will eventually collect the
entire death benefit.
Accelerated benefit
pg. 4
2026-2027 Actual Exam With Complete Questions And
Correct Detailed Answers (Verified Answers) |Already
Graded A+
Interest on benefits of a life insurance policy shall begin to accrue
_______ after the insureds death.
30 days
Grace period
Alabama requires a minimum of 30 days during which a policy remains
in force after the premium is due, but not paid
The policy lapses as of the day the premium was originally due unless
It is paid during grace period or insured dies during grace period.
Entire contract Provision includes...
Policy; application, and any riders/waivers
pg. 1
,Incontestability period
policy will be incontestable after it has been in force for a period of 2
years from its date of issue.
Life insurance policies must provide a minimum free-look period of
____ upon policy delivery.
10 days (If policy owner decides not to keep it a full refund will be
given)
premium mode
The frequency in which a policyowner elects to pay premiums.
Insurable Interest
The person acquiring the contract (the applicant) must be subject to loss
upon the death, disability, or illness of the insured. It must occur at the
time the application is taken, but is not required afterwards
Producers must provide applicants and prospects with the _________
and ____________________ at or before delivery of a policy
pg. 2
,Buyers Guide; Policy Summary
Policy Summary
contains an outline of of the critical elements of the policy being
purchased
Buyers guide
A generic document which explains the purpose and structure of various
policies available. It enables applicants to compare different insurance
policies and help them choose which policy is best for their needs.
Illustrations
Charts, graphs, and numerical data that depict the non-guaranteed
elements of the policy overtime. Non-guaranteed elements are
premiums, benefits, values, credits, or charges under a policy of life
insurance that are not guaranteed or not determined when the policy is
issued
Advertisements can be any of these...
A prepared sales talk for use by a producer.
pg. 3
, A brochure issued by an insurer which describes the benefits of life
insurance.
A company's illustration for a life insurance policy.
Descriptive materials in direct mail, newspapers, magazines, billboards,
newspaper, and tv scripts and internet.
Death benefit MUST be paid within ____________ of receipt of proof
of death.
60 days
The basis for requiring a HIV test can NOT be the proposed insureds
Sexual orientation
Viatical Settlement (Life Settlement)
Allows someone with a terminal illness to sell their existing life
insurance policy to a third party for a % of the face value. The new
owner continues to pay the premiums and will eventually collect the
entire death benefit.
Accelerated benefit
pg. 4
