ALABAMA INSURANCE TEST
- ANS-
A Cross Purchase Buy-Sell Agreement is in region for ABC Company's four founding
companions. What might this agreement require if the settlement is funded with man or woman
life coverage? - ANS-Each partner should very own a coverage on the alternative partners
A incapacity coverage in Alabama this is paid on a monthly foundation is needed to have a
grace length of: - ANS-10
A incapacity policy that have to be renewed, cannot be cancelled till age sixty five, and may not
have an increase in top class for any reason is known as a(n): - ANS-noncancellable policy
A husband and wife are receiving annuity bills. When the husband dies, the wife still gets
annuity payments for lifestyles. What form of annuity is that this? - ANS-Joint and survivor life
annuity
A husband and wife purchases a life coverage policy that covers both of them. The policy paid
not anything while the husband died. Two years later, the spouse dies and a loss of life
advantage is paid to the beneficiary. Which form of policy is that this? - ANS-Survivorship
lifestyles coverage
A licensed Alabama coverage producer could NOT be disciplined by means of the
Commissioner of Insurance for: - ANS-being convicted of a misdemeanor
A life coverage beneficiary has chosen a agreement alternative wherein the essential never
decreases except the beneficiary makes a withdrawal. This agreement option is referred to as
the: - ANS-interest handiest alternative
A lifestyles coverage policy owned through a 3rd celebration: - ANS-is used in large part in
estate-making plans in addition to commercial enterprise conditions
A Long Term Care (LTC) coverage has a minimum renewability level of: - ANS-assured
renewable
A Long Term Care insured need to be unable to carry out at the least Activities of Daily Living
(ADLs) to obtain advantages. - ANS-2
A policy proprietor with an automated premium loan provision ought to: - ANS-pay returned the
loan quantity to preserve the coverage's cash fee at its most
A policyowner can accumulate the face amount on what form of coverage? - ANS-endowment
coverage
A Preferred Provider Organization (PPO) agreement usually makes use of which payment
arrangement? - ANS-Negotiated price-for-provider
A retirement plan intended for a sole owner and his/her personnel would be a(n): - ANS-Keogh
Plan
A retirement plan that may be started out by an employee, even though every other plan is in
lifestyles, is referred to as a(n): - ANS-Individual Retirement Account (IRA)
A substandard or unique magnificence hazard typically consequences in: - ANS-a premium this
is higher than for a normal threat
, A waiver of premium: - ANS-waives the rates whilst the policyowner turns into absolutely
disabled
A written settlement that includes or greater parties and attention is: - ANS-a contract
According to Alabama regulation, a minor: - ANS-age 18 can start receiving lifestyles insurance
dying blessings of up to $three,000 in line with 12 months
According to Alabama law, retailers of a Health Maintenance Organization (HMO): - ANS-ought
to be licensed as coverage manufacturers
According to Required Provision 4, when an insured applies for reinstatement of a fitness policy
and gets a conditional receipt, how lengthy does the insurer must approve or deny? -
ANS-inside 45 days of the date of application
Alabama's annuity disclosure regulation: - ANS-calls for the delivery of a purchaser's guide and
a disclosure document to an annuity applicant
All of these are accurate regarding group existence insurance, EXCEPT: - ANS-Whole life
insurance is the shape of insurance commonly used in institution existence insurance
All of these statements regarding a Key Employee Life coverage is genuine, EXCEPT: -
ANS-The key worker names the beneficiary
All of these statements concerning the coordination of advantages are proper, EXCEPT: -
ANS-The secondary insurer does NOT pay blessings
Amy owns a incapacity earnings coverage with a noncancellable renewal provision. Which of
the subsequent is assured in her coverage? - ANS-The coverage and top rate charge are
assured
An unintentional dying rider declare is generally paid if the insured: - ANS-dies within ninety
days of the coincidence
An example of a life insurance beneficiary is a(n): - ANS-all of those
An man or woman unable to carry out or greater Activities of Daily Living (ADLs) will trigger
insurance from a coverage. - ANS-Long Term Care (LTC)
An insurance agency licensed to do commercial enterprise in Alabama, but integrated in
another state, is called: - ANS-a overseas company
An coverage organization certified to solicit insurance in a specific kingdom is referred to as: -
ANS-an admitted corporation
An coverage organization can also cancel a lifestyles coverage coverage beneath which of the
following situations? - ANS-The super policy mortgage exceeds the coins cost of the coverage
An insurance employer that cedes a portion of an insured's insurance to every other insurer is
said to be engaged in: - ANS-reinsurance
An coverage agreement is stated to be a(n) because there may be a mutual reliance of
truthfulness on both events. - ANS-contract of extreme right religion
An coverage premium can be defined as: - ANS-money paid to an coverage organisation for
advantages furnished in the policy
An insurance producer have to have which of the following in an effort to promote variable
existence insurance regulations? - ANS-All of these
An insurance producer represents the: - ANS-the coverage corporation
An coverage producer who offers a potential consumer some thing of fee as an incentive to buy
insurance is undertaking: - ANS-rebating
- ANS-
A Cross Purchase Buy-Sell Agreement is in region for ABC Company's four founding
companions. What might this agreement require if the settlement is funded with man or woman
life coverage? - ANS-Each partner should very own a coverage on the alternative partners
A incapacity coverage in Alabama this is paid on a monthly foundation is needed to have a
grace length of: - ANS-10
A incapacity policy that have to be renewed, cannot be cancelled till age sixty five, and may not
have an increase in top class for any reason is known as a(n): - ANS-noncancellable policy
A husband and wife are receiving annuity bills. When the husband dies, the wife still gets
annuity payments for lifestyles. What form of annuity is that this? - ANS-Joint and survivor life
annuity
A husband and wife purchases a life coverage policy that covers both of them. The policy paid
not anything while the husband died. Two years later, the spouse dies and a loss of life
advantage is paid to the beneficiary. Which form of policy is that this? - ANS-Survivorship
lifestyles coverage
A licensed Alabama coverage producer could NOT be disciplined by means of the
Commissioner of Insurance for: - ANS-being convicted of a misdemeanor
A life coverage beneficiary has chosen a agreement alternative wherein the essential never
decreases except the beneficiary makes a withdrawal. This agreement option is referred to as
the: - ANS-interest handiest alternative
A lifestyles coverage policy owned through a 3rd celebration: - ANS-is used in large part in
estate-making plans in addition to commercial enterprise conditions
A Long Term Care (LTC) coverage has a minimum renewability level of: - ANS-assured
renewable
A Long Term Care insured need to be unable to carry out at the least Activities of Daily Living
(ADLs) to obtain advantages. - ANS-2
A policy proprietor with an automated premium loan provision ought to: - ANS-pay returned the
loan quantity to preserve the coverage's cash fee at its most
A policyowner can accumulate the face amount on what form of coverage? - ANS-endowment
coverage
A Preferred Provider Organization (PPO) agreement usually makes use of which payment
arrangement? - ANS-Negotiated price-for-provider
A retirement plan intended for a sole owner and his/her personnel would be a(n): - ANS-Keogh
Plan
A retirement plan that may be started out by an employee, even though every other plan is in
lifestyles, is referred to as a(n): - ANS-Individual Retirement Account (IRA)
A substandard or unique magnificence hazard typically consequences in: - ANS-a premium this
is higher than for a normal threat
, A waiver of premium: - ANS-waives the rates whilst the policyowner turns into absolutely
disabled
A written settlement that includes or greater parties and attention is: - ANS-a contract
According to Alabama regulation, a minor: - ANS-age 18 can start receiving lifestyles insurance
dying blessings of up to $three,000 in line with 12 months
According to Alabama law, retailers of a Health Maintenance Organization (HMO): - ANS-ought
to be licensed as coverage manufacturers
According to Required Provision 4, when an insured applies for reinstatement of a fitness policy
and gets a conditional receipt, how lengthy does the insurer must approve or deny? -
ANS-inside 45 days of the date of application
Alabama's annuity disclosure regulation: - ANS-calls for the delivery of a purchaser's guide and
a disclosure document to an annuity applicant
All of these are accurate regarding group existence insurance, EXCEPT: - ANS-Whole life
insurance is the shape of insurance commonly used in institution existence insurance
All of these statements regarding a Key Employee Life coverage is genuine, EXCEPT: -
ANS-The key worker names the beneficiary
All of these statements concerning the coordination of advantages are proper, EXCEPT: -
ANS-The secondary insurer does NOT pay blessings
Amy owns a incapacity earnings coverage with a noncancellable renewal provision. Which of
the subsequent is assured in her coverage? - ANS-The coverage and top rate charge are
assured
An unintentional dying rider declare is generally paid if the insured: - ANS-dies within ninety
days of the coincidence
An example of a life insurance beneficiary is a(n): - ANS-all of those
An man or woman unable to carry out or greater Activities of Daily Living (ADLs) will trigger
insurance from a coverage. - ANS-Long Term Care (LTC)
An insurance agency licensed to do commercial enterprise in Alabama, but integrated in
another state, is called: - ANS-a overseas company
An coverage organization certified to solicit insurance in a specific kingdom is referred to as: -
ANS-an admitted corporation
An coverage organization can also cancel a lifestyles coverage coverage beneath which of the
following situations? - ANS-The super policy mortgage exceeds the coins cost of the coverage
An insurance employer that cedes a portion of an insured's insurance to every other insurer is
said to be engaged in: - ANS-reinsurance
An coverage agreement is stated to be a(n) because there may be a mutual reliance of
truthfulness on both events. - ANS-contract of extreme right religion
An coverage premium can be defined as: - ANS-money paid to an coverage organisation for
advantages furnished in the policy
An insurance producer have to have which of the following in an effort to promote variable
existence insurance regulations? - ANS-All of these
An insurance producer represents the: - ANS-the coverage corporation
An coverage producer who offers a potential consumer some thing of fee as an incentive to buy
insurance is undertaking: - ANS-rebating
