ALABAMA LIFE & HEALTH INSURANCE
EXAM TEST BANK 1 2026/2027 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |CURRENTLY TESTING
QUESTIONS AND SOLUTIONS|ALREADY
GRADED A+|NEWEST|JUST
RELEASED!!|GUARANTEED PASS
Which of the following describes why Alabama encourages the purchase of Long-Term Care
Insurance through its LTC 'Partnership Program'?
Provides you with asset protection
Allows Medicaid to disregard some or all of your assets for Medicaid eligibility
Requires Medicaid to disregard some or all of your assets during estate recovery
In Alabama, the Commissioner of insurance is:
Appointed by governor
An individual long-term care insurance policy may not be terminated for nonpayment of
premium unless the insurer has give notice to the insured and any designated persons at least
_____ days before the effective date of the termination.
30
The notice must provide a 30 day grace period from the date of its mailing. Every insured may
designate at least 1 additional person to receive notice of a lapse or of termination for
nonpayment of premium.
1|Page
,An insurer may reserve the right to defer the payment of a cash surrender value for up to
_________ months after demand is made and the policy is surrendered.
6 months
All of the following are true regarding advertising in life insurance, except:
Premiums cannot be mentioned in an advertisement at all
Premiums MAY be mentioned, but only as premiums. NOT as Deposits, Deposit premiums or
Investments. Advertisements MUST indicate clearly what the product is advertising. Dividends
MUST state that they are Not Guaranteed.
TRUE:
Premiums cannot be referred to as 'deposits', 'deposit premiums', or 'investments', they may be
referred to as 'premiums' only
Advertisements may not omit the words 'life insurance' or 'annuity' from a policy's name
Any reference to policy dividends must state that they are not guaranteed
An annuity or pure endowment contract may be reinstated within __________ from the default
in premium payments, unless the cash surrender value has been paid.
1 year
A licensee must inform the Commissioner of a change of legal name or address within ______
days of the change.
30
The head of the state department of insurance has all of the following powers, except:
2|Page
,Creating and establishing new premium rates for insurance companies operating in the state
Powers:
Imposing penalties for violations of the insurance code, including but not limited to fines,
suspensions or revocations of licenses and Certificates of Authority, and requesting that the
Attorney General prosecute a violator
Approving rates and rate increases for regulated lines of insurance
Subpoenaing witnesses and administering oaths in order to further any examination,
investigation, or hearing on insurance matters
Which of the following can be listed on an illustration?
The insurer's name, producers name, address, and the policy generic name
The proposed insured's name, age, gender, and the initial death benefit
The dividend option selected or any nonguaranteed elements
Non-financial regulatory activities are known as:
Market conduct
Non-financial regulatory activities of an insurance department fall under the broad heading of
market conduct. Proper market conduct means conducting insurance business fairly and
responsibly.
Which of the following IS true about an HMO under Alabama Law?
The Commissioner of insurance can regulate them but cannot impose a fine
3|Page
, HMOs are already Government regulated both at the State and Federal levels. However, the
Commissioner does have the right to regulate all insurers in their state, but they cannot impose
a fine. That would be equivalent to the State government issuing a fine to themselves and the
federal government. The Commissioner may certainly accept an examination from the HMO's
home states insurance commissioner and may examine any company in its own state as it
relates to protecting the general public
Which of the following IS NOT a type of illustration under the Alabama regulation governing life
insurance illustrations?
Annualized Illustration
TYPES:
In force illustration
Supplemental illustration
Basic illustration
Which of the following provided the federal government the right to regulate the insurance
industry, regarding fraud and false statements?
McCarran/Ferguson Act
Jay, who is employed by Carson Company, is assigned to work temporarily in another state.
While in the other state, Jay is injured on the job. He is entitled to benefits of the Workers'
Compensation law in the state in which he was hired even though his injury occurred in a
different state. This indicates that the Workers' Compensation law in the state where Jay was
hired:
Includes extraterritorial provisions
TEFRA is intended to:
4|Page
EXAM TEST BANK 1 2026/2027 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |CURRENTLY TESTING
QUESTIONS AND SOLUTIONS|ALREADY
GRADED A+|NEWEST|JUST
RELEASED!!|GUARANTEED PASS
Which of the following describes why Alabama encourages the purchase of Long-Term Care
Insurance through its LTC 'Partnership Program'?
Provides you with asset protection
Allows Medicaid to disregard some or all of your assets for Medicaid eligibility
Requires Medicaid to disregard some or all of your assets during estate recovery
In Alabama, the Commissioner of insurance is:
Appointed by governor
An individual long-term care insurance policy may not be terminated for nonpayment of
premium unless the insurer has give notice to the insured and any designated persons at least
_____ days before the effective date of the termination.
30
The notice must provide a 30 day grace period from the date of its mailing. Every insured may
designate at least 1 additional person to receive notice of a lapse or of termination for
nonpayment of premium.
1|Page
,An insurer may reserve the right to defer the payment of a cash surrender value for up to
_________ months after demand is made and the policy is surrendered.
6 months
All of the following are true regarding advertising in life insurance, except:
Premiums cannot be mentioned in an advertisement at all
Premiums MAY be mentioned, but only as premiums. NOT as Deposits, Deposit premiums or
Investments. Advertisements MUST indicate clearly what the product is advertising. Dividends
MUST state that they are Not Guaranteed.
TRUE:
Premiums cannot be referred to as 'deposits', 'deposit premiums', or 'investments', they may be
referred to as 'premiums' only
Advertisements may not omit the words 'life insurance' or 'annuity' from a policy's name
Any reference to policy dividends must state that they are not guaranteed
An annuity or pure endowment contract may be reinstated within __________ from the default
in premium payments, unless the cash surrender value has been paid.
1 year
A licensee must inform the Commissioner of a change of legal name or address within ______
days of the change.
30
The head of the state department of insurance has all of the following powers, except:
2|Page
,Creating and establishing new premium rates for insurance companies operating in the state
Powers:
Imposing penalties for violations of the insurance code, including but not limited to fines,
suspensions or revocations of licenses and Certificates of Authority, and requesting that the
Attorney General prosecute a violator
Approving rates and rate increases for regulated lines of insurance
Subpoenaing witnesses and administering oaths in order to further any examination,
investigation, or hearing on insurance matters
Which of the following can be listed on an illustration?
The insurer's name, producers name, address, and the policy generic name
The proposed insured's name, age, gender, and the initial death benefit
The dividend option selected or any nonguaranteed elements
Non-financial regulatory activities are known as:
Market conduct
Non-financial regulatory activities of an insurance department fall under the broad heading of
market conduct. Proper market conduct means conducting insurance business fairly and
responsibly.
Which of the following IS true about an HMO under Alabama Law?
The Commissioner of insurance can regulate them but cannot impose a fine
3|Page
, HMOs are already Government regulated both at the State and Federal levels. However, the
Commissioner does have the right to regulate all insurers in their state, but they cannot impose
a fine. That would be equivalent to the State government issuing a fine to themselves and the
federal government. The Commissioner may certainly accept an examination from the HMO's
home states insurance commissioner and may examine any company in its own state as it
relates to protecting the general public
Which of the following IS NOT a type of illustration under the Alabama regulation governing life
insurance illustrations?
Annualized Illustration
TYPES:
In force illustration
Supplemental illustration
Basic illustration
Which of the following provided the federal government the right to regulate the insurance
industry, regarding fraud and false statements?
McCarran/Ferguson Act
Jay, who is employed by Carson Company, is assigned to work temporarily in another state.
While in the other state, Jay is injured on the job. He is entitled to benefits of the Workers'
Compensation law in the state in which he was hired even though his injury occurred in a
different state. This indicates that the Workers' Compensation law in the state where Jay was
hired:
Includes extraterritorial provisions
TEFRA is intended to:
4|Page
