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Alabama Life & Health Insurance Exam Test Bank 1
Newest 2026-2027 Actual Exam With Complete
Questions And Correct Detailed Answers
(100%Verified Answers) |Already Graded A+|Brand
New!!
An insurance contract is an aleatory contract. This means:
- ANSWER-Equal value is not necessarily given by both
parties to the contract
Purchasing a life policy is a good example of: - ANSWER-
a transfer of risk
In life insurance the insurable interest requirements is
generally satisfied if: - ANSWER-the policy owner must
expect to suffer a loss if the insured dies.
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To be able to start operations, a mutual company must
have all of the following EXCEPT:
a. The advanced premium payment for each application
(X)b. A minimum number of producers with agency
contracts signed
c. Minimum number of applications for insurance
d. A surplus as specified by the state - ANSWER-b. A
minimum number of producers with agency
A father did not reveal that his daughter suffers from
asthma on the application for a health policy. In order to
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avoid paying a claim the insurer must - ANSWER-prove
this was both intentional and material
The punishment for fraud or making false statements may
include: - ANSWER-Fines, imprisonment or both
In the Health-Disability area we use what type data to
produce rates? - ANSWER-Morbidity tables
The most effective way to ensure that the applicant will
accept the policy when it is issued is: - ANSWER-To have
the applicant pay the initial premium at the time of
application
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A life insurance policy is a unilateral contract because: -
ANSWER-Only the insurance company is bound to live up
to its side of the agreement
The policy conditions represent the obligations of: -
ANSWER-Both the insured and the insurer
An accounting measure used to determine a contract
owner's interest in the separate account of a variable
annuity before payments begin is called a/an - ANSWER-
Accumulation unit
A flexible premium annuity provides for a flexible -
ANSWER-Premium payment amount
Alabama Life & Health Insurance Exam Test Bank 1
Newest 2026-2027 Actual Exam With Complete
Questions And Correct Detailed Answers
(100%Verified Answers) |Already Graded A+|Brand
New!!
An insurance contract is an aleatory contract. This means:
- ANSWER-Equal value is not necessarily given by both
parties to the contract
Purchasing a life policy is a good example of: - ANSWER-
a transfer of risk
In life insurance the insurable interest requirements is
generally satisfied if: - ANSWER-the policy owner must
expect to suffer a loss if the insured dies.
,2|Page
To be able to start operations, a mutual company must
have all of the following EXCEPT:
a. The advanced premium payment for each application
(X)b. A minimum number of producers with agency
contracts signed
c. Minimum number of applications for insurance
d. A surplus as specified by the state - ANSWER-b. A
minimum number of producers with agency
A father did not reveal that his daughter suffers from
asthma on the application for a health policy. In order to
,3|Page
avoid paying a claim the insurer must - ANSWER-prove
this was both intentional and material
The punishment for fraud or making false statements may
include: - ANSWER-Fines, imprisonment or both
In the Health-Disability area we use what type data to
produce rates? - ANSWER-Morbidity tables
The most effective way to ensure that the applicant will
accept the policy when it is issued is: - ANSWER-To have
the applicant pay the initial premium at the time of
application
, 4|Page
A life insurance policy is a unilateral contract because: -
ANSWER-Only the insurance company is bound to live up
to its side of the agreement
The policy conditions represent the obligations of: -
ANSWER-Both the insured and the insurer
An accounting measure used to determine a contract
owner's interest in the separate account of a variable
annuity before payments begin is called a/an - ANSWER-
Accumulation unit
A flexible premium annuity provides for a flexible -
ANSWER-Premium payment amount
