Alabama Life and Health 2024/2025 Latest
Update Complete Solution
Purposes of Life Insurance - ANSWER-Survivor protection, funeral protection, estate
creation.
Common Disaster Clause - ANSWER-The primary beneficiary must outlive the insured
by 30 days or more to receive policy proceeds.
The Free Look Period - ANSWER-Life Insurance is 10 days, A replacement Life policy
is 30 days, Medical Supplement Policy's are 30 days. Long Term Care is 30 days AND
must be printed on the first page of the policy.
Retirement Age Stipulations - ANSWER-Retirement can start as early as age 59 1/2,
and MUST start by age 70 1/2.
Grace Period Traditional Rules - ANSWER-7 days grace for weekly premiums, 10 days
grace for monthly premiums, 31 days grace for all other premium plans.
Compliance and Penalties - ANSWER-Any willful violation can be considered a
misdemeanor and could be a fine of UP TO $1000 and/or Jail UP TO 1 year.
Insurance Commissioner - ANSWER-The commissioner is appointed by the governor
and serves the same length as the governor.
Licensed Agents Transferring to Alabama - ANSWER-Need to apply for the Alabama
License within 90 days of surrendering previous states license. No need to take an
Alabama license exam.
License Renewal or Reinstatement (due to lapse) - ANSWER-It will stay in effect as
long as you pay the fees and do your continuing education. Lapsed over 12 months-
start process over. Lapsed less than 12 months, pay a penalty of double the existing
renewal fee.
Name Change and Change of Address - ANSWER-You must inform the commissioner
within 30 days or pay a $50 penalty.
Record Keeping - ANSWER-You must maintain, at your place of business, all records
pertaining to your insurance transaction for at least 3 years.
Reporting Legal Actions - ANSWER-Administrative Action-submit a formal report to the
Commissioner within 30 days. Criminal Prosecution- report that to the commissioner
within 30 days.
, Continuing Education - ANSWER-24 hours every 2 years. 2 hours on the topic of
producer ethics or business practices. You CANNOT carry over ANY extra C.E. hours.
Continuing Education Extensions - ANSWER-The Commissioner can grant a request to
extend time to complete your C.E. If approved, you have 3 months to complete. If
denied, you have 30 days.
Becoming Appointed - ANSWER-The Insurance company wishing to appoint you will file
a Notice of Appointment within 15 days to the Commissioner. If denied, the
Commissioner will notify the company within 5 days. If approved, you will be notified
within 30 days.
Getting Fired - ANSWER-Your company (upon your termination) must notify the
commissioner within 30 days and notify YOU within 15 days.
Falsifying Financial Info/ False Statements - ANSWER-DO not make false statements
about other insurance companies. DO not falsify records of any kind. Fines can be
between $500-$5,000
Cease and Desist Orders - ANSWER-If the commissioner thinks you have violated the
Unfair Trade Practices Act, he will notify you in writing and provide an opportunity for a
hearing. The hearing should be scheduled no SOONER than 10 days AFTER you
receive the notice.
Misrepresentations in the Application - ANSWER-If you lie (misrepresent), punishments
can be up to 1 year in jail and/or a fine up to $1,000
Exam Fails - ANSWER-After your first fail, you may attempt the test immediately. If you
fail twice, you have to wait 3 months. If you fail 4 times you must wait 6 months before
you can retest.
Filing and Approval of Policies (Issuance) - ANSWER-A Life policy or annuity contract
cannot be issued in Alabama unless it has been filed and approved by the
commissioner. Filings must be made at least 30 days in advance. If no action is taken
by the commissioner within 30 days, the policy forms are deemed to be approved
unless the commissioner extends the approval period for an additional 30 days.
Reinstatement - ANSWER-A policy may be reinstated for up to 3 years after the default
premium date. The insurance co. has 45 days to decide if THEY want to reinstate a
lapsed policy. They can only collect 60 days worth of past-due premium and can
exclude loss due to sickness for the first 10 days after the policy has been reinstated.
Settlement Requirements - ANSWER-Settlement payments will be paid upon proof of
death no more than 2 months from the date of receipt.
Update Complete Solution
Purposes of Life Insurance - ANSWER-Survivor protection, funeral protection, estate
creation.
Common Disaster Clause - ANSWER-The primary beneficiary must outlive the insured
by 30 days or more to receive policy proceeds.
The Free Look Period - ANSWER-Life Insurance is 10 days, A replacement Life policy
is 30 days, Medical Supplement Policy's are 30 days. Long Term Care is 30 days AND
must be printed on the first page of the policy.
Retirement Age Stipulations - ANSWER-Retirement can start as early as age 59 1/2,
and MUST start by age 70 1/2.
Grace Period Traditional Rules - ANSWER-7 days grace for weekly premiums, 10 days
grace for monthly premiums, 31 days grace for all other premium plans.
Compliance and Penalties - ANSWER-Any willful violation can be considered a
misdemeanor and could be a fine of UP TO $1000 and/or Jail UP TO 1 year.
Insurance Commissioner - ANSWER-The commissioner is appointed by the governor
and serves the same length as the governor.
Licensed Agents Transferring to Alabama - ANSWER-Need to apply for the Alabama
License within 90 days of surrendering previous states license. No need to take an
Alabama license exam.
License Renewal or Reinstatement (due to lapse) - ANSWER-It will stay in effect as
long as you pay the fees and do your continuing education. Lapsed over 12 months-
start process over. Lapsed less than 12 months, pay a penalty of double the existing
renewal fee.
Name Change and Change of Address - ANSWER-You must inform the commissioner
within 30 days or pay a $50 penalty.
Record Keeping - ANSWER-You must maintain, at your place of business, all records
pertaining to your insurance transaction for at least 3 years.
Reporting Legal Actions - ANSWER-Administrative Action-submit a formal report to the
Commissioner within 30 days. Criminal Prosecution- report that to the commissioner
within 30 days.
, Continuing Education - ANSWER-24 hours every 2 years. 2 hours on the topic of
producer ethics or business practices. You CANNOT carry over ANY extra C.E. hours.
Continuing Education Extensions - ANSWER-The Commissioner can grant a request to
extend time to complete your C.E. If approved, you have 3 months to complete. If
denied, you have 30 days.
Becoming Appointed - ANSWER-The Insurance company wishing to appoint you will file
a Notice of Appointment within 15 days to the Commissioner. If denied, the
Commissioner will notify the company within 5 days. If approved, you will be notified
within 30 days.
Getting Fired - ANSWER-Your company (upon your termination) must notify the
commissioner within 30 days and notify YOU within 15 days.
Falsifying Financial Info/ False Statements - ANSWER-DO not make false statements
about other insurance companies. DO not falsify records of any kind. Fines can be
between $500-$5,000
Cease and Desist Orders - ANSWER-If the commissioner thinks you have violated the
Unfair Trade Practices Act, he will notify you in writing and provide an opportunity for a
hearing. The hearing should be scheduled no SOONER than 10 days AFTER you
receive the notice.
Misrepresentations in the Application - ANSWER-If you lie (misrepresent), punishments
can be up to 1 year in jail and/or a fine up to $1,000
Exam Fails - ANSWER-After your first fail, you may attempt the test immediately. If you
fail twice, you have to wait 3 months. If you fail 4 times you must wait 6 months before
you can retest.
Filing and Approval of Policies (Issuance) - ANSWER-A Life policy or annuity contract
cannot be issued in Alabama unless it has been filed and approved by the
commissioner. Filings must be made at least 30 days in advance. If no action is taken
by the commissioner within 30 days, the policy forms are deemed to be approved
unless the commissioner extends the approval period for an additional 30 days.
Reinstatement - ANSWER-A policy may be reinstated for up to 3 years after the default
premium date. The insurance co. has 45 days to decide if THEY want to reinstate a
lapsed policy. They can only collect 60 days worth of past-due premium and can
exclude loss due to sickness for the first 10 days after the policy has been reinstated.
Settlement Requirements - ANSWER-Settlement payments will be paid upon proof of
death no more than 2 months from the date of receipt.
