ALABAMA LIFE AND HEALTH INSURANCE
COMPREHENSIVE SCRIPT 2026 QUESTIONS
AND ANSWERS GUARANTEED TO PASS
◉ An indeterminate premium policy offers: Answer: A low initial
premium with succeeding premiums based on the company's
investment return, mortality and expenses
◉ With regard to the waiver of premium rider, after the disability a
policyowner normally: Answer: Need not repay the premiums paid
by the company during disability
◉ In many jurisdictions, permanent policies are required to have
some cash value by the end of: Answer: The Third Year
◉ Loan values and retirement income are: Answer: Called the living
benefits of life insurance
◉ With a modified premium whole life contract, premium payments:
Answer: Are lower in the early years of the contract
,◉ A variable life policy: Answer: Death benefit varies to reflect the
investment results of the underlying separate account, but never
falls below a guaranteed minimum
◉ The type of policy that can be changed from one that does not
accumulate cash values to one that does is a: Answer: Convertible
term policy
◉ A limited pay life policy: Answer: Requires premium payments for
a specified number of years or until a specified age is reached
◉ Should an insured become totally and permanently disabled two
months before the cut-off date for the waiver of premium rider:
Answer: The insured remains eligible for all provisions
◉ Warren and Wilma have a joint life policy. Warren dies and the
policy pays nothing. Later on, Wilma dies and the policy death
benefit is paid to the beneficiary. This is called a: Answer:
Survivorship or second-to-die policy
◉ A whole life policy: Answer: Requires the insured to pay
premiums for life and endows at age 100
,◉ If Greg's policy on his own life has a guaranteed insurability rider,
it means that he can purchase more insurance: Answer: On his own
life at certain specified ages without proof of insurability
◉ Any extra premium charged for the waiver of premium rider:
Answer: Does not apply to the policy's cash value
◉ If a policyowner has a $100,000 policy with an accumulated cash
value of $6,000, the policyowner can borrow up to: Answer: The
entire accumulated cash value of $6,000, less interest for 1 year
◉ An insured allows a permanent policy to lapse. Unless otherwise
instructed, the insurance company: Answer: Will automatically
institute the extended term option
◉ Each of the following statements about policy loans is correct,
except: Answer: Policy loans may be made on any type of policy
◉ What is a postmortem dividend? Answer: A dividend earned, but
not yet paid, in the year of the insured's death and paid with the
death claim
◉ The factors that determine the amount of each payment under the
fixed period settlement option are: Answer: Length of the fixed
period, face amount of the policy and interest
, ◉ Fred purchased a $100,000 policy naming his wife, Wilma, as
primary beneficiary, and his only child, Pebbles, to receive any
proceeds if Wilma dies before Fred, or if she dies after Fred, but
before receiving all the policy proceeds. Fred elected the interest
settlement option for Wilma, with the right of withdrawal after 5
years. No settlement option was stipulated for Pebbles. Fred dies on
May 6th, 1991. When Fred dies, his insurance company will make
settlement by paying: Answer: Interest in periodic payments to
Wilma
◉ Each of the following is a source of life insurance policy dividends,
except: Answer: Guaranteed cash value accumulations
◉ Why should a policyowner be especially careful when deciding to
increase the amount of an outstanding policy loan? Answer: If the
outstanding loan balance, plus interest, equals or exceeds the cash
value of the policy, the company could cancel the insurance
◉ The main purpose of the spendthrift clause contained in a
settlement option is to prevent the beneficiary from doing all of the
following, except: Answer: Purchasing a new car once the claim has
been settled and proceeds have been paid out according to the
beneficiary designations
COMPREHENSIVE SCRIPT 2026 QUESTIONS
AND ANSWERS GUARANTEED TO PASS
◉ An indeterminate premium policy offers: Answer: A low initial
premium with succeeding premiums based on the company's
investment return, mortality and expenses
◉ With regard to the waiver of premium rider, after the disability a
policyowner normally: Answer: Need not repay the premiums paid
by the company during disability
◉ In many jurisdictions, permanent policies are required to have
some cash value by the end of: Answer: The Third Year
◉ Loan values and retirement income are: Answer: Called the living
benefits of life insurance
◉ With a modified premium whole life contract, premium payments:
Answer: Are lower in the early years of the contract
,◉ A variable life policy: Answer: Death benefit varies to reflect the
investment results of the underlying separate account, but never
falls below a guaranteed minimum
◉ The type of policy that can be changed from one that does not
accumulate cash values to one that does is a: Answer: Convertible
term policy
◉ A limited pay life policy: Answer: Requires premium payments for
a specified number of years or until a specified age is reached
◉ Should an insured become totally and permanently disabled two
months before the cut-off date for the waiver of premium rider:
Answer: The insured remains eligible for all provisions
◉ Warren and Wilma have a joint life policy. Warren dies and the
policy pays nothing. Later on, Wilma dies and the policy death
benefit is paid to the beneficiary. This is called a: Answer:
Survivorship or second-to-die policy
◉ A whole life policy: Answer: Requires the insured to pay
premiums for life and endows at age 100
,◉ If Greg's policy on his own life has a guaranteed insurability rider,
it means that he can purchase more insurance: Answer: On his own
life at certain specified ages without proof of insurability
◉ Any extra premium charged for the waiver of premium rider:
Answer: Does not apply to the policy's cash value
◉ If a policyowner has a $100,000 policy with an accumulated cash
value of $6,000, the policyowner can borrow up to: Answer: The
entire accumulated cash value of $6,000, less interest for 1 year
◉ An insured allows a permanent policy to lapse. Unless otherwise
instructed, the insurance company: Answer: Will automatically
institute the extended term option
◉ Each of the following statements about policy loans is correct,
except: Answer: Policy loans may be made on any type of policy
◉ What is a postmortem dividend? Answer: A dividend earned, but
not yet paid, in the year of the insured's death and paid with the
death claim
◉ The factors that determine the amount of each payment under the
fixed period settlement option are: Answer: Length of the fixed
period, face amount of the policy and interest
, ◉ Fred purchased a $100,000 policy naming his wife, Wilma, as
primary beneficiary, and his only child, Pebbles, to receive any
proceeds if Wilma dies before Fred, or if she dies after Fred, but
before receiving all the policy proceeds. Fred elected the interest
settlement option for Wilma, with the right of withdrawal after 5
years. No settlement option was stipulated for Pebbles. Fred dies on
May 6th, 1991. When Fred dies, his insurance company will make
settlement by paying: Answer: Interest in periodic payments to
Wilma
◉ Each of the following is a source of life insurance policy dividends,
except: Answer: Guaranteed cash value accumulations
◉ Why should a policyowner be especially careful when deciding to
increase the amount of an outstanding policy loan? Answer: If the
outstanding loan balance, plus interest, equals or exceeds the cash
value of the policy, the company could cancel the insurance
◉ The main purpose of the spendthrift clause contained in a
settlement option is to prevent the beneficiary from doing all of the
following, except: Answer: Purchasing a new car once the claim has
been settled and proceeds have been paid out according to the
beneficiary designations
