ALABAMA LIFE INSURANCE STATE
LICENSURE PREPARATION 2026 FULL
SOLUTION GUIDE AND ANSWER KEY
◉ which statement regarding insurance producer license
appointments is TRUE?
Answer: a licensed insurance producer must be licensed and
appointed by the insurer to act as the insurers agent
◉ in a traditional whole life policy, cash value
Answer: grows on a tax-deferred basis
◉ The type of premium for term life insurance that remains the
same throughout the policy period is
Answer: level premium
◉ which of the following is the settlement option of a life policy that
provides periodic payments of a specified amount as long as the
proceeds plus interest last?
Answer: fixed amount option
◉ legally, who does an insurance agent (producer) represent?
, Answer: only the company
◉ which of the following describes a multiple employer trust
(MET)?
Answer: a legal entity that small employers may join to become
eligible for group insurance
◉ what term describes a situation where a policy owner transfers a
portion of his or her rights in an insurance policy to another party in
order to secure a debt to that party?
Answer: collateral assignment
◉ a company domiciled in another state that has received
permission from the insurance commissioner to do business in this
state is called a/an
Answer: foreign admitted company
◉ insurance companies are rated by each of the following rating
agencies EXCEPT:
Answer: Dow Jones
◉ the provision that protects the rights of the contingent beneficiary
if the insured and the primary beneficiary die as the result of one
accident is the
LICENSURE PREPARATION 2026 FULL
SOLUTION GUIDE AND ANSWER KEY
◉ which statement regarding insurance producer license
appointments is TRUE?
Answer: a licensed insurance producer must be licensed and
appointed by the insurer to act as the insurers agent
◉ in a traditional whole life policy, cash value
Answer: grows on a tax-deferred basis
◉ The type of premium for term life insurance that remains the
same throughout the policy period is
Answer: level premium
◉ which of the following is the settlement option of a life policy that
provides periodic payments of a specified amount as long as the
proceeds plus interest last?
Answer: fixed amount option
◉ legally, who does an insurance agent (producer) represent?
, Answer: only the company
◉ which of the following describes a multiple employer trust
(MET)?
Answer: a legal entity that small employers may join to become
eligible for group insurance
◉ what term describes a situation where a policy owner transfers a
portion of his or her rights in an insurance policy to another party in
order to secure a debt to that party?
Answer: collateral assignment
◉ a company domiciled in another state that has received
permission from the insurance commissioner to do business in this
state is called a/an
Answer: foreign admitted company
◉ insurance companies are rated by each of the following rating
agencies EXCEPT:
Answer: Dow Jones
◉ the provision that protects the rights of the contingent beneficiary
if the insured and the primary beneficiary die as the result of one
accident is the
