ALABAMA LIFE INSURANCE UNDERWRITING
AND POLICY BASICS EXAM 2026
COMPLETE Q AND A STUDY PACK
◉ a company chartered in alabama would be considered what type
of insurance company in ohio?
Answer: foreign
◉ which life insurance nonforfeiture option provides the same
amount of death protection as the original policy, but decreases the
time coverage will remain in effect?
Answer: extended term
◉ which of the following is a tax advantage of a qualified retirement
plan?
Answer: all of the above
◉ Joe, whose life insurance policy has a waiver of premium rider,
becomes disabled for two years, during which time the company
pays over $1,500 in premiums. Joe recovers and now must
Answer: begin paying the premiums again as they become due
,◉ A policy owner decides to pay life insurance premiums quarterly
instead of annually. Select the correct statement.
Answer: the total outlay of annual premium dollars will be increased
◉ what are "nonforfeiture values"?
Answer: when a policy owner stops paying premiums on a limited
pay policy, he or she is entitled to receive its face amount in cash
◉ who must meet alabamas requirements to earn 24 hours of
continuing education hours every two years?
Answer: a producer who only sells property and casualty insurance
◉ which of the following riders could decrease the amount of the
policy death benefit if utilized?
Answer: automatic premium loan rider
◉ according to the alabama insurance regulations, when using an
illustration in the sale of a life insurance policy, an insurance
producer may legally do which of the following?
Answer: use an illustration which has "non-guaranteed" elements
◉ the fundamental insurance concept that an insured should not
profit from a loss but should be restored in whole or in part to the
, approximate financial condition occupied before the loss is known
as the principle of
Answer: indemnity
◉ this rider can be attached to a permanent life insurance policy to
add more coverage for a limited time
Answer: term rider
◉ the waiver of premium rider suspends premium payments
without penalty for what situations?
Answer: long term disability
◉ a straight life annuity pays a periodic income
Answer: during the annuitants lifetime with no refund upon death
◉ the purpose for social security is
Answer: to help working Americans with financial problems brought
on by retirement, death and disability
◉ Factors commonly used by health insurers to classify risk include
all of the following except
Answer: education
AND POLICY BASICS EXAM 2026
COMPLETE Q AND A STUDY PACK
◉ a company chartered in alabama would be considered what type
of insurance company in ohio?
Answer: foreign
◉ which life insurance nonforfeiture option provides the same
amount of death protection as the original policy, but decreases the
time coverage will remain in effect?
Answer: extended term
◉ which of the following is a tax advantage of a qualified retirement
plan?
Answer: all of the above
◉ Joe, whose life insurance policy has a waiver of premium rider,
becomes disabled for two years, during which time the company
pays over $1,500 in premiums. Joe recovers and now must
Answer: begin paying the premiums again as they become due
,◉ A policy owner decides to pay life insurance premiums quarterly
instead of annually. Select the correct statement.
Answer: the total outlay of annual premium dollars will be increased
◉ what are "nonforfeiture values"?
Answer: when a policy owner stops paying premiums on a limited
pay policy, he or she is entitled to receive its face amount in cash
◉ who must meet alabamas requirements to earn 24 hours of
continuing education hours every two years?
Answer: a producer who only sells property and casualty insurance
◉ which of the following riders could decrease the amount of the
policy death benefit if utilized?
Answer: automatic premium loan rider
◉ according to the alabama insurance regulations, when using an
illustration in the sale of a life insurance policy, an insurance
producer may legally do which of the following?
Answer: use an illustration which has "non-guaranteed" elements
◉ the fundamental insurance concept that an insured should not
profit from a loss but should be restored in whole or in part to the
, approximate financial condition occupied before the loss is known
as the principle of
Answer: indemnity
◉ this rider can be attached to a permanent life insurance policy to
add more coverage for a limited time
Answer: term rider
◉ the waiver of premium rider suspends premium payments
without penalty for what situations?
Answer: long term disability
◉ a straight life annuity pays a periodic income
Answer: during the annuitants lifetime with no refund upon death
◉ the purpose for social security is
Answer: to help working Americans with financial problems brought
on by retirement, death and disability
◉ Factors commonly used by health insurers to classify risk include
all of the following except
Answer: education
