ALABAMA INSURANCE TEST
QUESTIONS & ANSWERS SOLVED 100%
CORRECT!!
A Preferred Provider Organization (PPO) contract typically uses which payment
arrangement? - ✔️✔️Negotiated fee-for-service
A retirement plan intended for a sole proprietor and his/her employees would be a(n): -
✔️✔️Keogh Plan
A retirement plan that can be started by an employee, even if another plan is in
existence, is called a(n): - ✔️✔️Individual Retirement Account (IRA)
A substandard or special class risk typically results in: - ✔️✔️a premium that is higher
than for a normal risk
A husband and wife are receiving annuity payments. When the husband dies, the wife
still receives annuity payments for life. What kind of annuity is this? - ✔️✔️Joint and
survivor life annuity
A husband and wife purchases a life insurance policy that covers both of them. The
policy paid nothing when the husband died. Two years later, the wife dies and a death
benefit is paid to the beneficiary. Which type of policy is this? - ✔️✔️Survivorship life
policy
A licensed Alabama insurance producer would NOT be disciplined by the Commissioner
of Insurance for: - ✔️✔️being convicted of a misdemeanor
A life insurance beneficiary has chosen a settlement option in which the principal never
decreases unless the beneficiary makes a withdrawal. This settlement option is called
the: - ✔️✔️interest only option
A Cross Purchase Buy-Sell Agreement is in place for ABC Company's four founding
partners. What would this agreement require if the agreement is funded with individual
life insurance? - ✔️✔️Each partner must own a policy on the other partners
A disability policy in Alabama that is paid on a monthly basis is required to have a grace
period of: - ✔️✔️10
, A disability policy that must be renewed, cannot be cancelled until age 65, and may not
have an increase in premium for any reason is called a(n): - ✔️✔️noncancellable policy
A life insurance policy owned by a third party: - ✔️✔️is used largely in estate-planning
as well as business situations
A Long Term Care (LTC) policy has a minimum renewability level of: - ✔️✔️guaranteed
renewable
A Long Term Care insured must be unable to perform a minimum of __ Activities of
Daily Living (ADLs) to receive benefits. - ✔️✔️2
A policy owner with an automatic premium loan provision must: - ✔️✔️pay back the
loan amount to keep the policy's cash value at its maximum
A policyowner can collect the face amount on what type of policy? - ✔️✔️endowment
policy
A waiver of premium: - ✔️✔️waives the premiums when the policyowner becomes
totally disabled
A written agreement that involves two or more parties and consideration is: - ✔️✔️a
contract
According to Alabama law, a minor: - ✔️✔️age 18 can begin receiving life insurance
death benefits of up to $3,000 per year
According to Alabama law, agents of a Health Maintenance Organization (HMO): -
✔️✔️must be licensed as insurance producers
According to Required Provision 4, when an insured applies for reinstatement of a
health policy and receives a conditional receipt, how long does the insurer have to
approve or deny? - ✔️✔️within 45 days of the date of application
Alabama's annuity disclosure regulation: - ✔️✔️requires the delivery of a buyer's guide
and a disclosure document to an annuity applicant
All of these are correct concerning group life insurance, EXCEPT: - ✔️✔️Whole life
insurance is the form of insurance typically used in group life insurance
QUESTIONS & ANSWERS SOLVED 100%
CORRECT!!
A Preferred Provider Organization (PPO) contract typically uses which payment
arrangement? - ✔️✔️Negotiated fee-for-service
A retirement plan intended for a sole proprietor and his/her employees would be a(n): -
✔️✔️Keogh Plan
A retirement plan that can be started by an employee, even if another plan is in
existence, is called a(n): - ✔️✔️Individual Retirement Account (IRA)
A substandard or special class risk typically results in: - ✔️✔️a premium that is higher
than for a normal risk
A husband and wife are receiving annuity payments. When the husband dies, the wife
still receives annuity payments for life. What kind of annuity is this? - ✔️✔️Joint and
survivor life annuity
A husband and wife purchases a life insurance policy that covers both of them. The
policy paid nothing when the husband died. Two years later, the wife dies and a death
benefit is paid to the beneficiary. Which type of policy is this? - ✔️✔️Survivorship life
policy
A licensed Alabama insurance producer would NOT be disciplined by the Commissioner
of Insurance for: - ✔️✔️being convicted of a misdemeanor
A life insurance beneficiary has chosen a settlement option in which the principal never
decreases unless the beneficiary makes a withdrawal. This settlement option is called
the: - ✔️✔️interest only option
A Cross Purchase Buy-Sell Agreement is in place for ABC Company's four founding
partners. What would this agreement require if the agreement is funded with individual
life insurance? - ✔️✔️Each partner must own a policy on the other partners
A disability policy in Alabama that is paid on a monthly basis is required to have a grace
period of: - ✔️✔️10
, A disability policy that must be renewed, cannot be cancelled until age 65, and may not
have an increase in premium for any reason is called a(n): - ✔️✔️noncancellable policy
A life insurance policy owned by a third party: - ✔️✔️is used largely in estate-planning
as well as business situations
A Long Term Care (LTC) policy has a minimum renewability level of: - ✔️✔️guaranteed
renewable
A Long Term Care insured must be unable to perform a minimum of __ Activities of
Daily Living (ADLs) to receive benefits. - ✔️✔️2
A policy owner with an automatic premium loan provision must: - ✔️✔️pay back the
loan amount to keep the policy's cash value at its maximum
A policyowner can collect the face amount on what type of policy? - ✔️✔️endowment
policy
A waiver of premium: - ✔️✔️waives the premiums when the policyowner becomes
totally disabled
A written agreement that involves two or more parties and consideration is: - ✔️✔️a
contract
According to Alabama law, a minor: - ✔️✔️age 18 can begin receiving life insurance
death benefits of up to $3,000 per year
According to Alabama law, agents of a Health Maintenance Organization (HMO): -
✔️✔️must be licensed as insurance producers
According to Required Provision 4, when an insured applies for reinstatement of a
health policy and receives a conditional receipt, how long does the insurer have to
approve or deny? - ✔️✔️within 45 days of the date of application
Alabama's annuity disclosure regulation: - ✔️✔️requires the delivery of a buyer's guide
and a disclosure document to an annuity applicant
All of these are correct concerning group life insurance, EXCEPT: - ✔️✔️Whole life
insurance is the form of insurance typically used in group life insurance
