Page | 1
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Alabama Life and Health Insurance Exam
Prep Questions with Detailed Verified
Answers (100% Correct Answers) /Already
Graded A+
The free-look provision allows for which of the following?
Ans: A right to return the policy for a full premium refund
If a policy includes a free-look period of at least 10 days, the Buyer's Guide
may be delivered to the applicant no later than
Ans: With the policy
All of the following are characteristics of GROUP life insurance EXCEPT
Ans: Premiums being determined by the age, sex and occupation of each INDIVIDUAL
certificate holder
Which of the following may NOT be included in an insurance company's
advertisement?
Ans: That its policies are covered by a State Guaranty Association
A group of 15 skydivers met at a seminar and began talking about life
insurance during a break. Because it was expensive to get individual life
insurance, they decided to band together to form a small group so that they
could qualify for group life insurance. After they applied for group life
insurance, they were rejected. Why?
Ans: The purpose of the group was to purchase life insurance.
The dividend option in which the policy-owner uses dividends to purchase a term
policy for one year is referred to as the
Ans: One-year term option.
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Medicare Part A services do NOT include which of the following?
Ans: Outpatient Hospital Treatment
Which of the following statements about a suicide clause in a life insurance
policy is TRUE?
Ans: Suicide is excluded for a specific period of years and covered thereafter
Which of the following entities established the Do-Not-Call Registry?
Ans: The Federal Trade Commission
Under a health insurance policy, benefits, other than death benefits, that have
not otherwise been assigned, will be paid to
Ans: The insured.
Which of the following documents must be provided to the policy-owner or
applicant during policy replacement?
Ans: Notice Regarding Replacement
Which of the following statements about the reinstatement provision is true?
Ans: It requires the policy-owner to pay all overdue premiums with interest before the policy
is reinstated.
Which of the following insurers are owned by stockholders?
Ans: Stock
Which of the following are the main factors taken into account when calculating
residual disability benefits?
Ans: Present earnings and earnings prior to disability
All of the following types of distributions are considered exceptions to the early
distribution rule and, therefore, are not subject to the penalty tax EXCEPT
Ans: Participant's debt.
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In major medical insurance policies, when the insured's share of coinsurance
reaches a certain amount, the insured is no longer obligated to pay it. This
feature is known as
Ans: Stop-loss
Which of the following is NOT an enrollment period for Medicare Part A
applicants?
Ans: Automatic enrollment
What would a physician utilize if he/she wanted to know if a treatment is
covered under an insured's plan and at what rate it will be paid?
Ans: Prospective review
An applicant buys a non-qualified annuity, but dies before the starting date. For
which of the following beneficiaries would the interest accumulated in the annuity
NOT be taxable?
Ans: Spouse
Which of the following groups would most likely be covered under a blanket
accident policy?
Ans: Students at a public school - A blanket policy covers members of a particular group
when they are participating in a particular activity. Such groups include students, campers,
passengers on a common carrier, or sports teams.
Why should the producer personally deliver the policy when the first premium
has already been paid?
Ans: To help the insured understand all aspects of the contract
The insured's health policy only pays for medical costs related to accidents.
Which of the following types of policies does the insured have?
Ans: Accident-only
Which of the following is NOT typically excluded from life policies?
Ans: Death due to plane crash for a fare-paying passenger
The death protection component of Universal Life Insurance is always
Click here for more: Preppass - Stuvia
Alabama Life and Health Insurance Exam
Prep Questions with Detailed Verified
Answers (100% Correct Answers) /Already
Graded A+
The free-look provision allows for which of the following?
Ans: A right to return the policy for a full premium refund
If a policy includes a free-look period of at least 10 days, the Buyer's Guide
may be delivered to the applicant no later than
Ans: With the policy
All of the following are characteristics of GROUP life insurance EXCEPT
Ans: Premiums being determined by the age, sex and occupation of each INDIVIDUAL
certificate holder
Which of the following may NOT be included in an insurance company's
advertisement?
Ans: That its policies are covered by a State Guaranty Association
A group of 15 skydivers met at a seminar and began talking about life
insurance during a break. Because it was expensive to get individual life
insurance, they decided to band together to form a small group so that they
could qualify for group life insurance. After they applied for group life
insurance, they were rejected. Why?
Ans: The purpose of the group was to purchase life insurance.
The dividend option in which the policy-owner uses dividends to purchase a term
policy for one year is referred to as the
Ans: One-year term option.
,Page | 2
Click here for more: Preppass - Stuvia
Medicare Part A services do NOT include which of the following?
Ans: Outpatient Hospital Treatment
Which of the following statements about a suicide clause in a life insurance
policy is TRUE?
Ans: Suicide is excluded for a specific period of years and covered thereafter
Which of the following entities established the Do-Not-Call Registry?
Ans: The Federal Trade Commission
Under a health insurance policy, benefits, other than death benefits, that have
not otherwise been assigned, will be paid to
Ans: The insured.
Which of the following documents must be provided to the policy-owner or
applicant during policy replacement?
Ans: Notice Regarding Replacement
Which of the following statements about the reinstatement provision is true?
Ans: It requires the policy-owner to pay all overdue premiums with interest before the policy
is reinstated.
Which of the following insurers are owned by stockholders?
Ans: Stock
Which of the following are the main factors taken into account when calculating
residual disability benefits?
Ans: Present earnings and earnings prior to disability
All of the following types of distributions are considered exceptions to the early
distribution rule and, therefore, are not subject to the penalty tax EXCEPT
Ans: Participant's debt.
, Page | 3
Click here for more: Preppass - Stuvia
In major medical insurance policies, when the insured's share of coinsurance
reaches a certain amount, the insured is no longer obligated to pay it. This
feature is known as
Ans: Stop-loss
Which of the following is NOT an enrollment period for Medicare Part A
applicants?
Ans: Automatic enrollment
What would a physician utilize if he/she wanted to know if a treatment is
covered under an insured's plan and at what rate it will be paid?
Ans: Prospective review
An applicant buys a non-qualified annuity, but dies before the starting date. For
which of the following beneficiaries would the interest accumulated in the annuity
NOT be taxable?
Ans: Spouse
Which of the following groups would most likely be covered under a blanket
accident policy?
Ans: Students at a public school - A blanket policy covers members of a particular group
when they are participating in a particular activity. Such groups include students, campers,
passengers on a common carrier, or sports teams.
Why should the producer personally deliver the policy when the first premium
has already been paid?
Ans: To help the insured understand all aspects of the contract
The insured's health policy only pays for medical costs related to accidents.
Which of the following types of policies does the insured have?
Ans: Accident-only
Which of the following is NOT typically excluded from life policies?
Ans: Death due to plane crash for a fare-paying passenger
The death protection component of Universal Life Insurance is always
