Alabama Insurance Final
Exam Questions with Verified
Answers
Which of these will NOT result in an increase in life insurance policy dividends? –
ANSWERS
higher reserves
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? – ANSWERS
Survivorship life policy
If a Long Term Care (LTC) policy in Alabama has been in effect for more than _____,
the insurer CANNOT contest any material representation on the application –
ANSWERS
2 years
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): - ANSWERS
noncancellable policy
Which of these actions could result in a lapsed policy? – ANSWERS
Premium was not paid during the grace period
How are employer-paid premiums for employee group health insurance normally treated
for tax purposes? – ANSWERS
Tax deductible to the employer/Nontaxable to the employee
Bob has an insurance policy that allows him to keep the policy in force until the next
premium is due plus 30 days thereafter. Bob's policy: - ANSWERS
contains a grace period
An individual unable to perform two or more Activities of Daily Living (ADLs) will trigger
coverage from a _______ policy. – ANSWERS
Long Term Care (TLC)
A licensed Alabama insurance producer would NOT be disciplined by the Commissioner
of Insurnace for: - ANSWERS
being convicted of a misdemeanor
Exam Questions with Verified
Answers
Which of these will NOT result in an increase in life insurance policy dividends? –
ANSWERS
higher reserves
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? – ANSWERS
Survivorship life policy
If a Long Term Care (LTC) policy in Alabama has been in effect for more than _____,
the insurer CANNOT contest any material representation on the application –
ANSWERS
2 years
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): - ANSWERS
noncancellable policy
Which of these actions could result in a lapsed policy? – ANSWERS
Premium was not paid during the grace period
How are employer-paid premiums for employee group health insurance normally treated
for tax purposes? – ANSWERS
Tax deductible to the employer/Nontaxable to the employee
Bob has an insurance policy that allows him to keep the policy in force until the next
premium is due plus 30 days thereafter. Bob's policy: - ANSWERS
contains a grace period
An individual unable to perform two or more Activities of Daily Living (ADLs) will trigger
coverage from a _______ policy. – ANSWERS
Long Term Care (TLC)
A licensed Alabama insurance producer would NOT be disciplined by the Commissioner
of Insurnace for: - ANSWERS
being convicted of a misdemeanor
