ALABAMA INSURANCE TEST
Which welfare program provides assistance to the needy? *** Medicaid
Barbara has the right to change the beneficiary designation on her life insurance policy. Barbara's
beneficiary is a(n): *** revocable beneficiary
Within how many calendar days must all clean electronic health insurance claims be paid in Alabama?
*** 30
Which type of term policy allows the policyowner to switch to permanent insurance? *** Convertible
term
What does renewable term guarantee? *** The insured's insurability
If an insured commits suicide, a life insurance policy's face amount will be paid only after the policy has
been in force for at least: *** two years
Which of the following statements concerning a life insurance policy is TRUE? *** An issued policy can
never be changed by a producer
The proceeds of a life insurance policy can be paid in a form other than a lump-sum payment. These
forms of payment are called: *** settlement options
The withholding of facts in an insurance application is called: *** concealment
A licensed Alabama insurance producer would NOT be disciplined by the Commissioner of Insurance for:
*** being convicted of a misdemeanor
,The option to convert term life insurance to a permanent form of coverage can normally be executed:
*** without proof of insurability
Which type of life insurance rider allows a policyowner to increase the level of coverage to keep up with
inflation? *** cost of living rider
What is the minimum age requirement for a minor in Alabama to purchase a life insurance policy? ***
15
Which of the following best describes a Health Maintenance Organization (HMO)? *** Provides full
medical services that stress preventative medicine
Medicare Advantage (Medicare Part C) allows the utilization of benefits through a(n): *** HMO, PPO, or
traditional insurer
Pat the producer just sold an insurance policy to a client, explaining that he has authority to issue the
policy. Pat was not specifically granted this power from the insurance company. Pat is exercising: ***
implied authority
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
Benefits under a health insurance policy may (with the insured's written request) be payable to: *** a
hospital, physician, or surgeon
Bart is injured and provides notice of a health claim to his insurer. He later receives the required claims
forms. Within how many days of the loss must Bart file proof of loss with the insurance company? ***
90
, Which of these statements regarding an insurance application is true? *** A representation is valid as
long as it is true
An insurance company licensed to solicit insurance in a specific state is called: *** an admitted company
John purchases insurance because he expects to experience a loss. This is known as: *** adverse
selection
Who would most likely own a Medicare Supplement policy? *** 69-year old female covered by
Medicare
Amy owns a disability income policy with a noncancellable renewal provision. Which of the following is
guaranteed in her policy? *** The coverage and premium rate are guaranteed
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
Policy dividends for life insurance are: *** not guaranteed
What is a certificate of insurance? *** A certificate issued to each individual covered by the group life
insurance
Which is NOT true regarding Medicare Supplement policies? *** Must include a minimum 20-day Free-
Look provision
In Alabama, all Health Maintenance Organizations must: *** have a complaint system to resolve written
complaints from enrollees
Which welfare program provides assistance to the needy? *** Medicaid
Barbara has the right to change the beneficiary designation on her life insurance policy. Barbara's
beneficiary is a(n): *** revocable beneficiary
Within how many calendar days must all clean electronic health insurance claims be paid in Alabama?
*** 30
Which type of term policy allows the policyowner to switch to permanent insurance? *** Convertible
term
What does renewable term guarantee? *** The insured's insurability
If an insured commits suicide, a life insurance policy's face amount will be paid only after the policy has
been in force for at least: *** two years
Which of the following statements concerning a life insurance policy is TRUE? *** An issued policy can
never be changed by a producer
The proceeds of a life insurance policy can be paid in a form other than a lump-sum payment. These
forms of payment are called: *** settlement options
The withholding of facts in an insurance application is called: *** concealment
A licensed Alabama insurance producer would NOT be disciplined by the Commissioner of Insurance for:
*** being convicted of a misdemeanor
,The option to convert term life insurance to a permanent form of coverage can normally be executed:
*** without proof of insurability
Which type of life insurance rider allows a policyowner to increase the level of coverage to keep up with
inflation? *** cost of living rider
What is the minimum age requirement for a minor in Alabama to purchase a life insurance policy? ***
15
Which of the following best describes a Health Maintenance Organization (HMO)? *** Provides full
medical services that stress preventative medicine
Medicare Advantage (Medicare Part C) allows the utilization of benefits through a(n): *** HMO, PPO, or
traditional insurer
Pat the producer just sold an insurance policy to a client, explaining that he has authority to issue the
policy. Pat was not specifically granted this power from the insurance company. Pat is exercising: ***
implied authority
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
Benefits under a health insurance policy may (with the insured's written request) be payable to: *** a
hospital, physician, or surgeon
Bart is injured and provides notice of a health claim to his insurer. He later receives the required claims
forms. Within how many days of the loss must Bart file proof of loss with the insurance company? ***
90
, Which of these statements regarding an insurance application is true? *** A representation is valid as
long as it is true
An insurance company licensed to solicit insurance in a specific state is called: *** an admitted company
John purchases insurance because he expects to experience a loss. This is known as: *** adverse
selection
Who would most likely own a Medicare Supplement policy? *** 69-year old female covered by
Medicare
Amy owns a disability income policy with a noncancellable renewal provision. Which of the following is
guaranteed in her policy? *** The coverage and premium rate are guaranteed
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
Policy dividends for life insurance are: *** not guaranteed
What is a certificate of insurance? *** A certificate issued to each individual covered by the group life
insurance
Which is NOT true regarding Medicare Supplement policies? *** Must include a minimum 20-day Free-
Look provision
In Alabama, all Health Maintenance Organizations must: *** have a complaint system to resolve written
complaints from enrollees
