ALABAMA LIFE INSURANCE FINAL
EXAM
QUESTIONS WITH CORRECT ANSWERS||
Updated 2025/2026
The minimum graceperiodfor a life insurancepolicy sold in Alabamais: Correct
Answer-30 days
Alabama's annuity disclosure regulation: CorrectAnswer-Requiresthedelivery of
a buyer's guide and a disclosure document to annuity applicant
An insurerpaysa largeclaim for medicalexpensesaftertheinsuredhas only made one
premium payment. This is an example of an: Correct Answer-Aleatory
contract
Which of the following is NOT guaranteed by a whole life policy? Correct
Answer-policy dividends
Any individual who has failedtwoAlabamainsurancelicensingexaminationsmust wait
how long before retaking it a third time? Correct Answer-3 months
When an estateis namedbeneficiaryto a life insurancepolicy, thepolicy proceedsare:
Correct Answer-distributed according to state law
Which of thefollowingstatementsconcerninga life insurancepolicy is TRUE? Correct
Answer-an issued policy can never be changed by a producer
,Julio, the insurance producer, has allowed his license to lapse. He would like to
reinstate his licenses without retaking a pre license course or passing a written
examination. To do this, Julio must reinstate the license within monthsfrom
the renewal date. Correct Answer-12 months
, Janet is retired and looking to invest a lump
-sum of money through an insurance
company. Which product would be best suited for this? CorrectAnswer-annuity
Tina has an insurance policy with a 10-day free look provision. Which of these
statementsis correct? CorrectAnswer -Her policy canbe returned for100% refund
of the premium within 10 days from the date the policy is delivered
A collateralassignmentallowsa policy ownerto assign: CorrectAnswer-A portion
of the policy proceeds to the assignee
A licensed Alabama insurance producer would NOT be disciplined by the
Commissioner of Insurance for: Correct Answer -Being convicted of a
misdemeanor
What is a defined benefit plan? CorrectAnswer-a retirementplan thatpromises a
specified benefit to the employee at retirement
Which of these is NOT considered a form of advertisement in Alabama? Correct
Answer-A producer sending a Christmas card to a client
Buying land with the anticipationof it going up in value is an example of:
Correct Answer-Speculative risk
If an individual wouldlike to sell insurancefor an insurancecompany, he/shemust:
A. Have passedthestateexamfor thelines of authorityin which licensureis
sought
EXAM
QUESTIONS WITH CORRECT ANSWERS||
Updated 2025/2026
The minimum graceperiodfor a life insurancepolicy sold in Alabamais: Correct
Answer-30 days
Alabama's annuity disclosure regulation: CorrectAnswer-Requiresthedelivery of
a buyer's guide and a disclosure document to annuity applicant
An insurerpaysa largeclaim for medicalexpensesaftertheinsuredhas only made one
premium payment. This is an example of an: Correct Answer-Aleatory
contract
Which of the following is NOT guaranteed by a whole life policy? Correct
Answer-policy dividends
Any individual who has failedtwoAlabamainsurancelicensingexaminationsmust wait
how long before retaking it a third time? Correct Answer-3 months
When an estateis namedbeneficiaryto a life insurancepolicy, thepolicy proceedsare:
Correct Answer-distributed according to state law
Which of thefollowingstatementsconcerninga life insurancepolicy is TRUE? Correct
Answer-an issued policy can never be changed by a producer
,Julio, the insurance producer, has allowed his license to lapse. He would like to
reinstate his licenses without retaking a pre license course or passing a written
examination. To do this, Julio must reinstate the license within monthsfrom
the renewal date. Correct Answer-12 months
, Janet is retired and looking to invest a lump
-sum of money through an insurance
company. Which product would be best suited for this? CorrectAnswer-annuity
Tina has an insurance policy with a 10-day free look provision. Which of these
statementsis correct? CorrectAnswer -Her policy canbe returned for100% refund
of the premium within 10 days from the date the policy is delivered
A collateralassignmentallowsa policy ownerto assign: CorrectAnswer-A portion
of the policy proceeds to the assignee
A licensed Alabama insurance producer would NOT be disciplined by the
Commissioner of Insurance for: Correct Answer -Being convicted of a
misdemeanor
What is a defined benefit plan? CorrectAnswer-a retirementplan thatpromises a
specified benefit to the employee at retirement
Which of these is NOT considered a form of advertisement in Alabama? Correct
Answer-A producer sending a Christmas card to a client
Buying land with the anticipationof it going up in value is an example of:
Correct Answer-Speculative risk
If an individual wouldlike to sell insurancefor an insurancecompany, he/shemust:
A. Have passedthestateexamfor thelines of authorityin which licensureis
sought
