Alabama Life and Health Insurance Exam Questions and
Answers Fall 2025-2026
Question 1
what are the 4 elements of an insurance contract?
Correct Answer
agreement (offer and acceptance), consideration, competent parties, and legal purpose
Question 2
when agents act within the scope of their contract, their actions will be assumed to be the actions of whom?
Correct Answer
Insurer
Question 3
what type of report provided information about the applicants hobbies, habits, and financial status?
Correct Answer
inspection report
Page 1 of 13
, Question 4
a person who does not lock the doors to his or her house shows an indifferent attitude. This person presents what type of
hazard?
Correct Answer
morale
Question 5
when a change needs to be made on the application for insurance, which is the best method for correcting the
information?
Correct Answer
complete a new application of ask the applicant to initial the correction on the original application
Question 6
an insurance company is domiciled in California and transacts business in Nevada. what is the insurer's classification in
Nevada?
Correct Answer
foreign
Question 7
a situation in which a person can only experience a loss and no gain presents what type of risk?
Correct Answer
pure risk
Page 2 of 13
Answers Fall 2025-2026
Question 1
what are the 4 elements of an insurance contract?
Correct Answer
agreement (offer and acceptance), consideration, competent parties, and legal purpose
Question 2
when agents act within the scope of their contract, their actions will be assumed to be the actions of whom?
Correct Answer
Insurer
Question 3
what type of report provided information about the applicants hobbies, habits, and financial status?
Correct Answer
inspection report
Page 1 of 13
, Question 4
a person who does not lock the doors to his or her house shows an indifferent attitude. This person presents what type of
hazard?
Correct Answer
morale
Question 5
when a change needs to be made on the application for insurance, which is the best method for correcting the
information?
Correct Answer
complete a new application of ask the applicant to initial the correction on the original application
Question 6
an insurance company is domiciled in California and transacts business in Nevada. what is the insurer's classification in
Nevada?
Correct Answer
foreign
Question 7
a situation in which a person can only experience a loss and no gain presents what type of risk?
Correct Answer
pure risk
Page 2 of 13
