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Alabama Life and Health (Exam FX
Simulation - attempt 1) Questions with
Detailed Verified Answers (100% Correct
Answers) /Already Graded A+
Which of the following is NOT an allowable 1035 exchange
Ans: A whole life insurance policy is exchanged for a term insurance policy.
Which of the following is NOT a type of information that needs to be gathered
in order to determine the value of someone's life when using the needs
approach?
Ans: Estimated longevity
Which of the following would be the basic source of information used by the
company in the risk selection process?
Ans: Application
underwriting is a major consideration when an insured wishes to replace her
current policy for all of the following reasons EXCEPT
Ans: Premiums always stay the same
What is the clause that describes the method of paying the death benefit in the
event that the insured and beneficiary are both killed in the same accident?
Ans: Common Disaster Clause
The insured under a $100,000 life insurance policy with a triple indemnity rider
for accidental death was killed in a car accident. It was determined that the
accident was his fault. The triple indemnity rider in the policy specifies that the
death must not be contributed to by the insured in any manner. In this case what
will the policy beneficiary receive?
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Ans: $100,000
How often must the Commissioner or an examiner designated by the
Commissioner examine domestic insurance companies?
Ans: As often as the commissioner deems necessary, but not less frequently than once every 5
years
Which of the following provisions is mandatory for health insurance policies?
Ans: Physical examination and autopsy
At what point must an outline of coverage be delivered
Ans: At the time of the application or upon delivery of the policy
Attempting to determine how much insurance an individual would require based
upon their financial objectives is known as
Ans: Needs Approach
On its advertisement, a company claims that it has funds in its possession that
are, in fact, not available for the payment of losses or claims. What is the
company guilty of?
Ans: Misrepresentation
An insured has medical insurance coverage through 2 different providers, both
covering the same expenses on an expense-incurred basis. Neither company
knows in advance that the insured has coverage through any other insurers. The
insured submits a claim to both insurers. How should the claim be handled?
Ans: Each insurer should pay a proportionate share of the claim
Which is the appropriate action by the insurer if a prospective insured submitted
an incomplete application?
Ans: Return the application to the applicant for completion
Disability income policies can provide coverage for a loss of income when
returning to work only part-time after recovering from total disability. What is
the benefit that is based on the insured's loss of earnings after recovery from a
disability
Click here for more: Preppass - Stuvia
Alabama Life and Health (Exam FX
Simulation - attempt 1) Questions with
Detailed Verified Answers (100% Correct
Answers) /Already Graded A+
Which of the following is NOT an allowable 1035 exchange
Ans: A whole life insurance policy is exchanged for a term insurance policy.
Which of the following is NOT a type of information that needs to be gathered
in order to determine the value of someone's life when using the needs
approach?
Ans: Estimated longevity
Which of the following would be the basic source of information used by the
company in the risk selection process?
Ans: Application
underwriting is a major consideration when an insured wishes to replace her
current policy for all of the following reasons EXCEPT
Ans: Premiums always stay the same
What is the clause that describes the method of paying the death benefit in the
event that the insured and beneficiary are both killed in the same accident?
Ans: Common Disaster Clause
The insured under a $100,000 life insurance policy with a triple indemnity rider
for accidental death was killed in a car accident. It was determined that the
accident was his fault. The triple indemnity rider in the policy specifies that the
death must not be contributed to by the insured in any manner. In this case what
will the policy beneficiary receive?
, Page | 2
Click here for more: Preppass - Stuvia
Ans: $100,000
How often must the Commissioner or an examiner designated by the
Commissioner examine domestic insurance companies?
Ans: As often as the commissioner deems necessary, but not less frequently than once every 5
years
Which of the following provisions is mandatory for health insurance policies?
Ans: Physical examination and autopsy
At what point must an outline of coverage be delivered
Ans: At the time of the application or upon delivery of the policy
Attempting to determine how much insurance an individual would require based
upon their financial objectives is known as
Ans: Needs Approach
On its advertisement, a company claims that it has funds in its possession that
are, in fact, not available for the payment of losses or claims. What is the
company guilty of?
Ans: Misrepresentation
An insured has medical insurance coverage through 2 different providers, both
covering the same expenses on an expense-incurred basis. Neither company
knows in advance that the insured has coverage through any other insurers. The
insured submits a claim to both insurers. How should the claim be handled?
Ans: Each insurer should pay a proportionate share of the claim
Which is the appropriate action by the insurer if a prospective insured submitted
an incomplete application?
Ans: Return the application to the applicant for completion
Disability income policies can provide coverage for a loss of income when
returning to work only part-time after recovering from total disability. What is
the benefit that is based on the insured's loss of earnings after recovery from a
disability
