Alabama Life & Health Insurance
UPDATED 2025/2026 COMPLETE EXAM
QUESTIONS WITH CORRECT
SOLUTIONS||ALREADY GRADED 100%
GUARANTEED PASS!!!
1. When an applicant for life insurance faces potential financial loss in the
event of injury or sickness of an insured, it is said the applicant has: -
ANSWER ✓ Insurable Interest
2. When the owner of the policy and insurer must meet certain conditions in
order for the health insurance policy to be enforceable, it is referred to as
a(n): - ANSWER ✓ Conditional Contract
3. A Conditional Contract is one in which both parties to a contract must
perform certain duties to make the contract enforceable.
4. Contract of Adhesion - ANSWER ✓
5. Unilateral Contract - ANSWER ✓
6. Policies are considered incontestable after: - ANSWER ✓ 2 years
7. Which is the proper term for a company owned by its policy owners? -
ANSWER ✓ A mutual insurance company
8. A producer who is acting as an agent is representing: - ANSWER ✓ Always
the insurer
9. All of the following are elements of a contract, except: - ANSWER ✓
Authority
10.Insurable interest in life insurance is based upon a reasonable expectation of
pecuniary advantage through the continued life of another person and
, consequent loss by reason of that person's death or a substantial interest
engendered by love and affection in the case of individuals closely related
by blood or law.
11.The reinsurance agreement that automatically accepts all new risks presented
by the company seeking or requesting reinsurance from the reinsurer is
known as a ____________ agreement. - ANSWER ✓ Treaty
12.In a whole life insurance policy: - ANSWER ✓ The cash value is greatest at
the end of the policy period, and the insurance protection is greatest at the
start of the policy
13.Concerning the Paid-Up Additions Dividend Option, all of the following are
true, except: - ANSWER ✓ Eventually, no more premiums will be due on
the policy
14.What is a postmortem dividend? - ANSWER ✓ A dividend earned, but not
yet paid, in the year of the insured's death and paid with the death claim
15.The factors that determine the amount of each payment under the fixed
period settlement option are: - ANSWER ✓ Length of the fixed period, face
amount of the policy and interest
16.The nonforfeiture option that provides the most life insurance protection is
the: - ANSWER ✓ Extended Term Option
17.The extended term option provides the most life insurance protection of the
available nonforfeiture options. Paid up additions are considered dividend
options and are not
18.considered a nonforfeiture option.
19.The settlement option that provides for the proceeds plus interest to be paid
in installments for a specified period of time is called the: - ANSWER ✓
Fixed Period Option
20.All of the following are situations in which the insurer is obligated to pay
out a death benefit after the insured has died, except: - ANSWER ✓ The
premiums have not been paid and have been overdue for 3 years
, 21.A client purchases an individual disability income policy and receives the
policy from the insurer 45 days after application. Upon receipt of the policy,
the client typically has ______days to review and return the policy to receive
a full refund for any reason. - ANSWER ✓ 10
22.An annuitant has a temporary annuity certain, and dies shortly after the
payments start but before the certain period of 10 years has elapsed. Any
money remaining is: - ANSWER ✓ Paid to the beneficiary for the rest of the
certain period
23.The type of annuity that guarantees to pay total income at least equal to the
purchase price of the contract is a: - ANSWER ✓ Refund life annuity
24.'Annuity Period' refers to which of the following? - ANSWER ✓ The time
during which payments are made to the annuitant
25.The annuity period begins when the annuitant starts to receive payments
from the accumulated funds in the annuity policy. This is also referred to as
'the Annuitization period'.
26.An annuity owner can change all of the following in an annuity, except: -
ANSWER ✓ Mortality Table
27.Which of the following will receive the smallest monthly income benefit
check if an annuity is annuitized? - ANSWER ✓ 50 year old female
28.Which of the following Annuities is generally not backed by the insurer's
general account assets? - ANSWER ✓ Variable
29.When converting a group life policy to an individual policy, the departing
group member's new policy must be a: - ANSWER ✓ Permanent or whole
life policy
30.When underwriting group life insurance: - ANSWER ✓ The underwriter
generally focuses on the group as a whole, rather than on individual
members
UPDATED 2025/2026 COMPLETE EXAM
QUESTIONS WITH CORRECT
SOLUTIONS||ALREADY GRADED 100%
GUARANTEED PASS!!!
1. When an applicant for life insurance faces potential financial loss in the
event of injury or sickness of an insured, it is said the applicant has: -
ANSWER ✓ Insurable Interest
2. When the owner of the policy and insurer must meet certain conditions in
order for the health insurance policy to be enforceable, it is referred to as
a(n): - ANSWER ✓ Conditional Contract
3. A Conditional Contract is one in which both parties to a contract must
perform certain duties to make the contract enforceable.
4. Contract of Adhesion - ANSWER ✓
5. Unilateral Contract - ANSWER ✓
6. Policies are considered incontestable after: - ANSWER ✓ 2 years
7. Which is the proper term for a company owned by its policy owners? -
ANSWER ✓ A mutual insurance company
8. A producer who is acting as an agent is representing: - ANSWER ✓ Always
the insurer
9. All of the following are elements of a contract, except: - ANSWER ✓
Authority
10.Insurable interest in life insurance is based upon a reasonable expectation of
pecuniary advantage through the continued life of another person and
, consequent loss by reason of that person's death or a substantial interest
engendered by love and affection in the case of individuals closely related
by blood or law.
11.The reinsurance agreement that automatically accepts all new risks presented
by the company seeking or requesting reinsurance from the reinsurer is
known as a ____________ agreement. - ANSWER ✓ Treaty
12.In a whole life insurance policy: - ANSWER ✓ The cash value is greatest at
the end of the policy period, and the insurance protection is greatest at the
start of the policy
13.Concerning the Paid-Up Additions Dividend Option, all of the following are
true, except: - ANSWER ✓ Eventually, no more premiums will be due on
the policy
14.What is a postmortem dividend? - ANSWER ✓ A dividend earned, but not
yet paid, in the year of the insured's death and paid with the death claim
15.The factors that determine the amount of each payment under the fixed
period settlement option are: - ANSWER ✓ Length of the fixed period, face
amount of the policy and interest
16.The nonforfeiture option that provides the most life insurance protection is
the: - ANSWER ✓ Extended Term Option
17.The extended term option provides the most life insurance protection of the
available nonforfeiture options. Paid up additions are considered dividend
options and are not
18.considered a nonforfeiture option.
19.The settlement option that provides for the proceeds plus interest to be paid
in installments for a specified period of time is called the: - ANSWER ✓
Fixed Period Option
20.All of the following are situations in which the insurer is obligated to pay
out a death benefit after the insured has died, except: - ANSWER ✓ The
premiums have not been paid and have been overdue for 3 years
, 21.A client purchases an individual disability income policy and receives the
policy from the insurer 45 days after application. Upon receipt of the policy,
the client typically has ______days to review and return the policy to receive
a full refund for any reason. - ANSWER ✓ 10
22.An annuitant has a temporary annuity certain, and dies shortly after the
payments start but before the certain period of 10 years has elapsed. Any
money remaining is: - ANSWER ✓ Paid to the beneficiary for the rest of the
certain period
23.The type of annuity that guarantees to pay total income at least equal to the
purchase price of the contract is a: - ANSWER ✓ Refund life annuity
24.'Annuity Period' refers to which of the following? - ANSWER ✓ The time
during which payments are made to the annuitant
25.The annuity period begins when the annuitant starts to receive payments
from the accumulated funds in the annuity policy. This is also referred to as
'the Annuitization period'.
26.An annuity owner can change all of the following in an annuity, except: -
ANSWER ✓ Mortality Table
27.Which of the following will receive the smallest monthly income benefit
check if an annuity is annuitized? - ANSWER ✓ 50 year old female
28.Which of the following Annuities is generally not backed by the insurer's
general account assets? - ANSWER ✓ Variable
29.When converting a group life policy to an individual policy, the departing
group member's new policy must be a: - ANSWER ✓ Permanent or whole
life policy
30.When underwriting group life insurance: - ANSWER ✓ The underwriter
generally focuses on the group as a whole, rather than on individual
members
