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Alabama Insurance Producer license test
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
Employer health plans must provide primary coverage for individuals with end-
stage renal disease before medicare becomes primary care for how many
months?
Ans: 30 months
the sole beneficiary of a life insurance policy dies before the insured. the policy
will then go to?
Ans: The insured’s estate
An insured buys a 5-year level premium term policy with a face amount of
$100,000. The policy also contains renewability and convertibility options.
When the insured renews the policy in five years, what happens to the premium?
Ans: it increases because they are 5 years older and not fit into an older homogenous group.
Workers Comp is regulated by?
Ans: State Government
All the following are dividend options except:
Ans: Fixed period installments.
which of the following is NOT the consideration in a policy?
Ans: The application given to a prospective insured.
When the insured selects that extended term nonforfeiture option, the cas value
will be used to purchase term insurance with what face amount?
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Ans: Equal to the original policy for as long as the cash values will purchase.
When the policy premium wasn’t submitted with the application, what should the
agent obtain from the insured upon policy delivery?
Ans: a statement of good health
Which of the following is NOT among the goals of Medicare supplement
application?
Ans: Presuming the applicant is eligible for Medicaid, based on the nature of the policy
Which clause stipulates that life insurance premiums can be paid in advance of
policy insurance?
Ans: Payment of Premium Cause
Under an extended term nonforfeiture option, the policy cash value is converted
to
Ans: the same face amount as in the whole life policy.
A new employee who meets HIPAA eligibility requirements must be issued health
coverage on what basis?
Ans: guaranteed
A man decided to purchase a $100,000 Annually Renewable Term Life policy to
provide additional protection until his children finished college. He discovered
that his policy
Ans: required a premium increase each renewal
a family’s income need is greatest during which period?
Ans: family income dependency
a universal life insurance policy is best described as
Ans: annually renewable term policy with a cash value amount
when an insured makes truthful statements on the application for insurance and
pas the required premium, it is known as
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Ans: Consideration
an individual applied for an insurance policy and paid the initial premium. The
insurer issued a conditional receipt. Five days later the applicant has to submit to
a medical exam. if the policy is issued what would the policy’s effectiveness date
be?
Ans: The date of medical exam
An insured committed suicide one year after his life insurance policy was issued.
The insurer will
Ans: Refund the premiums paid
what is the other term for cash payment settlement option?
Ans: Lump Sum
An applicant is discussing his options for Medicare supplement coverage with his
agent. The applicant is 65 years old and has just enrolled in Medicare Part A
and Part B. What is the insurance company obligated to do?
Ans: offer the supplement policy on a guaranteed issue basis
which is true regarding HMO coverage?
Ans: It is divided into geographic territories
Which of the following is NOT a characteristic of an insurable risk?
Ans: the loss must be catastrophic
Health coverage becomes effective when the
Ans: first premium has been paid and the application has been approved
all of the following statements concerning dividends are true EXCEPT
Ans: dividend amounts are guaranteed in the policy
the provision which states that both the policy and a copy of the application
form the contract between the policy owner and the insurer is called the
