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Alabama health and life insurance exam
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
morbidity rate
Ans: The number of an insurnace company’s health insureds that is expected to become sick
or injured is called
Substandard applicants are never declined by underwriters
Ans: Which of the following statements about the classification of applicants is INCORRECT
Return to customer, collect new check made out to insurance company, and send
it to insurance company
Ans: Agent J takes an application and initial premium from an applicant and sends the
applicant and premium check to the insurance company. Insurance company sends it back to J
because the check is made out to him. What action should J take?
Inspection Report
Ans: Info obtained by phone conversation to the proposed insured can be found in which of
these reports
Complete the application and review the info with customer prior to signature
then send application to the insurance company
Ans: Which of the following correctly explains the actions an agent should take if a customer
wants to apply for an insurance policy?
According to the occupation that is most hazardous to
Ans: Derek is insured with a health insurance policy where occupation is used to classify risk.
If he holds more than one occupation, how will the insurance company classify Derek?
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Determine if the applicant is an acceptable risk by completing standard
underwriting procedures
Ans: Agent takes an individual disability income application, collects the appropriate
premium, and issues the prospective insured a conditional receipt. The next step the insurance
company will take is to :
issues of policy with an altered Time of payment of claims provision
Ans: Which of the following actions will an insurance company most likely NOT take if an
applicant with diabetes applies for a disability income policy
managed care
Ans: Pre-hospitalization authorization is considered an example of:
What type of plan normally includes hospice benefits
Ans: Managed care plans
If an insured commits suicide, a life insurance policy’s face amount will be paid
only after the policy has been in force for at least:
Ans: Two years
Any individual who has failed 2 Alabama insurance licensing examinations must
wait how long before retaking it a third time?
Ans: 3 months
An insurance producer represents the:
Ans: Insurance company
Alabama’s head of the department of insurance does NOT have the power to:
Ans: Promulgate insurance laws
In Alabama, an insurance company incorporated and licensed to do business in
this state is called:
Ans: A domestic company
Which of the following long-term practices is permitted in Alabama?
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Ans: Using direct mail to market an LTC policy
A licensed Alabama insurance producer would NOT be disciplined by the
Commissioner of Insurance for:
Ans: Being convicted of a misdemeanor
If a LTC policy in Alabama has been in effect for more than ______, the insurer
CANNOT contest any material representation on the application
Ans: 2 years
Which of the following may be used when describing the premiums for a life
insurance policy advertised in Alabama
Ans: None of these
According to Alabama law, a minor
Ans: age 18 can begin receiving life insurance death benefits of up to $3,000 per year
How long must a producer keep complete records pertaining to his insurance
transactions
Ans: 3 years
A disability policy in Alabama that is paid monthly is required to have a grace
period of:
Ans: 10 days
The Alabama continuing education law states that an insurance producer must
report how many classroom hours every 2 years
Ans: 24
Which entity is responsible for the majority of regulations imposed on the
insurance industry
Ans: State government
If an individual would like to sell insurance for a insurance company he must:
