Alabama Life and Health Insurance Exam (7 Sets of Exam’s) Qs & As (2023 / 2024) (Verified Answers)

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Alabama Life & Health Insurance Exam
(7 Sets of Exam’s)
Alabama Life & Health Insurance Exam
Set 1

1. what law protects consumers from the circulation of inaccurate or obsoleteinformation ANS The Fair Credit Reporting Act
2. Insurers are classified according to their domicile.What are the 3 types of
   insurers ANS domestic, foreign, and alien
3. what type of insurer is a voluntarily formed organization that provides
   religious organizations with a representative form of government ANS
   Fraternalinsurer
4. the type of insurance company organized to return any surplus money to
   its policyholders is known as what ANS mutual company

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5. when agents act within the scope of their contract, their actions will be
   assumed to be the actions of whom ANS Insurer
6. what is the name of the process that insurance companies use to determineif an applicant is insurable ANS underwriting
7. if an insurer needs to obtain information about the applicant from investigators, what is the insurer required to do ANS provide the aplicant with a
   Disclosure Authorization Notice
8. what type of insurer is formed under the laws of another country ANS Alien9. when risks with higher probability of loss are seeking insurance more oftenthan other risks, is known as what ANS adverse selection
9. when does an insurance policy go into effect ANS when to policy is
   deliveredand the premium is paid.
10. according to the Law of Agency, a principal is represented by whom
    ANS anagent or producer
11. what type of risk is insurable ANS pure
12. who owns stock companies ANS stockholders

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14. what entities make up the Medical Information Bureau ANS Insurers
15. when a change needs to be made on the application for insurance, whichis the best method for correcting the information ANS complete a newapplicationof ask the applicant to initial the correction on the original application
16. in order to transact insurance within a given sate, an alien insurer must
    first obtain what ANS Certificate of Authority
17. Insurance is a contract that protects the insured from what ANS Loss
18. in insurance, when is the offer usually made on a contract ANS when
    theapplication is submitted
19. the insurer organized to return a profit to the stockholders is what type ofinsurer ANS stock company
20. in forming an insurance contract, when does an acceptance usually occur ANS when the insurer approves a prepaid application

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21. an insurance company that is formed under the laws of another state is
    known as what type of insurer ANS Foreign
22. insurance is used to transfer what to the company ANS financial
    responsibilityfor loss
23. what type of report provided information about the applicants hobbies,
    habits, and financial status ANS inspection report
24. what document is required for an insurance company to transact insurance ANS Certificate of Authority
25. a state issued document empowering an insurance company to become
    an admitted insurer is called what ANS Certificate of Authority
26. what do individuals use to transfer their risk of loss to a larger group ANSIn-surance
27. in the agent/insurer relationship, who is considered the principal ANS
    Insurer
28. whom does an insurance agent represent ANS insurance company