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Alabama Life and Health Insurance Final Exam
(4 Sets of Final Exam’s)
Final Exam Set 1
- replacement regulation does not apply to ANS credit life insurance
- a policy owner can collect the face amount on what type of policy? ANS
endow-ment policy - which of the following does NOT describe a life income settlement option?-ANS income is paid until the principal amount decreases to zero
- periodic benefit payments must be made no less frequently than ANS
monthly - the automatic premium loan provision is NOT used in which of the followingpolicies? ANS increasing term policy
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- the waiver of premium provision normally excludes which of the following
disabling acts? ANS all of these ANS inquires sustained while committing a
felony, inquiressustained while serving in the military, self-inflicted injuries - in regards to a life insurance policy or an annuity contract, all statements
made on the application are considered to be ANS representations - an accidental death rider claim is usually paid if the insured ANS dies
within 90days of the accident - an insurance premium can be defined as ANS money paid to an insurance
com-pany for benefits provided in the policy - what is a disability income policy designed to do? ANS pay benefits to
maintainthe insured’s current standard of living - an insurance producer must have which of the following in order to sell
variable life insurance policies? ANS all of these ANS registered with FINRA,
license forvariable life and annuities contracts, a valid insurance license - what is a certificate of insurance? ANS a certificate is issued to each
individualcovered by the group life insurance
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- which of the following statements about a noncancellable policy is
FALSE? ANS the premium rate CAN be increased over time - what does the insurance company represent? ANS the insurance company15. an insurer pays a large claim for medical expenses after the insured has
only made one premium payment. this is an example of a(n) ANS aleatory
contract - an insured owns a policy which includes a disability income rider. the
disability benefit amount paid to the insured is based on the ANS face
amount ofthe policy - how are employer-paid premiums for employee group health insurance
normally treated for tax purposes? ANS tax deductible to the
employer/nontaxable tothe employee - which of the following events would allow a policyowner with a guaranteedinsurability rider purchase additional life insurance? ANS all of these ANShaving a child,getting married, reaching a specified age stated in the policy
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- what is not true regarding medicare supplement policies? ANS must
include aminimum 20 -day-free-look provision - when can a lapsed life insurance policy usually be reinstated? ANS
within 3-5years of the policy lapsing - a husband and wife are receiving annuity payments. when the husband
dies, the wife still receives annuity payments for life. what kind of annuity is
this? ANS joint and survivor life annuity - which of the following terms may be used when describing thepremiumsfor a life insurance policy advertised in Alabama? ANS none of theseANS savings, profit,deposit
- if insurance premiums are paid more frequently than annually, the policyowner can expect to ANS have a higher total outlay of dollars for the coverage forthatyear
- what is not considered a form of advertisement in Alabama? ANS a
producersending a Christmas card to a client - what is vesting? ANS the employee’s right to the empolyer’s
contributions in aretirement plan if employment terminates prior to retirement