Alabama Life and Health Insurance Final Exam

• / 9

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 following

policies? ANS increasing term policy 1 / 4

• / 9

• the waiver of premium provision normally excludes which of the following

disabling acts? ANS all of these ANS inquires sustained while committing a felony, inquires sustained 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 90 days 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

maintain the 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 for variable life and annuities contracts, a valid insurance license

• what is a certificate of insurance? ANS a certificate is issued to each

individual covered by the group life insurance 2 / 4

• / 9

• 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 company

• 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 of the policy

• how are employer-paid premiums for employee group health insurance

normally treated for tax purposes? ANS tax deductible to the employer/nontaxable to the employee

• which of the following events would allow a policyowner with a guaranteed

insurability rider purchase additional life insurance? ANS all of these ANS having a child, getting married, reaching a specified age stated in the policy 3 / 4

• / 9

• what is not true regarding medicare supplement policies? ANS must

include a minimum 20 -day-free-look provision

• when can a lapsed life insurance policy usually be reinstated? ANS

within 3-5 years 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 the

premiums for a life insurance policy advertised in Alabama? ANS none of these ANS savings, profit, deposit

• if insurance premiums are paid more frequently than annually, the policy-

owner can expect to ANS have a higher total outlay of dollars for the coverage for that year

• what is not considered a form of advertisement in Alabama? ANS a

producer sending a Christmas card to a client

• what is vesting? ANS the employee's right to the empolyer's

contributions in a retirement plan if employment terminates prior to retirement

• / 4