Alabama Life Health Insurance Exam

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

Alabama Life & Health Insurance Exam Set 1

• what law protects consumers from the circulation of inaccurate or obsolete

information ANS The Fair Credit Reporting Act

• Insurers are classified according to their domicile. What are the 3 types of

insurers ANS domestic, foreign, and alien

• what type of insurer is a voluntarily formed organization that provides

religious organizations with a representative form of government ANS Fraternal insurer

• 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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• when agents act within the scope of their contract, their actions will be

assumed to be the actions of whom ANS Insurer

• what is the name of the process that insurance companies use to determine

if an applicant is insurable ANS underwriting

• if an insurer needs to obtain information about the applicant from investiga-

tors, what is the insurer required to do ANS provide the aplicant with a Disclosure Authorization Notice

• what type of insurer is formed under the laws of another country ANS Alien

• when risks with higher probability of loss are seeking insurance more often

than other risks, is known as what ANS adverse selection

• when does an insurance policy go into effect ANS when to policy is

delivered and the premium is paid.

• according to the Law of Agency, a principal is represented by whom

ANS an agent or producer

• what type of risk is insurable ANS pure

• who owns stock companies ANS stockholders
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• what entities make up the Medical Information Bureau ANS Insurers

• when a change needs to be made on the application for insurance, which

is the best method for correcting the information ANS complete a new application of ask the applicant to initial the correction on the original application

• in order to transact insurance within a given sate, an alien insurer must

first obtain what ANS Certificate of Authority

• Insurance is a contract that protects the insured from what ANS Loss

• in insurance, when is the offer usually made on a contract ANS when

the application is submitted

• the insurer organized to return a profit to the stockholders is what type of

insurer ANS stock company

• in forming an insurance contract, when does an acceptance usually oc-

cur ANS when the insurer approves a prepaid application 3 / 4

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• an insurance company that is formed under the laws of another state is

known as what type of insurer ANS Foreign

• insurance is used to transfer what to the company ANS financial

responsibility for loss

• what type of report provided information about the applicants hobbies,

habits, and financial status ANS inspection report

• what document is required for an insurance company to transact insur-

ance ANS Certificate of Authority

• a state issued document empowering an insurance company to become

an admitted insurer is called what ANS Certificate of Authority

• what do individuals use to transfer their risk of loss to a larger group ANS

In- surance

• in the agent/insurer relationship, who is considered the principal ANS

Insurer

• whom does an insurance agent represent ANS insurance company

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