ALABAMA INSURANCE TEST QUESTIONS & ANSWERS (100% CORRECT)

ALABAMA INSURANCE TEST QUESTIONS &
ANSWERS (100% CORRECT)
Which welfare program provides assistance to the needy? - CORRECT ANSWER - Medicaid
Barbara has the right to change the beneficiary designation on her life insurance policy. Barbara's
beneficiary is a(n): - CORRECT ANSWER - revocable beneficiary
Within how many calendar days must all clean electronic health insurance claims be paid in Alabama? -
CORRECT ANSWER - 30
Which type of term policy allows the policyowner to switch to permanent insurance? - CORRECT
ANSWER - Convertible term
What does renewable term guarantee? - CORRECT ANSWER - The insured's insurability
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: - CORRECT ANSWER - two years
Which of the following statements concerning a life insurance policy is TRUE? - CORRECT ANSWER - An
issued policy can never be changed by a producer
The proceeds of a life insurance policy can be paid in a form other than a lump-sum payment. These
forms of payment are called: - CORRECT ANSWER - settlement options
The withholding of facts in an insurance application is called: - CORRECT ANSWER - concealment
A licensed Alabama insurance producer would NOT be disciplined by the Commissioner of Insurance for:
- CORRECT ANSWER - being convicted of a misdemeanor
The option to convert term life insurance to a permanent form of coverage can normally be executed: -
CORRECT ANSWER - without proof of insurability
Which type of life insurance rider allows a policyowner to increase the level of coverage to keep up with
inflation? - CORRECT ANSWER - cost of living rider
What is the minimum age requirement for a minor in Alabama to purchase a life insurance policy? -
CORRECT ANSWER - 15