ALABAMA LIFE HEALTH INSURANCE EXAM

PDF Download ALABAMA LIFE & HEALTH INSURANCE EXAM Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -99 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: The preventative care exclusion

Common Exclusions:

The 5-year replacement exclusion The missing tooth exclusion The cosmetic exclusion

Answer:

Under a credit health policy, what is the maximum amount of any accidental death benefit included?

Question 2: Inspection Report

Answer:

Timothy owns an individual A&H policy, and in the event of an accident, he is required to prove only that the injury itself is unforeseen and unintended. Tim's policy is based on which of the following definitions of accident?

Question 3: Defined Contribution Plan

Answer:

Which of the following would NOT be permitted as a Section 1035 policy exchange?

Question 4: Which is the proper term for a company owned by its policy owners?

Answer:

A mutual insurance company

Question 5: Inside Limits

The limits sometimes placed on specific coverages in a major medical policy are called inside or internal limits. These limits resemble scheduled benefits, as to the fact that they are stated in the policy as either maximum lifetime limits or limits per policy period. Either way they are stated inside the policy.

Answer:

Which of the following is true about a policy that pays for room and board expenses on a indemnity basis?

Question 6: Adverse Selection

Answer:

What type of policy pays weekly or monthly benefits for loss of income due to sickness or injury?Question 7: With regard to the waiver of premium rider, after the disability a policyowner

normally:

Answer:

Need not repay the premiums paid by the company during disability

Question 8: The amount of outstanding indebtedness at any given time

Answer:

Dental policies that limit benefits to specified maximums per procedure, with first dollar coverage are: Question 9: A contract that is drafted by an insurer and receives no input or alteration from the

insured, is considered a(n):

Answer:

Contract of Adhesion Question 10: If a policyowner has a $100,000 policy with an accumulated cash value of $6,000,

the policyowner can borrow up to:

Answer:

The entire accumulated cash value of $6,000, less interest for 1 year Question 11: In order to be valid, a contract must be between individuals considered legally able

to enter into an agreement. This principle is known as:

Answer:

Competent parties

Question 12: A variable life policy:

Answer:

Death benefit varies to reflect the investment results of the underlying separate account, but never falls below a guaranteed minimum Question 13: A group deferred annuity or an individual deferred annuity would be most likely

used:

Answer:

To fund a defined benefit plan When a group deferred annuity is used to fund a defined benefit plan, specified amounts of deferred annuity are bought by the employer each year to provide the 'defined benefit' for the employee at retirement, thus providing a guaranteed defined benefit at retirement.Question 14: In many jurisdictions, permanent policies are required to have some cash value by

the end of:

Answer:

The Third Year Question 15: Each of the following would be an element in the definition of fraud, except:

Answer:

An individual warrants a fact stated on the application A warranted fact is one guaranteed to be true. Although no statement on an application is regarded as warranty, no fraud is involved if a statement is guaranteed to be true.Question 16: If an insured has an outstanding loan of $5,000 on a policy with a face amount of

$25,000, at death the company will:

Answer:

Pay the beneficiary $20,000, after subtracting the amount of the outstanding loan

Question 17: Short-term disability policies

Answer:

Social Security disability benefits become available to eligible workers after a waiting period of: Question 18: To make insurance more affordable and protect the insurance company from

paying out too much in claims, insurers will:

Answer:

Reinsure the risk Reinsurance is what makes insurance affordable. Reinsurance companies are insurance companies

that accept all or a portion of the financial risk of loss from the insurance company.Question 19: A producer who is acting as an agent is representing:

Answer:

Always the insurer Question 20: Which of the following is NOT a characteristic of life insurance as property?

Answer:

It requires a fund portfolio manager

Characteristics:

It creates an immediate estate It requires no physical maintenance It may be paid for in installments Question 21: Any extra premium charged for the waiver of premium rider:

Answer:

Does not apply to the policy's cash value Question 22: An insured allows a permanent policy to lapse. Unless otherwise instructed, the

insurance company:

Answer:

Will automatically institute the extended term option Question 23: A whole life policy:

Answer:

Requires the insured to pay premiums for life and endows at age 100 Question 24: Allen purchases an estate builder (jumping juvenile) policy for his 5-year old son, Donald. Suppose that when Donald reaches age 21 his father presents him with the policy as a gift. Which of the following statements is NOT correct?

Answer:

Donald must change the beneficiaries immediately

CORRECT:

The premium will continue to be based on his original age of 5 Donald has enjoyed protection against the problems of premature death The face value of Donald's policy has increased by 5 times