ALABAMA INSURANCE TEST 2024 QUESTIONS WITH
COMPLETE SOLUTIONS 100% VERIFIED
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 1 / 3
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 Which of the following best describes a Health Maintenance Organization (HMO)? - Correct Answer Provides full medical services that stress preventative medicine Medicare Advantage (Medicare Part C) allows the utilization of benefits through a(n): - Correct Answer HMO, PPO, or traditional insurer Pat the producer just sold an insurance policy to a client, explaining that he has authority to issue the policy. Pat was not specifically granted this power from the insurance company. Pat is exercising: - Correct Answer implied authority A disability policy that must be renewed, cannot be cancelled until age 65, and may not have an increase in premium for any reason is called a(n): - Correct Answer noncancellable policy Benefits under a health insurance policy may (with the insured's written request) be payable to: - Correct Answer a hospital, physician, or surgeon Bart is injured and provides notice of a health claim to his insurer. He later receives the required claims forms. Within how many days of the loss must Bart file proof of loss with the insurance company? - Correct Answer 90 Which of these statements regarding an insurance application is true? - Correct Answer A representation is valid as long as it is true An insurance company licensed to solicit insurance in a specific state is called: - Correct Answer an admitted company 2 / 3
John purchases insurance because he expects to experience a loss. This is known as: - Correct Answer adverse selection Who would most likely own a Medicare Supplement policy? - Correct Answer 69-year old female covered by Medicare Amy owns a disability income policy with a noncancellable renewal provision. Which of the following is guaranteed in her policy? - Correct Answer The coverage and premium rate are guaranteed According to Required Provision 4, when an insured applies for reinstatement of a health policy and receives a conditional receipt, how long does the insurer have to approve or deny? - Correct Answer within 45 days of the date of application
Policy dividends for life insurance are: - Correct Answer not guaranteed
What is a certificate of insurance? - Correct Answer A certificate issued to each individual covered by the group life insurance Which is NOT true regarding Medicare Supplement policies? - Correct Answer Must include a minimum 20-day Free-Look provision In Alabama, all Health Maintenance Organizations must: - Correct Answer have a complaint system to resolve written complaints from enrollees Rick owns a $100,000 life insurance policy with a cash value of $10,000. How much can he borrow up to? - Correct Answer The accumulated cash value ($10,000 less interest) Susan owns a life insurance policy that has accumulated $10,000 in cash value in which she can no longer pay its premiums. If she elects to take the extended term option, which of these actions would she take? - Correct Answer Uses the $10,000 to buy term insurance of the same face amount as her original policy
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