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Alabama Life & Health Insurance State Exam 2023 - 2024 (Verified) 1.Which policy accumulates cash value at the fastest rate? ANS A. 10-pay life policy 2.The legal doctrine that prevents one from exercising a right of privilege is called ANS Estoppel 3.If the consideration clause states that the premium payment keeps the policy in force until the next premium is due plus 30 days thereafter, the policy ANS contains a grace period.
4.If an insurance carrier decides to cancel a producer's appointment, each of the following is true EXCEPT ANS The Commissioner can immediately cancel the producer's license based upon the Company's allegation of wrong doing by the producer.
5.Under the waiver of premium provision of a life insurance policy, if a dis- ability proves total and permanent, what happens to any premiums paid by 1 / 3 Download at gaviki.comDownload at gaviki.com
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the policyowner during the waiting period ANS All premiums paid by the policyholder during the waiting period are typically refunded.
6.A company chartered in Alabama would be considered what type of insur- ance company in Ohio? ANS Foreign 7.The Entire Contract Provision stipulates each of the following EXCEPT ANS Any verbal changes made by the agent are permissible if in writing.
8.If the insurance company accepts a special class risk ANS the premium will be higher than for a normal risk.
9.The Optional Provisions of a standard Health policy address the issue of claims arising from "illegal occupations," "commission of felonies," and "use of narcotics." According to these provisions ANS the insurer is not liable for claims arising under the conditions described in these provisions.
10.The application has two parts. Part 1 is? ANS General information about the applicant.
11.All Health Insurers must pay claims as prescribed by Alabama law. Which of these statements is FALSE? ANS . Insurers may decide which claim forms they will accept 2 / 3 Download at gaviki.comDownload at gaviki.com
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12.Darlene dies without having paid the $500 premium on her $50,000 policy that was due a week before her death. With no outstanding policy loans, Darlene's beneficiary can expect to receive ANS $49,500, which is the face amount less the premium owed.
13.Legally, who does an insurance agent (producer) represent? ANS only the com- pany 14.Benefits paid under an employer-paid Group Health Insurance policy are?- ANS The benefits are non-taxable to the employee, but the premiums are taxable as remuneration to the employee.
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