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ALABAMA INSURANCE TEST
ALABAMA INSURANCE TEST
[Show more]ALABAMA INSURANCE TEST
[Show more]Risk - answer-Risk is the uncertainty of loss 
Capitation - answer-Capitation payments are payments agreed upon 
in a capitated contract by a health insurance company and a medical 
provider. They are fixed, pre-arranged monthly payments received by 
a physician, clinic or hospital per patient enrol...
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Add to cartRisk - answer-Risk is the uncertainty of loss 
Capitation - answer-Capitation payments are payments agreed upon 
in a capitated contract by a health insurance company and a medical 
provider. They are fixed, pre-arranged monthly payments received by 
a physician, clinic or hospital per patient enrol...
Alabama Adjusters License questions and 
answers
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Add to cartAlabama Adjusters License questions and 
answers
Alabama Property & Casualty Online 
Practice Exams questions and answers
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Add to cartAlabama Property & Casualty Online 
Practice Exams questions and answers
COBRA and HIPAA both address portability. What is the difference 
between them? - answer-COBRA provides a coverage bridge, HIPAA 
addresses coverage under plans for new entrants 
The type of health insurance policy most likely used to cover all 
students attending a large university is - answer-a bl...
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Add to cartCOBRA and HIPAA both address portability. What is the difference 
between them? - answer-COBRA provides a coverage bridge, HIPAA 
addresses coverage under plans for new entrants 
The type of health insurance policy most likely used to cover all 
students attending a large university is - answer-a bl...
What type of risk is insuring your home or auto? - answer-Pure risk 
A good definition for risk is: - answer-The chance of loss 
The primary insured in an insurance contract is the: - answer-First 
named insured 
In property insurance, coinsurance is designed to: - answer-Cover all 
losses in full i...
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Add to cartWhat type of risk is insuring your home or auto? - answer-Pure risk 
A good definition for risk is: - answer-The chance of loss 
The primary insured in an insurance contract is the: - answer-First 
named insured 
In property insurance, coinsurance is designed to: - answer-Cover all 
losses in full i...
If a producer changes his residential address who must he/she notify? 
- answer-This change will need to be reported to the Commissioner. 
Which of the following is NOT true regarding minors purchasing 
insurance policies in this state? - answer-Minors at the age of 14 are 
allowed to buy their own ...
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Add to cartIf a producer changes his residential address who must he/she notify? 
- answer-This change will need to be reported to the Commissioner. 
Which of the following is NOT true regarding minors purchasing 
insurance policies in this state? - answer-Minors at the age of 14 are 
allowed to buy their own ...
What is a hazard? - answer-an increase in the possibility that a loss 
might occur 
transfer risk from a person or business to an insurance company that 
agrees to to pay for losses in exchange for a premium. - 
answer-insurance 
The type of insurance company in which the policyholder is 
considered...
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Add to cartWhat is a hazard? - answer-an increase in the possibility that a loss 
might occur 
transfer risk from a person or business to an insurance company that 
agrees to to pay for losses in exchange for a premium. - 
answer-insurance 
The type of insurance company in which the policyholder is 
considered...
If a company cancels an auto policy mid-term, the refund will be made 
on a : 
A. pro rata basis 
B. short rate basis 
C. retroactive basis 
D. coinsurance basis - answer-A. Pro Rata Basis 
What is the term used to describe terminating the insurance 
relationship at the end of the policy period? 
A....
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Add to cartIf a company cancels an auto policy mid-term, the refund will be made 
on a : 
A. pro rata basis 
B. short rate basis 
C. retroactive basis 
D. coinsurance basis - answer-A. Pro Rata Basis 
What is the term used to describe terminating the insurance 
relationship at the end of the policy period? 
A....
In Alabama, all health maintenance organizations must: - 
answer-Have a complaint system to resolve written complaints from 
enrollees. 
An insurance producer who offers a potential client something of value 
as an incentive to purchase insurance is engaging in: - 
answer-Rebating 
Medicare suppleme...
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Add to cartIn Alabama, all health maintenance organizations must: - 
answer-Have a complaint system to resolve written complaints from 
enrollees. 
An insurance producer who offers a potential client something of value 
as an incentive to purchase insurance is engaging in: - 
answer-Rebating 
Medicare suppleme...
Term Insurance - answer-Temporary protection because it only 
provides coverage for a specific period of time. Also known as pure 
life insurance 
Term insurance provides what is known as _________________ - 
answer-pure death protection 
Term insurance provides the greatest amount of coverage for t...
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Add to cartTerm Insurance - answer-Temporary protection because it only 
provides coverage for a specific period of time. Also known as pure 
life insurance 
Term insurance provides what is known as _________________ - 
answer-pure death protection 
Term insurance provides the greatest amount of coverage for t...
If a company cancels an auto policy mid term, the refund will be made 
on 
a. pro rata basis 
b. short rate basis 
c. retroactive basis 
d. coinsurance basis - answer-Pro Rata Basis 
What is the term used to describe terminating the insurance 
relationship at the end of the policy period ? 
a. cance...
Preview 3 out of 18 pages
Add to cartIf a company cancels an auto policy mid term, the refund will be made 
on 
a. pro rata basis 
b. short rate basis 
c. retroactive basis 
d. coinsurance basis - answer-Pro Rata Basis 
What is the term used to describe terminating the insurance 
relationship at the end of the policy period ? 
a. cance...
An applicant who fails two examinations for the same line of authority 
must wait how long to take another examination for that line of 
authority - answer-3 months 
Payments for losses that cannot be precisely measured, such as the 
loss of companionship of spouse from another, are called ____. - 
...
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Add to cartAn applicant who fails two examinations for the same line of authority 
must wait how long to take another examination for that line of 
authority - answer-3 months 
Payments for losses that cannot be precisely measured, such as the 
loss of companionship of spouse from another, are called ____. - 
...
Which clause allows the insured to change an existing policy to any 
other policy of any type as long as the new policy has a higher 
premium, without any proof of insurability? - answer-Privilege of 
change clause 
The extended term nonforfeiture option provides: - answer-Paid-up 
term coverage equ...
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Add to cartWhich clause allows the insured to change an existing policy to any 
other policy of any type as long as the new policy has a higher 
premium, without any proof of insurability? - answer-Privilege of 
change clause 
The extended term nonforfeiture option provides: - answer-Paid-up 
term coverage equ...
The Fair Credit Reporting Act - answer-what law protects consumers from the 
circulation of inaccurate or obsolete information? 
domestic, foreign, and alien - answer-Insurers are classified according to their domicile. 
What are the 3 types of insurers? 
Fraternal insurer - answer-what type of insu...
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Add to cartThe Fair Credit Reporting Act - answer-what law protects consumers from the 
circulation of inaccurate or obsolete information? 
domestic, foreign, and alien - answer-Insurers are classified according to their domicile. 
What are the 3 types of insurers? 
Fraternal insurer - answer-what type of insu...
An incorporated insurance company which is run by a board of directors is known as - 
answer-a capital-stock company 
Which of the following statements is true regarding a binder? 
a. a binder guarantees that a policy will be issued by the insurance company. 
b. a binder guarantees coverage and that...
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Add to cartAn incorporated insurance company which is run by a board of directors is known as - 
answer-a capital-stock company 
Which of the following statements is true regarding a binder? 
a. a binder guarantees that a policy will be issued by the insurance company. 
b. a binder guarantees coverage and that...
2x sold
Alabama Life & Health Insurance Exam 
Questions and answers 
Which of the following would be considered a speculative risk? - 
ANSWER-The possibility the painting you bought might be a long-lost 
masterpiece 
A speculative risk is one in which there is a chance for either loss or 
gain. Example: Gam...
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Add to cartAlabama Life & Health Insurance Exam 
Questions and answers 
Which of the following would be considered a speculative risk? - 
ANSWER-The possibility the painting you bought might be a long-lost 
masterpiece 
A speculative risk is one in which there is a chance for either loss or 
gain. Example: Gam...
Which welfare program provides assistance to the needy? - 
answer-Medicaid 
Barbara has the right to change the beneficiary designation on her life 
insurance policy. Barbara's beneficiary is a(n): - answer-revocable 
beneficiary 
Within how many calendar days must all clean electronic health 
insu...
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Add to cartWhich welfare program provides assistance to the needy? - 
answer-Medicaid 
Barbara has the right to change the beneficiary designation on her life 
insurance policy. Barbara's beneficiary is a(n): - answer-revocable 
beneficiary 
Within how many calendar days must all clean electronic health 
insu...
A life insurance producer's agency agreement normally authorizes the 
licensee to do all of the following EXCEPT: 
A. solicit insurance 
B. sell insurance 
C. issue policies 
D. collect premiums - answer-C. issue policies 
at what point must a life insurance applicant be informed of their rights 
t...
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Add to cartA life insurance producer's agency agreement normally authorizes the 
licensee to do all of the following EXCEPT: 
A. solicit insurance 
B. sell insurance 
C. issue policies 
D. collect premiums - answer-C. issue policies 
at what point must a life insurance applicant be informed of their rights 
t...
Billy is the owner of a life insurance policy and has chosen a policy 
settlement option under which the company will pay the beneficiary 
(his widow) an income each month for as long as she lives. Payment 
stops at her death. Which settlement option has Billy selected? 
A. Fixed amount option 
B. F...
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Add to cartBilly is the owner of a life insurance policy and has chosen a policy 
settlement option under which the company will pay the beneficiary 
(his widow) an income each month for as long as she lives. Payment 
stops at her death. Which settlement option has Billy selected? 
A. Fixed amount option 
B. F...
a predetermined limit. - ANSWER-Insurance is a method risk is 
transferred to an insurer for consideration up to 
1. spouses in each other 
2. parents in their children 
3. creditors in their debtors - ANSWER-Which of the following would 
be considered proper establishment of insurable interest in t...
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Add to carta predetermined limit. - ANSWER-Insurance is a method risk is 
transferred to an insurer for consideration up to 
1. spouses in each other 
2. parents in their children 
3. creditors in their debtors - ANSWER-Which of the following would 
be considered proper establishment of insurable interest in t...
2-14 Insurance License Exam questions 
and answers 
401K Plan - answer-A qualified retirement plan in which the employee 
can set aside a portion of their income with pre-tax dollards 
Absolute Assigment vs. Collateral Asssigment - answer-Absolute: A 
permanent and irrevocable transfer of rights and...
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Add to cart2-14 Insurance License Exam questions 
and answers 
401K Plan - answer-A qualified retirement plan in which the employee 
can set aside a portion of their income with pre-tax dollards 
Absolute Assigment vs. Collateral Asssigment - answer-Absolute: A 
permanent and irrevocable transfer of rights and...
What is insurance? - ANSWER-protection against financial loss 
what is a premium - ANSWER-a scheduled amount to be paid for an 
insurance policy. 
What are premiums used for - ANSWER-premiums are collected into 
a "pool" or "reserve to pay out claimants when needed. 
how can insurance companies a...
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Add to cartWhat is insurance? - ANSWER-protection against financial loss 
what is a premium - ANSWER-a scheduled amount to be paid for an 
insurance policy. 
What are premiums used for - ANSWER-premiums are collected into 
a "pool" or "reserve to pay out claimants when needed. 
how can insurance companies a...
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