Alabama Life and Health Insurance Exam.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/Alabama%20Life%20a
Alabama Life and Health Insurance Exam
1. what law protects consumers from the circulation of inaccurate or obsolete
information?
ANS The Fair Credit Reporting Act
2. Insurers are classified according to their domicile.What are the 3 types of insurers?
ANS domestic, foreign, and alien
3. what type of insurer is a voluntarily formed organization that provides religious
organizations with a representative form of government?
ANS Fraternal insurer
4. the type of insurance company organized to return any surplus money to its
policyholders is known as what?
ANS mutual company
5. when agents act within the scope of their contract, their actions will be assumed to
be the actions of whom?
ANS Insurer
6. what is the name of the process that insurance companies use to determine if an
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,Alabama Life and Health Insurance Exam.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/Alabama%20Life%20a
applicant is insurable?
ANS underwriting
7. if an insurer needs to obtain information about the applicant from investiga- tors, what
is the insurer required to do?
ANS provide the aplicant with a Disclosure Authorization Notice
8. what type of insurer is formed under the laws of another country?
ANS Alien
9. when risks with higher probability of loss are seeking insurance more often than other
risks, is known as what?
ANS adverse selection
10. when does an insurance policy go into effect?
ANS when to policy is delivered and the premium is paid.
11. according to the Law of Agency, a principal is represented by whom?
ANS an agent or producer
12. what type of risk is insurable?
ANS pure
13. who owns stock companies?
ANS stockholders
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