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Alabama State Insurance Exam FX Questions & Answers.
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Alabama State Insurance Exam FX Questions & Answers. If a producer changes his residential address who must he/she notify? 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? Minors at the a...

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  • October 25, 2023
  • 9
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

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  • alabama state insurance exam fx questions answer

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  • Alabama life Insurance
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Alabama State Insurance Exam FX Questions & Answers.
If a producer changes his residential address who must he/she notify?
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?
Minors at the age of 14 are allowed to buy their own policies.
What is the penalty for IRA distributions that are below the required minimum for
the year?
50%
All of the following are business uses of life insurance EXCEPT
Funding against general company financial loss.
Which of the following is called a "second-to-die" policy?
Survivorship life
The term "fiduciary capacity" deals with a producer's
Position of financial trust.
Which is NOT true about beneficiary designations?
The beneficiary must have insurable interest in the insured.
An IRA purchased by a small employer to cover employees is known as a
All of the following applicants for an insurance producer license are exempt from
prelicensing education requirements EXCEPT
An applicant for a dealer's license.
An agent accepts the premium payment 35 days after it is due, telling the insured
that there will not be a problem keeping the policy in force. This is an example of
what type of agent authority?
apparant
Which of the following determines the length of time that benefits will be received
under the Fixed-Amount settlement option?
Size of each installment
What is a major problem with naming a trust as the beneficiary of a life insurance
policy?
They are expensive to administer.
Contracts that are prepared by one party and submitted to the other party on a
take-it-or-leave-it basis are classified as
Contracts of adhesion.
All of the following statements concerning the use of life insurance as an
Executive Bonus are correct EXCEPT
The policy is owned by the company.
Which of the following is considered to be a morale hazard?
Driving recklessly
When transacting business in this state an insurer formed under the laws of
another country is known as a/an
Alien Insurer
When a reduced-paid up nonforfeiture option is chosen, what happens to the face
amount of the policy?
It is reduced to the amount of what the cash value would buy as a single premium.

, The policyowner wants to make sure that upon his death, the life policy will pay a
portion of the proceeds annually to his spouse, but that the principal will be paid
to their children when they reach a certain age. Which settlement option should
the policyowner choose?
Interest only option
Under which nonforfeiture option does the company pay the surrender value and
have no further obligations to the policyowner?
Cash surrender
An insured has a Modified Endowment Contract. He wants to withdraw some
money in order to pay medical bills. Which of the following is true?
He will have to pay a penalty if he is younger than 59½.
When would a misrepresentation on the insurance application be considered
fraud?
If it is intentional and material
In Alabama, an insurance company certificate of authority is issued for what
period of time?
Perpetual
If an application for an annuity is gathered any way other than face-to-face, within
how many days after the insurer receives the completed application must the
applicant be given a Buyer's Guide?
5 business days
An insured committed suicide one year after his life insurance policy was issued.
The insurer will
Refund the premium payments
The death benefit under the Universal Life Option B
Gradually increases each year by the amount that the cash value increases.
The type of policy that can be changed from one that does not accumulate cash
value to the one that does, is a
Convertible Term Policy.
All of the following entities regulate variable life policies EXCEPT
The Guaranty Association.
A family's income need is greatest during which period?
Family Income Dependency
A rider attached to a life insurance policy that provides coverage on the insured's
family members is called the
Other-insured rider.
What type of insurance would be used for a Return of Premium rider?
Increasing Term
Which of the following ultimately determines the interest rates paid to the owner
of a fixed annuity?
Insurer's guaranteed minimum rate of interest
in order to qualify for conversion from a group life policy to an individual policy
of the same coverage, a person must have been insured under the group plan for
how many years?
5
Which of the following is TRUE about nonforfeiture values?

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