Alabama Life and Health Insurance Updated 2025 with complete solution
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Alabama Life and Health Insurance
Institution
Alabama Life And Health Insurance
What is postmortem dividend? - A dividend earned, but not yet paid, in the year of the insured's
death and paid with the death claim
A life annuity with period certain pays the annuitant - Until death and then the beneficiary if the
certain period has not been exceeded.
A joint life policy can ...
Alabama Life and Health Insurance
What is postmortem dividend? - A dividend earned, but not yet paid, in the year of the insured's
death and paid with the death claim
A life annuity with period certain pays the annuitant - Until death and then the beneficiary if the
certain period has not been exceeded.
A joint life policy can have many uses some of these could include? - 1. To cover two lives on the
same policy
2. To pay estate taxes when the second spouse dies
3. To pay off a home mortgage should one of the working spouses die
A __________ is when a participant withdraws and receives funds from a qualified plan and places it into
another plan. - Rollover
A annuity is a contract that - Provides a lifetime income through periodic payments to the
annuitant
A beneficiary that can be changed is called - A revocable beneficiary
A business entity in Alabama may be licensed as: - A producer
A child may be a dependent beyond the ages of 19 or 21 - Only if the child is permanently
mentally or physically disabled before that age
A company is domiciled: - In the state where its home office is located
A company that has not received permission from an Insurance Commissioner to do business in his or
her state is called a/an: - Unauthorized company
,A company that is licensed to sell insurance in a particular state is: - An authorized company
A Continuous-Premium/Straight Life policy - Requires the insured to pay the premium for life and
endows at age 100
A deferred annuity pays a death benefit to a beneficiary - When the annuitant dies before
receiving any annuity payments
A father did not reveal that his daughter suffers from asthma on the application for a health policy. In
order to avoid paying a claim the insurer must - prove this was both intentional and material
A flexible premium annuity provides for a flexible - Premium payment amount
A group life policy will generally have all the following e - 1. be associated with ones employment
2. have benefit levels set by the master contract
3. be term insurance
A lapsed policy may usually be reinstated - Within three years after the policy lapses
A licensed producer may procure insurance in an unauthorized company: - If the insurer is an
eligible surplus line insurer and has been placed on the Commissioner's approved list of unauthorized
insurers.
A licensed producer must keep records of all insurance transactions for at least how many years? -
3 years
A life insurance policy is a unilateral contract because: - Only the insurance company is bound to
live up to its side of the agreement
,A life policy has a $500 premium outstanding and a $5,000 loan,if the reduced paid-up non-forfeiture
option were used how much coverage would exist? - the amount the cash value would purchase
minus the $5,000 loan
A limited pay life policy - requires premium payments for a specified number of years or until a
specified age is reached
A nonexclusive agent: - Is an independent businessperson.
A participating policy is likely to have which of the following? - A higher premium than a
nonparticipating policy
A payor rider is used to keep what type of policy in force? - A juvenile insurance policy
A plan that allows employees to defer compensation for retirement is called? - CODA
A policy owner allows a policy to lapse and the insurance company converts the policy to the extended
term option. Which of the following from the original policy will automatically carry over into the new
policy - Face value
A producer must hold how many license/licenses to market a variable product? - 1. a life license
2. a variable life license
3. a Series 6 or 7 Securities license
A producer offered to give half his commission to a client if he would buy a policy from him,this is illegal
and is called? - Rebating
A producer who allows his license to lapse, may reinstate the license if the request is made within how
many months from the due date of the renewal fee? - 12 months.
A producer who is acting as an agent is representing: - Always the insurer
, A producer who is subject to the continuing education requirement will be required to show they have
complete at least ___ ____ of continuing education every two years. - 24 hours.
A pure risk - generally presents no possibility of financial gain.
A qualified plan available to the self-employed and their employees is a: - Keogh Plan
A qualified plan in which a specified amount is invested each year but does not define the amount to be
paid out in the future is known as - A defined contribution plan
A qualified plan that promises a specific benefit to an employee at retirement is called: - Defined
Benefit Plan
A rated policy will - have higher premiums
A rollover refers to which of the following? - A transfer of funds from an IRA to another qualified
type account.
A Roth IRA provides: - No IRS rules as to when payouts must begin
A solicitor: - Is appointed by a company as an agent to solicit applications for insurance as a
representative of another agent
A state insurance department licensed company that is permitted to do business in the state is called: -
An authorized company.
A straight life annuity pays a periodic income - During the annuitant's lifetime with no refund
upon his or her death
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