ALABAMA INSURANCE TEST
QUESTIONS AND ANSWERS
Which welfare program provides assistance to the needy? - Answer️️ -
Medicaid
Barbara has the right to change the beneficiary designation on her life
insurance policy. Barbara's beneficiary is a(n): - Answer️️ -revocable
beneficiary
Within...
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 insurance
claims be paid in Alabama? - Answer✔️✔️-30
Which type of term policy allows the policyowner to switch to permanent
insurance? - Answer✔️✔️-Convertible term
What does renewable term guarantee? - Answer✔️✔️-The insured's
insurability
If an insured commits suicide, a life insurance policy's face amount will be
paid only after the policy has been in force for at least: - Answer✔️✔️-two
years
Which of the following statements concerning a life insurance policy is
TRUE? - Answer✔️✔️-An issued policy can never be changed by a producer
The proceeds of a life insurance policy can be paid in a form other than a
lump-sum payment. These forms of payment are called: - Answer✔️✔️-
settlement options
The withholding of facts in an insurance application is called: - Answer✔️✔️-
concealment
A licensed Alabama insurance producer would NOT be disciplined by the
Commissioner of Insurance for: - Answer✔️✔️-being convicted of a
misdemeanor
The option to convert term life insurance to a permanent form of coverage
can normally be executed: - Answer✔️✔️-without proof of insurability
Which type of life insurance rider allows a policyowner to increase the
level of coverage to keep up with inflation? - Answer✔️✔️-cost of living
rider
What is the minimum age requirement for a minor in Alabama to purchase
a life insurance policy? - Answer✔️✔️-15
Which of the following best describes a Health Maintenance Organization
(HMO)? - Answer✔️✔️-Provides full medical services that stress
preventative medicine
Medicare Advantage (Medicare Part C) allows the utilization of benefits
through a(n): - Answer✔️✔️-HMO, PPO, or traditional insurer
Pat the producer just sold an insurance policy to a client, explaining that he
has authority to issue the policy. Pat was not specifically granted this
power from the insurance company. Pat is exercising: - Answer✔️✔️-implied
authority
A disability policy that must be renewed, cannot be cancelled until age 65,
and may not have an increase in premium for any reason is called a(n): -
Answer✔️✔️-noncancellable policy
Benefits under a health insurance policy may (with the insured's written
request) be payable to: - Answer✔️✔️-a hospital, physician, or surgeon
Bart is injured and provides notice of a health claim to his insurer. He later
receives the required claims forms. Within how many days of the loss must
Bart file proof of loss with the insurance company? - Answer✔️✔️-90
Which of these statements regarding an insurance application is true? -
Answer✔️✔️-A representation is valid as long as it is true
An insurance company licensed to solicit insurance in a specific state is
called: - Answer✔️✔️-an admitted company
John purchases insurance because he expects to experience a loss. This is
known as: - Answer✔️✔️-adverse selection
Who would most likely own a Medicare Supplement policy? - Answer✔️✔️-
69-year old female covered by Medicare
Amy owns a disability income policy with a noncancellable renewal
provision. Which of the following is guaranteed in her policy? -
Answer✔️✔️-The coverage and premium rate are guaranteed
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SophiaBennett. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
