Alabama Life & Health Insurance Exam
The Coordination of Benefits Provision is designed to: - Give insureds as much coverage as
possible while eliminating overinsurance
. An insured allows a permanent policy to lapse. Unless otherwise instructed, the insurance company: -
Will automatically institute the extended term option
A policy that pays surgical expense benefits does not schedule the approved benefit payable for every
type of surgery. Instead, surgeries not listed are paid on the basis of a comparison to one or more types
of commonly-performed major surgeries that are scheduled. Under this arrangement, the unscheduled
surgeries are paid on the basis of: - Their relative value
_____________ insurance allows for insurance coverage to be obtained when not available from
admitted carriers. - Surplus Lines
Insurance can be obtained through surplus lines brokers (producers) from non-admitted insurers.
'Annuity Period' refers to which of the following? - The time during which payments are made to
the annuitant
The annuity period begins when the annuitant starts to receive payments from the accumulated funds in
the annuity policy. This is also referred to as 'the Annuitization period'.
A certain major medical policy states a maximum number of days for which convalescent care will be
paid as well as a maximum number of X-rays that will be paid for under any one claim. These are
examples of: - Inside Limits
The limits sometimes placed on specific coverages in a major medical policy are called inside or internal
limits. These limits resemble scheduled benefits, as to the fact that they are stated in the policy as either
maximum lifetime limits or limits per policy period. Either way they are stated inside the policy.
,A client purchases an individual disability income policy and receives the policy from the insurer 45 days
after application. Upon receipt of the policy, the client typically has ______days to review and return the
policy to receive a full refund for any reason. - 10
A company that is licensed to sell insurance in a particular state is: - An authorized Company
A contract that is drafted by an insurer and receives no input or alteration from the insured, is
considered a(n): - Contract of Adhesion
A group deferred annuity or an individual deferred annuity would be most likely used: - To fund a
defined benefit plan
When a group deferred annuity is used to fund a defined benefit plan, specified amounts of deferred
annuity are bought by the employer each year to provide the 'defined benefit' for the employee at
retirement, thus providing a guaranteed defined benefit at retirement.
A licensee must inform the Commissioner of a change of legal name or address within ______ days of
the change. - 30
A licensee must inform the Commissioner of a change of legal name or address within ______ days of
the change. - 30
A life insurance policy is incontestable, except for nonpayment of premiums, after it has been in force
during the lifetime of the insured for ______ from its date of issue. - 2 years
A limited pay life policy: - Requires premium payments for a specified number of years or until a
specified age is reached
_________ refers to the jurisdiction where an insurer was formed or incorporated. - Domicile:
Domicile refers to the jurisdiction either state or country where an insurer was formed or incorporated
A Medicare SELECT policy differs from a regular Medicare Supplement (Medigap) policy in that it: -
Is a managed care version of the traditional Medicare Supplement policy
, A Medicare supplement policy may not limit benefits for losses incurred more than ________ from the
effective date of coverage because they involve a preexisting condition. - 6 months
A minor aged ______ years or older may contract for insurance on his or her own life. - 15
A non-school employer can set up a TSA plan for their employees under which of the following IRC
section? - 503 (c)(3)
A plan in which employees select health benefits from a variety of coverage options, based on their
individual coverage needs is a: - Cafeteria Plan
A policy that pays surgical expense benefits does not schedule the approved benefit payable for every
type of surgery. Instead, surgeries not listed are paid on the basis of a comparison to one or more types
of commonly-performed major surgeries that are scheduled. Under this arrangement, the unscheduled
surgeries are paid on the basis of: - Their relative value
A producer who is acting as an agent is representing: - Always the insurer
A stay at home father wants to open up an IRA. What is required in order for him to do so? - Be
married to a spouse that has earned income
A variable life policy: - Death benefit varies to reflect the investment results of the underlying
separate account, but never falls below a guaranteed minimum
A whole life policy: - Requires the insured to pay premiums for life and endows at age 100
All Medicare supplement (or Medigap) policies must: - Have the same core benefits
All of the following are elements of a contract, except: - Authority
The Coordination of Benefits Provision is designed to: - Give insureds as much coverage as
possible while eliminating overinsurance
. An insured allows a permanent policy to lapse. Unless otherwise instructed, the insurance company: -
Will automatically institute the extended term option
A policy that pays surgical expense benefits does not schedule the approved benefit payable for every
type of surgery. Instead, surgeries not listed are paid on the basis of a comparison to one or more types
of commonly-performed major surgeries that are scheduled. Under this arrangement, the unscheduled
surgeries are paid on the basis of: - Their relative value
_____________ insurance allows for insurance coverage to be obtained when not available from
admitted carriers. - Surplus Lines
Insurance can be obtained through surplus lines brokers (producers) from non-admitted insurers.
'Annuity Period' refers to which of the following? - The time during which payments are made to
the annuitant
The annuity period begins when the annuitant starts to receive payments from the accumulated funds in
the annuity policy. This is also referred to as 'the Annuitization period'.
A certain major medical policy states a maximum number of days for which convalescent care will be
paid as well as a maximum number of X-rays that will be paid for under any one claim. These are
examples of: - Inside Limits
The limits sometimes placed on specific coverages in a major medical policy are called inside or internal
limits. These limits resemble scheduled benefits, as to the fact that they are stated in the policy as either
maximum lifetime limits or limits per policy period. Either way they are stated inside the policy.
,A client purchases an individual disability income policy and receives the policy from the insurer 45 days
after application. Upon receipt of the policy, the client typically has ______days to review and return the
policy to receive a full refund for any reason. - 10
A company that is licensed to sell insurance in a particular state is: - An authorized Company
A contract that is drafted by an insurer and receives no input or alteration from the insured, is
considered a(n): - Contract of Adhesion
A group deferred annuity or an individual deferred annuity would be most likely used: - To fund a
defined benefit plan
When a group deferred annuity is used to fund a defined benefit plan, specified amounts of deferred
annuity are bought by the employer each year to provide the 'defined benefit' for the employee at
retirement, thus providing a guaranteed defined benefit at retirement.
A licensee must inform the Commissioner of a change of legal name or address within ______ days of
the change. - 30
A licensee must inform the Commissioner of a change of legal name or address within ______ days of
the change. - 30
A life insurance policy is incontestable, except for nonpayment of premiums, after it has been in force
during the lifetime of the insured for ______ from its date of issue. - 2 years
A limited pay life policy: - Requires premium payments for a specified number of years or until a
specified age is reached
_________ refers to the jurisdiction where an insurer was formed or incorporated. - Domicile:
Domicile refers to the jurisdiction either state or country where an insurer was formed or incorporated
A Medicare SELECT policy differs from a regular Medicare Supplement (Medigap) policy in that it: -
Is a managed care version of the traditional Medicare Supplement policy
, A Medicare supplement policy may not limit benefits for losses incurred more than ________ from the
effective date of coverage because they involve a preexisting condition. - 6 months
A minor aged ______ years or older may contract for insurance on his or her own life. - 15
A non-school employer can set up a TSA plan for their employees under which of the following IRC
section? - 503 (c)(3)
A plan in which employees select health benefits from a variety of coverage options, based on their
individual coverage needs is a: - Cafeteria Plan
A policy that pays surgical expense benefits does not schedule the approved benefit payable for every
type of surgery. Instead, surgeries not listed are paid on the basis of a comparison to one or more types
of commonly-performed major surgeries that are scheduled. Under this arrangement, the unscheduled
surgeries are paid on the basis of: - Their relative value
A producer who is acting as an agent is representing: - Always the insurer
A stay at home father wants to open up an IRA. What is required in order for him to do so? - Be
married to a spouse that has earned income
A variable life policy: - Death benefit varies to reflect the investment results of the underlying
separate account, but never falls below a guaranteed minimum
A whole life policy: - Requires the insured to pay premiums for life and endows at age 100
All Medicare supplement (or Medigap) policies must: - Have the same core benefits
All of the following are elements of a contract, except: - Authority
