Alabama Life and Health Insurance Exam

COBRA and HIPAA both address portability. What is the difference between them? - answer-COBRA provides a coverage bridge, HIPAA addresses coverage under plans for new entrants The type of health insurance policy most likely used to cover all students attending a large university is - answer-a bl...

If a producer changes his residential address who must he/she notify? - answer-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? - answer-Minors at the age of 14 are allowed to buy their own ...

Term Insurance - answer-Temporary protection because it only provides coverage for a specific period of time. Also known as pure life insurance Term insurance provides what is known as _________________ - answer-pure death protection Term insurance provides the greatest amount of coverage for t...

Which clause allows the insured to change an existing policy to any other policy of any type as long as the new policy has a higher premium, without any proof of insurability? - answer-Privilege of change clause The extended term nonforfeiture option provides: - answer-Paid-up term coverage equ...

The Fair Credit Reporting Act - answer-what law protects consumers from the circulation of inaccurate or obsolete information? domestic, foreign, and alien - answer-Insurers are classified according to their domicile. What are the 3 types of insurers? Fraternal insurer - answer-what type of insu...

Alabama Life & Health Insurance Exam Questions and answers Which of the following would be considered a speculative risk? - ANSWER-The possibility the painting you bought might be a long-lost masterpiece A speculative risk is one in which there is a chance for either loss or gain. Example: Gam...

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 insu...

A life insurance producer's agency agreement normally authorizes the licensee to do all of the following EXCEPT: A. solicit insurance B. sell insurance C. issue policies D. collect premiums - answer-C. issue policies at what point must a life insurance applicant be informed of their rights t...

Billy is the owner of a life insurance policy and has chosen a policy settlement option under which the company will pay the beneficiary (his widow) an income each month for as long as she lives. Payment stops at her death. Which settlement option has Billy selected? A. Fixed amount option B. F...

a predetermined limit. - ANSWER-Insurance is a method risk is transferred to an insurer for consideration up to 1. spouses in each other 2. parents in their children 3. creditors in their debtors - ANSWER-Which of the following would be considered proper establishment of insurable interest in t...

2-14 Insurance License Exam questions and answers 401K Plan - answer-A qualified retirement plan in which the employee can set aside a portion of their income with pre-tax dollards Absolute Assigment vs. Collateral Asssigment - answer-Absolute: A permanent and irrevocable transfer of rights and...

What is insurance? - ANSWER-protection against financial loss what is a premium - ANSWER-a scheduled amount to be paid for an insurance policy. What are premiums used for - ANSWER-premiums are collected into a "pool" or "reserve to pay out claimants when needed. how can insurance companies a...