Alabama Life Insurance exam 2025, Exams of Nursing

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Alabama Life Insurance

At what point does coverage begin when an agent issues a conditional receipt for a life insurance policy? correct answersdate of application or date of medical exam whichever is last What is the purpose of insurance guaranty associations? correct answersto protect policy owners, insureds, and beneficiaries from financial losses caused by insolvent insurers Which of the following is true about a defined benefit plan? correct answersHigh-salaried employees with only a few years until retirement receive the highest contribution. The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT correct answersThe insureds age at death All of the following entities regulate variable life policies EXCEPT correct answersThe Guaranty Association When the insurer stipulates the time period for payment of claims, how soon must the insurer pay a death benefit claim after receiving the proof of death? correct answers2 months The two types of assignments are correct answersAbsolute and Collateral Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? correct answersUniversal Life Option A When would a 20-pay whole life policy endow? correct answersWhen the insured reaches age 100 What is the advantage of reinstating a policy instead of applying for a new one? correct answersthe original age is used for premium determination

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use? correct answersPaid Up Option All of the following are true about variable products EXCEPT correct answersthe premiums are invested in the insurers general account A fixed annuity contract provides for correct answerslevel benfit payment Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount? correct answersUniversal Life Which of the following information about the applicant is NOT included in the General Information section of the application for insurance? correct answersMedical Background All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT correct answersthe policy is owned by the company Which of the following characteristics applies to defined benefit plans but not defined contribution plans? correct answersThe amount of contributions made by the employer is determined by an actuarial formula. Which of the following best describes fixed-period settlement option? correct answersBoth the principal and interst will be liquidated over a selected period of time Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe? correct answersAdhesion The insurer may suspect that a moral hazard exists if the policyholder correct answersis not honest about his health on an application for insurance

If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this? correct answersJumping Juvenile Policy Which type of life insurance policy allows the policyowner to pay more or less than the planned premium? correct answersUniversal Life When term insurance is added to the main policy to enhance or add coverage correct answersterm rider what is the cost of coverage based on for group life correct answersthe age and ratio of men to women What is true about Key person insurance correct answersthe death benefit is taxable to the business convertible term insurance correct answersfor applicants who may require a larger death benefit in the future the only policy provision correct answersreinstatement