Alabama State Life Insurance Exam 2024 Study Guide, Exams of Socialization and the Life Course

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Alabama state life insurance exam 2024

if lousie allows her whole life policy to lapse which nonforfeiture option shoild she elect to obtain the most life insurance protection? - correct answer✔✔Extended term option If administrative action is taken against you, or you are criminally prosecuted in another jurisdiction, you have how long to submit a notice to the Alabama commissioner? - correct answer r✔✔ 30 days How can 'key employee' disability income insurance purchased by business be used by the business - correct answer✔✔Both: temporary replace the key employee and as a salary continuation for the disabled key employee In health maintenance organizations (HMO's) the use of a primary care physician is common as part of - correct answer✔✔An out of network provider Under the typical coordination of benefits clause in group health insurance how is the primary coverage determined - correct answer✔✔The employee plan is primary and the other may be excess The entire contract provision stipulates - correct answer✔✔The entire contract includes the application A man applied for long term care policy. Three months earlier he was diagnosed with diabetes, can the LTC policy exclude future health problems linked with diabetes? - correct answer✔✔Yes, for 6 months The 'elimination period' refers to - correct answer✔✔The time period after a disability starts and before the insured may begin receiving disability income benefits The basic purpose for the coinsurance provision in a major medical policy is to - correct answer✔✔Limit over utilization of the policy benefits Which rider can decrease the amount of the policy death benefit if utilized - correct

answer✔✔Automatic premium loan rider The settlement option under which the principal never decreases unless the beneficiary makes withdrawals is the - correct answer✔✔The interest only option If you surrender your policy early or simply stop paying premiums you still own the equity you have built. You can choose to: - correct answer✔✔Get a check for the remaining cash value What describes the aviation exclusion? - correct answer✔✔It limits or excludes coverage for when the insured is participating in only certain kinds of air travel Under which circumstances will the payor rider waive the premiums and allow a life insurance policy to remain in force? - correct answer✔✔If the policyowner dies or becomes disabled prior to the insured reaching either age 21 or 25 If you mistake your age when applying for disability income insurance, you may suffer what consequences at claim time? - correct answer✔✔Your benefits will be reduced if your age is higher than stated According to the Alabama regulations concerning Long term care insurance, what practice is allowed - correct answer✔✔Use of large amounts of direct mail to market specific LTC policy You must notify the company of a health insurance claim within how many days? - correct answer✔✔ 20 days If an agent tells a proposed insured he has the authority to Issue a policy, which he is actually disallowed to do by his agency contract, the insured may reasonably assume the agent had his authority. This is a example of - correct answer✔✔Expressed authority To receive some social security benefits and be considered "currently insured" an individual must have - correct answer✔✔At least 6 quarters of coverage Dividend options are defined as ways in which the policyowner can: - correct answer✔✔Use or collect policy dividends The general provisions that apply to all Medicare supplement plans are - correct answer✔✔ The duties of the Alabama insurance commissioner include all of the following EXCEPT:

• correct answer✔✔ If you suffer a loss linked directly to your use of intoxicants or non-prescribed narcotics, what is the effect? - correct answer✔✔Your claim may be denied Laws have been enacted to prohibit cancellation of a Medicare supplement policy on the sole basic of age or deterioration of health. The requirement is called: - correct answer✔✔Guaranteed renewability Which policy accumulates cash value at the fastest rate? - correct answer✔✔ 10 - day life policy The factors that determine the amount of each payment to a beneficiary under the fixed period option are? - correct answer✔✔The length of the fixed period and the death benefit of the policy, and interest. A man with a accidental death & dismemberment policy having a principal sum of $100,000 and a capital sum of $50,000 loses a leg due to blood clot which was not due to an accident. The policy will pay? - correct answer✔✔$ When does the 10 day free look start? - correct answer✔✔Date of policy delivery The optional provisions of a standard health policy address the issue of claims arising from "illegal occupations", " commission of felonies" and "use of narcotics" according to these provisions: - correct answer✔✔The insurer is not liable for claims arising under the conditions described in these provisions Paid-up additions act as a default if the policyholder doesn't Indicate an option. Paid up additions are: - correct answer✔✔Single payment premiums which purchase additional amounts of insurance which add to the face amount What is incorrect concerning premiums collected by an insurance producer in Alabama?
• correct answer✔✔Premium payments become the property of the producer Normally, Blue Cross/Blue Shield makes payments for medical expenses - correct answer✔✔directly to the providers What is correct regarding a health maintenance organization operating in Alabama? - correct answer✔✔ The convertibility option offers what major advantage to the insured? - correct answer✔✔Insurability is not a factor

According to required health policy provisions, the insured is prevented from filling suit against the insurer for at least - correct answer✔✔60 days and not longer than three years from the date of proof of loss An attending physician's statement is used to do what? - correct answer✔✔Obtain detailed information regarding a specific medical condition The Alabama life and disability insurance guaranty association covers the contractual obligations of an insolvent life and disability insurer, but it's aggregate liability for cash values shall not exceed? - correct answer✔✔ How can interest rates or investments affect premiums? - correct answer✔✔Companies pass the cost of borrowing money along to customers. The "entire contract" law in Alabama says: - correct answer✔✔The policy and the application (or a summary of the application) constitute the entire contract When a dependent child covered under the parents major medical policy reaches the limiting age, what is the provision that allows the child to purchase his or her own policy without establishing insurability? - correct answer✔✔Conversion privilege If an insurance carrier decides to cancel a producers appointment. What is true? - correct answer✔✔The commissioner can immediately cancel the producers license based upon the company's allegation of wrong doing by the producer A life insurance policy is a unilateral contract because - correct answer✔✔only the insurance company is bound to live up to its side of the agreement For weekly premium disability policies in Alabama, there must be a grace period of - correct answer✔✔ What is not a workers compensation benefit? - correct answer✔✔Extra income benefits Darlene dies without having paid the $500 premium on her $50,000 policy that was due a week before her death. With no outstanding policy loans, Darlene's Beneficiary can expect to receive? - correct answer✔✔$49,500 which is the face amount less than the premium owed The life and health insurance marketing system utilizing producers that represent multiple insurance companies at the same time, are compensated on a commission basis, and own their own "book of business" is the - correct answer✔✔Independent agency system

Contracts must have consideration. Insurance contracts are considered to be aleatory contracts. This means what? - correct answer✔✔The promise to pay claims will most likely not be equal to all premium payments An insured can increase the monthly benefits paid under a disability income policy by a specified percentage or in relation to an economic index with the following riders? - correct answer✔✔Cost of living adjustment