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Alabama Life and Health Insurance Final Exam 2023-2024, Exams of Socialization and the Life Course

West Chester University of Pennsylvania (WCUPA)Socialization and the Life Course

A comprehensive final exam for alabama life and health insurance, covering various aspects of insurance policies, regulations, and concepts. It includes multiple-choice questions that test knowledge of key terms, definitions, and practical applications in the field of life and health insurance.

Typology: Exams

2024/2025

Available from 04/10/2025

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Alabama Life and Health Insurance Final Exam
2023 - 2024 (Verified)
1. Under a health maintenance organization HMO service providers are paid
a fixed monthly fee for each member. This concept is called ANS Capitation
2. When can a lapsed life insurance policy usually be reinstated ANS Within
three to five years of the policy lapsing
3. All of these statements concerning the coordination of benefits are true
ex- cept ANS The secondary insurance does not pay benefits. Which means
the secondary insurer does pay benefits
4. The period of time during which a surviving spouse does not qualify for
Social Security survivor or retirement benefits is called ANS The blackout
period
5. Peggy surrenders a permanent life policy with a cash value of $15,000
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Download Alabama Life and Health Insurance Final Exam 2023-2024 and more Exams Socialization and the Life Course in PDF only on Docsity!

Alabama Life and Health Insurance Final Exam

2023 - 2024 (Verified)

  1. Under a health maintenance organization HMO service providers are paid a fixed monthly fee for each member. This concept is called ANS Capitation
  2. When can a lapsed life insurance policy usually be reinstated ANS Within three to five years of the policy lapsing
  3. All of these statements concerning the coordination of benefits are true ex- cept ANS The secondary insurance does not pay benefits. Which means the secondary insurer does pay benefits
  4. The period of time during which a surviving spouse does not qualify for Social Security survivor or retirement benefits is called ANS The blackout period
  5. Peggy surrenders a permanent life policy with a cash value of $15,

and then outstanding policy loan of $5,000. If she chooses the reduced paid-up option what will be the result? ANS A paid up permanent policy purchased with $10,

  1. Total disability can be defined as the insureds inability to perform the occupation for which he or she is reasonably qualified by education training or experience for disability income insurance purposes this definition is what ANS Own occupation
  2. Why are insurance contracts said to be contracts of adhesion ANS The contract has been prepared by one party the insurer and the other party which is the insured must accept the contract as written
  3. Catherine is a retiring and was recently hospitalized for 10 days. Which type of insurance policy would best cover her for excess Hospital expenses- ANS Medicare supplement. A Medicare supplement policy will provide a subscriber the best coverage for excess charges
  4. What do major medical policies typically cover ANS Usual, customary, and nec- essary expenses
  1. The minimum grace period for a life insurance policy sold in Alabama is ANS 30 days
  2. Benefits under a health insurance policy May with the insureds written request be payable to ANS I Hospital, physician, or surgeon. The right of assignment built into most commercial Health policies allows the policyowner to assign benefit payments from the insurer directly to the healthcare provider
  3. The monthly benefit of an annuity certain is determined by ANS The annuitant's payout Period selection
  4. If insurance premiums are paid more frequently than annually the policy owner can expect to ANS Have a higher total outlay of dollars for the coverage for that year
  5. According to Alabama Law agents of a health maintenance organization HMO ANS Must be licensed as Insurance Producers and are subject to all producer licensing requirements
  1. When does adverse selection exist ANS When the risks accepted for insurance has a higher likelihood of experiencing loss than an average group
  2. Amy owns a disability income policy with a non-cancelable renewal provi- sion. Which of the following is guaranteed in her policy ANS Coverage and premium rate are guaranteed as long as the premiums are paid
  3. Alabama's annuity disclosure regulation ANS Requires the delivery of a buyer's guide and a Disclosure document to an annuity applicant
  4. What will the insurance company pay once the stop-loss is exceeded on a major medical policy ANS 100% of covered expenses
  5. Which statement accurately portrays a whole life policy ANS Endows at age 100 and paid up at a stated time
  6. Individual disability income policies normally have a premium that ANS

examination. To do this do Leo must reinstate the license within months from the renewal date ANS 12 months

  1. Bert purchased an immediate annuity with quarterly payments. When will this annuity start making payments ANS 3 months after the annuity is bought
  2. According to required provision 4 when an insured applies for reinstate- ment of a health policy and receives a conditional receipt how long does the insurer have to approve or deny ANS Within 45 days of the date of the application
  3. Which of the following is not an example of insurable Interest ANS An airline ensuring the lives of its passengers is not insurable interest
  4. Tina has an insurance policy with a 10-day free-look provision. Which of these statements is correct ANS Her policy can be returned for 100% refund of the premium within 10 days from the date the policy is delivered
  5. An insurance company may cancel a life insurance policy under which of the following conditions ANS The outstanding policy loan exceeds the cash value of the policy
  6. A policy owner with a $100,000 whole life policy has a cash value of $10,000. There is an outstanding loan of $5,000 and a past due premium of
  7. If the policy owner chooses the reduced paid-up option and then later dies what will the beneficiary receive ANS The reduced paid-up coverage

amount minus $

  1. Long-term care policies normally provide benefits for ANS Home Health Care
  2. Ed has an insurance policy with an insurance company. Before eds policy will pay a claim certain events must occur. Because of this an insurance policy is considered to be ANS conditional
  3. mortgage protection is typically covered with ANS decreasing term
  4. a retirement plan intended for a sole proprietor and his or her employees would be a ANS Keogh plan
  5. who does a disability income policy normally cover ANS wage earners
  6. 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 ANS 90 days
  7. what does renewable term guarantee ANS the insured's insurability
  8. a group disability income policy will ANS usually pay short-term benefits of less than 2 years in duration
  9. insurance policies issued by companies which are owned by stockholders and do not pay policy Dividends are known as ANS non- participating policies
  10. which of the following events would allow a policy owner with a guaranteed insurability rider purchase additional life insurance ANS having
  1. at what age is an insured for life insurance considered statistically dead ANS - 100
  2. what is a Certificate of Insurance ANS a certificate issued to each individual covered by the group life insurance
  3. Jan is named irrevocable beneficiary of Jim's life insurance policy which of the following statements is correct ANS Jim needs Jan's permission to borrow the policies loan value
  4. which of the following is an example of a nonforfeiture value ANS after a policy owner cancels their permanent policy the cash value accumulation must be made available to the policy owner. when a policy owner stops paying premiums on a permanent policy its cash value accumulation or equivalent must be made available to the policy owner
  5. a life insurance beneficiary has chosen a settlement option in which the principal never decreases unless the beneficiary makes a withdrawal. This settlement option is called the ANS interest-only option
  6. the Commissioner of Insurance may not do which of the following ANS change insurance laws
  7. what is the applicants consideration in an insurance contract ANS premiums
  8. which of the following long-term care LTC practices is permitted in

Alaba- ma ANS using direct mail to Market an LTC policy

  1. Barbara has the right to change the beneficiary designation on her life insurance policy. Barbara's beneficiary is a ANS revocable beneficiary
  2. a Life Insurance Producers agency agreement normally authorizes the licensee to do all of the following except ANS issue policies; the producer or agent cannot issue policies. but are authorized to solicit Insurance, sell insurance, and collect premiums
  3. a departing employee has decided to continue his group coverage through Cobra who pays the premium in this situation ANS employee
  4. Albert surrenders his whole life policy 10 years after it was purchased. What can he expect ANS to pay taxes on a cash value in excess of Premium Payed. if a whole life policy is surrendered for cash 10 years after it was purchased the policy owner can expect to pay taxes on the cash value in excess of premium paid
  5. XYZ insurance company issued a new life policy to an insured that re- placed an existing policy. XYZ insurance company is considered to be the- ANS replacing insurer
  6. Medicare supplement policies marketed in Alabama ANS cannot offer benefits that simply duplicate Medicare benefits, cannot be more restrictive than Medicare, and cannot treat a loss due to injury differently than a loss due to illness
  1. a Disability Policy in Alabama that is paid on a monthly basis is required to have a grace period of ANS 10 days
  2. an insurance premium can be defined as ANS Money Paid to an insurance com- pany for benefits provided in the policy
  3. Susan owns a life insurance policy that has accumulated $10,000 in cash value in which she can no longer pay premiums. If she elects to take the extended term option which of these actions would she take ANS she will use the $10,000 the policy accumulated in cash value to buy term insurance of the same face amount as her original policy
  4. which of the following statements about a non-cancellable policy is false- ANS the premium can be increased over time; true statements about non- cancelable policy are ANS so long as the premiums are paid the policy cannot be changed in anyway, non-cancelable provisions are most commonly found in disability income policies, and the premium rate cannot be increased over time
  5. the agreement between a producer and an insurance company specifies The Authority given to a producer to act on behalf of the insurer is called ANS ex- pressed Authority
  6. Rodney applies for an insurance policy and pays the first premium. The receipt given for the first premium is called a ANS conditional receipt
  1. in regards to a life insurance policy and annuity contract all statements made on the application are considered to be ANS representations
  2. representation ANS A statement made by the applicant that they consider to be true and accurate to the best of the applicants belief
  3. a cross purchase buy-sell agreement is in place for ABC company's four founding Partners. What would this agreement require if the agreement is funded with individual life insurance ANS each partner must own a policy on the other partners
  4. which of the following statements is not correct ANS agents are allowed to waive certain policy provisions; changes in an insurance policy must be approved by an executive officer of the insurance company, changes in an insurance policy must be endorsed on the policy or attached in a rider, and agents are never allowed to waive policy Provisions r the correct statements
  5. Jackie took out a Medicare supplement insurance policy and has a pre- ex- isting condition. In this situation a pre-existing condition is defined as a condition for which medical advice was given or received within of the effective date of coverage ANS 6 months
  6. an insured owns a policy which includes a disability income Rider. the disability benefit amount paid to the insured is based on the ANS face amount of the policy

activities of daily living or adl's to receive benefits ANS 2

  1. the long-term care partnership program is designed to allow seniors to ANS - shelter assets from the spend down requirements of Medicaid
  2. an insurance producer must have which of the following in order to sell variable life insurance policies ANS registered with finra, license for variable life and annuities contracts, and a valid insurance license
  3. which of the following terms may be used when describing the premiums for a life insurance policy advertised in Alabama ANS none of these; not savings or profit or deposit
  4. which type of life insurance Rider allows a policy owner to increase the level of coverage to keep up with inflation ANS cost of living Rider
  5. which of the following is not guaranteed by a whole life policy ANS policy dividends
  6. the maximum amount of coverage placed on a disability income policy is based on the insureds? ANS earned income from the previous year.
  7. absolute assignment ANS the transfer is complete and irrevocable and the as- signee receives full control over policy and full rights to benefits
  1. collateral assignment ANS policy is assigned to a creditor as collateral for debt. If insured dies creditor is entitled to be reimbursed out of benefit proceeds for the amount owed
  2. which type of assignment transfers a portion of the policy owners right to another party in order to secure a debt to that party? ANS collateral assignment
  3. a policy owner can can collect the face amount on what type of policy? ANS en- dowment policy. an endowment policy is characterized by cash values that grow at a rapid Pace so that the policy matures or endows at a specified date that is before age 100
  4. in regards to insurance applications which of the following statements is true? ANS changes on the application must be consented to in writing
  5. if a long time care LTC policy in Alabama has been in effect for more than the insurer can contest any material representation on the application ANS two years. An application in LTC policy in Alabama becomes in contestable when the policy has been in effect for more than 2 years
  6. which of these will not result in an increase in life insurance policy divi- dends? ANS higher Reserves because reserves are intended for benefit amounts not dividends
  7. any individual who has failed 2 Alabama Insurance licensing

Bureau MIB ANS reports given to member companies contain information regarding the

insurability of insurance applicants, the proposed insured must give authorization before information can be given to member companies, and the MIB is a non-profit agency which aides in underwriting insurance policies

  1. Terry owns a 20-year life annuity certain and dies before the period of 20 years has elapsed. What happens to any money left? ANS paid to the beneficiary for the rest of the certain period.
  2. contract of utmost good faith ANS because there is a mutual Reliance of truthful- ness on both parties, an insurance contract is said to be a contract of utmost good faith
  3. which provision allows a disability income policy to remain in force with- out further payments when the insured has become totally and permanently disabled? ANS waiver of premium
  4. Sean has a waiver of Premium Rider on his life insurance policy. He be- comes disabled for three years. During which the insurance company waives $3,000 in premiums. When Sean recovers he must ANS resume paying premiums again
  5. 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 ANS non-can- cellable policy. it may not be changed in any way by the insurer up to a specified age as long as premiums are paid