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Alabama Life and Health Insurance Final Exam (4 Sets of Final Exam’s), Exams of Socialization and the Life Course

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

Alabama Life and Health Insurance Final Exam (4 Sets of Final Exam’s) Alabama Life and Health Insurance Final Exam (4 Sets of Final Exam’s) Alabama Life and Health Insurance Final Exam (4 Sets of Final Exam’s)

Typology: Exams

2024/2025

Available from 04/10/2025

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Alabama Life and Health Insurance Final Exam
(4 Sets of Final Exam’s)
Final Exam Set 1
1. replacement regulation does not apply to ANS credit life insurance
2. a policy owner can collect the face amount on what type of policy? ANS
endow- ment policy
3. which of the following does NOT describe a life income settlement option?-
ANS income is paid until the principal amount decreases to zero
4. periodic benefit payments must be made no less frequently than ANS
monthly
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Partial preview of the text

Download Alabama Life and Health Insurance Final Exam (4 Sets of Final Exam’s) and more Exams Socialization and the Life Course in PDF only on Docsity!

Alabama Life and Health Insurance Final Exam

(4 Sets of Final Exam’s)

Final Exam Set 1

  1. replacement regulation does not apply to ANS credit life insurance
  2. a policy owner can collect the face amount on what type of policy? ANS endow- ment policy 3. which of the following does NOT describe a life income settlement option?- ANS income is paid until the principal amount decreases to zero
  3. periodic benefit payments must be made no less frequently than ANS monthly
  1. the automatic premium loan provision is NOT used in which of the following policies? ANS increasing term policy
  2. the waiver of premium provision normally excludes which of the following disabling acts? ANS all of these ANS inquires sustained while committing a felony, inquires sustained while serving in the military, self-inflicted injuries
  3. in regards to a life insurance policy or an annuity contract, all statements made on the application are considered to be ANS representations
  4. an accidental death rider claim is usually paid if the insured ANS dies within 90 days of the accident
  5. an insurance premium can be defined as ANS money paid to an insurance com- pany for benefits provided in the policy
  6. what is a disability income policy designed to do? ANS pay benefits to maintain the insured's current standard of living

amount of the policy

  1. how are employer-paid premiums for employee group health insurance normally treated for tax purposes? ANS tax deductible to the employer/nontaxable to the employee
  2. which of the following events would allow a policyowner with a guaranteed insurability rider purchase additional life insurance? ANS all of these ANS having a child, getting married, reaching a specified age stated in the policy
  1. what is not true regarding medicare supplement policies? ANS must include a minimum 20 -day-free-look provision
  2. when can a lapsed life insurance policy usually be reinstated? ANS within 3-5 years of the policy lapsing
  3. a husband and wife are receiving annuity payments. when the husband dies, the wife still receives annuity payments for life. what kind of annuity is this? ANS joint and survivor life annuity
  4. which of the following terms may be used when describing the premiums for a life insurance policy advertised in Alabama? ANS none of these ANS savings, profit, deposit
  5. 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
  6. what is not considered a form of advertisement in Alabama? ANS a producer sending a Christmas card to a client

the commissions paid

  1. at what point does a whole life policy pay the face amount? ANS upon the insured's death or reaching the age of 100
  2. a preferred provider organization (PPO) contract typically uses which payment arrangement? ANS negotiated fee-for-service
  3. which type of term policy allows the policyowner to switch to permanent insurance? ANS convertible term
  4. beginning at what age can IRA owner start making withdrawals and NOT be subjected to a tax penalty? ANS 59 ½
  5. what dividend option allows a policyowner to use his/her dividends to buy life insurance on a single premium basis? ANS paid-up additions option
  1. how long must a provider keep complete records pertaining to his/her insurance transactions? ANS three years
  2. the highest premium payment would be charged to which risk classifica- tion? ANS substandard
  3. within how many calendar days must all clean electronic health insurance claims be paid in alabama? ANS 30
  4. trent has a permanent, partial disability where he is paid 50% of his previous income. trent is covered by a ANS residual disability benefit
  5. the aviation exclusion ANS excludes coverage when the insured is riding in certain kinds of air travel
  6. abc cpmpany takes out a key employee policy on its ceo. the ceo leaves abc company and begins working for xyz company five years later. if this person were to die and the policy is still in force and unchanged, where would the death proceeds be directed? ANS abc company
  7. when an estate is named beneficiary to a life insurance policy, the policy proceeds are ANS distributed according to state law
  8. what is not correct concerning group life insurance? ANS whole life insurance is the form of insurance typically used in group life insurance
  9. an insurance company licensed to do business in alabama, but incorpo- rated in another state is called ANS a foreign company
  10. what is not a factor typically used by insurers to classify risk? ANS
  1. when medical expenses reach a certain dollar amount, the insured is no longer responsible for sharing the costs of expenses. the insurance company then pays 100% of the covered expenses. the major medical policy provision is called a(n) ANS stop-loss limit
  2. the notice of claim provision states that the insured notify the insurance company within days of a claim ANS 20
  3. the life and health insurance marketing system utilizing non-employee agents that represent just one insurance company and are often paid an allowance to cover office expense and staffing is the ANS general agency system
  4. derrick is insured with a health insurance policy where occupation is used to classify risk. if he holds more than one occupation, how will the insurance company classify derrick? ANS according to the occupation that is most hazardous
  5. within how many days of a written demand must the commissioner of insurance hold a hearing? ANS 30
  6. what way does term life insurance and whole life insurance differ ANS term insurance does not build cash value
  7. mortgage protection is typically covered with ANS decreasing term
  8. a life insurance policyowner has just exercised the policy's reduced paid-up option. what statement is true? ANS the amount of coverage will be much less than the original coverage
  1. what is a true statement regarding dental insurance ANS comprehensive dental care policies usually cover a percentage of reasonable and customary charges for the non-routine treatment
  2. at what age is an insured for life insurance considered statistically "dead"? ANS 100
  3. a company is one that is domiciled in another state and has NOT received a license to do business in alabama ANS foreign nonadmitted
  4. michael has a universal life policy with an increasing death benefit option. with an initial face amount of $50,000 and a value of $5,000, what would the actual death benefit be? ANS $55, 66. is this statement true or false containing COBRA? Under COBRA, dependents of employees covered by group plans have the same extension and conversion privileges available to them as the employee- ANS true
  5. how is the alabama life and disability insurance guaranty association able to pay claims for insolvent insurers? ANS assessments against other addmitted insurers in alabama
  6. which welfare program provides assistance to the needy? ANS medicaid

right to another party in order to secure a debt to that party? ANS collateral assignment

  1. what best describes a health maintenance organization? ANS provides full med- ical services that stress preventative medicine
  2. a group disability income will do what? ANS usually pay short term benefit in less than two years in duration
  3. what is true concerning the fixed period option? ANS the principal amount grad- ually decreases to zero
  4. total disability can be defined as "the insured's inability to perform the occupation for which he/she is reasonably qualified by education, training or experience". for disability income insurance purposes, this definition is known as ANS the "own occupation" definition
  5. pat the producer just sold an insurance policy to a client, explaining that he has authority to issue the policy. pat was not specifically granted this power from the insurance company. pat is exercising ANS implied authority
  6. according to alabama law, agents of a health maintenance organization (HMO) ANS must be licensed as insurance producers 85. pat applies for insurance, pays the initial premium, and receives a docu- ment from the agent. this document indicates that if the policy is issued, cov-

erage begins on the date of the document. this document is called ANS conditional receipt

  1. extended residence in a nursing home is covered by a(n) ANS long term care policy
  2. the premium payment mode which results in the highest total premium is ANS monthly
  3. what does alabama's head of the department of insurance not have the power to do? ANS promulgate insurance laws
  4. paula has an insurance policy that has a guaranteed minimum cash value, a guaranteed death benefit, fixed premiums, and grows at a rate reflected by a selected fund index. which type of life policy fits this description? ANS equity indexed life
  5. which type of life insurance policy combines insurance protection with an accumulation of cash value? ANS permanent insurance
  6. the life and health insurance marketing system utilizing non- employee agents that represent just one insurance company and are often paid an allowance to cover office expense and the staffing is the ANS general agency system
  7. a licensed alabama insurance producer would NOT be disciplined by the commissioner of insurance for ANS being convicted of a misdemeanor
  8. medicare supplement polices marketed in alabama ANS all of these ANS cannot offer benefits that simply duplicate medicare benefits, cannot be
  1. the agreement between an insurance company and a producer specifies the authority given to a producer to act on behalf of the insurer. what is this called? ANS expressed authority
  2. what type of assignment transfers a portion of the policy owner's right to another party in order to secure a debt to that party? ANS collateral assignment
  3. a substandard or special class risk typically results in ANS a premium that is higher than for a normal risk
  4. rick owns a $100,000 life insurance policy with a cash value of $10,000. how much can he borrow up to? ANS the accumulated cash value ($10,000 less interest)
  5. john has recently died and it was discovered that he was actually ten years older than what was listed on his life insurance policy. what will the insurer pay his beneficiary? ANS the amount of insurance that his premiums would have purchased at his correct age
  6. beginning at what age can an IRA owner start making withdrawals and NOT be subjected to a tax penalty? ANS 59 1/ 106. nick has a major medical insurance policy with a deductible of $1,000, an 80% coinsurance clause, and a $1,500 stop-loss feature. he is hospitalized and incurs the following covered expenses ANS $10, hospital room and board, $2,500 surgeon's fee. what is nick responsible for paying? ANS $1,500. in this

situation nick would only be responsible for paying the amount listed on the stop-loss feature.

  1. a waiver of premium ANS waives the premiums when the policy owner becomes totally disabled
  2. when does adverse selection exist? ANS when the risks accepted for insurance has a HIGHER likelihood of experiencing loss than the average group
  3. in alabama, an insurer who violates state laws for the payment of insur- ance commissions may be fined up to ANS three times the amount of commissions paid
  4. what is not guaranteed by a whole life policy? ANS policy dividends
  5. who would most likely own a medicare supplement policy? ANS 69 year old female covered by medicare
  6. what is a defined benefit plan? ANS a retirement plan that promises a specified benefit to the employee at retirement
  7. what does an insurance producer represent? ANS insurance company
  8. what permanent life insurance policy add more coverage for a limited amount of time? ANS term rider
  9. what is a correct statement? ANS policy dividends cannot be guaranteed
  10. what is the applicant's consideration in an insurance policy? ANS premiums

is paid until the principal amount decreases to zero

  1. a life insurance producer's agency agreement normally authorizes the licensee to not do what? ANS issue policies
  2. what do major medical policies usually cover? ANS usual, customary, and necessary expenses
  3. on november 10th, ozzie's medical policy is reinstated. he is later injured in an automobile accident on november 13th and immediately hospitalized. ozzie is eligible for ANS Full Benefits
  4. an insurance licensed to solicit insurance in a specific state is called ANS an admitted company
  5. what is an income policy designed to do? ANS pay benefits to maintain the insured's current standard of living
  6. what dividend option allows a policyowner to use his/her dividends to buy life insurance on a single premium basis? ANS paid up additions option
  7. what limits an insurance company's total exposure under a major medical policy? ANS maximum lifetime benefit and a coinsurance provision
  8. an insurance company may cancel a life insurance policy under what conditions? ANS the outstanding policy loan exceeds the cash value of the policy 135. anita is an office clerk at the time she purchases a disability income policy. she later changes her career to a crab king fisherman. if

she ever