Exam (elaborations)
Alabama Life Insurance Exam 2024 Questions and Answers (verified answers)
- Course
- Institution
Alabama Life Insurance Exam 2024 Questions and Answers (verified answers)
[Show more]
Content preview
Alabama Life Insurance Exam.pdf about:blAlabama Life Insurance Exam
1. Which clause allows the insured to change an existing policy to any otherpolicy of any
type as long as the new policy has a higher premium, without any proof of insurability?
ANS Privilege of change clause
2. The extended term nonforfeiture option provides
ANS Paid-up term coverageequal to that of the original policy
3. With a collateral assignment of a life policy to a creditor
ANS You assign a partialamount of the policy values to the creditor
4. An accounting measure used to determine a contract owner's interest in theseparate
account of a variable annuity before payments begin is called
ANS An accumulation unit
5. Group Insurance Market A certificate of insurance is issued to whom?
ANS -
Each individual covered by the group life insurance
6. The principal difference between an entity purchase and a cross purchase buy-sell
agreement is
1/3
1 of 8 8/8/2024, 2:33
,Alabama Life Insurance Exam.pdf about:bl
ANS The identity of the policy owner (the main difference is whoowns the policy)
7. How long is the probationary period for group life insurance?
ANS The proba-tionary period is usually 90 days.
8. What is the primary purpose of a section 303 redemption?
ANS To provide liquidityto pay estate taxes and administration and funeral costs
9. What is it called when an insurance company sells part of their risk toanother
insurance company?
ANS Reinsurance (also, risk-sharing)
10. The policy conditions represent the obligation of whom?
ANS Both the insuredand the insurer
11. Does social insurance provide equal benefits to all citizens that con- tribute?
ANS No. As income is re-distributed through the governmental system, insuredswho put less into
the system such as the poor, elderly, and those with dependentsget proportionately greater
benefits.
12. In determining whether disability is permanent, most companies call for a waiting
period of how long?
ANS 3 to 6 months
13. What can the cash value of a permanent life insurance policy be used for?
2/3
2 of 8 8/8/2024, 2:33
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BESTGOODIES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79373 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now