Exam (elaborations)
ALABAMA LIFE & HEALTH INSURANCE EXAM QUESTIONS AND ANSWERS 2024
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ALABAMA LIFE & HEALTH INSURANCE EXAM QUESTIONS AND ANSWERS 2024
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ALABAMA LIFE & HEALTH INSURANCEEXAM
An individual long-term care insurance policy may not be terminated for
nonpayment of premium unless the insurer has give notice to the insured and any
designated persons at least _____ days before the effective date of the
termination. - ANSWERS-30
The notice must provide a 30 day grace period from the date of its mailing. Every
insured may designate at least 1 additional person to receive notice of a lapse or
of termination for nonpayment of premium.
An insurer may reserve the right to defer the payment of a cash surrender value
for up to _________ months after demand is made and the policy is surrendered.
- ANSWERS-6 months
All of the following are true regarding advertising in life insurance, except: -
ANSWERS-Premiums cannot be mentioned in an advertisement at all
Premiums MAY be mentioned, but only as premiums. NOT as Deposits, Deposit
premiums or Investments. Advertisements MUST indicate clearly what the
product is advertising. Dividends MUST state that they are Not Guaranteed.
TRUE:
,Premiums cannot be referred to as 'deposits', 'deposit premiums', or
'investments', they may be referred to as 'premiums' only
Advertisements may not omit the words 'life insurance' or 'annuity' from a
policy's name
Any reference to policy dividends must state that they are not guaranteed
An annuity or pure endowment contract may be reinstated within __________
from the default in premium payments, unless the cash surrender value has been
paid. - ANSWERS-1 year
A licensee must inform the Commissioner of a change of legal name or address
within ______ days of the change. - ANSWERS-30
The head of the state department of insurance has all of the following powers,
except: - ANSWERS-Creating and establishing new premium rates for insurance
companies operating in the state
Powers:
Imposing penalties for violations of the insurance code, including but not limited
to fines, suspensions or revocations of licenses and Certificates of Authority, and
requesting that the Attorney General prosecute a violator
,Approving rates and rate increases for regulated lines of insurance
Subpoenaing witnesses and administering oaths in order to further any
examination, investigation, or hearing on insurance matters
Which of the following can be listed on an illustration? - ANSWERS-The insurer's
name, producers name, address, and the policy generic name
The proposed insured's name, age, gender, and the initial death benefit
The dividend option selected or any nonguaranteed elements
Non-financial regulatory activities are known as: - ANSWERS-Market conduct
Non-financial regulatory activities of an insurance department fall under the
broad heading of market conduct. Proper market conduct means conducting
insurance business fairly and responsibly.
Which of the following IS true about an HMO under Alabama Law? - ANSWERS-
The Commissioner of insurance can regulate them but cannot impose a fine
HMOs are already Government regulated both at the State and Federal levels.
However, the Commissioner does have the right to regulate all insurers in their
, state, but they cannot impose a fine. That would be equivalent to the State
government issuing a fine to themselves and the federal government. The
Commissioner may certainly accept an examination from the HMO's home states
insurance commissioner and may examine any company in its own state as it
relates to protecting the general public
Which of the following IS NOT a type of illustration under the Alabama regulation
governing life insurance illustrations? - ANSWERS-Annualized Illustration
TYPES:
In force illustration
Supplemental illustration
Basic illustration
Which of the following provided the federal government the right to regulate the
insurance industry, regarding fraud and false statements? - ANSWERS-
McCarran/Ferguson Act
Jay, who is employed by Carson Company, is assigned to work temporarily in
another state. While in the other state, Jay is injured on the job. He is entitled to
benefits of the Workers' Compensation law in the state in which he was hired
even though his injury occurred in a different state. This indicates that the
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