Ch. 15 Life and health

The Commissioner may grant or deny an agent a request for an extension to comply with the continuing education requirements. Which of the following describes the time required to comply?

90 days if granted, 30 days if denied

Which of the following would be defined as a replacement under Alabama State Law? A A policyowner is covered by a group term policy and decides to cancel an existing permanent policy B All of the answers listed C A policyowner cancels a policy in order to purchase a new policy D A policyowner converts a term policy to a permanent policy

A policyowner cancels a policy in order to purchase a new policy

All of the following would be considered replacement in life insurance and subject to replacement guidelines, except: A A term policy converted to whole life insurance B A policy that will be lapsed or surrendered in order to purchase a new policy C A policy that has been converted to reduced paid up or extended term insurance to purchase a new policy D A policy amended with reduced benefits to purchase a new policy

A term policy converted to whole life insurance

What is the underlying purpose of a second injury fund?

To promote the employment of previously injured or physically handicapped workers

Under Alabama law, you cannot pay any valuable consideration to a person if they are not licensed as a producer. If a producer violates this provision, they are subject to a fine of up to:

3 times the commission paid

Policies that are replacing existing contracts must have a Free Look period of how long?

30 days

Upon written demand by a person aggrieved, the Commissioner must hold a hearing within:

30 days upon receipt of the demand

The Annuity Disclosure Statement MUST be provided within _________ if completing the application in an other than face-to-face meeting. (meeting on phone)

5 days

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.

6 months

A producer who violates the Alabama long-term care insurance regulation may be fined up to 3 times the amount of any commissions paid for each policy involved or up to ________, whichever is greater.

$10,000

Industrial life insurance is a form of life insurance written under policies with face amounts of: A $2,500 or less B $25,000 or less C $4,500 or less D $3,500 or less

$2,500 or less

An annuity or pure endowment contract must provide a grace period of: A 4 weeks B 20 days C 1 month of at least 30 days D 15 days

1 month of at least 30 days

An annuity or pure endowment contract may be reinstated within __________ from the default in premium payments, unless the cash surrender value has been paid.

1 year

How large must a group plan be for the requirement to include maternity benefits on the same basis as nonmaternity benefits to apply?

15 members

Death benefits paid under Workers' Compensation:

Include both a one-time burial allowance and a weekly benefit for a surviving spouse and /or children

what is intended to prevent group plans from discriminating in favor of key employees?

TEFRA

To be able to start operations, a mutual company must have all of the following, except: A A minimum number of stockholders B A minimum number of applications for insurance C A minimum surplus as specified by the state D The advanced premium payment for each application

a minimum number of stockholders

Which of the following describes why Alabama encourages the purchase of Long-Term Care Insurance through its LTC 'Partnership Program'? A Requires Medicaid to disregard some or all of your assets during estate recovery B Provides you with asset protection C Allows Medicaid to disregard some or all of your assets for Medicaid eligibility D All of the answers listed

all of the answers listed

Which of the following is/are required when reinstating a life insurance policy after a default in premiums? A All the answers listed B A reinstatement application C Payment of overdue premiums D Evidence of insurability

all of the answers listed

Which of the following is/are required when reinstating a life insurance policy after a default in premiums? A All the answers listed B Evidence of insurability C Payment of overdue premiums D A reinstatement application

all of the answers listed

The Annuity Disclosure Statement MUST be provided _________________for a face-to-face meeting

at or before the time of application

Non-financial regulatory activities are known as:

market conduct

An illustration must include:

name of the insurance company, producer's name and address (if any), and the initial death benefit.

Which of the following may an insurer purchase for its separate account? A Neither answer is correct B More than 10% of the total issued and outstanding voting securities of any single issuer C Both answers are correct D Securities of a subsidiary of the insurer

neither answer is correct

If an insurer violates the provisions, they are subject to a fine of up to:

of 3 times the premium paid

twisting means:

policy replacement

When replacement is involved, an agent must present the applicant with a Notice Regarding Replacement of Life Insurance no later than:

the time of taking the application

Assets in a separate account are valued at:

their market value on the date of valuation

The Commissioner may do all of the following, except: A Enforce insurance law B Examine and investigate insurance matters C Manage and supervise the department of insurance D Change insurance laws for the good of the general public

Change insurance laws for the good of the general public

You may NEVER imply in an advertisement that:

Dividends are guaranteed, Dividends will pay for the policy at some point, and/or that dividends are anything other than a return of unused premiums

All of the following are true regarding advertising in life insurance, except: A Premiums cannot be referred to as 'deposits', 'deposit premiums', or 'investments', they may be referred to as 'premiums' only B Premiums cannot be mentioned in an advertisement at all C Any reference to policy dividends must state that they are not guaranteed D Advertisements may not omit the words 'life insurance' or 'annuity' from a policy's name

Premiums cannot be mentioned in an advertisement at all

If a company wishes to share information about a customer's health with a third party:

The customer must actively opt-in to allowing the disclosure

If you are charged with a violation of Alabama State Insurance Law, which of the following is/are true? A All of the answers listed B If convicted, you are subject to a fine, imprisonment, and/or hard labor C All violations are punishable as a misdemeanor D Each violation is charged separately

all of the following listed

Which of the following IS NOT a type of illustration under the Alabama regulation governing life insurance illustrations? A Annualized Illustration B Basic illustration C Supplemental illustration D In force illustration

annualized illustration

All of the following are reasons that the Commissioner may suspend a producers license, except: A Conviction of a misdemeanor B Failing to pay state income tax C Failing to comply with a child support order D Lying on your application for license

conviction of a misdemeanor

A producer may have his or her license revoked or suspended for all of the following reasons, except: A Forging another's name on an insurance document B Providing incorrect, misleading, incomplete information to the Commissioner C Failure to pay state income tax D Failing to pay a traffic ticket on time

failing to pay a traffic ticket on time