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Alabama Life & Health Insurance Exam
(7 Sets of Exam’s)
Alabama Life & Health Insurance Exam
Set 1
1. what law protects consumers from the circulation of inaccurate or obsoleteinformation ANS The Fair Credit Reporting Act 2. Insurers are classified according to their domicile. What are the 3 types ofinsurers ANS domestic, foreign, and alien 3. what type of insurer is a voluntarily formed organization that provides religious organizations with a representative form of government ANS Fraternalinsurer 4. the type of insurance company organized to return any surplus money toits policyholders is known as what ANS mutual company
5. when agents act within the scope of their contract, their actions will beassumed to be the actions of whom ANS Insurer 6. what is the name of the process that insurance companies use to determineif an applicant is insurable ANS underwriting 7. if an insurer needs to obtain information about the applicant from investiga-tors, what is the insurer required to do ANS provide the aplicant with a Disclosure Authorization Notice 8. what type of insurer is formed under the laws of another country ANS Alien 9. when risks with higher probability of loss are seeking insurance more oftenthan other risks, is known as what ANS adverse selection 10. when does an insurance policy go into effect ANS when to policy is deliveredand the premium is paid. 11. according to the Law of Agency, a principal is represented by whom ANS anagent or producer 12. what type of risk is insurable ANS pure 13. who owns stock companies ANS stockholders
21. an insurance company that is formed under the laws of another state isknown as what type of insurer ANS Foreign 22. insurance is used to transfer what to the company ANS financial responsibility for loss 23. what type of report provided information about the applicants hobbies, habits, and financial status ANS inspection report 24. what document is required for an insurance company to transact insur-ance ANS Certificate of Authority 25. a state issued document empowering an insurance company to becomean admitted insurer is called what ANS Certificate of Authority 26. what do individuals use to transfer their risk of loss to a larger group ANS In- surance 27. in the agent/insurer relationship, who is considered the principal ANS Insurer 28. whom does an insurance agent represent ANS insurance company 29. what are the three types of agent authority ANS express, implied and apparent
30. what type of hazard does an applicant present when they conceal healthinformation ANS moral 31. an insurance policy paid a nontaxable dividend to the insured one year, and nothing the next. From what type of insurer did the insured purchase thepolicy ANS mutual 32. the reduction, decrease, or disappearance of value of the person or prop-erty insured is a policy is known as what ANS Loss 33. what are the 3 types of hazards ANS physical moral, and morale 34. if an agent fails to obtain the applicants signature on the application, whatmust an insurer do ANS send it back to the applicant to get the signature 35. what two elements are necessary for a life insurance contract to have alegal purpose: insurable interest and consent 36. when would a misrepresentation on an insurance application be consid-ered fraud ANS when it is intentional and material 37. for the purpose of insurance, what is risk ANS uncertainty of loss 38. whose responsibility is it to determine that all the questions on an appli-cation are answered ANS the agent's 39. what are the strategies used by underwriters to prevent adverse selec- tion ANS restriction of coverage; refusal to accept risk; accepting a risk at a higher rate 40. an insurance company is domiciled in California and transacts businessin Nevada. what is the insurer's classification in Nevada ANS foreign 41. wagering on a sporting event is known as what type of risk ANS speculative 42. what are the 5 characteristics of an ideally insurable risk ANS loss must be:due to chance,
