General Life + Health
Not publishedof exam
Life Insurance
Not publishedof exam
Health Insurance
Not publishedof exam
Alabama Insurance Law
Not publishedof exam
Quick Facts
- Exam
- Combined Life + Health
- Questions
- 150
- Time
- 180 minutes
- Pass
- 105 correct
- Fee
- $75
- Vendor
- University of Alabama
- Allocation
- 30 / 55 / 45 / 20
- Certificate
- Valid one year
Contract Core
COAL plus competent parties
C: considerationO: offerA: acceptanceL: legal purposeParties: competent
Exam Blueprint
- General
- 30 questions
- Life
- 55 questions
- Health
- 45 questions
- Alabama law
- 20 questions
- Total
- 150 questions
- Time
- 180 minutes
- Passing
- 105 correct
- Outline review
- August 8, 2023
Risk Basics
- Risk
- Uncertainty of loss
- Pure risk
- Loss or no loss
- Speculative risk
- Gain or loss
- Peril
- Direct loss cause
- Hazard
- Raises loss chance
- Risk pooling
- Many share losses
- Large numbers
- Improves loss prediction
- Stock insurer
- Owned by shareholders
- Mutual insurer
- Owned by policyholders
- Domestic insurer
- Formed in Alabama
- Foreign insurer
- Formed another state
- Alien insurer
- Formed another country
- Authorized
- State certificate held
- Unauthorized
- No state certificate
Contract Law
- Offer
- Applicant proposes contract
- Acceptance
- Insurer agrees
- Consideration
- Premium plus truthful statements
- Legal purpose
- Lawful contract objective
- Competent parties
- Legally capable parties
- Adhesion
- Insurer drafts terms
- Aleatory
- Unequal value exchange
- Unilateral
- Insurer makes promise
- Conditional
- Duties trigger performance
- Utmost good faith
- Full honest disclosure
- Representation
- Applicant statement
- Warranty
- Guaranteed statement
- Concealment
- Withholding material fact
- Material fact
- Affects underwriting decision
Underwriting
- Application
- Primary underwriting source
- Field underwriting
- Producer observes applicant
- MIB
- Underwriting data exchange
- Consumer report
- Third-party background data
- Preferred risk
- Below-average loss chance
- Standard risk
- Average loss chance
- Substandard risk
- Above-average loss chance
- Premium mode
- Payment frequency
- Conditional receipt
- Conditional interim coverage
- Insurable interest
- Recognized loss relationship
- Adverse selection
- Higher risks seek coverage
Policy Spectrum
Term rents; whole owns; universal flexes
Term: temporaryWhole: guaranteedUniversal: flexible
Term vs Whole
Term
- Temporary protection
- No cash value
- Lower initial premium
Whole
- Permanent protection
- Guaranteed cash value
- Fixed premium
Temporary vs permanent
Life Policy Picker
- Temporary protection→Term life(No cash value)
- Lifetime guarantees→Whole life(Fixed values)
- Flexible premiums→Universal life(Interest-sensitive)
- Fixed-premium subaccounts→Variable life(Market risk)
- Flexible-premium subaccounts→Variable universal(Market risk)
- Second-death estate need→Survivorship life
- Two lives; first-death payout→Joint life
- Future purchase right→Guaranteed insurability
- Disability premium protection→Waiver rider
Life Policies
- Term life
- Temporary death protection
- Level term
- Level death benefit
- Decreasing term
- Declining death benefit
- Whole life
- Permanent fixed guarantees
- Limited-pay whole
- Early premium completion
- Single-premium whole
- One premium payment
- Modified life
- Early reduced premiums
- Graded premium
- Premiums rise gradually
- Joint life
- Pays first death
- Survivorship life
- Pays second death
- Universal life
- Flexible premium policy
- Variable life
- Separate-account values
- Variable universal
- Flexible plus separate accounts
- Indexed life
- Index-linked interest
Life and Annuity
Life creates; annuity liquidates
Life: death benefitAnnuity: income stream
Universal vs Variable
Universal
- Flexible premium
- Interest-sensitive value
- General account
Variable
- Fixed premium form
- Separate accounts
- Owner bears risk
Flexibility vs investment control
Life Provisions
- Policyowner
- Controls policy rights
- Revocable beneficiary
- Owner may change
- Irrevocable beneficiary
- Consent protects rights
- Grace period
- Late premium window
- Reinstatement
- Restore lapsed policy
- Incontestability
- Limits later challenges
- Misstatement clause
- Adjusts benefit
- Suicide clause
- Early suicide exclusion
- Assignment
- Transfers policy rights
- Policy loan
- Borrows cash value
- Automatic premium loan
- Cash pays premium
- Cash surrender
- Ends policy for cash
- Extended term
- Keeps full benefit temporarily
- Reduced paid-up
- Smaller permanent benefit
- Accelerated benefit
- Early death-benefit access
- Viatical settlement
- Policy sold early
Revocable vs Irrevocable
Revocable
- Owner may change
- No beneficiary consent
Irrevocable
- Rights are vested
- Consent generally required
Flexible vs protected
Annuities + Retirement
- Accumulation
- Value-building phase
- Annuitization
- Income-payment phase
- Fixed annuity
- Insurer guarantees values
- Variable annuity
- Separate-account performance
- Indexed annuity
- Index-linked interest
- Immediate annuity
- Income begins soon
- Deferred annuity
- Income begins later
- Annuitant
- Measuring life
- Owner
- Controls contract
- Qualified plan
- Tax-code requirements
- Nonqualified annuity
- After-tax contributions
Fixed vs Variable Annuity
Fixed
- General account
- Insurer bears risk
- Guaranteed minimum
Variable
- Separate accounts
- Owner bears risk
- Securities registration
Guarantee vs market risk
Medicare Parts
A B C D maps coverage
A: hospitalB: medicalC: AdvantageD: drugs
HMO vs PPO
HMO
- Primary-care coordination
- Tighter network
- Referral model
PPO
- Broader choice
- Outside-network benefits
- Higher flexibility
Control vs flexibility
Health Coverage Picker
- Gatekeeper network→HMO
- Network flexibility→PPO
- HMO plus outside care→POS
- Savings-compatible high deductible→HDHP + HSA
- Lost earned income→Disability income
- Original Medicare gaps→Medigap
- Extended custodial care→Long-term care
- Specified diagnosis cash→Critical illness
Health Foundations
- Deductible
- Insured pays first
- Coinsurance
- Shared percentage
- Copay
- Fixed service amount
- Out-of-pocket maximum
- Annual cost-sharing ceiling
- Major medical
- Broad medical coverage
- HMO
- Managed network care
- PPO
- Preferred provider network
- POS
- HMO-PPO hybrid
- EPO
- Exclusive provider network
- HDHP
- High deductible plan
- HSA
- Individual tax-advantaged account
- FSA
- Employer cafeteria-plan account
- HRA
- Employer-funded reimbursement
Medicare vs Medicaid
Medicare
- Federal program
- Age or disability
- Parts A-D
Medicaid
- Federal-state program
- Needs based
- State administered
Eligibility differs
Uniform Health Provisions: Required vs Optional
- [Required] Entire contract
- Policy plus attached papers
- [Required] Time limit on defenses
- Limits later claim challenges
- [Required] Grace period
- Brief late-payment protection
- [Required] Reinstatement
- Restores lapsed coverage
- [Required] Notice of claim
- Starts claim process
- [Required] Claim forms
- Insurer supplies forms
- [Required] Proof of loss
- Documents covered loss
- [Required] Time of payment of claims
- Sets payment timing
- [Required] Payment of claims
- Identifies proper recipient
- [Required] Physical exam and autopsy
- Preserves limited insurer rights
- [Required] Legal actions
- Sets lawsuit timing
- [Required] Change of beneficiary
- Revocable unless irrevocable
- [Other tested clause] Renewability
- Defines continuation rights
- [Optional] Change of occupation
- Adjusts benefits to hazard
- [Optional] Misstatement of age
- Adjusts benefits to premium
- [Optional] Other insurance
- Coordinates duplicate coverage
- [Optional] Relation of earnings
- Limits income overinsurance
Coinsurance vs Copay
Coinsurance
- Percentage share
- Varies with charge
Copay
- Fixed amount
- Service based
Percent vs dollars
Disability + Group
- Disability income
- Replaces earned income
- Elimination period
- Benefits waiting period
- Benefit period
- Maximum payment duration
- Own occupation
- Cannot perform own work
- Any occupation
- Cannot perform suitable work
- Residual disability
- Partial income loss
- Recurrent disability
- Related disability returns
- Waiver of premium
- Premium waived during disability
- Group health
- Master contract coverage
- COBRA
- Temporary group continuation
- Coordination of benefits
- Orders multiple plans
- AD&D
- Accidental loss benefit
Public + Limited Plans
- Medicare Part A
- Hospital coverage
- Medicare Part B
- Medical coverage
- Medicare Part C
- Medicare Advantage
- Medicare Part D
- Prescription coverage
- Medicaid
- Needs-based public coverage
- Medigap
- Original Medicare gaps
- Long-term care
- Extended care services
- Critical illness
- Specified-diagnosis benefit
- Hospital indemnity
- Fixed hospital benefit
- Dread disease
- Named-disease coverage
- Dental
- Oral-care benefits
- Vision
- Eye-care benefits
Retest Clock
Two fails ninety; four fails 180
After two: 90 daysAfter four: 180 daysRelated lines share waits
Alabama Process Picker
- Need current allocation→ALDOI outline
- Register combined exam→University of Alabama
- Pass combined exam→Score 105+
- Apply producer license→NIPR
- Two failed attempts→Wait 90 days
- Four failed attempts→Wait 180 days
- Lapsed under twelve months→Online reinstatement
- Lapsed over twelve months→Retake exam
Alabama Licensing
- ALDOI
- State insurance regulator
- Certificate of authority
- Authorizes insurer
- Producer license
- Authorizes insurance activity
- Appointment
- Insurer authorizes producer
- Prelicense requirement
- Removed January 2024
- Exam certificate
- Valid one year
- Exam-pending temporary
- Maximum six months
- NIPR
- Online license application
- Citizenship proof
- Due within ten days
- Address change
- Report within 30 days
- Standard producer CE
- 24 hours biennially
- Standard ethics CE
- Three hours included
Misrepresentation vs Twisting
Misrepresentation
- False policy claim
- Any sales context
Twisting
- Misleading comparison
- Induces replacement
Broad falsehood vs replacement
Alabama Conduct
- Misrepresentation
- False policy statement
- Twisting
- Misleading replacement inducement
- Rebating
- Unstated sales inducement
- Defamation
- False malicious statement
- Boycott
- Restrictive concerted action
- Coercion
- Pressure distorts choice
- Unfair discrimination
- Unequal same-risk treatment
- False advertising
- Deceptive public claim
- Replacement
- New policy displaces old
- Annuity suitability
- Recommendation fits consumer
- Illustration
- Shows policy values
- Guaranty association
- Insolvency protection backstop
- Unauthorized insurer
- No guaranty protection
- Domestic abuse protection
- Limits discriminatory actions
Common Traps
Education vs examination
Prelicense mandate removed ≠ Producer exam still required
Counts vs percentages
ALDOI publishes counts ≠ Percentages require calculation
Certificate vs license
Exam certificate lasts one year ≠ License requires application
Life vs annuity
Life protects death risk ≠ Annuity protects longevity risk
Owner vs insured
Owner controls rights ≠ Insured supplies mortality risk
Deductible vs elimination
Deductible is money ≠ Elimination is time
Guaranty vs sales pitch
Covers eligible insolvency claims ≠ Never use as inducement
Combined vs separate retakes
Combined failures block all three ≠ Single-line failures block combined
Last Minute
- 1.Allocation: 30 / 55 / 45 / 20
- 2.Pass = 105 of 150
- 3.Time = 180 minutes
- 4.Term temporary; whole permanent
- 5.Universal flexible; variable market risk
- 6.Life creates; annuity liquidates
- 7.Deductible dollars; elimination time
- 8.Medicare eligibility; Medicaid financial need
- 9.Prelicense education not required
- 10.Exam certificate valid one year
- 11.Two failures trigger 90 days
- 12.Four failures trigger 180 days
- 13.NIPR handles license application
- 14.ALDOI outline controls allocation
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