Alabama Life & Health Insurance

Which state agency is responsible for regulating insurance companies and producers in Alabama?

• AAlabama Insurance Commission
• BAlabama Department of Insurance (ALDOI)
• CAlabama Bureau of Insurance Regulation
• DAlabama Department of Finance, Insurance Division

How is the Alabama Commissioner of Insurance selected?

• AElected by popular vote in a statewide election
• BAppointed by the Governor and confirmed by the Alabama Senate
• CAppointed by the Alabama Legislature
• DSelected by a board of insurance industry representatives

Which statement about pre-licensing education for the Alabama life and health insurance producer license is correct?

• AAlabama mandates 40 hours of state-approved pre-licensing education before the exam
• BAlabama no longer requires pre-licensing education; candidates may sit for the exam witho…
• CAlabama requires 24 hours of pre-licensing education plus a 3-hour ethics course
• DAlabama requires 90 hours of pre-licensing education for combined life and health

What is the minimum age requirement to obtain an insurance producer license in Alabama?

• A16 years old
• B18 years old
• C19 years old
• D21 years old

An Alabama insurance producer fails to renew their license before the expiration date. What is the consequence under Alabama law?

• AThe license is automatically renewed with a late fee
• BThe producer may continue selling for 30 days while completing renewal
• CThe producer must cease all insurance activities until the license is reinstated
• DThe ALDOI will issue a temporary permit valid for 90 days

Which of the following actions would the Alabama Commissioner of Insurance be authorized to take against a licensed producer who violates Title 27?

• AImpose criminal penalties including imprisonment
• BRevoke, suspend, or refuse to renew the producer's license and impose civil penalties
• COrder the producer to pay restitution directly to consumers without a hearing
• DTransfer the producer's license to another state for disciplinary proceedings

Under Alabama's CE requirements, how many of the 24 required biennial hours must be in ethics?

• A2 hours
• B3 hours
• C4 hours
• D6 hours

An Alabama insurance producer changes their residential address. Within what time frame must they notify the Alabama Department of Insurance?

• AWithin 10 days
• BWithin 30 days
• CWithin 60 days
• DWithin 90 days

Under Alabama law, which type of producer license allows an individual to sell both life insurance and annuities?

• ALife insurance license only
• BAnnuity license only
• CLife insurance license, which includes the authority to sell annuities
• DA separate combined life and annuity license must be obtained

Under Alabama insurance law, what is the role of the ALDOI in market conduct examinations?

• AThe ALDOI only conducts examinations when requested by the insurance company
• BThe ALDOI has authority to examine the business affairs and practices of any insurer or p…
• CMarket conduct examinations are handled exclusively by the federal government
• DThe ALDOI may only examine domestic insurers, not foreign or alien companies

What is the standard free look period for an individual life insurance policy delivered in Alabama?

• A7 days
• B10 days
• C20 days
• D30 days

In Alabama, what is the standard contestability period for life insurance policies?

• A1 year from the date of issue
• B2 years from the date of issue
• C3 years from the date of issue
• D5 years from the date of issue

An Alabama resident purchases a whole life insurance policy and names their spouse as the primary beneficiary. Under Alabama law, which of the following is TRUE about changing the beneficiary?

• AThe policyholder must obtain the beneficiary's written consent to make a change
• BThe policyholder can change the beneficiary at any time unless an irrevocable designation…
• CBeneficiary changes must be approved by the Alabama Department of Insurance
• DBeneficiary changes are only permitted during the policy's anniversary period