Free Alabama Life Accident Health Practice Test Online

Correct answer: A. Be trustworthy and competent, and have not committed an act constituting grounds for license denial, suspension, or revocation

Correct. Section 27-7-5 requires that applicants be trustworthy and competent and not have committed disqualifying acts, regardless of line of authority.

• B: Alabama does not require a specific college degree to become a licensed producer.
• C: There is no statutory requirement of prior out-of-state selling experience for a first-time resident license.
• D: Alabama does not require sponsorship letters from other producers as part of the statutory qualifications.

Correct answer: B. One or more distinct lines of authority (life and accident & health) that a producer may hold together, renewable biennially

Correct. Life and accident & health are separate lines of authority under Section 27-7-14.1 that a producer commonly holds together on one license, renewed on the standard biennial cycle.

• A: Alabama does not renew major lines licenses annually, and CE is required.
• C: A 90-day temporary license is not how a standard resident life/health producer license is structured.
• D: Alabama continues to actively issue life and accident & health lines of authority; this option is factually wrong.

Correct answer: C. An initial 8-hour long-term care course, followed by a 4-hour refresher during each subsequent renewal period

Correct. ALDOI requires an initial 8-hour long-term care course before selling, soliciting, or negotiating LTC insurance, plus a 4-hour refresher each renewal period.

• A: Long-term care sales carry a specific, additional training mandate beyond the general CE hours in Alabama.
• B: The requirement is not a single 40-hour course with no ongoing refresher; it recurs each renewal cycle.
• D: Long-term care training is a topic-specific requirement layered onto the existing life/accident & health license, not a wholly separate license category.

Correct answer: D. 31 days, or a period of not less than 30 days at the insurer's option

Correct. Section 27-15-3 requires a grace period of 30 days, or one month of not less than 30 days at the insurer's option, during which the policy remains in force.

• A: 7 days is far shorter than Alabama's statutory grace period for life insurance.
• B: Alabama does require a statutory grace period provision in individual life policies; this option is incorrect.
• C: 60 days overstates the statutory grace period requirement.

Correct answer: A. Prevents the insurer from contesting the validity of the policy, except for nonpayment of premiums, though it does not preclude defenses based on provisions that exclude or restrict coverage

Correct. Section 27-15-4 makes the policy incontestable (except for nonpayment of premium) after two years, though it only bars contesting validity, not the application of provisions that legitimately exclude or restrict coverage.

• B: The incontestability clause is meant to limit, not expand, the insurer's ability to contest the policy after the specified period.
• C: Incontestability has nothing to do with doubling the death benefit; that describes an accidental death (double indemnity) rider.
• D: Not filing a claim does not cancel a policy; incontestability relates to disputing the policy's validity, not claim activity.