Alabama Life And Health Study Guide Questions And Correct Answers

The application has two parts. Part 1 is? A. Agent's comments on the applicant. B. The applicant's health history. C. Medical Information Bureau Report. D. General information about the applicant. {Ans: D. General information about the applicant.}The fundamental insurance concept that an insured should not profit from a loss but should be restored in whole or in part to the approximate financial condition occupied before the loss is known as the principle of A. insurable interest. B. adverse selection. C. indemnity. D. estoppel. {Ans: C. indemnity}When an insurer cedes part of an insured's coverage to another insurance company, retaining only part of the risk for itself, the insurer is engaging in A. expense loading. B. reinsurance. C. unfair discrimination. D. misrepresentation. {Ans: reinsurance}Under which of the following circumstances will the payor rider waive premiums and allow a life insurance policy to remain in force? A. If the policyowner dies or becomes disabled prior to the insured reaching either age 21 or 25. B. If the policyowner dies or becomes disabled prior to reaching age 65. C. If the insured becomes disabled prior to age 21 or 25. D. If the insured dies prior to age 21 or