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Alabama life and health practice exam

Free life and health practice for the Alabama producer exam: 273 general questions plus 10 Alabama state law questions, each with an explanation.

Alabama state law questions

Every Alabama question with its answer, explanation, and the law it comes from.

State laws change. Always confirm details with the Alabama insurance department and your exam's content outline.

Licensing and CE

4 questions

1. How many CE hours must most Alabama producers complete each biennial renewal period?

  1. 12 hours, with no ethics requirement
  2. 16 hours, of which 3 should be in ethics
  3. 24 hours, of which 3 should be in ethics
  4. 30 hours, of which 3 should be in ethics
Show answer
C. 24 hours, of which 3 should be in ethics
Alabama Department of Insurance. Renewal is due by the last day of the licensee's birth month.
Source: Alabama Department of Insurance, Continuing Education General Information

2. How many CE hours must an Alabama producer complete who works only in the employer's office and holds no nonresident licenses elsewhere?

  1. No CE is required
  2. 12 hours, of which 2 should be in ethics
  3. 24 hours, of which 3 should be in ethics
  4. 6 hours, of which 1 should be in ethics
Show answer
B. 12 hours, of which 2 should be in ethics
Alabama Department of Insurance.
Source: Alabama Department of Insurance, Continuing Education General Information

3. Which statement about excess CE hours in Alabama is correct?

  1. All excess hours carry over
  2. Up to 12 hours carry over
  3. Only ethics hours carry over
  4. Since January 1, 2013, excess hours cannot be carried over
Show answer
D. Since January 1, 2013, excess hours cannot be carried over
Alabama Department of Insurance.
Source: Alabama Department of Insurance, Continuing Education General Information

4. An Alabama producer who has been licensed for less than how long at the first renewal is exempt from CE for that renewal?

  1. 6 months
  2. 12 months
  3. 3 months
  4. 24 months
Show answer
B. 12 months
Alabama Department of Insurance.
Source: Alabama Department of Insurance, Continuing Education General Information

Life Policy Provisions

4 questions

1. Alabama requires a life insurance grace period of:

  1. 30 days, or at the insurer's option, one month of not less than 30 days
  2. 31 days
  3. 60 days
  4. 10 days
Show answer
A. 30 days, or at the insurer's option, one month of not less than 30 days
Ala. Code 27-15-3.
Source: Ala. Code 27-15-3 (Grace period)

2. In Alabama, a life policy becomes incontestable, except for nonpayment of premium, after it has been in force during the insured's lifetime for:

  1. 3 years from its date of issue
  2. 1 year from its date of issue
  3. 2 years from its date of issue
  4. 5 years from its date of issue
Show answer
C. 2 years from its date of issue
Ala. Code 27-15-4.
Source: Ala. Code 27-15-4 (Incontestability)

3. In Alabama, a lapsed life policy may be reinstated within:

  1. 1 year after the date of premium default
  2. 3 years after the date of premium default
  3. 2 years after the date of premium default
  4. 5 years after the date of premium default
Show answer
B. 3 years after the date of premium default
Ala. Code 27-15-11.
Source: Ala. Code 27-15-11 (Reinstatement)

4. An Alabama life policy may specify a period for settling a death claim, but that period may not exceed:

  1. 1 year from receipt of proofs
  2. 30 days from receipt of proofs
  3. 6 months from receipt of proofs
  4. 2 months from receipt of proofs
Show answer
D. 2 months from receipt of proofs
Ala. Code 27-15-13. If payment is not made within 30 days, interest is owed.
Source: Ala. Code 27-15-13 (Settlement of claims)

Guaranty Association

2 questions

1. The Alabama Life and Disability Insurance Guaranty Association covers life insurance death benefits up to:

  1. $100,000
  2. $250,000
  3. $300,000
  4. $500,000
Show answer
C. $300,000
Cash values are covered to $100,000, according to the NAIC's chart of state guaranty laws.
Source: NAIC Life and Health Guaranty Fund Laws chart (Alabama row, Ala. Code 27-44)

2. The Alabama guaranty association covers the present value of annuity benefits up to:

  1. $250,000
  2. $100,000
  3. $300,000
  4. $500,000
Show answer
A. $250,000
According to the NAIC's chart of state guaranty laws.
Source: NAIC Life and Health Guaranty Fund Laws chart (Alabama row, Ala. Code 27-44)

Keep studying

The general topics make up most of the exam.

General ConceptsLifePolicy TypesLifeProvisions, Options, and RidersLifeUnderwriting and DeliveryLifeAnnuitiesLifeTaxes, Retirement, and Business UsesLifeInsurance BasicsLifePlan Types and BasicsHealthUniform Mandatory ProvisionsHealthOptional ProvisionsHealthRenewabilityHealthDisability IncomeHealthMedical Expense and ContinuationHealthGroup Insurance and AD&DHealthMedicare, Medicaid, and LTCHealthFederal Health LawsHealth

Alabama exam questions

How much of the Alabama life and health exam is state law?

State law is usually around 20 to 30 percent of a state's producer exam. Check the Alabama candidate handbook from your testing provider for the exact content outline.

What does the Alabama state law section cover?

Common areas include licensing and continuing education, required policy provisions, replacement rules, and the guaranty association. This page covers: licensing and ce, life policy provisions, guaranty association.

Where do these state questions come from?

Each state question is written from the state's statutes, regulations, or insurance department guidance, and the source is linked under the answer so you can read it yourself.

Do I still need the general questions?

Yes. Most of the exam is general life and health knowledge. The full exam option here mixes 273 general questions with the Alabama state law questions.