A party is aggrieved by an order the Alabama commissioner made on hearing. Within how long after the order is mailed or delivered may the party appeal?Ala. Code 27-2-32(a)
After the three-month wait, an Alabama applicant fails the examination two more times. How long is the next wait?Ala. Code 27-7-4.3(e)
After what date may the Alabama commissioner no longer issue a new service representative license?Ala. Code 27-7-5(f)
The Alabama commissioner finds that a newly appointed producer is ineligible for appointment. How soon must the insurer be told?Ala. Code 27-7-30(b)
The Alabama Commissioner of Insurance becomes a candidate for another public office. What happens to the office of commissioner?Ala. Code 27-2-2(b)
An Alabama applicant fails the producer examination for a line of insurance twice. How long must the applicant wait before a further attempt?Ala. Code 27-7-4.3(e)
An Alabama applicant holds a temporary license while in a course of study supervised by the insurer. Who is responsible for the licensee's acts and omissions under it?Ala. Code 27-7-24(a)
Show all 78 questions (71 more)
Commissioner, licensing and producers, continued
An Alabama insurer files a statement of the facts and cause of a producer's termination. May it be used as evidence against the insurer by the terminated producer?Ala. Code 27-7-30(h)
An Alabama license is revoked for violating the rule on placing insurance without an appointment. For how long may it not be restored?Ala. Code 27-7-34(b)
An Alabama licensee changes mailing address and tells the commissioner late. What penalty does Ala. Code 27-7-17 set?Ala. Code 27-7-17(b)
An Alabama producer charged with a violation of Title 27 lets the license lapse. What becomes of the commissioner's power to penalize?Ala. Code 27-7-19(d)
An Alabama producer diverts premiums held as trust funds to his own use. Of what crime is he guilty upon conviction?Ala. Code 27-7-36(b)
An Alabama producer is licensed for both life and property lines. How many continuing education hours are required compared with a single-line producer?Ala. Code 27-8A-1(a)
An Alabama producer wants to place a risk with an insurer that has not appointed him. How may he do it?Ala. Code 27-7-34(a)
An Alabama producer works only in the office of an employing producer and holds no nonresident license elsewhere. What continuing education applies?Ala. Code 27-8A-1(d)
For how long after the effective date of the license is a newly licensed Alabama producer exempt from continuing education?Ala. Code 27-8A-1(c)
For how long at most is a temporary Alabama producer license valid when issued to the surviving spouse of a licensed producer who has died?Ala. Code 27-7-23(b)
For how long must an Alabama life and health producer keep complete records of transactions under the license at the place of business?Ala. Code 27-7-33(a)
How far in advance must the Alabama commissioner give notice of the time and place of a hearing, unless another provision sets a longer period?Ala. Code 27-2-29(a)
How many classroom hours of continuing education must an Alabama producer complete in each biennial renewal cycle?Ala. Code 27-8A-1(a)
To whom may the Alabama commissioner issue a temporary producer license when a licensed producer enters active service in the Armed Forces?Ala. Code 27-7-23(a)
What is the largest civil fine the Alabama commissioner may impose on a licensee, after hearing, for each violation?Ala. Code 27-7-19(c)
What must an Alabama producer hold before being licensed for the variable life and variable annuity products line of authority?Ala. Code 27-7-5(b)
What must the examination for an Alabama producer license test, besides the lines of authority applied for?Ala. Code 27-7-4.3(a)
Who appoints the Alabama Commissioner of Insurance, and for what term?Ala. Code 27-2-2(a)
Within how long must an Alabama insurer file a notice of appointment of a producer?Ala. Code 27-7-30(a)
Life insurance law 17
A 16-year-old in Alabama signs a promissory note to pay a life insurance premium. Is the minor bound by that unperformed agreement?Ala. Code 27-14-5(b)
An Alabama employee gets no notice of the right to convert group life coverage at least how long before the conversion period ends, and so gains an additional period?Ala. Code 27-18-14
An Alabama insurer has not paid a lump-sum death claim within 30 days after satisfactory proof. From what date is the interest it owes computed?Ala. Code 27-15-13(b)
An Alabama insurer wants to plead misrepresentation in the issuance of a life policy. What must accompany the plea?Ala. Code 27-14-7(b)
An Alabama life policy names a period within which a death claim will be settled after proofs are received. How long may that period be at most?Ala. Code 27-15-13(a)
An Alabama life policy states its policy loan interest as one specified figure, payable in advance. What may that figure not exceed?Ala. Code 27-15-8(a)
An excluded cause of death occurs when an Alabama life policy has been in force for one year. What must the insurer pay?Ala. Code 27-15-24(b)
For how long after a premium due date must an Alabama life policy stay in full force while the premium is unpaid?Ala. Code 27-15-3
From what age may a minor contract for insurance on his own life in Alabama, and how is the age measured?Ala. Code 27-14-5(b)
How does Alabama treat statements an applicant makes in an application for a life policy?Ala. Code 27-14-7(a)
On how many employees at the least must individual policies be issued for a plan to be "employee life insurance" in Alabama?Ala. Code 27-18-15
To whom may an individual make an Alabama policy on his or her own life payable?Ala. Code 27-14-3(b)
What is the most an Alabama group life insurer may pay, at its option, to a person who incurred the expenses of the insured's last illness or funeral?Ala. Code 27-18-9
What rate of interest does an Alabama life insurer owe on death proceeds it pays late under Ala. Code 27-15-13?Ala. Code 27-15-13(b)
When must an Alabama life policy issued after January 1, 1972 make a policy loan available?Ala. Code 27-15-8(a)
Which of these exclusions may an Alabama life insurance policy contain under Ala. Code 27-15-24?Ala. Code 27-15-24(a)
Which place of residence may an Alabama life policy use to exclude or restrict coverage for death?Ala. Code 27-15-24(a)
Twisting, replacement and annuities 8
After how long in force is an Alabama annuity contract issued on statements about the annuitant incontestable, except for nonpayment?Ala. Code 27-15-18
An Alabama producer advises a client to surrender a policy in exchange for one the producer offers, and the surrender hurts the client financially. When is that not a cause for license discipline?Ala. Code 27-7-19(a)(6)
Does the Alabama twisting section also reach a misleading comparison made to persuade a policyholder to keep a policy?Ala. Code 27-12-6
May a minor of 15 or more contract for an annuity in Alabama?Ala. Code 27-14-5(c)
What does the Alabama trade practices law call misleading, incomplete comparisons of policies made to induce a policyholder to lapse, surrender or exchange a policy?Ala. Code 27-12-6
What grace period must an Alabama annuity contract allow for a stipulated payment falling due after the first?Ala. Code 27-15-17
What is the highest interest an Alabama annuity contract may charge on a payment made during the grace period?Ala. Code 27-15-17
Which words may not be used in an Alabama life policy or annuity contract in a way that tends to mislead the buyer about what he will receive?Ala. Code 27-12-10(b)
Accident and health (disability) law 13
A returned Alabama Medicare supplement policy earns a refund. To whom must the issuer pay it?Ala. Code 27-19-57
After an Alabama long-term care policy has been in force for two years, on what ground alone may it still be contested?Ala. Code 27-19-106(c)
An Alabama disability policy ends coverage at an age limit, but the insurer accepts a premium for a period running past that date. What happens?Ala. Code 27-19-36
An Alabama insurer reserves the right to refuse renewal of an individual hospital policy. How much written notice must it give of its intent not to renew?Ala. Code 27-19-31(a)
An Alabama long-term care policy has been in force for four months. On what showing may the insurer rescind it?Ala. Code 27-19-106(a)
An individual disability insurance policy is returned to an Alabama insurer within 10 days of delivery. What is the result?Ala. Code 27-19-32
From when must an Alabama family health policy pay children's benefits for a newly born child of the insured?Ala. Code 27-19-38(a)
How long after delivery may an Alabama applicant return a Medicare supplement policy for a refund?Ala. Code 27-19-57
May an Alabama producer field issue a long-term care policy based on the applicant's health status?Ala. Code 27-19-106(d)
To how many employees of one employer, at the least, must policies be issued for disability insurance on a franchise plan in Alabama?Ala. Code 27-19-37
What may the required Alabama coverage for a newly born child leave out?Ala. Code 27-19-38(b)
When, at the earliest, may an Alabama insurer exercise a reserved right to refuse renewal of an individual hospital, medical or surgical policy?Ala. Code 27-19-31(a)
Which individual disability insurance policies need not carry the 10-day examination notice in Alabama?Ala. Code 27-19-32
Unfair trade practices and penalties 9
A false statement about an insurer is a prohibited malicious statement in Alabama when it is critical of, or derogatory to, what?Ala. Code 27-12-9
A health insurer delays an otherwise valid claim because the injured insured may have a liability claim against someone else. Does Alabama allow that?Ala. Code 27-12-25(a)
The Alabama commissioner serves a statement of charges for an unfair trade practice. How soon after service may the hearing be held?Ala. Code 27-12-18(a)
An Alabama insurer hands out advisory board contracts promising returns and profits as an inducement to insurance. What must the commissioner do about its certificate of authority?Ala. Code 27-12-10(a)
An Alabama life policy carries "coupons" or "guaranteed annual endowment" benefits. How must the premiums be shown?Ala. Code 27-12-10(c)
No greater penalty applies to a willful violation of the Alabama insurance title. What is the highest fine on conviction?Ala. Code 27-1-12
What is one sign Ala. Code 27-12-24 lists that an insurer refuses claims without just cause as a general business practice?Ala. Code 27-12-24
Which of these, offered as an inducement to buy life insurance, does the Alabama rebate section name along with a rebate of premiums?Ala. Code 27-12-12(a)
Whom does Ala. Code 27-12-23 forbid to knowingly make a false statement in an application for insurance?Ala. Code 27-12-23
Guaranty association 5
An Alabama resident holds a life policy and an annuity with the same failed insurer. Apart from hospital and major medical coverage, what is the association's overall cap for that one life?Ala. Code 27-44-3
How many member insurers sit on the board of the Alabama guaranty association?Ala. Code 27-44-7(a)
What is the Alabama guaranty association's limit on one life for basic hospital, medical and surgical or major medical insurance?Ala. Code 27-44-3
What is the name of the association that protects Alabama owners of life, disability and annuity policies when a member insurer fails?Ala. Code 27-44-6(a)
Which three accounts does the Alabama guaranty association keep for administration and assessment?Ala. Code 27-44-6(a)
How this list was compiled: Code of Alabama 1975, Title 27 (Insurance), chapters 1, 2, 7, 8A, 12, 14, 15, 18, 19 and 44, read on October 9, 2026 in the Code of Alabama as the Alabama Legislature publishes it at https://alison.legislature.state.al.us/code-of-alabama. The topics follow Part IV, Alabama Insurance Law, of the Producer Examination Content Outline for the Life and Health Examinations (Industry Advisory Committee review 8/8/2023), which the Alabama Department of Insurance posts at https://aldoi.gov/Licensing/ExamOutlines.aspx (the outline: https://aldoi.gov/PDF/Licensing/LHOutline.pdf). Licence: Own work. Every question, wrong choice and explanation was written for this site from the text of the law. Nothing comes from a testing vendor, a prep course, a study guidebook or an exam question pool.
How it works
This unofficial State of Alabama life insurance exam practice test covers Part IV of the life and health outline, Alabama Insurance Law: 78 of our own questions from Title 27 of the Code of Alabama. Not affiliated with the Alabama Department of Insurance.
Read the full guide
What Part IV of the Alabama exam covers
The Department's content outline gives Alabama Insurance Law 20 of the 150 questions on the combined life and health exam: 8 for all candidates, 7 for life and 5 for accident and health. The life-only exam has 18 law questions and the health-only exam 16. The groups here follow those three chapters.
An Alabama insurance exam study guide to the statutes
Each answer names its section of Title 27, so the bank reads as a study guide to the code. Topics the outline lists that rest on Department regulations, such as policy illustrations, replacement forms and annuity suitability, are not asked here.
A name, address or email change is reported within 30 days; late notice costs $50 (27-7-17).
A life policy may set a settlement period of at most two months after proofs of death (27-15-13).
Group life facility-of-payment clause: no more than $500 (27-18-9).
Questions and answers
How many questions are on the Alabama life and health insurance exam?
The Department's outline lists 150 questions in 180 minutes for the combined life and health exam, 125 in 150 minutes for life only and 100 in 120 minutes for health only. The minimum correct for a passing score is 105, 87 and 70.
How long do you wait after failing the Alabama insurance exam?
After two failed examinations for a line of insurance, three months from the last one. After two more failures, six months (Ala. Code 27-7-4.3). An examination fee is paid for each and every examination.
How many continuing education hours does an Alabama insurance producer need?
A minimum of 24 classroom hours every two years, three of them on insurance producer ethics, and no more for holding several lines. Newly licensed producers are exempt for 12 months after the license takes effect (Ala. Code 27-8A-1).
Are these the real Alabama insurance exam questions?
No. They are our own, written from the Code of Alabama. This site has never seen the state exam, and the Department of Insurance did not write or review them. Exam mode draws 20 questions, the size of the combined exam's law part.