The punishment for fraud or making false statements may include:

• Fines only

• Imprisonment

• Fines, imprisonment, or both

• Fines, imprisonment, and/or hard labor

The minimum capital required to form and organize a new domestic stock life insurance company in Alabama is:

• $50,000

• $500,000

• $1,000,000

• $2,000,000

Which of the following is needed to receive a producer's license after passing the state licensing exam?

• The producer must pay an appointment fee

• The producer must submit a uniform application for licensure with the Commissioner

• The producer must be interviewed by the Commissioner

• The producer must apply for a temporary license for the first 6 months

A producer may have his or her license revoked or suspended for all of the following reasons, EXCEPT:

• Failure to pay state income tax

• Providing incorrect, misleading, incomplete information to the Commissioner

• Forging another's name on an insurance document

• Failing to pay a traffic ticket on time

Under Alabama law, you cannot pay any valuable consideration to a person if they are not licensed as a producer. If a producer violates this provision, they are subject to a fine of up to:

• 3 times the premium paid

• 3 times the commission paid

• $1,000

• $10,000

Rebating occurs when a producer:

• Uses pressure tactics to convince the applicant to replace an existing policy with a new one

• Has made derogatory remarks regarding another insurance company to the applicant

• Gives a prospect a discount or kickback in order to induce a sale

• Fails to provide a conditional receipt upon receiving a signed application with payment of premium

The Alabama Life and Disability Insurance Guaranty Association provides protection for all of the following, EXCEPT:

• Guarantees payment of benefits

• Guarantees or reinsures the insurer's covered policies

• Loans money to the insurer

• Pay the insurer's creditors when facing insolvency

An insurer may reserve the right to defer the payment of a cash surrender value for up to _____ months after demand is made and the policy is surrendered.

• 1 month

• 2 months

• 3 months

• 6 months

A minor domiciled in Alabama who is 18 years old is competent to receive payments of up to _____ in any one year from a life insurance company, provided the insurer has not been notified of a guardian.

• $3,000

• $4,000

• $5,000

• $6,000

All of the following are true regarding advertising in life insurance, EXCEPT:

• Premiums cannot be referred to as 'deposits', 'deposit premiums', or 'investments', they may be referred to as 'premiums' only

• Advertisements may not omit the words 'life insurance' or 'annuity' from a policy's name

• Any reference to policy dividends must state that they are not guaranteed

• Premiums cannot be mentioned in an advertisement at all