Alabama Life Insurance and Annuity Contracts

What this document is

Alabama Life Insurance and Annuity Contracts - Ala. Code Title 27, Chapter 15 (Art. 1 General Provisions; Art. 2 Unclaimed Life Insurance Benefits Act; Art. 3 Standard Nonforfeiture Law for Life Insurance) is a state statute published by alison.legislature.state.al.us. It is one of the Alabama documents that insurance license exam questions are written from, including alabama life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Ala. Code tit. 27 § 27-15-25 (Contestability of Reinstated Policies)

  “A reinstated policy of life insurance or annuity contract may be contested on account of fraud or misrepresentation of facts material to the reinstatement only for the same period following reinstatement and with the same conditions and exceptions as the policy provides with respect to...”

• Ala. Code tit. 27 § 27-15-3 (Life Insurance Policy Provisions - Grace Period)

  “There shall be a provision that a grace period of 30 days or, at the option of the insurer, of one month of not less than 30 days shall be allowed within which the payment of any premium after the first may be made, during which period of grace the policy shall continue in full force; but if a...”

• Ala. Code tit. 27 § 27-15-11 (Life Insurance Policy Provisions - Reinstatement)

  “There shall be a provision that unless the policy has been surrendered for its cash value, or its cash surrender value has been exhausted or the period of any extended insurance provided by the policy has expired, the policy will be reinstated at any time within three years after the date of...”

• Ala. Code tit. 27 § 27-15-6 (Life Insurance Policy Provisions - Misstatement of Age or Sex)

  “There shall be a provision that if the age or sex of the insured or of any other person whose age or sex is considered in determining the premium has been misstated, any amount payable or benefit accruing under the policy shall be such as the premium would have purchased at the correct age or sex.”

• Ala. Code tit. 27 § 27-15-15 (Effect of Incontestability Clause)

  “A clause in any policy of life insurance or annuity contract providing that such policy or contract shall be incontestable after a specified period shall preclude only a contest of the validity of the policy or contract and shall not preclude the assertion at any time of defenses based upon...”

• Ala. Code § 27-15-12(b) (Life Insurance Policy Provisions - Payment of Premiums; Increases)

  “(b) A premium may not be increased unless the policy or a document delivered with the policy contains a provision in writing placing the consumer on notice that the premium may be increased; provided that nothing contained in this subsection shall be interpreted to require the continuation of...”

• Ala. Code § 27-15-13(b) (Life Insurance Policy Provisions - Settlement of Claims)

  “(b) Notwithstanding any other provision of law regarding payment of interest on contracts, if an insurer fails to pay the proceeds of or make payment under a policy pursuant to a death claim within 30 days after receipt of satisfactory proof of death and of the interest of the claimant, and if the...”

• Ala. Code § 27-15-24(b) (Exclusions and Restrictions in Life Insurance Policies)

  “(b) A policy which contains any exclusion or restriction pursuant to subsection (a) of this section shall also provide that in the event of death under the circumstances to which any such exclusion or restriction is applicable the insurer will pay an amount not less than a reserve determined...”

• Ala. Code § 27-15-5 (Life Insurance Policy Provisions - Entire Contract; Representations)

  “There shall be a provision that the policy, or the policy and the application or a summary of such application, if a copy of the application or a summary thereof is endorsed upon or attached to the policy when issued, shall constitute the entire contract between the parties and that all statements...”

• Ala. Code § 27-15-4 (Life Insurance Policy Provisions - Incontestability)

  “There shall be a provision that the policy, exclusive, at the option of the insurer, of provisions relating to disability benefits or to additional benefits in the event of death by accident or accidental means, shall be incontestable, except for nonpayment of premiums, after it has been in force...”

• Ala. Code § 27-15-7 (Life Insurance Policy Provisions - Dividends)

  “There shall be a provision in participating policies that, beginning not later than the end of the third policy year, the insurer shall annually ascertain and apportion the divisible surplus, if any, that will accrue on the policy anniversary or other dividend date specified in the policy, provided...”

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Questions about this source

More Alabama sources

• Alabama Producer Examination Content Outline - Life and Health ExaminationsCandidate handbook or exam outline
• Alabama Producer Examination Content Outline - Property and Casualty ExaminationsCandidate handbook or exam outline
• Alabama Code § 27-12-6 - TwistingState statute
• Alabama Code Title 27, Chapter 19, Article 1 - Disability Insurance Policies (Secs. 27-19-1 to 27-19-22)State statute
• Alabama Disability (Accident and Health) Insurance Policy Provisions - Ala. Code Title 27, Chapter 19, Article 1, General Provisions (§§ 27-19-1 through 27-19-39)State statute
• Alabama Group and Blanket Disability (Health) Insurance - Ala. Code Title 27, Chapter 20 (§§ 27-20-1 through 27-20-7)State statute
• Alabama Group Life Insurance - Ala. Code Title 27, Chapter 18 (§§ 27-18-1 through 27-18-16)State statute
• Alabama Insurance Contract, General Provisions - Ala. Code Title 27, Chapter 14 (§§ 27-14-1 through 27-14-32)State statute