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P & C > Alabama Law > Flashcards

Alabama Law Flashcards

1
Q

How is the Alabama Insurance Commissioner selected?

A

The Alabama Insurance Commissioner is appointed by the Governor.

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2
Q

What is the commissioners biggest job?

A

To protect the public
The Commissioner regulates insurance companies, protects consumers, licenses agents and companies, conducts market conduct examinations, approves rates and forms, investigates fraud, and provides public education.

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3
Q

How often does the Alabama Insurance Commissioner conduct financial examinations of domestic insurance companies?

A

At least once every five years.

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4
Q

What are market conduct examinations, and how often are they conducted by the Alabama Insurance Commissioner?

A

Market conduct examinations review insurance companies’ practices regarding policyholder treatment, claims handling, and regulatory compliance. They may be conducted more frequently than financial examinations if necessary.

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5
Q

refers to an insurance company that has sufficient financial resources to meet its obligations, such as paying policyholder claims and other liabilities, as they come due.

A

Solvent insurance

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6
Q

What are the general requirements to become a property and casualty insurance agent in Alabama?

A

The general requirements include being at least 18 years old, completing pre-licensing education, passing the state licensing exam, submitting an application, and paying the required fees.

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7
Q

What is the pre-licensing education requirement for a property and casualty insurance agent in Alabama?

A

Candidates must complete 40 hours of pre-licensing education, which includes both property and casualty insurance courses.

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8
Q

How long is the Alabama property and casualty insurance license valid for?

A

Valid for two years and as long as all renewal fees are paid

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9
Q

What must be done to maintain an Alabama property and casualty insurance license?

A

License holders must complete 24 hours of continuing education classroom hours every two years, including 3 hours of ethics or business practices, and renew their license before it expires.

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10
Q

What are the carry over provisions for continuing education credits in Alabama for property and casualty insurance agents?

A

Excess hours will not be carried over

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11
Q

refers to an insurance company that lacks sufficient financial resources to meet its obligations, such as paying policyholder claims and other liabilities, as they come due.

A

Insolvent Insurance

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12
Q

What are some common causes of insurance company insolvency?

A

Common causes include inadequate pricing of insurance products, poor investment strategies, excessive claims, fraud, and mismanagement.

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13
Q

What is the term length for the Alabama Insurance Commissioner?

A

What is the term length for the Alabama Insurance Commissioner?

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14
Q

Who pays for the examinations conducted by the Alabama Insurance Commissioner?

A

The costs of examinations conducted by the Alabama Insurance Commissioner are typically borne by the insurance company being examined.

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15
Q

How long do you have to pass your property and casualty insurance exam after completing pre-licensing education in Alabama?

A

In Alabama, you must pass the property and casualty insurance exam within 12 months of completing your pre-licensing education

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16
Q

What is a Certificate of Authority in Alabama?

A

A Certificate of Authority is a license that allows an insurance company to legally operate and sell insurance products within the state of Alabama.

17
Q

Who issues the Certificate of Authority in Alabama?

A

The Alabama Department of Insurance issues the Certificate of Authority.

18
Q

What are the requirements for obtaining a Certificate of Authority in Alabama?

A

Requirements include submitting an application, providing financial statements, demonstrating compliance with state laws, and paying the required fees.

19
Q

Can an insurance company operate in Alabama without a Certificate of Authority?

A

No, an insurance company must have a Certificate of Authority to legally conduct insurance business in Alabama.

20
Q

What might cause the revocation of a Certificate of Authority in Alabama?

A

Causes for revocation include non-compliance with state laws, financial insolvency, fraudulent activities, and failure to pay fees.

21
Q

How often must an insurance company renew its Certificate of Authority in Alabama?

A

Insurance companies must renew their Certificate of Authority annually.

22
Q

What is the Alabama Insurance Guaranty Association (AIGA)?

A

The Alabama Insurance Guaranty Association is a state-mandated organization that provides protection to policyholders if an insurance company becomes insolvent.

23
Q

Are all insurance companies required to be members of the Alabama Insurance Guaranty Association?

A

Yes, all insurers licensed to sell property and casualty insurance in Alabama must be members of the AIGA.

24
Q

What is the exception to having a Certification of Authority?

A

Surplus Lines provide coverage for risks that licensed insurers are unwilling or unable to insure, do not need a Certificate of Authority but must be approved by the Alabama Department of Insurance.

25
Q

What are surplus lines insurers?

A

Surplus lines insurers provide coverage for high-risk or unique insurance needs that standard insurers do not cover, and they are regulated differently from admitted insurers.

26
Q

What must surplus lines insurers do to operate legally in Alabama without a Certificate of Authority?

A

Surplus lines insurers must be approved by the Alabama Department of Insurance and must comply with surplus lines regulations, including the payment of applicable taxes and fees.

27
Q

When must the commissioner hold the hearing?

A

Within 30 days after the demand

28
Q

What is the Alabama Insurance Guaranty Association?

A

Pays covered claims under property and casualty policies to avoid excessive delays in payment and tp prevent claimants and policyholder financial losses that may result when a insurer becomes involvent

29
Q

How does the Guaranty Association carry out its duties?

A

each member insurer is assessed an amount to pay the claims of an insolvent insurer.

30
Q

How is insurance ran?

A

Insurance is a state ran program

31
Q

Who runs the state insurance?

A

ALDOI

32
Q

Who handles all the insurance laws within AL?

A

AL Dept of Insurance

33
Q

The person who is in charge of the ALDOI?

A

Chief Executive Officer

34
Q

Every ___________________ picks their own ___________ and ______________ for insurance

A

Every state picks their own rules and laws when it comes to insurance.

35
Q
A
36
Q
A

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