Alabama Laws & Regs Pertinent to Casualty Only--Auto

Question 1

GROUNDS FOR POLICY CANCELLATION: An automobile insurance policy may only be cancelled for one or more of the following reasons:

**DOES NOT APPLY TO ANY AUTO POLICY THAT HAS BEEN IN EFFECT LESS THAN 60 DAYS AT THE TIME THE CANCELLATION NOTICE IS MAILED OR DELIVERED BY THE INSURER **UNLESS IT IS A RENEWAL POLICY.

Answer 1

1. nonpayment of premium
2. material misrepresentation
3. violations of any of the terms and conditions of the policy
4. failing to disclose MVA and traffic violations for the preceding 36 MONTHS IF ASKED in the application.
5. failing to disclose on written app info necessary for acceptance or properly rating risk;
6. making a false or fraudulent claim OR aiding another in presentation of such a claim;
7. failing to maintain membership in any group or organization when it is a prerequisite to purchase insurance;
8. the named insured or any other operator who RESIDES in the same household OR CUSTOMARILY OPERATES an auto insured under the policy: (5)
9. driver’s license suspended or revoked within 36 months prior to cancellation notice,
10. is subject to epilepsy or heart attacks,
11. has an accident record or conviction record or a physical, mental, or other condition that would endanger public safety,
12. has been addicted to drugs within 36 months prior to the cancellation notice, or
13. drinks alcohol in excess
14. Conviction during the preceding 36 months for (6):
15. any felony
16. criminal negligence resulting in death arising out of the operation of a motor vehicle,
17. DUI
18. hit and run
19. false statements in a driver’s license application
20. The insured automobile is: (6)
21. mechanically defective, and operation may endanger public safety,
22. used in carrying passengers for hire or compensation,
23. used in the business of transporting explosives or flammable materials,
24. an authorized emergency vehicle,
25. changed in shape or condition during the policy period, that increases the risk, OR
26. Subject to an inspection law and has not been inspected, or if inspected, failed to qualify.

Question 2

A notice of cancellation is not effective unless mailed or delivered by the insurer to named insured at least 1.____ days prior to 2._____.

If cancellation is for nonpayment of premium, only 3.____ days notice of cancellation is required, but must be accompanied by 4._______.

If the reason for cancellation is not included in the notice, the notice must state that the named insured will be given the reasons for cancellation if he requests them in writing from the insurer no less than 5.___days prior to the effective date of cancellation.

**Proof of mailing of the cancellation notice or the reasons for cancellation to the named insured at the address shown in the policy is sufficient proof of notice.

Answer 2

1. 20 days
2. prior to the effective date of cancellation.
3. 10 days
4. the reason for cancellation.
5. 15 days.

Question 3

Uninsured/underinsured insurance is not required but will be automatically included in the policy unless _____.

Answer 3

Unless the coverage is rejected in writing by the insured.

Question 4

Mandatory Auto Liability Insurance: No person may operate or register a vehicle unless the motor vehicle is covered by a 1._________, 2._________, or 3.________.

Answer 4

1. liability insurance policy
2. motor vehicle liability bond
3. deposit of cash.

Question 5

The coverage limits of an auto liability insurance policy must be at least: 1.$______ for bodily injury or death to one person in any one accident.

2. $______ for bodily injury or death of two or more persons in any one accident; and
3. $_____ for damage to property of others in any one accident.

–A motor vehicle liability bond or deposit of cash with the ______ must be in the amount of at least $______.

Answer 5

1. $25,000 for bodily injury or death to one person in any one accident;
2. $50,000 for bodily injury or death of two or more persons in any one accident; and
3. $25,000 for damage to property of others in any one accident.
4. A motor vehicle liability bond or deposit of cash with the state treasurer must be in the amount of at least $50K.

Question 6

Sufficient evidence of insurance for a rental vehicle includes a current 1._______, specifying 2.______.

Answer 6

1. Current motor vehicle rental agreement for the vehicle

2. Specifying insurance coverage by the rental company or operator in the minimum required amounts.