Law Supplement Practice Exam Flashcards
In Alabama, the Commissioner of Insurance is
A. voted into office by general election
B. appointed by the governor
C. selected by the state Senate
D. appointed for a 2-year term by the Secretary of State.
B. Appointed by the Governor
The Commissioner may do all of the following EXCEPT
A. change insurance laws for the good of the general public
B. enforce the provisions of the insurance law
C. conduct examinations of insurance companies
D. supervise and administer the Insurance Department.
A. Change the insurance laws for the good of the general public.
The Commissioner may
- enforce
- examine insurers
- supervise and administer the Insurance Department.
Upon written demand by a person aggrieved, the Commissioner must hold a hearing within:
D. 30 days after receipt of the demand
The minimum capital required to form and organize a new domestic stock life insurance company in Alabama is:
$1 million
An applicant who fails 2 examinations for the same line of authority must wait how long to take another examination for that line of authority?
3 months (90 days)
A temporary insurance producer license may be issued for up to__?
6 months
Unless revoked or suspended, a producer license will remain in effect for ___?
As long as the license renewal fee is paid and the continuing education requirements are met.
A producer must keep complete records pertaining to transactions under the producer’s license for at least ___?
3 years
A licensee must inform the Commissioner of a change in legal name or address within how many days of the change?
30 days
Continuing education requirements do not apply to producers licensed under ____ months at the time of their first renewal.
12 months/1 year
How many hours of CE must a producer complete per license renewal cycle?
24 hours
If the Commissioner denies a request for an extension to comply with the CE requirements, the licensee must complete the CE requirements within how many days of being notified of the denial?
30 days
Offering to give a prospect anything of value not specified in the contract to persuade the prospect to purchase the insurance is___?
“rebating”
A binder is not valid beyond the issuance of the policy for which it was given or beyond how many days?
90 days
In some situations, a producer may request an extension in order to provide CE requirements. The extension, if granted, is more how many months?
3 months
A surplus lines broker must file a bond in the amount of___?
$50K
The Insurance Guaranty Association is obligated to pay any covered claim that is more than $100 and less than ____?
$150,000.
A surplus lines producer must file an affidavit form within how many days of the effective date of insurance?
30 days
Surplus lines insurance may be obtained in all the following situations, EXCEPT
A. to obtain insurance not available from authorized insurers
B. to obtain a lower premium
C. if obtained through a licensed surplus lines producer
D. the insurance has been obtained to the full extent authorized insurers are willing to insure
to obtain a lower premium
When an automobile policy is cancelled for any reason other than nonpayment of premium, the insurer must notify the named insured of his possible eligibility for
A. insurance with the parent insurer
B. insurance with the state financial responsibility fund
C. insurance through the assigned risk plan
D. insurance through the FAIR plan
C. Insurance through the assigned risk plan
A notice of cancellation of an automobile policy for nonpayment of premium must be mailed or delivered to the named insured at least how many days before the effective date of cancellation?
10 days
Which of the following statements about uninsured/underinsured motorist coverage is TRUE?
A. It is not available in Alabama
B. It is required in Alabama
C. It is not required but will be automatically included unless the insured rejects it in writing.
D. It will be included only if the insured specifically requests it in writing.
C. It is not required but will be automatically included unless the insured rejects it in writing.
Operating a motor vehicle that is not covered by a liability insurance policy as required by law is:
A. Class A misdemeanor
B. Class B misd
C. Class C misd
D. Class a felony
C. Class C misdemeanor
A premium reduction for an insured who is 55 years or older and who completes an approved motor vehicle accident prevention course is effective for how many years after the insured completes the course?
3 years
