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Alabama Law Practice Exam Questions
with Detailed Verified Answers (100%
Correct Answers) /Already Graded A+
The Insurance Commissioner is
Ans: appointed by the Governor .
Any willful violation of insurance law that does not carry a specific penalty is
considered a misdemeanor , punishable by possible jail time and a fine of up to
Ans: $ 1,000 .
Your unlicensed brother – in – law Jeremy used some of your sales materials to
sell a Life policy to a friend of his . Now he wants the $ 400 commission you
would have been paid for the sale . If you pay the commission , how much could
you be fined for paying a commission to a non licensed person ?
Ans: $ 1,200
To be able to transact business in Alabama , an insurance company must
Ans: hold an Alabama Certificate of Authority .
The minimum age for obtaining a resident insurance Producer license is
Ans: 18 .
Before taking the written exam for a Producer license , an applicant for a Life
and Health license must complete prelicensing course hours from an approved
provider .
Ans: 40
Shauna was a licensed Producer in Texas when she moved to Alabama . Which
of the following steps is NOT required for her to obtain an Alabama resident
license ?
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Ans: Pass the Alabama written examination .
James Gilmore is a licensed Producer . When he becomes temporarily disabled
due to an accident , his wife is granted a temporary license to continue to
provide services to clients . The temporary license is valid for and can be
renewed once .
Ans: 6 months
If you cheat on the state exam , your license may be refused , suspended , or
revoked and you may be fined up to
Ans: $ 10,000
A Producer who sells Mr. Karnes a policy in March , 2015 must keep all records
of the tran action until
Ans: March , 2018 .
In order to get your Producer license reinstated if it has been lapsed for more
than 12 months , you must
Ans: start over with another prelicensing class , written exam , and application plus fees .
After changing your legal name or address , you must inform the Commissioner
within or pay a $ 50 penalty .
Ans: 30 days
After receiving your Producer license , you must still be ” appointed ” by to
transact insurance business in the state .
Ans: an insurance company whose policies you will sell
Which of the following is NOT an Unfair Trade Practice in Alabama ?
Ans: Failure to pay state income taxes
James , a Life Producer , ” borrowed ” $ 1,000 from a client’s account to pay
some personal bills . His lapse of judgment was discovered before he could
return the money . James is guilty of
