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Alabama Laws and Rules Pertinent to
Property and Casualty Insurance Questions
with Detailed Verified Answers (100%
Correct Answers) /Already Graded A+
all of the following conditions apply to the placement of insurance with surplus
carriers in Alabama EXCEPT:
Ans: Consumers are often able to use surplus lines carriers to get a better price for coverage
Which of the following statements the violation of licensing requirements is true?
Ans: violations are considered felonies.
Which of the following statements regarding uninsured motorist coverage is
correct?
Ans: The minimum amount of uninsured motorist coverage that may be sold is $25,000 per
person, and $50,000 per accident for bodily injury.
Within how many days of a written demand must the commissioner of insurance
hold a hearing?
Ans: 30
A ______ company is one that is domiciled in another state and has NOT
received a license to do business in Alabama.
Ans: foreign Non admitted.
Projects funded by the strengthen Alabama homes program (SAH)
Ans: Must comply with fortified for existing homes program requirements.
All of the following are acceptable for providing evidence of insurance, EXCEPT:
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Ans: Proof of purchase for a newly purchased automobile
Julio, the insurance producer, has allowed his license to lapse. He would like to
reinstate his license without retaking a prelicense course or passing a written
examination. To do this, Julio must reinstate the license within ___ months of the
renewal date.
Ans: 12
When Ellen paid the initial premium her application, her agent, Bob, told her she
was covered, which was:
Ans: An oral binder that needs to be in writing as soon as possible
What is the difference between the terms of a binder and the terms of the
actual policy that replaces it?
Ans: there are none
The minimum amount of uninsured motorist coverage that may be sold is
Ans:
An insurance company licensed to do business in Alabama, but incorporated in
another state, is called:
Ans: A foreign company
The coverage territory of a standard auto liability policy includes all of the
following EXCEPT:
Ans: Mexico
If an insured driver has more than one vehicle to a single uninsured motorist
coverage of up to how many vehicles to a single accident?
Ans: three
Which of the following vehicles are covered by Alabama’s personal automobile
insurance laws?
Ans: A pick-up truck owned by someone who works for a car dealer
