Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Property & Casualty > Law Supplement Practice Exam > Flashcards

Law Supplement Practice Exam Flashcards

1
Q

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.

A

B. Appointed by the Governor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

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

A. Change the insurance laws for the good of the general public.

The Commissioner may

  1. enforce
  2. examine insurers
  3. supervise and administer the Insurance Department.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Upon written demand by a person aggrieved, the Commissioner must hold a hearing within:

A

D. 30 days after receipt of the demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The minimum capital required to form and organize a new domestic stock life insurance company in Alabama is:

A

$1 million

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

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?

A

3 months (90 days)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A temporary insurance producer license may be issued for up to__?

A

6 months

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Unless revoked or suspended, a producer license will remain in effect for ___?

A

As long as the license renewal fee is paid and the continuing education requirements are met.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A producer must keep complete records pertaining to transactions under the producer’s license for at least ___?

A

3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A licensee must inform the Commissioner of a change in legal name or address within how many days of the change?

A

30 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Continuing education requirements do not apply to producers licensed under ____ months at the time of their first renewal.

A

12 months/1 year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How many hours of CE must a producer complete per license renewal cycle?

A

24 hours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

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?

A

30 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Offering to give a prospect anything of value not specified in the contract to persuade the prospect to purchase the insurance is___?

A

“rebating”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

A binder is not valid beyond the issuance of the policy for which it was given or beyond how many days?

A

90 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

In some situations, a producer may request an extension in order to provide CE requirements. The extension, if granted, is more how many months?

A

3 months

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

A surplus lines broker must file a bond in the amount of___?

A

$50K

17
Q

The Insurance Guaranty Association is obligated to pay any covered claim that is more than $100 and less than ____?

A

$150,000.

18
Q

A surplus lines producer must file an affidavit form within how many days of the effective date of insurance?

A

30 days

19
Q

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

A

to obtain a lower premium

20
Q

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

A

C. Insurance through the assigned risk plan

21
Q

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?

A

10 days

22
Q

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.

A

C. It is not required but will be automatically included unless the insured rejects it in writing.

23
Q

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

A

C. Class C misdemeanor

24
Q

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?

A

3 years

25
Q

How often must the Commissioner examine domestic insurers?

A

At least every 5 years

26
Q

Which of the following statements regarding hearings is NOT correct?

A. The Commissioner may hold a hearing whenever he deems it is necessary.

B. Generally, a hearing must be held within 30 days after the Commissioner receives a written request.

C. The Commissioner may issue an emergency order prohibiting a person from violating the Insurance Code without first holding a hearing.

D. The Commissioner must give 30 days’ notice before holding a hearing about unfair trade practices.

A

C. The Commissioner may (not) issue an emergency order prohibiting a person from violating the Insurance Code without first holding a hearing.

27
Q

What nonprofit association in Alabama protects owners of policies issued by insolvent insurers?

A

The Alabama Insurance Guaranty Association

28
Q

What are the minimum hours (classroom or online) required for the driving course for insureds over age 55?

A

6 hours

29
Q

Which of the following statements regarding the fiduciary duty of a producer is CORRECT?

A. Premiums may be kept in the producer’s personal account.

B. A producer may never receive money meant for the insurer.

C. All premiums received by a producer must be held in trust and cannot be used for personal matters.

D. Up to $5,000 a month premium money may be used for the producer’s personal needs.

A

C. All premiums received by a producer must be held in trust and cannot be used for personal matters.

30
Q

The Commissioner of Insurance may conduct hearings regarding unfair trade practices by giving how many days’ notice to the parties involved?

A

10 days

31
Q

Which of the following is NOT an unfair claims settlement practice?

A. Refusing to pay claims without cause.

B. Compelling an insured to accept less than the amount due

C. Compelling insureds to employ attorneys to receive the amount due

D. Replacing one insurance policy with another

A

D. Replacing one insurance policy with another

32
Q

A producer who intentionally misrepresents the terms of an insurance contract may be fined up to___?

A

$10,000 per violation

33
Q

The Alabama Insurance Guaranty Association applies to which of the following lines of insurance?

A. Ocean marine
B. Title
C. Industrial fire
D. All the above

A

C. Industrial Fire

34
Q

Which of the following statements about company appointments is NOT correct?

A. Producers can transact insurance with insurers with whom they have appointments only.

B. Producers can hold appointments from only one insurer

C. Insurers must file a written notice of their appointments with the Director.

D. Appointments must be renewed annually.

A

D. Appointments must be renewed annually

35
Q

To ensure that its certificate of authority remains in effect, an insurer must pay the filing fee and

A. submit an annual statement by March 1

B. submit a financial statement by June 1

C. certify that it is solvent

D. certify that its certificate has not been suspended, revoked, or terminated.

A

A. submit an annual statement by March 1

Property & Casualty (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions