Alabama Insurance Law Questions and Answers Rated A+

Alabama Insurance Law Questions and Answers Rated A+ The Commissioner of Insurance for Alabama is appointed by the governor The Commissioner of Insurance may do all of the following except change insurance laws for the good of the general public 3. The Commissioner, upon written demand by a person aggrieved, must hold a hearing within 30 days after receipt of the demand In Alabama, the minimum capital required to form and organize a new domestic stock life insurance is $1,000,000 An applicant must be at least years old to receive a license as a resident insurance producer. 18 In order to take the Alabama state insurance exam for a resident insurance producer license the applicant must complete how many hours of instructor led classroom instruction or equivalent? 40 After twice failing the same resident insurance producer license exam how long will they have wait to take the same exam again? three months Temporary insurance producer license is issued for up to six months The normal time an insurance producer license will remain in effect is for are met and the license is not revoked/suspendcd. as long as the license renewal fee is paid, the continuing education requirements Complete records pertaining insurance transactions must be kept for at least three years If there are any changes concerning legal name or address, the licensee must inform the Commissioner of Insurance within how many days of the change 30 A producer who has been licensed in Alabama for 15 years and who is at least years old is exempt from annual continuing education requirements. 60 Unless exempt, an agent must complete how many hours of continuing education (CE) bi-annually. 24 Opon the denial of a request for an extension to comply with the continuing education requirements, the licensee must complete the continuing education requirements within after being notified of the denial. 30 days An offer 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, whichever is shorter 90 A person who for compensation investigates and negotiates settlement of claims arising under insurance contracts on behalf of an insurer is a/an adjuster To be licensed as an adjuster, an applicant must be at least how many years old. 18 An adjuster must keep the usual customary records pertaining to transactions under his/her License for at least one year A surplus line broker must file a bond in the minimum amount of S50,000 The Insurance Guaranty Association is obligated to pay any covered claim that is over $100 and less than $150,000 The workers compensation laws are mandatory for employers who employ ______or more covered employees in any one business. 5 For an injury producing temporary total disability, the workers compensation benefit is of the employee's average weekly earnings at the time of the injury. 66 2/3 % Workers compensation benefits for temporary partial disability will be paid for up to a maximum of 300 weeks Jf an emplovee dies as a result of a work-related accident or occupational disease, the employer must pay burial expenses of up to $3,000 The face amount of insurance provided by an industrial fire policy covering buildings under the same ownership may not exceep ___ for a weekly policy. S7,500 For a monthly industrial fire policy, the maximum face amount covering a building or dwelling is $40,000 The maximum face amount covering contents is ___ for a monthly industrial policy. S20,000 Premiums for an industrial fire policy may be collected for no more than ___ months in advance 12 What kind of premium payment basis may be used with an industrial fire policy? Weekly or monthly The notice of cancellation of an automobile insurance policy for other than nonpayment of premium must be mailed or delivered to the named insured at least days before the effective date of cancellation. 20 Which of the following statements concerning uninsured/underinsured motorist coverage is true? This coverage is not required, but will be automatically included unless the insured rejects it in writing. The required coverage limits under Alabama's mandatory automobile liability insurance law are $25,000/$50,000/$25,000 Operating a motor vehicle that is not covered by a liability insurance policy as required by law is a Class C misdemeanor A premium reduction for 55 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 A defendant cannot be admitted to bail if They are charged with an offense punishable by death and the court believes they are guilty If the offense charged in the indictment is a misdemeanor, the defendant must be discharged on giving sufficient bail, but the amount of bail must be at least $50 Every person engaged in the business of making and charging bail bonds (other than in Cullman County) must furnish a bond in the amount of S 25,000 The intention of bail is the appearance of the defendant in court The order granting authorization to become a professional surety on bail must be reissued annually by the presiding circuit judge of the county in which the company desires to exccute bail or appearance bonds Sending in your license renewal fee 2 months after the due date will result in Being charged a penalty in the amount of double the renewal fee The purpose of the Insurance Guaranty Association is all of the below EXCEPT Suspend or revoke the insurer's right to conduct business in the state When an accident results in an employee's death within three years of the accident and the Employee has one dependent, that dependent will receive compensation as follows: 50% of the deceased's average weekly earnings during dependency earnings An injured employee must give the employer written notice of an accident within: 5 Days An insurer issuing an industrial fire policy must use the following words in the caption EXCEPT The Standard Fire Policy Making misleading or incomplete comparisons to induce a policyholder to exchange an insurance policy is called Twisting Licensed producers are allowed to collect a collection fee on unpaid balances for premiums up to 1% % per month on unpaid balance The discount for premiums paid 12 months in advance for an industrial fire policy cannot exceed 10% The workers compensation laws are not mandatory for an employer of all the following EXCEPT Part time employees