Alabama State Licensing Insurance Exam with
correct answers
An applicant who fails two examinations for the same line of authority
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must wait how long to take another examination for that line of authority
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
- correct answer ✔3 months
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Payments for losses that cannot be precisely measured, such as the loss of
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
companionship of spouse from another, are called ____. - correct answer
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✔General damages |!|
Transfering is a method of handling risk. Which of the following best
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
describes the concept of transfer - correct answer ✔Purchasing insurance
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Which of the following terms indicates that an insurance contract contains
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
the enforceable promises of only one party - correct answer ✔Unilateral
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
Dennis purchased a small manufacturing firm and wants to purchase
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
coverage for the premiums-operations and products-completed operations
|!| |!| |!| |!| |!| |!| |!|
exposures. Which of the following types of insurance should he purchase -
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
correct answer ✔Commercial general liability
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With regard to insurance, risk can be defined as - correct answer
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✔Uncertainty of financial loss |!| |!| |!|
, Which department within an insurance company organization is typically
|!| |!| |!| |!| |!| |!| |!| |!| |!|
responsible for helping to cover the insurers exposed loss - correct answer
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
✔Reinsurance department
|!| |!|
Joanne and Steven have a plied for automobile insurance with ABC auto
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
insurance. When the agent asked if anyone else drives a car they lied and
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
do not tell him that your neighbor George who lost his drivers license
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
due to drunk driving uses one of their cars on a regular basis to drive to
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
work. Once the company found how about George after he had an
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
accident they denied the claim siding with legal concepts as a reason -
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
correct answer ✔Fraud |!| |!|
All the following are optional property coverage is under business owner
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
policies - correct answer ✔Money and securities
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Mechanical breakdown |!|
Outdoor signs |!|
In Alabama, the Commissioner of Insurance is - correct answer ✔Appointed
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
by the governor and serves a rearm concurrent with that of the governor
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For an injury producing temporary total disability under Worker's
|!| |!| |!| |!| |!| |!| |!| |!| |!|
Compensation the compensation is what percentage of the employees |!| |!| |!| |!| |!| |!| |!| |!| |!|
average weekly earnings at the time of the injury subject to a maximum
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
and minimum weekly compensation specified in the law - correct answer
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
✔66-2/3%
Aviation physical damage coverage also known as aircraft hull insurance
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
covers all of the following - correct answer ✔Controls
|!| |!| |!| |!| |!| |!| |!| |!|
Electronic navigation |!| |!|
correct answers
An applicant who fails two examinations for the same line of authority
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
must wait how long to take another examination for that line of authority
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
- correct answer ✔3 months
|!| |!| |!| |!| |!|
Payments for losses that cannot be precisely measured, such as the loss of
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
companionship of spouse from another, are called ____. - correct answer
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
✔General damages |!|
Transfering is a method of handling risk. Which of the following best
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
describes the concept of transfer - correct answer ✔Purchasing insurance
|!| |!| |!| |!| |!| |!| |!| |!| |!|
Which of the following terms indicates that an insurance contract contains
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
the enforceable promises of only one party - correct answer ✔Unilateral
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
Dennis purchased a small manufacturing firm and wants to purchase
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
coverage for the premiums-operations and products-completed operations
|!| |!| |!| |!| |!| |!| |!|
exposures. Which of the following types of insurance should he purchase -
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
correct answer ✔Commercial general liability
|!| |!| |!| |!| |!|
With regard to insurance, risk can be defined as - correct answer
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
✔Uncertainty of financial loss |!| |!| |!|
, Which department within an insurance company organization is typically
|!| |!| |!| |!| |!| |!| |!| |!| |!|
responsible for helping to cover the insurers exposed loss - correct answer
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
✔Reinsurance department
|!| |!|
Joanne and Steven have a plied for automobile insurance with ABC auto
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
insurance. When the agent asked if anyone else drives a car they lied and
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
do not tell him that your neighbor George who lost his drivers license
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
due to drunk driving uses one of their cars on a regular basis to drive to
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
work. Once the company found how about George after he had an
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
accident they denied the claim siding with legal concepts as a reason -
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
correct answer ✔Fraud |!| |!|
All the following are optional property coverage is under business owner
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
policies - correct answer ✔Money and securities
|!| |!| |!| |!| |!| |!|
Mechanical breakdown |!|
Outdoor signs |!|
In Alabama, the Commissioner of Insurance is - correct answer ✔Appointed
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
by the governor and serves a rearm concurrent with that of the governor
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
For an injury producing temporary total disability under Worker's
|!| |!| |!| |!| |!| |!| |!| |!| |!|
Compensation the compensation is what percentage of the employees |!| |!| |!| |!| |!| |!| |!| |!| |!|
average weekly earnings at the time of the injury subject to a maximum
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
and minimum weekly compensation specified in the law - correct answer
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
✔66-2/3%
Aviation physical damage coverage also known as aircraft hull insurance
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
covers all of the following - correct answer ✔Controls
|!| |!| |!| |!| |!| |!| |!| |!|
Electronic navigation |!| |!|
