Chapter 12 - Alabama Insurance Law Common to All Lines

for a producer to meet the state continuing education requirements, how many CE hours must be completed on the topic of ethics?

3. Out of the 24 CE hours required every 2 years, 3 hours must be on the topics of ethics or business practices.

Any producer in Alabama must notify the Insurance Department of any change of address in his or her residence or business address within how many days?

30 days

Whenever the Commissioner receives a demand for a hearing, a hearing shall be scheduled to be held within

30 days

A resident of another state wishing to transact insurance in Alabama may obtain a nonresidential producer license, without examination, upon meeting one of the following except

Been an executive officer of an insurance company. Know the stuff that it takes to obtain.

Which of the following authorities issues insurance producer license?

Commissioner. Has the authority to issue and revoke a license.

All of the following are lines of insurance that may be transacted under a life and accident/health producer license except

Consequential loss insurance

if an insurance producer is to charge to the client a fee that is in addition to the commission for the sale of an insurance policy, the producer must

Disclose the fee to the client, in writing, and be agreed upon prior to the issuance of the policy

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Dividends from a mutual insurer.

Applicants for which type of insurance license are exempt from Alabama prelicensing education requirements?

Limited License.

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?

Misrepresentation

A producer has become disabled. In order to keep his business going, what may his designee do?

Obtain a temporary license

In addition to obtaining an insurance producer license, a business entity, in order to transact insurance, must have at least

One individual licensed insurance producer.

Paul is a producer in Louisiana and wants to become a producer in Alabama. The Commissioner will waive certain examination requirements, provided that Louisiana would waive these same requirements if an Alabama producer sought licensure in Louisiana. What term is this phenomenon called?

Reciprocity

If a producer changes his residential address who must he/she notify?

This change will need to be reported to the Commissioner