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
