Chapter 8- Alabama Insurance Law Common to All Lines ExamFx quizzes

Should an authorized insurance company have their certificate of authority suspended, during the period of the suspension, the insurer must do all of the following EXCEPT

Reapply for the Certificate of Authority.

All of the following applicants for an insurance producer license are exempt from prelicensing education requirements EXCEPT

An applicant for a dealer's license

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

Been an executive officer of an insurance company.

Which of the following authorities issues insurance producer licenses?

Commissioner

A producer holds both a Life and Health and a Property and Casualty licenses. How many hours of continuing education will the producer be required to complete every 2 years?

24

Any licensee holding more than one license is only required to complete....

24 hours of CE

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

3

How long must producers keep records of insurance transactions under their license?

3 years

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

30 days

A person convicted of willfully violating an insurance law of Alabama is subject to

A fine of up to $1,000, imprisonment, and a sentence to hard labor for a period of one year.

Which of the following events could result in the revocation or suspension of a business entity's insurance license?

A principal or manager of the business is in violation of Alabama insurance laws and the business entity, while aware of the violation, does not report the violation to the Commissioner.

How often must the Commissioner or an examiner designated by the Commissioner examine domestic insurance companies?

As often as the Commissioner deems necessary, but not less frequently than once every five years

Which of the following best describes a misrepresentation?

Issuing sales material with exaggerated statements about policy benefits

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. The company is guilty of

Misrepresentation

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?

discrimination

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 used to describe this phenomenon?

reciprocity

An insurance producer who is late in filing an application for license renewal will be charged a fee of

$50

How long does a temporary producer's license last?

6 months or 180 days

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

Dividends from a mutual insurer.

What is the duration of an insurance producer or service representative's license?

Licenses remain in effect unless revoked or suspended as long as the license renewal fee is paid and continuing education requirements for the license are met by the due date

What type of license is needed to transact non-major lines of insurance like baggage and accident only insurance?

limited

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

twisting