ALABAMA INSURANCE TEST

Alabama Adjusters License questions and answers

Alabama Property & Casualty Online Practice Exams questions and answers

COBRA and HIPAA both address portability. What is the difference between them? - answer-COBRA provides a coverage bridge, HIPAA addresses coverage under plans for new entrants The type of health insurance policy most likely used to cover all students attending a large university is - answer-a bl...

What type of risk is insuring your home or auto? - answer-Pure risk A good definition for risk is: - answer-The chance of loss The primary insured in an insurance contract is the: - answer-First named insured In property insurance, coinsurance is designed to: - answer-Cover all losses in full i...

If a producer changes his residential address who must he/she notify? - answer-This change will need to be reported to the Commissioner. Which of the following is NOT true regarding minors purchasing insurance policies in this state? - answer-Minors at the age of 14 are allowed to buy their own ...

What is a hazard? - answer-an increase in the possibility that a loss might occur transfer risk from a person or business to an insurance company that agrees to to pay for losses in exchange for a premium. - answer-insurance The type of insurance company in which the policyholder is considered...

If a company cancels an auto policy mid-term, the refund will be made on a : A. pro rata basis B. short rate basis C. retroactive basis D. coinsurance basis - answer-A. Pro Rata Basis What is the term used to describe terminating the insurance relationship at the end of the policy period? A....

In Alabama, all health maintenance organizations must: - answer-Have a complaint system to resolve written complaints from enrollees. An insurance producer who offers a potential client something of value as an incentive to purchase insurance is engaging in: - answer-Rebating Medicare suppleme...

Term Insurance - answer-Temporary protection because it only provides coverage for a specific period of time. Also known as pure life insurance Term insurance provides what is known as _________________ - answer-pure death protection Term insurance provides the greatest amount of coverage for t...

If a company cancels an auto policy mid term, the refund will be made on a. pro rata basis b. short rate basis c. retroactive basis d. coinsurance basis - answer-Pro Rata Basis What is the term used to describe terminating the insurance relationship at the end of the policy period ? a. cance...

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 - answer-3 months Payments for losses that cannot be precisely measured, such as the loss of companionship of spouse from another, are called ____. - ...

Which clause allows the insured to change an existing policy to any other policy of any type as long as the new policy has a higher premium, without any proof of insurability? - answer-Privilege of change clause The extended term nonforfeiture option provides: - answer-Paid-up term coverage equ...

The Fair Credit Reporting Act - answer-what law protects consumers from the circulation of inaccurate or obsolete information? domestic, foreign, and alien - answer-Insurers are classified according to their domicile. What are the 3 types of insurers? Fraternal insurer - answer-what type of insu...

An incorporated insurance company which is run by a board of directors is known as - answer-a capital-stock company Which of the following statements is true regarding a binder? a. a binder guarantees that a policy will be issued by the insurance company. b. a binder guarantees coverage and that...