AL P&C University Of Alabama Study Guide With Verified Questions And Answers, Exams of Advanced Education

Download AL P&C University Of Alabama Study Guide With Verified Questions And Answers and more Exams Advanced Education in PDF only on Docsity!

AL P&C University Of Alabama Study Guide With Verified

Questions And Answers 2023

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 ✔✔A. Pro Rata Basis What is the term used to describe terminating the insurance relationship at the end of the policy period? A. Cancellation B. Nonrenewal C. Separation D. Exclusion ✔✔B. Nonrenewal Which is the best example of an indirect loss? A. Sequential loss B. Liability loss C. Employee theft D. Loss of use ✔✔D. Loss of use Which is a two party contract? A. Property B. Casualty C. Liability D. Auto ✔✔A. Property Insurance contracts offset A. speculative risk B. pure risk C. gambling D. created risk ✔✔B. Pure risk Which of the following is a third party contract? A. Property B. Casualty C. Earthquake D. Theft ✔✔B. Casualty

Risk is best define as A. chance of loss B. certainty of loss C. financial loss D. sentimental loss ✔✔A. chance of loss Being subject to a loss is A. liability B. indemnity C. exposure D. subrogation ✔✔C. exposure The ranking insured in a Personal Lines contract is the A. named insured B. first named insured C. mortgagee D. husband ✔✔A. named insured To be paid a claim under a P & C contract, insurable interest must exist A. At the time of application B. on the policy date C. at the time of loss D. at the time of claim settlement ✔✔C. at the time of loss This type of company is run for the benefit of the policyowners: A. Stock B. Mutual C. Foreign D. Alien ✔✔B. Mutual Ohio Casualty is doing regular business in Indiana. Within the same state of Indiana, Ohio Casualty would be considered a(n) A. domestic company B. nonadmitted company C. alien company D. foreign Company ✔✔D. Foreign Ohio Casualty is doing regular business in Indiana. Within the state of Indiana, Ohio Casualty would be considered a(an)

A. admitted company B. domestic company C. unauthorized company D. risk retention group ✔✔A. admitted company A company chartered in Guam or Puerto Rico doing regular business in New York would be considered by New Yorkers to be a(n) A. domestic compnay B. foreign company C. alien company D. international company ✔✔B. foreign company With regard to insurance, the term consideration means A. the premium and the statements on the application B. the insurer's method of evaluating the applicant for coverage C. the screening process all agents undergo prior to licensing. D. the side-by-side policy comparison by the applicant ✔✔A. the premium and the statements on the application Which of the following terms indicates that an insurance contract contains the legal enforceable promises of only one party? A. Adhesion B. Unilateral C. Conditional D. Aleatory ✔✔B. Unilateral In purchasing an insurance contract, the applicant must accept the contract as written. This type of contract is referred to as a(n) A. settled contract B. aleatory contract C. contract of adhesion D. personal contract ✔✔C. Contract of adhesion Which of the following principles states that in forming an insurance contract, both parties have a responsibility to the order? A. Doctrine of Warranties B. Doctrine of Representations C. Doctrine of Utmost Good Faith D. Doctrine of Reasonable Expectations ✔✔C. Doctrine of Utmost Good Faith An incorrect statement made intentionally on a Personal Auto insurance application is a

A. Fraud B. Warranty C. Misrepresentation D. Conceament ✔✔C. Misrepresentation A binder is a(n) A. Interim insuring agreement B. Application C. Counteroffer D. Endorsement ✔✔A. Interim insuring agreement Which of the following is NOT true regarding consideration in a P & C policy? A. Part of the insured's consideration is the premium B. Parts of the insured's consideration are the statements on the application C. Parts of the company's consideration are the promises in the policy D. Part of the company's consideration is the payment of a claim ✔✔D. Part of the company's consideration is the payment of a claim Any ambiguities in a P & C policy will be resolved in favor of the policyowner because the policy is a(n) A. contract of adhesion B. conditional contract C. unilateral contract D. Aleatory contract ✔✔A. contract of adhesion A person who has responsibility for the financial wellbeing of another is a(n) A. accountant B. attorney-in-fact C. broker D. fiduciary ✔✔D. fiduciary A binder can expire on all of the following EXCEPT: A. date of application B. day coverage goes into effect C. day the binder expires D. day following the notification that the binder has been cancelled ✔✔A. Date of application Which is NOT true regarding hazards and perils?

A. Hazards come in three groups: Basic, Broad, and Special B. Perils are active and hazards are inactive C. Hazards can be physical, moral, and morale D. Peril's come in three groups: Basic, broad, and special ✔✔A. Hazards come in three groups: Basic, Broad, and Special A box of dynamite is a(n) A. moral hazard B. physical hazard C. morale hazard D. excellent addition to a toy collection ✔✔B. Physical hazard If you look to be covered by everything which is not excluded, you should buy A. special cause of loss B. basic cause of loss C. broad cause of loss D. named peril coverage ✔✔A. Special Cause of loss All of the following statements concerning valuation in a property policy are true EXCEPT: A. Under Agreed Value, the insured and the company establish the value before the loss occurs B. Under the Stated Amount, the insured does not know what will be paid on a loss until the loss occurs C. Under Stated Amount, the insured is guaranteed the limit on the Dec page following a loss D. Functional Replacement is also known as Repair Cost ✔✔C. Under Stated Amount, the insured is guaranteed the limit on the Dec page following a loss Andy has two property policies with identical peril power covering his property. The first has a limit of $75,000 and the second has a limit of $25,000. If Andy suffers a $ covered loss, how will the two policies pay? A. The first will pay $3,000 and the second will pay $1,000. B. The first will pay $4,000 and the second will pay nothing. C. The policies will each pay $2, D. The first will pay nothing and the second will pay $4,000 ✔✔A. The first will pay $3,000 and the second will pay $1,000. The policy provision which allows policyowners to enjoy enhancements made by the company to the policy form they have in force without waiting until a policy renewal date is known as

A. subrogation B. salvage C. liberalization D. coinsurance ✔✔C. liberalization The insured's hone is destroyed by a plumber with an out of control blowtorch. The company pays for the loss and then sues the plumber. This process is known as A. liberalization B. subrogation C. salvage D. insurable interest ✔✔B. subrogation Under a Special Cause of Loss form, the burden of proof following a claim is on the A. insured B. company C. assignee D. mortgagee ✔✔B. company Under the Broad Form Cause of Loss, the burden of proof following a claim is the responsibility of the A. Insured B. company C. assignee D. mortgagee ✔✔A. Insured In P & C policies, the part of the policy which names the insured, the property to be covered and the limits of the policy is known as the A. policy farce B. insuring agreement C. declarations D. conditions ✔✔C. declarations Which of the following does NOT follow the concept of indemnification? A. Compensatory damages B. Special Damages C. General Damages D. Punitive Damages ✔✔D. Punitive Damages Which is true about Umbrella Liability policies? A. they are extremely expensive

B. they are designed to be the primary payor C. they are written for excessive amounts D. they are the same as Excess Liability policies. ✔✔C. they are written for excessive amounts A demolition company is using dynamite to destroy an old downtown building. Which of the following applies? A. Negligence B. Strict Liability C. Premises Liability D. Products Liability ✔✔B. Strict Liability The liability term used to describe damage to an individual's mental state is: A. bodily injury B. property damage C. personal injury D. advertising injury ✔✔C. personal injury Which of the following is true concerning the Medical Payments section of a liability contract? A. It pays only if the insured is legally liable B. It can pay for the injured party's lost wages C. It has rather low dollar limits D. it pays in addition to any liability judgments ✔✔C. It has rather low dollar limits You are hit by a Greyhound bus, this incident is a(n) A. accident only B. occurrence only C. both D. Neither ✔✔C. both Which of the following is NOT negligence? A. Ignorance B. Inaction C. Carelessness D. Intentional Act ✔✔D. Intentional Act Which of the following is true concerning defense costs in a liability contract? A. They only pay if you are legally liable B. They pay in addition to the limits of the policy

C. They must be purchased separately D. They can cover the insured's costs of suing a negligent party ✔✔B. They pay in addition to the limits of the policy Assume that Cal's Commercial Liability policy has an occurrence limit of $100,000 and an aggregate limit of $500,000. Further assume that so far this year, his insuror has paid claims of $420,000. when an injured shopper is awarded $90,000, how much will Cal's policy pay? A. $80, B. $90, C. $100, D. Cannot be determined by the information provided ✔✔A. $80, Fire Legal Liability is most important to A. Landlord B. Mortgagee C. Employee D. Tenant ✔✔D. Tenant Which of the following coverages can be found in all Homeowners forms but in no unendorsed Dwelling policies? A. Wind B. Hail C. Vandalism D. Theft ✔✔D. Theft Which of the following is Coverage D in a Dwelling policy? A. Additional Living Expense B. Fair Rental Value C. Broad Form Theft D. Limited Theft ✔✔B. Fair Rental Value An attached garage would be covered as A. an appurtenant structure B. Other structure C. Coverage C D. Coverage A ✔✔D. Coverage A If your $5000 gold watch is stolen, how would your homeowners policy respond? A. The watch would be covered

B. The loss would be excluded C. The loss would be limited in coverage D. It would depend upon the circumstances of theft ✔✔C. The loss would be limited in coverage How would an HO-8 respond to a loss due to weight of ice and snow? A. The loss would be covered B. The loss is not due to a covered peril C. the HO-8 would cover the functionally equivalent cost of repairs D. The loss is excluded by the HO-8 as a predictable loss ✔✔B. The loss is not due to a covered peril Based upon the number of perils covered, which Homeowners for is the most limited? A. HO- 2 B. HO- 3 C. HO- 4 D. HO- 8 ✔✔D. HO- 8 Based upon the number of perils covered, which Homeowners Form is the most generous? A. HO- 2 B. HO- 3 C. HO- 5 D. HO- 8 ✔✔C. HO- 5 What is the maximum that the Fire Department service charge can pay in a Homeowners policy? A. 100 B. 200 C. 300 D. 500 ✔✔D. 500 What is the standard deductible in an HO-3? A. 50 B. 100 C. 250 D. 500 ✔✔C. 250 What is the maximum horsepower allowed for a boat that you own to be covered under the Personal Liability section of a Homeowners policy?

A. 25

B. 50

C. 100

D. 200 ✔✔A. 25

You are driving your car with your son and the neighbor's kid to soccer practice when you run a red light and hit Calvin and his family in their car. Under what part of your Personal Auto Policy would Calvin's injuries be? A. Part A B. Part B C. Part C D. Part D ✔✔A. Part A Using the above information, what part of your policy covers the neighbor kid's injuries? A. Part A B. Part B C. Part C D. Part D ✔✔B. Part B Using the above information what part of your policy covers Cal's car? A. Part A B. Part B C. Part C D. Part D ✔✔A. Part A Using the above information what part of your policy covers your car? A. Part A B. Part B C. Part C D. Part D ✔✔D. Part D You run a stop sign, hitting Calvin and Clara's car. Cal's injuries are in the amount of $30,000 and Clara's total $12,000. Thier car is damaged in the amount of $11,000. Your liability limits are 25/50/10. How much will your company pay for Cal and Clara's bodily damage injury and property damage? A. $47, B. $52, C. $53, D. $75,000 ✔✔A. $47, All of the following are true concerning Auto policy Med Pay EXCEPT:

A. Med Pay will pay medical bills for up to three years after the accident B. Med Pay pays on per person limits C. Med Pay will cover your injuries sustained in an auto D. Med Pay coverage is triggered by negligence ✔✔D. Med Pay coverage is triggered by negligence What is the equivalent Single limit of 100/300/100? A. $100, B. $200, 000 C. $400, D. $500,000 ✔✔C. $400, Cal is driving the family car with his wife Clara, Cal Jr., and their daughter Katie. He has Med Play limits of $25,000. If Cal is in a wreck, and he and all of his passengers are injured, what is the maximum that his person Auto Policy will pay? A. $25, B. $50, C. $75, D. $100,000 ✔✔D. $100, You have Underinsured limits of 100/300/50 when an underinsured motorist runs a stop sign causing you bodily injury of $75,000. His limits are 25/50/10. How much will you be paid by the two companies? A. $75, B. $100, C. $125, D. $150,000 ✔✔A. $75, You and your company cannot agree on the value of the car you totaled. what method is used to settle the dispute? A. Appraisal B. Arbitration C. Small Claims Court D. A Coin toss ✔✔A. Appraisal A Homeowners policy provides how much liability coverage for a 22 foot, 200 horsepower ski boat? A. $ B. 500 C. $1,

D. $1,500 ✔✔A. $

A Boatowners policy is usually written on what basis? A. ACV B. Agreed Value C. Functional replacement Value D. Replacement cost ✔✔D. Replacement cost Which of the following would a boatowners policy NOT cover? A. hull B. trailer C. Motors D. Fishing equipment ✔✔D. Fishing equipment If the owner of a Yacht policy warrants that his vessel will be in storage through May 1, and is actually sailing his boat on April 10 when the company discovers his actions, what will happen? A. He will be reprimanded B. He will be fined C. His coverage will be cancelled D. his rates will increase ✔✔C. His coverage will be cancelled Under the National Flood Program, which of the following is true? A. You must live in a flood plain to buy the policy B. If your community fails to participate you may still purchase flood insurance C. Building losses are settled ACV and contents are settled as Replacement cost D. the minimum building deductible for a property insured for $90,000 is $1,000 ✔✔D. the minimum building deductible for a property insured for $90,000 is $1, Which of the the following could a farmer NOT cover under an NFIP policy? A. House B. Barn C. Growing Crop D. Silo ✔✔C. Growing Crop The Commercial Package policy may contain a maximum of how many coverage modules? A. 1 B. 2 C. 7

D. 9 ✔✔C. 7

The ranking insured in the Commercial Package Policy is the A. Named Insured B. First Named Insured C. Mortgagee D. Assignee ✔✔B. First Named Insured A Policy is written to provide only Equipment Breakdown coverage is a A. Monoline Policy B. multi-line Policy C. package Policy D. commercial policy ✔✔A. Monoline Policy A CPP goes into effect at what time of day? A. 12:01pm B. 12:01 AM C. 12:01 fm D. 12:01 bc ✔✔B. 12:01 AM Which of the following is Not a coverage module choice in the CPP? A. Crime B. Farm C. Inland marine D. Garagekeepers ✔✔D. Garagekeepers Which of the following options is NOT available in the Commercial Property policy? A. Agreed Value B. Replacement Cost C. Inflation Guard D. Fair market Value ✔✔D. Fair market Value Which if the following losses would NOT be covered by the Basic Cause of Loss form? A. Collapse B. Wind C. Hail D. Civil Commotion ✔✔A. Collapse What is the standard deductible in a Commercial Property policy?

A. $

B. $

C. $

D. $1,000 ✔✔C. $

What is the maximum that the Fire Department Service charge will pay in a Commercial Policy? A.$ B. $ C. $1, D. $1,500 ✔✔C. $1, A vacant building can lose coverage altogether after how many days? A. 10 B. 30 C. 45 D. 60 ✔✔D. 60 In a Business Income coverage, the time elapsed from the loss until the building is fully repaired is known at the A. down time B. period of restoration C. extended period D. coinsurance period ✔✔B. period of restoration Who certifies an act of terrorism? A. President B. Sec of Def C. Sec of Treasury D. State Dept. ✔✔C. Sec of Treasury The earthquake endorsement to a commercial property policy treats all shocks within what period of time as a single occurrence? A. 24 hour B. 72 hour C. 148 hour D. 168 hour ✔✔D. 168 hour When a dry cleaner accepts a customers suit for cleaning, the dry cleaner becomes:

A. assignee B. Principal C. agent D. Bailee ✔✔D. Bailee Which of the following is NOT covered by the CGL? A. Premises Liability B. Pollution Liability C. Products Liability D. Contractual Liability ✔✔B. Pollution Liability For which of the following would Med Pay provide coverage? A. A child hurts herself with a toy B. You are ill from food poisoning D. A newly installed awning collapses on your head ✔✔C. A carpenter at your house drops a hammer on your foot

3. For which of the following would a CGL provide coverage for a Law Firm? A. Professional Liability B. Host Liquor Liability C. Employee Injury Liability D. Directors and Officers Libiability ✔✔B. Host Liquor Liability
4. Which of the following only pays of you are legally liable? A. Medical Payments B. Defense Costs C. Bodily Injury Liability D. Supplementary Payments ✔✔C. Bodily Injury Liability
5. Which CGL coverage's does the National Inquirer get? A. A & B B. A & C C. B & C D. A,B, & C ✔✔B. A & C
6. Commercial Med Pay will make medical payments for up to how long after a loss? A. 1 yr B. 2 yr C. 3yr

D. 5 yr ✔✔A. 1 yr

7. A policyowner is charged a self-insured retention with his umbrella when A. he suffers any loss B. his underlying coverage reaches its limit C. his Excess Liability policy reaches is limit D. his underlying policy does not provide coverage ✔✔D. his underlying policy does not provide coverage Which of the following is covered under the CGL? A. Pollution Liability B. Professional Liability C. Employee injury liability D. Independent Contractor liability ✔✔B. Professional Liability Medical Payment limits are expresses as A. occurrence limits B. aggregate limits C. agreed value limits D. per person limits ✔✔D. per person limits If Carl is assigned to drive a cash deposit to the bank, Carl is acting as a A. messenger B. custodian C. guard D. watchperson ✔✔A. messenger Which of the following is NOT money? A. currency B. Coins C. Register Checks D. Securities ✔✔D. Securities A thief finds the door to an appliance store has been left unlocked. He enters and take several Big Screen TV's. The thief had committed A. burglary B. robbery C. theft D. vandalism ✔✔C. theft

Robbery of a watchperson is considered to be a (n) A. burglary B. robbery C. holdup D. extortion ✔✔A. burglary Fidelity Bonds are used in connection with A. Employee errors and omissions B. employee absences C. employee negligence D. employee theft ✔✔D. employee theft To cover all employees on one Fidelity bond you would use a(n) A. Individual Bond B. Name Schedule Bond C. Blanket Bond D. Position schedule bond ✔✔C. Blanket Bond The Commercial Crime policy pays for losses in the basis of what? A. ACV B. Replacement Cost C. Functional replacement cost D. Agreed Value ✔✔A. ACV Which would not be covered under a Commercial Crime policy? A. Theft B. Forgery C. Vandalism D. Computer Fraud ✔✔C. Vandalism Forgery and Alterations covers Commercial Crime Losses involving A. incoming counterfeit money B. incoming counterfeit money orders C. outgoing instruments D. outgoing instruments altered by an employee ✔✔C. outgoing instruments Insuring agreement #3- Inside the Premises-- theft of Money and Securities covers all EXCEPT

A. money destroyed by a fire B. money stolen from a vending machine C. money that disappears D. money that is taken in a robbery ✔✔B. money stolen from a vending machine The boiler at XYZ Manufacturing was destroyed in a factory fire. The Boiler loss is covered under A. Commercial Property coverage B. Equipment Breakdown coverage C. Inland Marine coverage D. None of the above ✔✔A. Commercial Property coverage XYZ's boiler explodes, setting the factory on fire and causing extensive smoke damage. Significant water damage is done by the fireman extinguishing the blaze. All are true about XYZ's coverage EXCEPT: A. the boiler is covered by equipment breakdown B. Fire damage is covered by equipment breakdown coverage C. the water damage is covered by commercial property coverage D. the smoke damage is covered by commercial property coverage ✔✔B. Fire damage is covered by equipment breakdown coverage Which of the following would NOT be covered by Equipment Breakdown coverage? A. Steam Boilers B. Refrigeration Equipment C. Computers D. Toilets ✔✔D. Toilets Equipment Breakdown coverage losses are settled on what basis A. ACV B. Replacement Cost C. Functional Replacement Cost D. Agreed Value ✔✔B. Replacement Cost The insurance company may suspend coverage on any unsafe insured object by giving written notice how many days in advance? A. 10 B. 15 C. 30 D. the suspension is immediate ✔✔D. the suspension is immediate How many vehicles are required to qualify for fleet rates?

A. 5 or more B. 10 or more C. 20 or more D. 25 or more ✔✔A. 5 or more A company which provides private passenger vehicles for each of its 10 sales reps would likely purchase the A. Business Auto coverage form B. motor carriers coverage form C. Auto dealers coverage form D. personal auto policy ✔✔A. Business Auto coverage form A business concerned with its liability when employees use their own vehicles on company business needs A. Drive other car coverage B. Individual Named Insured endoresement C. Employee as insured endorsement D. Symbol #9 nonowned autos only ✔✔A. Business Auto coverage form A Car Wash concerned about its responsibility for customers's cars should buy A. Motor Carrier Coverage Form B. Auto Dealers Coverage Form C. Garagekeepers endorsement to business auto D. Drive other Car Coverage ✔✔C. Garagekeepers endorsement to business auto The Motor Carrier Act of 1980 requires minimum liability limits of ______ when transporting specified hazardous materials such as explosives. A. 1,000, B. 2,000, C. 2,500, 000 D. 5,000,000 ✔✔D. 5,000, To determine which autos are covered autos in a Business Auto Coverage form, you should refer to the A. Declarations Page B. Insuring Clause C. Policy Conditions D. Policy Endorsements ✔✔A. Declarations Page Which is NOT true about Ocean Marine policies?

A. They are manuscripted policies B. They must be filed and approved before use C. they can be used to insure ships and boats D. they can be used to insure a ship's cargo ✔✔B. They must be filed and approved before use Inland Marine policies are frequently used to cover all of the following EXCEPT A. Buildings B. Property held by a bailee C. off premises business personal property D. off premises mobile equipment ✔✔A. Buildings The Nationwide Marine Definition does which of the following? A. lists everything that can be covered by an Ocean Marine policy B. Lists everything that can be covered by an Inland Marine policy C. Lists the risks that cannot be covered by a Marine policy D. Generally distinguishes Marine risks from Property risks ✔✔D. Generally distinguishes Marine risks from Property risks Which of the following appears in the Nationwide Marine Definition A. Ships B. Boats C. Commercial Property floater risks D. Commercial Liability floater risks ✔✔C. Commercial Property floater risks The property coverage's under a BOP protect against losses due to A. Basic Perils B. Broad Form Perils C. Specified Perils D. Open Perils ✔✔D. Open Perils The Additional coverage and the Extensions coverage under a BOP A. must be purchased separately B. must be earned C. are provided automatically D. are added by endorsement ✔✔C. are provided automatically Liability Coverage under a BOP is A. occurrence triggered

B. accident triggered C. Claims Made triggered D. either Claims Made or Accident Triggered ✔✔A. occurrence triggered Minimum liability limits under a BOP are A. 50,000 per occurrence B. 100,000 per occurrence C. 250,000 per occurrence D. 300,000 per occurrence ✔✔D. 300,000 per occurrence The Fire legal limit under a BOP is A. 25,000 B. 50,000 C. 100,000 D. 250,000 ✔✔B. 50,000 The basic deductible under a BOP is A. 500 B. 1,000 C. 2,500 D. 5,000 ✔✔A. 500 A building insured under a BOP loses vandalism coverage after it has been vacant for ____ Days. A. 1 B. 2 C. 3 D. 6 ✔✔D. 6 Business personal property moved to a new location to protect it from a covered peril is covered by the BOP for up to _____ days. A. 1 B. 3 C.6 D.9 ✔✔B. 3 Which of the following would NOT be eligible for a BOP? A. Funeral Parlor B. Florists Shop C. Parking Garage

D. Bakery ✔✔C. Parking Garage Which business would be eligible for a BOP? A. fast food restaurant B. Gas Station C. Tavern D. Bank ✔✔A. fast food restaurant Prior to the enactment of the Workers Comp laws, employers regularly used all of the following defenses against negligence suits brought by injured employees EXCEPT: A. Fellow Servant B. Assumption of Risk C. Intervening Cause D. Contributory Negligence ✔✔C. Intervening Cause Which is a factor in Workers Compensation? A. Negligence B. Fault C. Assumption of Risk D. Occupation-Related ✔✔D. Occupation-Related Which is NOT a regular source for Workers Comp coverage? A. Private Companies B. Monopolistic state funds C. Self-Insurance D. Lloyd's ✔✔D. Lloyd's Which is not a benefit of Workers Comp Part one? A. Medical Expenses B. Disability Income C. Long Term Care D. Rehabilitation ✔✔C. Long Term Care Which is a level of disability recognized by most state Work Comp statutes? A. Partial Total B. Temporary Total C. Temporary Permanent D. Total Partial ✔✔B. Temporary Total

Part Two- Employers Liability has which of the following occupational accident limits? A. $100,000/accident B. $100,000/person C. $250,000/accident D. $250,000/person ✔✔A. $100,000/accident Part- Two Employers Liability has which of the following occupational sickness limits? A. $100,000/accident B. $100,000/person C. $250,000/accident D. $250,000/person ✔✔B. $100,000/person Which of the following has the greatest impact on Workers Comp Rates? A. Frequency of claims B. Severity of Claims C. Cause of claims D. Cost of claims ✔✔A. Frequency of claims Which Federal Workers Comp Law covers seamen? A. Federal Employer Liability Act B. Longshore and harbor Workers Act C. Jones Act D. Outer Continental Shelf Lands Act ✔✔C. Jones Act Which Federal Workers Comp Law covers Postal workers? A. Federal Employer Liability Act B. Longshore and harbor Workers Act C. Jones Act D. Outer Continental Shelf Lands Act ✔✔A. Federal Employer Liability Act

1. To obtain an Alabama Producer's license you must be at least A. 16 B. 18 C. 21 D. 22 ✔✔B. 18
2. The concept of due process involves which of the following elements? A. Notice B. Hearing

C. both notice and hearing D. neither notice nor hearing ✔✔C. both notice and hearing

3. If Alabama Department of Insurance believes you are in violation of the insurance statues and you file a written demand for a hearing, how soon does the Commissioner have to hold the hearing? A. 7 B. 10 C. 14 D. 30 ✔✔D. 30
4. In Alabama, the Commissioner of Insurance is A. Elected B. a secondary duty of the Lt. Gov C. Appointed by the Gov D. Selected by Legislature ✔✔C. Appointed by the Gov
5. The prelicensing education requirement for a Life and Health License is A. 10 hours B. 12 hours C. 40 Hours D. 50 Hours ✔✔C. 40 Hours
6. The Commissioner of Insurance may do which of the following? A. sentence you to prison for violating state insurance laws B. conduct examinations of insurance companies C. Amend insurance law as required by the public interest D. Serve as chairman of the Alabama State Democratic Party ✔✔B. conduct examinations of insurance companies
7. A Change in your legal address requires that you notify the Commissioner within how many days? A. 10 B. 14 C. 30 D. 60 ✔✔C. 30
8. How many hours of insurance continuing education must you complete each year? A. 10 B. 12

C. 15

D. 40 ✔✔B. 12

9. How many hours of continuing education can you carry over from one year to the next? A. None B. 12 C. 15 D. 40 ✔✔A. None
10. As a licensed Producer, you must keep records of all insurance transactions for at least ____ years. A. 2 B. 3 C. 5 D. 10 ✔✔B. 3
11. A temporary Producer license may be issued for up to ____ months. A. 3 B. 6 C. 9 D. 12 ✔✔B. 6
12. Unless revoked, your Producers license will remain in effect for A. 6 months B. One year C. two years D. as long as you meet the con-ed requirements and pay the fee's ✔✔C. two years
13. Lying to replace is considered A. Twisting B. Embezzlement C. Rebating D. Coercion ✔✔A. Twisting
14. Offering to give your client half of your commission in order to motivate him to buy from you is considered A. Twisting B. Embezzlement C. Rebating