An insured under an Alabama individual disability policy gives the insurer notice of a claim. Twenty days later, the insurer has sent no claim forms. Under the required claim forms provision, how may the insured satisfy the policy's proof of loss requirement?

By sending written proof of the occurrence, character, and extent of the loss within the policy's filing period.

An insurer that was once authorized in Alabama has ended its operations there but still deals with policies it lawfully wrote in Alabama while authorized. Which activity falls outside the exception for former authorized operations, so that a certificate of authority would still be required?

Collecting new premiums in connection with the business it formerly wrote in Alabama

The Commissioner drafts a rule that would impose a requirement going beyond what an Alabama statute allows on the same subject. How does Alabama law treat a rule of that kind?

It is barred, because no rule may extend, modify, or conflict with state law

An insurer terminates a producer's appointment for cause, on one of the grounds listed in Alabama's producer license penalty statute, and notifies the Commissioner. How must the insurer deliver the required copy of that notification to the producer?

By certified mail, return receipt requested, or national overnight carrier

After a hearing, the Commissioner finds that a producer submitted a false certificate of compliance with Alabama's continuing education requirements. Instead of suspending the producer's licenses, what may the Commissioner impose?

A civil fine in an amount not exceeding $10,000

A marketing firm, knowing the figures are false and intending to mislead buyers, distributes a flyer to the public that overstates an insurer's assets. The flyer is never filed with any regulator. How does Alabama law treat the flyer?

It is prohibited as a false statement of an insurer's financial condition made to deceive

A health insurance contract in Alabama pays for a foot surgery when a physician performs it. The same surgery falls within the scope of a podiatrist's professional license, and a podiatrist performs it for a covered person. How must the contract be construed?

As including payment to the podiatrist who performed the procedure

Under the definitions in Alabama's producer licensing chapter, which description matches the term business entity?

Any corporation, association, partnership, LLC, LLP, or other legal entity

A producer learns that an insurer cannot pay the claims it already owes. With intent to defraud, the producer keeps soliciting and accepting new and renewal applications for that insurer. What does this conduct constitute under Alabama law?

The crime of insurance fraud, committed when the risks are solicited and accepted

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1.An insured under an Alabama individual disability policy gives the insurer notice of a claim. Twenty days later, the insurer has sent no claim forms. Under the required claim forms provision, how may the insured satisfy the policy's proof of loss requirement?
Answer: C. By sending written proof of the occurrence, character, and extent of the loss within the policy's filing period.
When the insurer receives notice of a claim, it must furnish the forms it usually provides for proofs of loss. If it fails to do so within 15 days after notice, the claimant is treated as having met the proof of loss requirement by submitting written proof describing the occurrence, character, and extent of the loss, within the time the policy fixes for filing proofs. Twenty days have passed here, so that route is open. The provision does not extend the filing period until the forms arrive, and it does not restart the clock when they do; the written proof must still be filed within the time stated in the policy. Nothing in it requires a request to the Commissioner first.
Source
Ala. Code Sec. 27-19-9
Choose an answer to see the explanation.
2.An insurer that was once authorized in Alabama has ended its operations there but still deals with policies it lawfully wrote in Alabama while authorized. Which activity falls outside the exception for former authorized operations, so that a certificate of authority would still be required?
Answer: D. Collecting new premiums in connection with the business it formerly wrote in Alabama
Ala. Code Sec. 27-3-2(1) excuses an insurer from holding a certificate of authority for transactions relating to its policies lawfully written in Alabama, and for liquidating its assets and liabilities, when those result from its former authorized operations. The same subdivision expressly leaves out the collection of new premiums. Paying a claim or processing a beneficiary change on an old policy, and winding up assets and liabilities, stay within the exception; collecting new premiums does not.
Source
Ala. Code Sec. 27-3-2(1) (Certificate of Authority - Exceptions - Generally)
Choose an answer to see the explanation.
3.The Commissioner drafts a rule that would impose a requirement going beyond what an Alabama statute allows on the same subject. How does Alabama law treat a rule of that kind?
Answer: D. It is barred, because no rule may extend, modify, or conflict with state law
Ala. Code Sec. 27-2-17(a) lets the Commissioner make reasonable rules needed to carry out the Insurance Code, but it also says no rule may extend, modify, or conflict with any Alabama law or its reasonable implications. A rule that reaches past a statute is therefore not allowed. The subsection makes no exception for a consumer-protection finding, does not tie the rulemaking power to an NAIC model, and sets up no legislative objection procedure.
Source
Ala. Code Sec. 27-2-17(a) (Rules and Regulations)
Choose an answer to see the explanation.
4.An insurer terminates a producer's appointment for cause, on one of the grounds listed in Alabama's producer license penalty statute, and notifies the Commissioner. How must the insurer deliver the required copy of that notification to the producer?
Answer: C. By certified mail, return receipt requested, or national overnight carrier
Within 15 days after notifying the Commissioner of a termination, the insurer must mail the producer a copy of that notification at the producer's last known address. When the termination is for cause on a ground listed in Section 27-7-19, the statute requires a specific method: certified mail with return receipt requested and postage prepaid, or overnight delivery through a nationally recognized carrier. Regular mail lacks the return receipt or overnight carrier the for-cause rule demands. Email and personal delivery at the office are not methods the section names.
Source
Ala. Code Sec. 27-7-30.1(a)
Choose an answer to see the explanation.
5.After a hearing, the Commissioner finds that a producer submitted a false certificate of compliance with Alabama's continuing education requirements. Instead of suspending the producer's licenses, what may the Commissioner impose?
Answer: A. A civil fine in an amount not exceeding $10,000
When the Commissioner finds, after a hearing the licensee may waive, that a licensee submitted a false or fraudulent certificate of compliance, the Commissioner may, in the Commissioner's sole discretion, impose a civil fine of up to $10,000 in place of suspending the license. The statute sets a single cap rather than a per-hour amount, and it describes the fine as civil, not a criminal fine set by a court. Retaking the licensing examination is not a sanction this section provides.
Source
Ala. Code Sec. 27-8A-2
Choose an answer to see the explanation.
6.Under Alabama law, for at least how long must a producer keep complete records of transactions under the producer's license, for business other than that produced under limited lines credit insurance authority?
Answer: D. Three years
An Alabama producer must keep complete records of transactions under the license at the producer's place of business for at least three years. The shorter two-year period applies only to business produced under limited lines credit insurance authority, which the stem excludes. One year is shorter than either period the statute sets, and five years is not the period this section sets for a producer's records.
Source
Ala. Code Sec. 27-7-33(a)
Choose an answer to see the explanation.
7.A marketing firm, knowing the figures are false and intending to mislead buyers, distributes a flyer to the public that overstates an insurer's assets. The flyer is never filed with any regulator. How does Alabama law treat the flyer?
Answer: A. It is prohibited as a false statement of an insurer's financial condition made to deceive
Alabama bars any person from filing with a supervisory or other public official, or from publishing, circulating or delivering to the public, a false statement of an insurer's financial condition with intent to deceive. Distribution to the public is covered on its own, so the lack of a regulatory filing does not help the firm. The prohibition is not limited to insurers, and it does not turn on whether the insurer approved the flyer; circulation of the false statement with intent to deceive is what the section forbids.
Source
Ala. Code Sec. 27-12-7(a)
Choose an answer to see the explanation.
8.A health insurance contract in Alabama pays for a foot surgery when a physician performs it. The same surgery falls within the scope of a podiatrist's professional license, and a podiatrist performs it for a covered person. How must the contract be construed?
Answer: B. As including payment to the podiatrist who performed the procedure
Alabama provides that when a health insurance contract or health services plan pays for services that are within the scope of a podiatrist's professional license, the policy is construed to include payment to a podiatrist who performed them, notwithstanding any other provision of law. Requiring the contract to list podiatrists by name would defeat that rule of construction. The statute attaches no condition of physician supervision. Nothing in it authorizes a reduced payment rate for the podiatrist.
Source
Ala. Code Sec. 27-1-15
Choose an answer to see the explanation.
9.Under the definitions in Alabama's producer licensing chapter, which description matches the term business entity?
Answer: C. Any corporation, association, partnership, LLC, LLP, or other legal entity
Ala. Code Sec. 27-7-1(1) defines a business entity as a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. The definition is not limited to corporations, it expressly includes limited liability companies and limited liability partnerships, and it says nothing about holding an insurer appointment.
Source
Ala. Code Sec. 27-7-1(1) (Definitions)
Choose an answer to see the explanation.
10.A producer learns that an insurer cannot pay the claims it already owes. With intent to defraud, the producer keeps soliciting and accepting new and renewal applications for that insurer. What does this conduct constitute under Alabama law?
Answer: D. The crime of insurance fraud, committed when the risks are solicited and accepted
Alabama defines insurance fraud to include soliciting or accepting new or renewal insurance risks on behalf of an insurer by someone who knows the insurer is financially unable to pay its claims at the time of the transaction, when done knowingly and with intent to defraud. The offense is tied to the insurer's condition when the business is taken, so it does not wait for a later unpaid claim. The definition reaches the person doing the soliciting or accepting, not only the insurer, and it contains no exception for an insurer that still holds its authority.
Source
Ala. Code Sec. 27-12A-2(1)
Choose an answer to see the explanation.

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The scored exam is free, 20 questions in 30 minutes, and needs an account. These 10 do not.

1.An insured under an Alabama individual disability policy gives the insurer notice of a claim. Twenty days later, the insurer has sent no claim forms. Under the required claim forms provision, how may the insured satisfy the policy's proof of loss requirement?

2.An insurer that was once authorized in Alabama has ended its operations there but still deals with policies it lawfully wrote in Alabama while authorized. Which activity falls outside the exception for former authorized operations, so that a certificate of authority would still be required?

3.The Commissioner drafts a rule that would impose a requirement going beyond what an Alabama statute allows on the same subject. How does Alabama law treat a rule of that kind?

4.An insurer terminates a producer's appointment for cause, on one of the grounds listed in Alabama's producer license penalty statute, and notifies the Commissioner. How must the insurer deliver the required copy of that notification to the producer?

5.After a hearing, the Commissioner finds that a producer submitted a false certificate of compliance with Alabama's continuing education requirements. Instead of suspending the producer's licenses, what may the Commissioner impose?

6.Under Alabama law, for at least how long must a producer keep complete records of transactions under the producer's license, for business other than that produced under limited lines credit insurance authority?

7.A marketing firm, knowing the figures are false and intending to mislead buyers, distributes a flyer to the public that overstates an insurer's assets. The flyer is never filed with any regulator. How does Alabama law treat the flyer?

8.A health insurance contract in Alabama pays for a foot surgery when a physician performs it. The same surgery falls within the scope of a podiatrist's professional license, and a podiatrist performs it for a covered person. How must the contract be construed?

9.Under the definitions in Alabama's producer licensing chapter, which description matches the term business entity?

10.A producer learns that an insurer cannot pay the claims it already owes. With intent to defraud, the producer keeps soliciting and accepting new and renewal applications for that insurer. What does this conduct constitute under Alabama law?

The other 305 questions are $29.