An insurer mailed a cancellation notice for an Alabama personal auto liability policy to the named insured at the address shown in the policy. The named insured says the notice never arrived. What does Alabama law say about proving that notice was given?

Proof that the notice was mailed to the policy address is sufficient proof

An Alabama resident producer holds both the life and the property lines of authority, sells to the public from her own agency, and is not exempt from continuing education. What is the minimum number of approved classroom hours she must complete and report each biennial renewal cycle?

24 hours, of which 3 hours must cover producer ethics

Under the Alabama Department of Insurance rule on apprentice independent adjuster licenses, which requirement applies to a person applying for the apprentice license?

The applicant must currently be enrolled in and taking a prelicensing course for each line requested

A resident individual with no exemption applies for an Alabama insurance producer license and must pass a written examination. Which description matches the subjects the statute says the examination tests?

The lines applied for, a producer's duties and responsibilities, and Alabama insurance law and regulations

The Commissioner has reason to believe an insurer is using a practice that the trade practices law does not define, believes the practice is unfair or deceptive, and concludes that a proceeding would serve the public interest. Under Alabama law, how does the Commissioner begin?

By serving a statement of charges and notice of a hearing at least 10 days out

While reviewing a matter, the Alabama Commissioner of Insurance comes to believe that a person has violated a provision of the Insurance Code for which criminal prosecution would be appropriate. What does the Code direct the commissioner to do with that information?

Give it to the Attorney General or the district attorney with jurisdiction over the violation

For purposes of administration and assessment, the Alabama Insurance Guaranty Association is divided into separate accounts. Which of the following is one of those accounts?

An automobile insurance account

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1.An insurer mailed a cancellation notice for an Alabama personal auto liability policy to the named insured at the address shown in the policy. The named insured says the notice never arrived. What does Alabama law say about proving that notice was given?
Answer: B. Proof that the notice was mailed to the policy address is sufficient proof
Under Alabama's cancellation article, proof that a notice of cancellation, or of the reasons for cancellation, was mailed to the named insured at the address shown in the policy is sufficient proof of notice. The section does not require a signed return receipt, personal delivery by the agent, or a duplicate copy by email, so the insured's claim that the notice never arrived does not defeat proof of mailing to the policy address.
Source
Ala. Code Sec. 27-23-25
Choose an answer to see the explanation.
2.An Alabama resident producer holds both the life and the property lines of authority, sells to the public from her own agency, and is not exempt from continuing education. What is the minimum number of approved classroom hours she must complete and report each biennial renewal cycle?
Answer: A. 24 hours, of which 3 hours must cover producer ethics
Alabama requires a non-exempt producer to complete at least 24 approved classroom hours in each biennial cycle, 3 of them on producer ethics, reported with license renewal. The statute also says that holding more than one line of authority does not raise the required hours above what a single-line licensee owes, so this life-and-property producer still needs 24 hours, not 48. The 36-hour figure has no basis in the statute. The 12-hour figure with 2 ethics hours is a reduced requirement reserved for a producer employed to work only in an employer's office who holds no nonresident license in another state, which does not describe a producer selling from her own agency.
Source
Ala. Code Sec. 27-8A-1(a); Ala. Code Sec. 27-8A-1(d)
Choose an answer to see the explanation.
3.Under the Alabama Department of Insurance rule on apprentice independent adjuster licenses, which requirement applies to a person applying for the apprentice license?
Answer: B. The applicant must currently be enrolled in and taking a prelicensing course for each line requested
The apprentice rule requires the applicant to be actively engaged in a prelicensing course for the line or lines of authority sought. Passing the examination first is wrong: the apprentice license exists for a person otherwise qualified except for having passed the written examination. Supervision by a producer is wrong: the rule requires supervision by a licensed independent adjuster holding the same line or lines. A year of prior producer licensing appears nowhere in the rule's requirements.
Source
Ala. Admin. Code r. 482-1-151-.08(2) (Apprentice Independent Adjuster License; amended, published July 31, 2023, effective January 1, 2024)
Choose an answer to see the explanation.
4.A resident individual with no exemption applies for an Alabama insurance producer license and must pass a written examination. Which description matches the subjects the statute says the examination tests?
Answer: A. The lines applied for, a producer's duties and responsibilities, and Alabama insurance law and regulations
The statute requires a resident individual applicant to pass a written examination unless exempt under Section 27-7-5 or 27-7-29.1, and it lists three subjects: the lines of authority sought, the duties and responsibilities of a producer, and this state's insurance laws and regulations. A test confined to the lines applied for omits two of the three. A test on federal law or model acts in place of Alabama law leaves out the state law the statute names. An ethics and accounting test with no line content misses the lines of authority. The examinations are developed and conducted under rules the Commissioner prescribes.
Source
Ala. Code Sec. 27-7-4.3(a)
Choose an answer to see the explanation.
5.The Commissioner has reason to believe an insurer is using a practice that the trade practices law does not define, believes the practice is unfair or deceptive, and concludes that a proceeding would serve the public interest. Under Alabama law, how does the Commissioner begin?
Answer: B. By serving a statement of charges and notice of a hearing at least 10 days out
For a method of competition or a practice that the trade practices law does not define, Alabama law lets the Commissioner, on reason to believe it is unfair or deceptive and that a proceeding would be in the public interest, serve the person with a statement of charges and notice of a hearing set at least 10 days after service. After the hearing, the Commissioner makes a written report of findings and serves a copy on the person. The section itself supplies the process for undefined practices, so no legislative amendment is needed, and it begins with charges and a hearing before the Commissioner rather than with a revocation order or a court filing.
Source
Ala. Code Sec. 27-12-21(a)
Choose an answer to see the explanation.
6.An Alabama producer handles a mix of personal and commercial business and holds no limited lines credit authority. For at least how long must the producer keep complete records of transactions under the license at the place of business?
Answer: D. Three years
Alabama requires a producer to keep complete records of transactions under the producer's license at the place of business for not less than three years. The shorter two-year period applies only to business produced under limited lines credit insurance authority, which this producer does not hold. The records section does not set a one-year or five-year retention period.
Source
Ala. Code Sec. 27-7-33(a)
Choose an answer to see the explanation.
7.Under Alabama law, an insurer that reports a producer's termination to the Commissioner is protected from civil liability for that statement unless the statement was made with what?
Answer: A. Actual malice in making it
In the absence of actual malice, the insurer, its authorized representative, the producer, the Commissioner and certain regulatory information organizations are not subject to civil liability for statements or information required by or provided under the appointment and termination statute. Actual malice is the only exception the section states. Negligence, a factual error, and a failure to notify the producer first are not exceptions it recognizes.
Source
Ala. Code Sec. 27-7-30.2(a)
Choose an answer to see the explanation.
8.At a minimum, how often must the Alabama Commissioner of Insurance conduct an examination of every insurer licensed in Alabama?
Answer: C. Once every five years
Section 27-2-21(a) requires the commissioner to examine each authorized insurer as often as the commissioner deems appropriate, with a floor of at least one examination of every licensed insurer every five years. Because the commissioner may examine more often, an annual or three-year schedule is allowed but is not the statutory minimum. A ten-year interval would fall short of that minimum.
Source
Ala. Code Sec. 27-2-21(a)
Choose an answer to see the explanation.
9.While reviewing a matter, the Alabama Commissioner of Insurance comes to believe that a person has violated a provision of the Insurance Code for which criminal prosecution would be appropriate. What does the Code direct the commissioner to do with that information?
Answer: D. Give it to the Attorney General or the district attorney with jurisdiction over the violation
Section 27-2-19 allows the commissioner to bring actions or proceedings to enforce the Insurance Code, but where a violation would call for criminal prosecution the commissioner must pass the information to the Attorney General or to the district attorney having jurisdiction. The section then gives the Attorney General, not the commissioner, the duty to promptly institute the action the information justifies. The section does not route criminal matters through the Secretary of State or the NAIC.
Source
Ala. Code Sec. 27-2-19
Choose an answer to see the explanation.
10.For purposes of administration and assessment, the Alabama Insurance Guaranty Association is divided into separate accounts. Which of the following is one of those accounts?
Answer: C. An automobile insurance account
The statute creating the association, a nonprofit unincorporated legal entity, divides it into three accounts for administration and assessment: a workers' compensation insurance account, an automobile insurance account, and an account for all other insurance the chapter covers. No separate account is created for life and annuity, title, or fidelity and surety business.
Source
Ala. Code Sec. 27-42-6 (Association Created; Member Insurers; Accounts)
Choose an answer to see the explanation.

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1.An insurer mailed a cancellation notice for an Alabama personal auto liability policy to the named insured at the address shown in the policy. The named insured says the notice never arrived. What does Alabama law say about proving that notice was given?

2.An Alabama resident producer holds both the life and the property lines of authority, sells to the public from her own agency, and is not exempt from continuing education. What is the minimum number of approved classroom hours she must complete and report each biennial renewal cycle?

3.Under the Alabama Department of Insurance rule on apprentice independent adjuster licenses, which requirement applies to a person applying for the apprentice license?

4.A resident individual with no exemption applies for an Alabama insurance producer license and must pass a written examination. Which description matches the subjects the statute says the examination tests?

5.The Commissioner has reason to believe an insurer is using a practice that the trade practices law does not define, believes the practice is unfair or deceptive, and concludes that a proceeding would serve the public interest. Under Alabama law, how does the Commissioner begin?

6.An Alabama producer handles a mix of personal and commercial business and holds no limited lines credit authority. For at least how long must the producer keep complete records of transactions under the license at the place of business?

7.Under Alabama law, an insurer that reports a producer's termination to the Commissioner is protected from civil liability for that statement unless the statement was made with what?

8.At a minimum, how often must the Alabama Commissioner of Insurance conduct an examination of every insurer licensed in Alabama?

9.While reviewing a matter, the Alabama Commissioner of Insurance comes to believe that a person has violated a provision of the Insurance Code for which criminal prosecution would be appropriate. What does the Code direct the commissioner to do with that information?

10.For purposes of administration and assessment, the Alabama Insurance Guaranty Association is divided into separate accounts. Which of the following is one of those accounts?

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