4/30/26, 10:21 Alabama Personal Lines Exam
PM
Alabama Personal Lines Exam 2026
Alabama Personal Lines Exam ALABAMA PERSONAL LINES INSURANCE EXAM COVERAGE
The Alabama Personal Lines Insurance exam evaluates knowledge of
insurance products designed for individual and household protection.
The exam coverage includes homeowners, renters, auto, and personal
liability insurance policies, along with their coverage types, exclusions,
endorsements, and policy conditions. It also assesses understanding of
insurance contract principles, underwriting basics, premium
calculations, deductibles, and claims processes. Additional areas include
risk management, liability protection, and ethical responsibilities of
insurance agents. The exam further covers Alabama insurance laws,
licensing regulations, and consumer protection requirements.
Which of the following are excluded property All of the above
losses under all Homeowner's forms?
The HO-4 is basically intended to cover which of An apartment-dweller's personal property
the following types of risks?
An individual otherwise qualified except for having six months
taken and passed the examination can be issued a
temporary insurance producer license, which is
valid for a maximum period of
Who of the following would have Liability coverage All of the above
under Chuck's Personal Auto policy?
The authority given by the company to the agent is implied authority
NOT formally written or communicated is called
Which of the following correctly identifies common Fidelity Bonds commonly provide coverage for an insured act occurring
characteristics of Fidelity Bonds? during the bond period and discovered before the end of the discovery
period.
An automobile collision would be considered an accident and an occurrence
Which Homeowner's policy provides all risk or open HO-3
peril coverage on the dwelling but broad form
coverage on the personal property?
What type of Ocean Marine insurance covers goods Cargo
while they are in transit over water?
Under the Personal Auto policy, Uninsured all of the above
Motorists coverage provides coverage for bodily
injury for which the insured is legally entitled to
recover that results from an accident with
Which of the following statements about notice of For reasons other than non-payment of premium, the insurer must
cancellation of an Alabama automobile polity is provide at least 20 days notice of cancellation of an automobile policy.
CORRECT?
Assume the following items were stolen from the A $1,000 emerald bracelet
insured's home. Which one of the these losses
would be fully covered under Coverage C (Personal
1/16
,4/30/26, 10:21 Alabama Personal Lines Exam
PM
Property) of the Homeowner's policy, assuming the
loss was for the full value of the property
described?
Which Homeowner's coverage provides indirect Coverage D (Loss of Use)
loss coverage?
Coverage D under a standard Homeowner's policy loss of use
contains coverage for
All of the following are correct statements regarding Most Boatowner's policies have no limitations or exclusions related to
how the boat coverage under a Boatowner's policy EXCEPT may be used.
To file a claim for coverage under Part B (Med must incur expenses within three years of the accident
Pay) of the Personal Auto policy, the claimant
Xavier's car is insured by ABC Insurance Company. Xavier and First City Bank
Xavier took out a loan with First City Bank to
purchase the car, and is still making payments on
the car loan. Who has an insurable interest in the
car?
Historically, which of the following statements Most marine policies are written on a standard form basis
regarding Ocean Marine Insurance is correct?
Which of the following losses would be EXCLUDED The insured backs out of her garage and runs over her son's new 10-
under the Liability section of a Personal Auto speed bike.
policy?
Which of the following perils are NOT covered by
the Equipment Breakdown Coverage policy?
Under the NFIP policy, all of the following are sewer backup
generally considered to be floods EXCEPT
In a Fidelity Bond, the employee is known as the
Which of the following is NOT a standard exclusion
found in Section II (Liability) of a Homeowner's
policy?
When does Flood insurance begin? 30 days after the application date
Under a standard property insurance policy, after salvage
the insurer pays in full for damaged property, they
gain ownership of the property and have the right
to recoup part of their payment through the right of
Which of the following would NOT be covered Theft of a portable radio left on the seat
under the Other Than Collision section of a
Personal Auto policy?
2/16
, 4/30/26, 10:21 Alabama Personal Lines Exam
PM
Under the Personal Auto policy, which of the None of the above
following losses would be considered a collision
loss?
For the most part, property insurance policies are two-party contracts.
considered to be
In addition to earthquake, what other perils does Volcanic eruption
the Earthquake Causes of Loss form cover?
Which of the following statements about surplus All of the above statements are correct.
line brokers is CORRECT?
A. An Alabama resident must be licensed as a
property and casualty insurance producer to
hold a surplus line broker license.
B. An Alabama resident must post a bond of at least
$50,000 to be licensed as a surplus line broker.
C. To be licensed in Alabama as a non-resident
surplus line broker, the applicant must be licensed
as a surplus line broker in their home state.
D. All of the above statements are correct.
Under a Personal Auto policy, your duties following file a lawsuit against any negligent third party
a loss include all of the following EXCEPT
The maximum claim amount covered by the
Alabama Insurance Guaranty Association is
An insurer compare what it paid in claims against
the amount received in premiums to determine its
Which of the following is NOT a category of the Private passenger autos
Nationwide Marine Definition?
A person who for compensation, fee or adjuster
commissions negotiates settlement of claims
under insurance contracts in Alabama is called
a/an
Coverage C under a Dwelling or Standard personal property
Homeowner's policy contains coverage for
What is arbitration? A means of settling disputes between the insured and the insurer
Which of the following statements BEST describes
a collision
An insurance contract is "one-sided" because the unilateral contract
insurance company is the only party that is
legally bound to perform its part of the contract.
This means that an insurance contract is a/an
Every automobile insurance policy sold in Alabama offer
must
coverage for uninsured motorist
3/16
PM
Alabama Personal Lines Exam 2026
Alabama Personal Lines Exam ALABAMA PERSONAL LINES INSURANCE EXAM COVERAGE
The Alabama Personal Lines Insurance exam evaluates knowledge of
insurance products designed for individual and household protection.
The exam coverage includes homeowners, renters, auto, and personal
liability insurance policies, along with their coverage types, exclusions,
endorsements, and policy conditions. It also assesses understanding of
insurance contract principles, underwriting basics, premium
calculations, deductibles, and claims processes. Additional areas include
risk management, liability protection, and ethical responsibilities of
insurance agents. The exam further covers Alabama insurance laws,
licensing regulations, and consumer protection requirements.
Which of the following are excluded property All of the above
losses under all Homeowner's forms?
The HO-4 is basically intended to cover which of An apartment-dweller's personal property
the following types of risks?
An individual otherwise qualified except for having six months
taken and passed the examination can be issued a
temporary insurance producer license, which is
valid for a maximum period of
Who of the following would have Liability coverage All of the above
under Chuck's Personal Auto policy?
The authority given by the company to the agent is implied authority
NOT formally written or communicated is called
Which of the following correctly identifies common Fidelity Bonds commonly provide coverage for an insured act occurring
characteristics of Fidelity Bonds? during the bond period and discovered before the end of the discovery
period.
An automobile collision would be considered an accident and an occurrence
Which Homeowner's policy provides all risk or open HO-3
peril coverage on the dwelling but broad form
coverage on the personal property?
What type of Ocean Marine insurance covers goods Cargo
while they are in transit over water?
Under the Personal Auto policy, Uninsured all of the above
Motorists coverage provides coverage for bodily
injury for which the insured is legally entitled to
recover that results from an accident with
Which of the following statements about notice of For reasons other than non-payment of premium, the insurer must
cancellation of an Alabama automobile polity is provide at least 20 days notice of cancellation of an automobile policy.
CORRECT?
Assume the following items were stolen from the A $1,000 emerald bracelet
insured's home. Which one of the these losses
would be fully covered under Coverage C (Personal
1/16
,4/30/26, 10:21 Alabama Personal Lines Exam
PM
Property) of the Homeowner's policy, assuming the
loss was for the full value of the property
described?
Which Homeowner's coverage provides indirect Coverage D (Loss of Use)
loss coverage?
Coverage D under a standard Homeowner's policy loss of use
contains coverage for
All of the following are correct statements regarding Most Boatowner's policies have no limitations or exclusions related to
how the boat coverage under a Boatowner's policy EXCEPT may be used.
To file a claim for coverage under Part B (Med must incur expenses within three years of the accident
Pay) of the Personal Auto policy, the claimant
Xavier's car is insured by ABC Insurance Company. Xavier and First City Bank
Xavier took out a loan with First City Bank to
purchase the car, and is still making payments on
the car loan. Who has an insurable interest in the
car?
Historically, which of the following statements Most marine policies are written on a standard form basis
regarding Ocean Marine Insurance is correct?
Which of the following losses would be EXCLUDED The insured backs out of her garage and runs over her son's new 10-
under the Liability section of a Personal Auto speed bike.
policy?
Which of the following perils are NOT covered by
the Equipment Breakdown Coverage policy?
Under the NFIP policy, all of the following are sewer backup
generally considered to be floods EXCEPT
In a Fidelity Bond, the employee is known as the
Which of the following is NOT a standard exclusion
found in Section II (Liability) of a Homeowner's
policy?
When does Flood insurance begin? 30 days after the application date
Under a standard property insurance policy, after salvage
the insurer pays in full for damaged property, they
gain ownership of the property and have the right
to recoup part of their payment through the right of
Which of the following would NOT be covered Theft of a portable radio left on the seat
under the Other Than Collision section of a
Personal Auto policy?
2/16
, 4/30/26, 10:21 Alabama Personal Lines Exam
PM
Under the Personal Auto policy, which of the None of the above
following losses would be considered a collision
loss?
For the most part, property insurance policies are two-party contracts.
considered to be
In addition to earthquake, what other perils does Volcanic eruption
the Earthquake Causes of Loss form cover?
Which of the following statements about surplus All of the above statements are correct.
line brokers is CORRECT?
A. An Alabama resident must be licensed as a
property and casualty insurance producer to
hold a surplus line broker license.
B. An Alabama resident must post a bond of at least
$50,000 to be licensed as a surplus line broker.
C. To be licensed in Alabama as a non-resident
surplus line broker, the applicant must be licensed
as a surplus line broker in their home state.
D. All of the above statements are correct.
Under a Personal Auto policy, your duties following file a lawsuit against any negligent third party
a loss include all of the following EXCEPT
The maximum claim amount covered by the
Alabama Insurance Guaranty Association is
An insurer compare what it paid in claims against
the amount received in premiums to determine its
Which of the following is NOT a category of the Private passenger autos
Nationwide Marine Definition?
A person who for compensation, fee or adjuster
commissions negotiates settlement of claims
under insurance contracts in Alabama is called
a/an
Coverage C under a Dwelling or Standard personal property
Homeowner's policy contains coverage for
What is arbitration? A means of settling disputes between the insured and the insurer
Which of the following statements BEST describes
a collision
An insurance contract is "one-sided" because the unilateral contract
insurance company is the only party that is
legally bound to perform its part of the contract.
This means that an insurance contract is a/an
Every automobile insurance policy sold in Alabama offer
must
coverage for uninsured motorist
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