Chapter 17: Alabama Property & Casualty Insurance Law (With complete answers)

Binders (27-14-18) correct answers A binder is an instrument designed to provide immediate, temporary insurance coverage. Binders can be either written or oral. In the state of Alabama, how long are binders valid? correct answers 90 days or until a policy is issued. Whichever is less In the state of Alabama, if a policy has not been issued within 90 days, can a Binder be extended or renewed? correct answers Yes. If a policy has not been issued within 90 days, a Binder may be extended or renewed with the approval of the Commissioner Adjusters correct answers An Adjuster is a person who is contracted by an insurance company to investigate and negotiate claims. Under Alabama law, can a licensed attorney or employees of an insurance company be considered Adjusters under the Adjuster definition. correct answers No Is holding a license necessary in order for a person to be an Adjuster? correct answers Yes. A person must not act as an Adjuster without holding an Adjusters License. The Alabama Department of Insurance Commissioner can issue an Adjuster license to a person (individual or business entity) who completes the required application and meets what requirements? correct answers Applicants must be: -19 years or older -A resident of Alabama or a resident of another state that permits Alabama residents to act as Adjusters -A full-time salaried employee of a licensed Adjuster, or must have loss claim education or training, or be a graduate of a recognized law school -Trustworthy and of good character Nonresident Adjusters Exemption- An Adjusters License is not required if: correct answers -An individual is sent to AL on behalf of an insurer to adjust unique or unusual losses or a series of losses in connection with a common catastrophe -An individual is a licensed agent of an Authorized Alabama insurance company and is not paid retrospective compensation How long does an Adjusters License remain in effect, and how is it renewed? correct answers An adjusters license will remain in effect for 2 years unless otherwise revoked or suspended. To maintain the license, Adjusters must request renewal (continuation) in writing and pay the required annual fee. Who has the authority to revoke, suspend (for 12 months), or refuse to continue an Adjuster's license? correct answers The Commissioner