Alabama Personal Lines Exam
Study Guide – Practice
Questions with Verified
Answers. GRADED A+. Latest
2026/2027 Update
Which Homeowner's policy provides all risk or open peril coverage on the
dwelling but broad form coverage on the personal property? - Answer✔✔-HO-
3
The HO-4 is basically intended to cover which of the following types of risks? -
Answer✔✔-An apartment-dweller's personal property
An individual otherwise qualified except for having taken and passed the
examination can be issued a temporary insurance producer license, which is
valid for a maximum period of - Answer✔✔-six months
Who of the following would have Liability coverage under Chuck's Personal
Auto policy? - Answer✔✔-All of the above
The authority given by the company to the agent is NOT formally written or
communicated is called - Answer✔✔-implied authority
,Which of the following correctly identifies common characteristics of Fidelity
Bonds? - Answer✔✔-Fidelity Bonds commonly provide coverage for an insured
act occurring during the bond period and discovered before the end of the
discovery period.
An automobile collision would be considered - Answer✔✔-an accident and an
occurrence
Which of the following are excluded property losses under all Homeowner's
forms? - Answer✔✔-All of the above
What type of Ocean Marine insurance covers goods while they are in transit
over water? - Answer✔✔-cargo
Under the Personal Auto policy, Uninsured Motorists coverage provides
coverage for bodily injury for which the insured is legally entitled to recover
that results from an accident with - Answer✔✔-all of the above
Which of the following statements about notice of cancellation of an Alabama
automobile polity is CORRECT? - Answer✔✔-For reasons other than non-
payment of premium, the insurer must provide at least 20 days notice of
cancellation of an automobile policy.
Assume the following items were stolen from the insured's home. Which one
of the these losses would be fully covered under Coverage C (Personal
Property) of the Homeowner's policy, assuming the loss was for the full value
of the property described? - Answer✔✔-A $1,000 emerald bracelet
, Which Homeowner's coverage provides indirect loss coverage? - Answer✔✔-
Coverage D (Loss of Use)
Coverage D under a standard Homeowner's policy contains coverage for -
Answer✔✔-loss of use
All of the following are correct statements regarding coverage under a
Boatowner's policy EXCEPT - Answer✔✔-Most Boatowner's policies have no
limitations or exclusions related to how the boat may be used.
To file a claim for coverage under Part B (Med Pay) of the Personal Auto policy,
the claimant - Answer✔✔-must incur expenses within three years of the
accident
Xavier's car is insured by ABC Insurance Company. 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? - Answer✔✔-Xavier and First City
Bank
Historically, which of the following statements regarding Ocean Marine
Insurance is correct? - Answer✔✔-Most marine policies are written on a
standard form basis
Which of the following losses would be EXCLUDED under the Liability section of
a Personal Auto policy? - Answer✔✔-The insured backs out of her garage and
runs over her son's new 10-speed bike.
Study Guide – Practice
Questions with Verified
Answers. GRADED A+. Latest
2026/2027 Update
Which Homeowner's policy provides all risk or open peril coverage on the
dwelling but broad form coverage on the personal property? - Answer✔✔-HO-
3
The HO-4 is basically intended to cover which of the following types of risks? -
Answer✔✔-An apartment-dweller's personal property
An individual otherwise qualified except for having taken and passed the
examination can be issued a temporary insurance producer license, which is
valid for a maximum period of - Answer✔✔-six months
Who of the following would have Liability coverage under Chuck's Personal
Auto policy? - Answer✔✔-All of the above
The authority given by the company to the agent is NOT formally written or
communicated is called - Answer✔✔-implied authority
,Which of the following correctly identifies common characteristics of Fidelity
Bonds? - Answer✔✔-Fidelity Bonds commonly provide coverage for an insured
act occurring during the bond period and discovered before the end of the
discovery period.
An automobile collision would be considered - Answer✔✔-an accident and an
occurrence
Which of the following are excluded property losses under all Homeowner's
forms? - Answer✔✔-All of the above
What type of Ocean Marine insurance covers goods while they are in transit
over water? - Answer✔✔-cargo
Under the Personal Auto policy, Uninsured Motorists coverage provides
coverage for bodily injury for which the insured is legally entitled to recover
that results from an accident with - Answer✔✔-all of the above
Which of the following statements about notice of cancellation of an Alabama
automobile polity is CORRECT? - Answer✔✔-For reasons other than non-
payment of premium, the insurer must provide at least 20 days notice of
cancellation of an automobile policy.
Assume the following items were stolen from the insured's home. Which one
of the these losses would be fully covered under Coverage C (Personal
Property) of the Homeowner's policy, assuming the loss was for the full value
of the property described? - Answer✔✔-A $1,000 emerald bracelet
, Which Homeowner's coverage provides indirect loss coverage? - Answer✔✔-
Coverage D (Loss of Use)
Coverage D under a standard Homeowner's policy contains coverage for -
Answer✔✔-loss of use
All of the following are correct statements regarding coverage under a
Boatowner's policy EXCEPT - Answer✔✔-Most Boatowner's policies have no
limitations or exclusions related to how the boat may be used.
To file a claim for coverage under Part B (Med Pay) of the Personal Auto policy,
the claimant - Answer✔✔-must incur expenses within three years of the
accident
Xavier's car is insured by ABC Insurance Company. 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? - Answer✔✔-Xavier and First City
Bank
Historically, which of the following statements regarding Ocean Marine
Insurance is correct? - Answer✔✔-Most marine policies are written on a
standard form basis
Which of the following losses would be EXCLUDED under the Liability section of
a Personal Auto policy? - Answer✔✔-The insured backs out of her garage and
runs over her son's new 10-speed bike.
