Exam- Alabama Insurance Law Common to All Lines:
Alabama Insurance License Qs & As
Cease and desist Correct Answer-to stop or discontinue
Coercion Correct Answer-the practice of persuading someone to do something by using
force or threats
Commission Correct Answer-payment to the agent by the insurance company for placing
insurance, usually a percentage of the policy premium
Commisioner Correct Answer-the head of the state department of insurance
Disclosure Correct Answer-revealed information to help someone make an intelligent and
educated decision
Exempt Correct Answer-not subject to a duty or obligation
Home state Correct Answer-a state in which an insurer is organized and has its main place
of business
, Exam- Alabama Insurance Law Common to All Lines:
Alabama Insurance License Qs & As
Inducement Correct Answer-an offer that attempt to influence the other party
Reciprocity Correct Answer-a mutual interchange of rights and privileges
Subpoena Correct Answer-an order for someone to appear as a witness or submit
testimony or evidence
Surplus Lines Insurance Correct Answer-insurance that is not available from admitted
insurers
Lines of Authority Correct Answer-1)Life Line
2)Property Lines
3)Other Lines
, Exam- Alabama Insurance Law Common to All Lines:
Alabama Insurance License Qs & As
Producers Correct Answer-are individuals or business entities that are required to be
licensed to sell, solicit, and negotiate insurance in this state. The license must be for the class
of insurance that a producer intends to sell or solicit.
To be eligible for a producer license you must meet these requirement Correct Answer--Be
at least 18 years old
-Complete the required prelicensing education (20 hours per line of authority or 40 hours for
a combined license)
Pass each examination which is required for the license being sought (examination certificates
are valid for 1 year from the date of completion);
Pay the required fee;
Have not committed any act which is a ground for denial, suspension, or revocation of a
license.
Alabama Insurance License Qs & As
Cease and desist Correct Answer-to stop or discontinue
Coercion Correct Answer-the practice of persuading someone to do something by using
force or threats
Commission Correct Answer-payment to the agent by the insurance company for placing
insurance, usually a percentage of the policy premium
Commisioner Correct Answer-the head of the state department of insurance
Disclosure Correct Answer-revealed information to help someone make an intelligent and
educated decision
Exempt Correct Answer-not subject to a duty or obligation
Home state Correct Answer-a state in which an insurer is organized and has its main place
of business
, Exam- Alabama Insurance Law Common to All Lines:
Alabama Insurance License Qs & As
Inducement Correct Answer-an offer that attempt to influence the other party
Reciprocity Correct Answer-a mutual interchange of rights and privileges
Subpoena Correct Answer-an order for someone to appear as a witness or submit
testimony or evidence
Surplus Lines Insurance Correct Answer-insurance that is not available from admitted
insurers
Lines of Authority Correct Answer-1)Life Line
2)Property Lines
3)Other Lines
, Exam- Alabama Insurance Law Common to All Lines:
Alabama Insurance License Qs & As
Producers Correct Answer-are individuals or business entities that are required to be
licensed to sell, solicit, and negotiate insurance in this state. The license must be for the class
of insurance that a producer intends to sell or solicit.
To be eligible for a producer license you must meet these requirement Correct Answer--Be
at least 18 years old
-Complete the required prelicensing education (20 hours per line of authority or 40 hours for
a combined license)
Pass each examination which is required for the license being sought (examination certificates
are valid for 1 year from the date of completion);
Pay the required fee;
Have not committed any act which is a ground for denial, suspension, or revocation of a
license.
