Personal Lines Alabama State Exam Latest
Update 2025-2026 130 Questions and 100%
Verified Correct Answers Guaranteed A+
___________ manufacture and sell insurance coverage in the form of policies or
contracts of insurance.
A-Insurers
B-Producers
C-Insureds
D-Agencies - CORRECT ANSWER: A-Insurers
A home that has been certified at the Gold Level and is less than 5 years old can expect
to receive which of the following wind mitigation discounts on their homeowner policy?
A-40%
B-30%
C-60%
D-50% - CORRECT ANSWER: D-50%
A home would be considered to be eligible to receive a minimum level of wind mitigation
discount if it was built at least to which of the following standards?
A-Gold Level
B-Fortified for Safer Living
C-2000 IRC or later
D-2006 IRC or later - CORRECT ANSWER: D-2006 IRC or later
A nonexclusive agent:
A-Represents the insurer only
,B-Represents one insurance company as a captive agent
C-Represents more than one insurance company
D-Represents one company, but is considered to be a salaried agent working in the
office only - CORRECT ANSWER: C-Represents more than one insurance company
A notice of cancellation of an automobile insurance policy for nonpayment of premium
must be mailed or delivered to the named insured at least ______ days before the
effective date of the cancellation.
A-21
B-10
C-15
D-30 - CORRECT ANSWER: B-10
A person who for compensation investigates and negotiates settlement of claims arising
under insurance contracts on behalf of an insurer is a/an:
A-Broker
B-Adjuster
C-Investigator
D-Agent - CORRECT ANSWER: B-Adjuster
A premium reduction for an insured who is 55 or older and who completes an approved
motor vehicle accident prevention course is effective for ______ years after the insured
completes the course.
A-3
B-10
C-5
D-1 - CORRECT ANSWER: A-3
A Surplus Line Producer must post a bond in the amount of:
,A-$20,000
B-$50,000
C-$5,000
D-$10,000 - CORRECT ANSWER: B-$50,000
All of the following are 'your duties in the event of a loss', except:
A-The insured should protect damaged property from further loss and separate
damaged property from undamaged property
B-The insured should seek legal council and file a law suit against the party that caused
the claim
C-The insured should notify the police if a law has been broken
D-The insured should give prompt notice of the loss to the insurer - CORRECT
ANSWER: B-The insured should seek legal council and file a law suit against the party
that caused the claim
All of the following are levels of Fortified Designations for wind mitigation discounts,
EXCEPT:
A-Nickel
B-Silver
C-Gold
D-Bronze - CORRECT ANSWER: A-Nickel
All of the following are methods of loss valuation, except:
A-Actual cash value
B-Stated amount
C-Blanket value
D-Replacement cost - CORRECT ANSWER: C-Blanket value
, All of the following are reasons that the Commissioner may suspend a producers
license, except:
A-Failing to comply with a child support order
B-Lying on your application for license
C-Failing to pay state income tax
D-Conviction of a misdemeanor - CORRECT ANSWER: D-Conviction of a misdemeanor
All of the following are restricted from entering into an insurance contract, except:
A-Minors
B-People under the influence of drugs or alcohol
C-Retired persons
D-Mentally incompetent persons - CORRECT ANSWER: C-Retired persons
All of the following are true of the HO-2, except:
A-The HO-2 covers owner-occupied dwellings
B-The HO-2 pays for losses on an open peril basis
C-The HO-2 pays for losses to the dwelling on a replacement cost basis
D-The HO-2 covers the broad form perils - CORRECT ANSWER: B-The HO-2 pays for
losses on an open peril basis
All of the following are true regarding Dwelling policy eligibility, except:
A-Mobile homes are eligible if written on a DP-1
B-Farm dwellings are not eligible
C-Some incidental business occupancies are permitted
D-The dwelling must be used for seasonal or secondary purposes - CORRECT
ANSWER: D-The dwelling must be used for seasonal or secondary purposes
Update 2025-2026 130 Questions and 100%
Verified Correct Answers Guaranteed A+
___________ manufacture and sell insurance coverage in the form of policies or
contracts of insurance.
A-Insurers
B-Producers
C-Insureds
D-Agencies - CORRECT ANSWER: A-Insurers
A home that has been certified at the Gold Level and is less than 5 years old can expect
to receive which of the following wind mitigation discounts on their homeowner policy?
A-40%
B-30%
C-60%
D-50% - CORRECT ANSWER: D-50%
A home would be considered to be eligible to receive a minimum level of wind mitigation
discount if it was built at least to which of the following standards?
A-Gold Level
B-Fortified for Safer Living
C-2000 IRC or later
D-2006 IRC or later - CORRECT ANSWER: D-2006 IRC or later
A nonexclusive agent:
A-Represents the insurer only
,B-Represents one insurance company as a captive agent
C-Represents more than one insurance company
D-Represents one company, but is considered to be a salaried agent working in the
office only - CORRECT ANSWER: C-Represents more than one insurance company
A notice of cancellation of an automobile insurance policy for nonpayment of premium
must be mailed or delivered to the named insured at least ______ days before the
effective date of the cancellation.
A-21
B-10
C-15
D-30 - CORRECT ANSWER: B-10
A person who for compensation investigates and negotiates settlement of claims arising
under insurance contracts on behalf of an insurer is a/an:
A-Broker
B-Adjuster
C-Investigator
D-Agent - CORRECT ANSWER: B-Adjuster
A premium reduction for an insured who is 55 or older and who completes an approved
motor vehicle accident prevention course is effective for ______ years after the insured
completes the course.
A-3
B-10
C-5
D-1 - CORRECT ANSWER: A-3
A Surplus Line Producer must post a bond in the amount of:
,A-$20,000
B-$50,000
C-$5,000
D-$10,000 - CORRECT ANSWER: B-$50,000
All of the following are 'your duties in the event of a loss', except:
A-The insured should protect damaged property from further loss and separate
damaged property from undamaged property
B-The insured should seek legal council and file a law suit against the party that caused
the claim
C-The insured should notify the police if a law has been broken
D-The insured should give prompt notice of the loss to the insurer - CORRECT
ANSWER: B-The insured should seek legal council and file a law suit against the party
that caused the claim
All of the following are levels of Fortified Designations for wind mitigation discounts,
EXCEPT:
A-Nickel
B-Silver
C-Gold
D-Bronze - CORRECT ANSWER: A-Nickel
All of the following are methods of loss valuation, except:
A-Actual cash value
B-Stated amount
C-Blanket value
D-Replacement cost - CORRECT ANSWER: C-Blanket value
, All of the following are reasons that the Commissioner may suspend a producers
license, except:
A-Failing to comply with a child support order
B-Lying on your application for license
C-Failing to pay state income tax
D-Conviction of a misdemeanor - CORRECT ANSWER: D-Conviction of a misdemeanor
All of the following are restricted from entering into an insurance contract, except:
A-Minors
B-People under the influence of drugs or alcohol
C-Retired persons
D-Mentally incompetent persons - CORRECT ANSWER: C-Retired persons
All of the following are true of the HO-2, except:
A-The HO-2 covers owner-occupied dwellings
B-The HO-2 pays for losses on an open peril basis
C-The HO-2 pays for losses to the dwelling on a replacement cost basis
D-The HO-2 covers the broad form perils - CORRECT ANSWER: B-The HO-2 pays for
losses on an open peril basis
All of the following are true regarding Dwelling policy eligibility, except:
A-Mobile homes are eligible if written on a DP-1
B-Farm dwellings are not eligible
C-Some incidental business occupancies are permitted
D-The dwelling must be used for seasonal or secondary purposes - CORRECT
ANSWER: D-The dwelling must be used for seasonal or secondary purposes
