Free General Insurance Concepts Practice Questions
Alabama Casualty exam — 91 practice questions.
Subtopics: Binder duration, Oral binders, Binder extension, Binder terms, Binder scope, Binder rules, Pure risk, Hazard, Peril, Methods of handling risk, Retention, Insurable interest, Stock insurer, Reciprocal, Admitted insurer, Foreign insurer, Elements of contract, Apparent authority, Express authority, Implied authority, Indemnity, Subrogation, Utmost good faith, Warranty, Representation, Concealment, Adhesion, Aleatory, Waiver, Estoppel, Moral hazard, Law of large numbers, Mutual insurer, Domestic insurer, Alien insurer, Surplus lines, Adverse selection, Physical hazard, Morale hazard, Speculative risk, Risk sharing, Risk reduction, Reinsurance, Fortuitous loss, Insurable risk characteristics, Fiduciary duty, Binder, Unilateral contract, Conditional contract, Personal contract, Declarations, Insuring agreement, Exclusions, Conditions, Endorsement, Material fact, Misrepresentation, Parol evidence rule, Loss exposure, Risk avoidance, Noninsurance transfer, Self-insurance, Captive insurer, Lloyd's, Residual markets, Underwriting sources, Rating methods, Premium components, Premium audit, Producer types, Direct writers, Managing general agent, Binding authority, Doctrine of reasonable expectations, Insurable interest timing, Insurance definition, Loss ratio, Combined ratio, Adjusters, Policy structure, Definitions, Monoline vs package, Interline endorsements, Insurer types, Insurance principles
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Sample questions & answers
1. Under Alabama law, a property or casualty binder is not valid beyond the issuance of the policy or beyond how many days from its effective date, whichever is shorter?
90 days
No binder is valid beyond issuance of the policy or 90 days from its effective date, whichever is shorter.
2. In Alabama, a binder for temporary property or casualty insurance may be made:
Orally or in writing
Binders or other contracts for temporary insurance may be made orally or in writing.
3. If the policy has not been issued, an Alabama binder may be extended beyond 90 days only:
With the Commissioner's written approval or under the Commissioner's rules
A binder may be extended or renewed beyond 90 days with the Commissioner's written approval or under the Commissioner's rules.
4. An Alabama binder is deemed to include:
The usual terms of the policy, unless the binder clearly says otherwise
A binder includes all the usual terms of the policy and designated endorsements, except as superseded by the binder's clear and express terms.
Practice: General Insurance Concepts
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
