Free General Insurance Concepts Practice Questions
Alabama Property exam — 83 practice questions.
Subtopics: Binder duration, Oral binders, Binder extension, Binder terms, Binder scope, Binder rules, Pure vs speculative risk, Hazard types, Moral hazard, Law of large numbers, Insurable interest property, Methods of handling risk, Risk avoidance, Stock insurer, Reciprocal insurer, Admitted vs non-admitted, Alien insurer, Reinsurance, Elements of a contract, Express authority, Implied authority, Indemnity, Subrogation, Utmost good faith, Warranty, Concealment, Estoppel, Aleatory, Contract of adhesion, Unilateral contract, Conditional contract, Material misrepresentation, Fraud, Waiver, Domestic insurer, Foreign insurer, Mutual insurer, Lloyds association, Risk pooling, Risk retention, Risk transfer, Fundamental vs particular risk, Adverse selection, Peril definition, Morale hazard, Legal hazard, Binder, Apparent authority, Fiduciary responsibility, Self-insurance, Pro-rata cancellation, Insurable risk elements, Insurable risk - catastrophic, Large homogeneous group, Exposure, Peril vs hazard, Moral hazard example, Loss prevention vs reduction, Treaty reinsurance, Facultative reinsurance, Ceding company, Retrocession, Assessment insurers, Captive insurer, Government insurer, Mutual dividends, Independent agent, Exclusive agent, Broker, Managing general agent, Public adjuster, Producer E&O, Representation vs warranty, Absolute liability, Loss ratio, Combined ratio, Class rating, Judgment rating, Earned premium, Binder form, Contract characteristics, Hazards and perils, Insurer types
Read the General Insurance Concepts study guide
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.
