Free Alabama Property and Casualty Practice Exam Online

Correct answer: A. Not have committed any act that is grounds for denial, suspension, or revocation of a license

Correct. Section 27-7-5 requires that the applicant is trustworthy, competent, and has not committed an act that constitutes grounds for denial, suspension, or revocation under the licensing law.

• B: Alabama law does not require a high school diploma issued specifically in Alabama; there is no such state-of-issuance requirement.
• C: Alabama does not set 21 as the minimum age for a producer license; the statute focuses on trustworthiness and competence, not a specific age floor of 21.
• D: Alabama does not impose a mandatory prior employment period at a licensed agency as a condition of initial licensure.

Correct answer: D. 20 days

Correct. Section 27-23-23 requires at least 20 days' advance written notice for cancellation of an automobile policy for reasons other than nonpayment of premium.

• A: 10 days is the notice period specifically for cancellation due to nonpayment of premium, not the general cancellation notice period.
• B: 45 days is not the statutory period under Alabama's automobile cancellation notice law.
• C: 30 days is longer than the statutory minimum for standard cancellation notice under this section.

Correct answer: B. Fingerprints for a criminal history record check by the Alabama Department of Public Safety and FBI

Correct. Section 27-7-4.4 authorizes the Commissioner to require fingerprints from initial resident applicants for submission to state and federal criminal history databases.

• A: Alabama does not condition initial producer licensure on posting a $10,000 surety bond.
• C: Errors and omissions coverage is not a statutory prerequisite for obtaining an Alabama producer license.
• D: A letter of recommendation from another producer is not part of the statutory application requirements.

Correct answer: C. 15 days from the date the contract is executed or the first application is submitted, whichever is first

Correct. Section 27-7-30 requires the insurer to file the appointment notice no later than 15 days from contract execution or the first submitted application, whichever occurs first.

• A: 5 days is too short; that timeframe applies to the Commissioner notifying an insurer if a producer is found ineligible, not to the insurer's initial filing deadline.
• B: 10 days is not the statutory filing window for a notice of appointment.
• D: 30 days is the period the Commissioner has to verify appointment eligibility, not the insurer's deadline to file the notice.

Correct answer: D. Every two years, by the last day of the licensee's birth month

Correct. Alabama major lines producer licenses, including property and casualty, renew biennially by the last day of the licensee's birth month, consistent with Section 27-7-14.1.

• A: Alabama does not use an annual renewal cycle for major lines producer licenses.
• B: Alabama licenses are not perpetual; they require periodic renewal and continuing education.
• C: There is no five-year renewal cycle tied to driver's license renewal for insurance producers.