Property and Casualty

Insured A has a personal auto policy with Part C limits of $100/$300 uninsured/underinsured motorist. He is injured by insured B, who has Part A limits of $50/$100. The police determine that insured B is a fault for the accident and insured A's $125,000 medical expense. How much will insured's Part C pay?

A. $50,000

B. $25,000

C. $125,000

D. $75,000

If an insurer decides to cancel an auto policy due to the mechanical condition of the vehicle, what kind of notice to the insured is required?

A. 10 days

B. 20 days

C. 30 days

D. 60 days

Which of the following statements is true concerning underinsured motorist coverage under a personal auto policy?

A. It will pay up to the limits of insurance for any loss which involves an underinsured driver

B. Limits must equal the bodily injury limits of the policy

C. Limits may differ from the limits for uninsured motorist coverage

D. Coverage applies only on the extent that the underinsured motorist limits exceed the bodily injury limits carried by the operator of the other vehicle

What are the minimum liability limits for auto insurance policies issued in this state?

A. 25/50/25

B. 10/20/30

C. 20/40/20

D. 50/50/10

What is the purpose of the Alabama Automobile Insurance Plan?

A. To comply with the Financial Responsibility Law to provide evidence of automobile liability insurance

B. To provide enough auto coverage to underinsured motorist

C. To protect the insured against insolvent auto insurers

D. To provide auto insurance to eligible person who are unable to obtain coverage through private insurers

All of the following statements regarding parts used in the repair of an insured vehicle are true EXCEPT

A. Parts used in the repair of an insured vehicle by other than the original manufacturer must be at least equal in like kind and quality in terms of fir, quality and performance

B. Parts used in the repair of an insured vehicle by other than the original manufacturer must use replacement parts from the manufacturer only

C. All aftermarket parts installed on the vehicle must be clearly identified on the repair estimate

D. Insurers or repair facilities must disclose to the insured if used parts were installed on a vehicle

Which of the following options is available for eligible person who cannot obtain automobile coverage through the voluntary market?

A. AAA Auto Club coverage

B. The Alabama Uninsured Motorist Fund

C. The Alabama Insurance Guaranty Association 

D. The Alabama Automobile Insurance Plan

Of the following, which is NOT defined in the personal auto policy as an "uninsured motor vehicle"?

A. A vehicle covered by a bodily injury policy, but the coverage limit is less than the minimum required by the financial responsibility law

B. A vehicle owned by a government entity

C. A vehicle in which the driver or owner is unknown

D. A vehicle which is not covered by a bodily injury liability policy

The insured stopped paying the premium for his auto policy. Which of the following is true?

A. The insurer may cancel the policy on the date the premium is due

B. The insurer must provide a 10-day notice prior to policy cancellation

C. The insurer must cancel the policy immediately

D. The insurer may cancel the policy within 30 days

When would UM coverage apply?

A. Only when the insured drives an uninsured car

B. Any time the insured is involved in an accident with an uninsured driver

C. Only when the insured is legally liable

D. Only when the other party is legally liable but has no insurance

What is the maximum period of time for which an auto insurance policy may be issued in this state?

A. 2 years

B. 3 years

C. 6 months

D. 12 months

A repair facility used after-market parts in the repair of a customer's automobile, and did not notify the customer of this. Which of the following is true?

A. The repair facility must provide a warranty for the after-market parts

B. The repair facility has engaged in a unfair trade practice

C. The repair facility did nothing wrong

D. It is a common business practice