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Insurance Policies and Regulations Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is automatically included in BOP Coverage Extensions?

a)

Debris removal and preservation of property

b)

Only newly acquired buildings

c)

Only debris removal

d)

Only preservation of property

2.

Which endorsement requires maintenance of alarms or sprinklers?

a)

Utility Services — Time Element

b)

Utility Services — Direct Damage

c)

Protective Safeguards

d)

Hired/Non-Owned Auto Liability

3.

What does Part One of a workers comp policy include?

a)

Endorsements

b)

Employers liability

c)

Statutory benefits

d)

Other states coverage

4.

What does the Commercial Auto policy cover?

a)

Only physical damage for hired vehicles

b)

Only theft of business vehicles

c)

Liability and physical damage for vehicles used in business

d)

Liability and physical damage for personal vehicles

5.

Which form covers owned, hired, and non-owned autos for liability and physical damage?

a)

Farm Coverage

b)

Business Auto Coverage Form

c)

Truckers Coverage Form

d)

Marine Policies

6.

What does workers compensation cover?

a)

Only lost wages

b)

Medical expenses, lost wages, rehabilitation, and death benefits

c)

Only rehabilitation

d)

Only medical expenses

7.

What does a Businessowners Policy (BOP) combine?

a)

Only property coverage

b)

Only liability coverage

c)

Marine and auto coverage

d)

Property and liability coverage for small to mid-sized businesses

8.

What is required for licensing in Alabama?

a)

Only passing an exam

b)

Only proof of citizenship

c)

Education, exam, fingerprinting, and citizenship verification

d)

Only fingerprinting

9.

What is the role of the Alabama Insurance Commissioner?

a)

Only regulating insurance companies

b)

Only enforcing insurance laws

c)

Overseeing licensing, regulation, and enforcement of insurance laws

d)

Only issuing licenses

10.

What is included in the Truckers & Motor Carriers Coverage Forms?

a)

Farm equipment coverage

b)

Inland marine coverage

c)

Trailer interchange and motor carrier liability

d)

Drive other car coverage

11.

What is required to maintain a producer license in Alabama?

a)

Only updating contact information

b)

Only completing CE requirements

c)

Renewing licenses biennially, completing CE requirements, and updating contact information

d)

Only renewing the license

12.

What is covered under BOP Property Coverages?

a)

Only loss of income

b)

Only business personal property

c)

Buildings, business personal property, and loss of income

d)

Only buildings

13.

What is the role of a surplus lines broker?

a)

To place coverage with admitted carriers

b)

To place coverage with nonadmitted carriers when no admitted market is available

c)

To adjust claims

d)

To provide temporary coverage

14.

What is required for most employers in Alabama regarding workers compensation?

a)

Only for construction firms

b)

Optional for all employers

c)

Only for large corporations

d)

Mandatory unless exempt

15.

What does Ocean Marine Policies cover?

a)

Business personal property

b)

Farm equipment and livestock

c)

Only inland transportation

d)

Vessels, cargo, and liability on international waters

16.

What is required under the Beason-Hammon Taxpayer and Citizen Protection Act?

a)

Proof of citizenship with multiple forms of ID accepted

b)

Only a U.S. passport

c)

Only a valid driver's license

d)

Only a birth certificate

17.

What are the levels of disability in workers compensation?

a)

Only Temporary Partial and Permanent Partial

b)

Temporary Total, Temporary Partial, Permanent Partial, Permanent Total

c)

Only Temporary Total and Permanent Total

d)

Only Permanent Total

18.

Which endorsement covers collision damage for a corporate officer driving a rental car?

a)

Trailer interchange coverage

b)

Employee as insured

c)

Hired auto physical damage

d)

Drive other car coverage

19.

What do Marine Policies generally cover?

a)

Property in transit or related to transportation

b)

Only ocean vessels

c)

Only inland transportation

d)

Farm equipment and livestock

20.

What is the purpose of the Alabama Insurance Guaranty Association?

a)

To regulate insurance companies

b)

To protect policyholders if an admitted insurer becomes insolvent

c)

To offer discounts on insurance premiums

d)

To provide insurance for all residents