Alabama Property & Casualty Cheat Sheet

Cheat sheet Alabama Property & Casualty Cheat Sheet Practice Questions Study Guide Print / Save PDF

P&C Fundamentals 20% of exam Vocabulary Contract Law Property Basics Liability Basics Negligence

Personal Lines 23% of exam HO Forms Dwelling Forms Personal Auto Watercraft/Flood Form Picker

Commercial Lines 44% of exam Commercial Package Commercial Property CGL Commercial Auto/IM Workers Comp

Alabama Law 13% of exam Licensing Guaranty Assoc Auto Law Cancellation Strengthen Alabama Homes

Quick Facts Exam Combined P&C Questions 150 scored Time 180 min Pass 70% (105/150) Fee $75 combined Prelicense Not required Provider UA / ALDOI Blueprint Aug 8 2023

Named vs Open Peril FU

Named peril Listed perils only Insured proves cause Narrower

Open peril All but excluded Insurer proves exclusion Broader Listed vs all-risk

Vocabulary FU Indemnity Restore, no profit Insurable interest Financial loss exposure Peril Cause of loss Hazard Increases loss chance Domestic Formed in Alabama Foreign Another US state Alien Outside the US Admitted Licensed in state

ACV vs Replacement Cost FU

ACV Minus depreciation Lower payout Older property

Replacement No depreciation Like kind quality Full restore Depreciated vs full

Contract Law FU Adhesion Insurer drafts, ambiguity insured Aleatory Unequal value exchange Utmost good faith Honest disclosure both Representation Statement believed true Warranty Guaranteed true statement Concealment Hiding material fact Waiver Give up known right Estoppel Cannot reassert waived right

Property vs Liability FU

Property Your own loss First party Indemnify owner

Liability Others harmed Third party Legal damages First party vs third

Property Basics FU ACV Replacement minus depreciation Replacement cost No depreciation taken Coinsurance Insure to required % Pro rata Shared by limits Deductible Insured retains first Vacancy 60-day loss reduction Named peril Listed perils only Open peril All except excluded

Liability Basics FU Negligence Failure of due care Duty Owed standard of care Proximate cause Direct loss link Tort Civil wrong, damages Compensatory Actual loss damages Punitive Punish wrongful conduct Absolute liability Liable without fault Vicarious Liable for another

Policy Structure DICE PE Declarations Insuring Conditions Exclusions D: who/what/limits I: covered promise C: duties/rules E: not covered

Personal Form Picker PE Owner, broadest cover → HO-5 ( Open both ) Owner, standard cover → HO-3 ( Open dwelling ) Renter contents → HO-4 ( No structure ) Condo unit owner → HO-6 ( Interior ) Older home, market → HO-8 ( Modified ACV ) Landlord rental house → DP-3 ( Open peril ) Basic dwelling only → DP-1 ( Named peril ) Boat, larger hull → Yacht policy ( Watercraft ) Flood exposure → NFIP flood ( Separate )

Homeowners Forms PE HO-2 Broad named peril HO-3 Open dwelling, named contents Common HO-4 Renters contents only HO-5 Open dwelling and contents HO-6 Condo unit owner HO-8 Older home, modified Coverage A Dwelling structure Coverage C Personal property

HO Section I ABCD PE A dwelling B other C contents D loss-use A: structure B: detached C: belongings D: living expense

Dwelling & Auto PE DP-1 Basic named peril DP-2 Broad named peril DP-3 Open peril dwelling PAP Part A Liability coverage PAP Part B Medical payments PAP Part C UM / UIM PAP Part D Damage to auto Collision Impact, upset damage

CGL Coverages ABC CO A bodily/property B personal C medical A: BI/PD B: pers/ad injury C: med, no fault

Occurrence vs Claims-made CO

Occurrence Loss during term Report anytime No tail needed

Claims-made Claim during term Retroactive date Needs tail When loss vs when claim

Commercial Coverage Picker CO Small package risk → BOP ( Property+liability ) Building and contents → Commercial Property ( CPP line ) Premises/ops liability → CGL ( Coverage A ) Building under construction → Builders Risk ( Temporary ) Boiler, machinery loss → Equipment Breakdown ( Sudden ) Company-owned trucks → Business Auto ( Commercial auto ) Goods in transit → Inland Marine ( Floating ) Employee theft → Crime/Fidelity ( Dishonesty )

Commercial Property CO CPP Commercial package policy BPP Business personal property Business income Lost income, expense Extra expense Cost to continue Builders risk Property under construction Basic form Fire, lightning, named Special form Open peril commercial Equipment breakdown Boiler, machinery loss

Workers Comp vs Tort CO

Workers comp No-fault benefits Statutory schedule Exclusive remedy

Tort suit Prove negligence Court damages Generally barred Benefits vs lawsuit

CGL & Commercial Casualty CO Coverage A BI / PD liability Coverage B Personal, advertising injury Coverage C Medical payments, no fault Occurrence form When loss happens Claims-made form When claim reported Retroactive date Claims-made start point BOP Property plus liability Surety bond Three-party guarantee

Workers Comp CO AL threshold 5 or more employees AL Exclusive remedy Benefits replace lawsuit Part One Statutory comp benefits Part Two Employers liability TTD Temporary total disability No-fault Fault not required Assigned risk Residual market pool Self-insure ALDOI approval needed

AL Auto 25/50/25 AL 25 person | 50 accident | 25 property BI/person $25k BI/accident $50k PD $25k UM reject written

Admitted vs Surplus AL

Admitted Licensed in AL Guaranty protected Filed rates

Surplus Nonadmitted carrier No guaranty fund Diligent search Licensed vs nonadmitted

Alabama Law Picker AL Auto liability minimum → 25/50/25 ( Split ) Insured drops UM → Written rejection ( Required ) Cancel auto, nonpay → 10-day notice ( Minimum ) Cancel homeowners → 30-day notice ( Written ) Insurer insolvent → AIGA ( $300k cap ) Producer moves → Notify ALDOI ( 30 days )

AL Licensing & Conduct AL Regulator ALDOI, the commissioner Commissioner Appointed by governor Prelicense Not required since 2024 Address change Report within 30 days Appointment filing Insurer within 15 days CE cycle 24 hours per biennium CE ethics 3 of 24 hours Complaint reply Acknowledge within 15 days

Alabama Deadlines AL Address 30 | Appoint 15 | Complaint 15 Address: 30 days Appointment: 15 days Complaint ack: 15 days Retest 90/180

UM vs UIM AL

UM At-fault uninsured No coverage Your policy pays

UIM At-fault underinsured Limits too low Gap fills No coverage vs too little

AL Property & Surplus AL AIUA Coastal residual market HO cancel notice 30 days written HO nonrenew notice 45 days written Surplus lines After diligent search Surplus lines tax 6% of premium Strengthen AL Homes FORTIFIED roof grant AL SAH base grant Up to $10,000 SAH Silver add Up to $4,000 more

AL Auto & Guaranty AL Min limits 25/50/25 split limits AL BI per person $25,000 BI per accident $50,000 PD per accident $25,000 UM/UIM Offered, reject in writing Auto cancel notice 20 days general Nonpay cancel notice 10 days minimum AIGA covered claim Up to $300,000

Common Traps

ACV vs replacement ACV less depreciation ≠ Replacement no depreciation

Named vs open peril Named lists perils ≠ Open excludes only

Occurrence vs claims-made Occurrence when loss ≠ Claims-made when reported

Cancel notice timing General auto 20 days ≠ Nonpay only 10 days

UM rejection Phone request invalid ≠ Written rejection required

Guaranty marketing AIGA pays insolvency ≠ Cannot be sales pitch

Prelicense rule Course optional 2024 ≠ Exam still required

Surplus guaranty Admitted protected ≠ Surplus no AIGA

Last Minute 1 . Weights: 20 / 23 / 44 / 13 percent 2 . 150 questions; 105 to pass 3 . Time limit = 180 minutes 4 . AL auto minimum = 25/50/25 5 . UM/UIM offered; reject in writing 6 . Auto cancel: 20 days general 7 . Auto nonpay cancel: 10 days 8 . HO cancel 30; nonrenew 45 9 . AIGA covered claim cap = $300,000 10 . AIGA unearned premium cap = $10,000 11 . Workers comp at 5+ employees 12 . CE: 24 hours, 3 ethics 13 . Address change report: 30 days 14 . Prelicense not required since 2024 15 . Strengthen AL Homes roof grant $10,000

Alabama Property & Casualty Insurance Practice Questions 435 questions Study Guide 12 topics Cheat Sheet 96 facts Flashcards 50 cards Course Playlist 141 videos Videos 1 video Blogs 1 blog Free CE Podcast

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