P&C Fundamentals
20%of exam
Personal Lines
23%of exam
HO FormsDwelling FormsPersonal AutoWatercraft/FloodForm Picker
Commercial Lines
44%of exam
Alabama Law
13%of exam
LicensingGuaranty AssocAuto LawCancellationStrengthen 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
Named peril
- Listed perils only
- Insured proves cause
- Narrower
Open peril
- All but excluded
- Insurer proves exclusion
- Broader
Listed vs all-risk
Vocabulary
- 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
ACV
- Minus depreciation
- Lower payout
- Older property
Replacement
- No depreciation
- Like kind quality
- Full restore
Depreciated vs full
Contract Law
- 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
Property
- Your own loss
- First party
- Indemnify owner
Liability
- Others harmed
- Third party
- Legal damages
First party vs third
Property Basics
- 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
- 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
Declarations Insuring Conditions Exclusions
D: who/what/limitsI: covered promiseC: duties/rulesE: not covered
Personal Form Picker
- 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
- HO-2
- Broad named peril
- HO-3
- Open dwelling, named contentsCommon
- 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
A dwelling B other C contents D loss-use
A: structureB: detachedC: belongingsD: living expense
Dwelling & Auto
- 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
A bodily/property B personal C medical
A: BI/PDB: pers/ad injuryC: med, no fault
Occurrence vs Claims-made
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
- 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
- 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
Workers comp
- No-fault benefits
- Statutory schedule
- Exclusive remedy
Tort suit
- Prove negligence
- Court damages
- Generally barred
Benefits vs lawsuit
CGL & Commercial Casualty
- 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
- AL threshold
- 5 or more employeesAL
- 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
25 person | 50 accident | 25 property
BI/person $25kBI/accident $50kPD $25kUM reject written
Admitted vs Surplus
Admitted
- Licensed in AL
- Guaranty protected
- Filed rates
Surplus
- Nonadmitted carrier
- No guaranty fund
- Diligent search
Licensed vs nonadmitted
Alabama Law Picker
- 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
- 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
Address 30 | Appoint 15 | Complaint 15
Address: 30 daysAppointment: 15 daysComplaint ack: 15 daysRetest 90/180
UM vs UIM
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
- 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 grantAL
- SAH base grant
- Up to $10,000
- SAH Silver add
- Up to $4,000 more
AL Auto & Guaranty
- Min limits
- 25/50/25 split limitsAL
- 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
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