AL Property & Casualty study guide
AL Property & Casualty · Work through your exam, one topic at a time.
The Alabama Property and Casualty Producer License is the credential that allows a person to sell, solicit, and negotiate property and casualty insurance products in Alabama on behalf of authorized insurers. Candidates typically pursue it to work as agency producers, customer service representatives moving into sales, captive or independent agents, or staff at agencies writing homeowners, auto, commercial property, and liability business. The AL Property & Casualty study guide has 10 sections and about 3,337 words.
01Alabama Insurance Laws, Rules, and Regulations
Alabama's insurance market is supervised by the Alabama Department of Insurance , headed by a Commissioner of Insurance who is appointed by the Governor - not elected - and serves at the Governor's pleasure. An insurer must hold a certificate of authority to be "admitted." Business that cannot be placed with admitted carriers may go to an eligible, non-admitted insurer only through a properly licensed surplus lines broker ; the broker must confirm the declinations and remit the surplus lines premium tax.
364 words, about 2 min02General Insurance Concepts and Principles
Risk is uncertainty about loss; a peril is the cause of loss (fire, wind, theft); a hazard is a condition that increases the chance or severity of loss. Hazards come in three flavors: physical (icy steps, faulty wiring), moral (dishonesty - arson for profit, claim fakery), and morale (carelessness - leaving keys in the car, ignoring maintenance).
317 words, about 2 min03Property Insurance Basics and Policy Provisions
Nearly every property form is built on DICE : Declarations (who, what, where, how much), Insuring agreement (what is promised), Conditions (duties of both parties), and Exclusions (what is not covered). Common conditions include duties after loss, appraisal , salvage , other insurance , no benefit to bailee , and the mortgagee clause - which protects the lender's interest even if the insured's own acts would defeat coverage.
327 words, about 2 min04Dwelling and Homeowners Policies
Homeowners forms: HO-2 (broad named perils), HO-3 (open perils on the dwelling, named perils on contents - the market standard), HO-5 (open perils on both), HO-4 (renters - contents and liability only), HO-6 (condo unit-owners), HO-8 (modified form for older homes using functional replacement cost). Dwelling policies (DP-1 basic, DP-2 broad, DP-3 special) insure the dwelling and, by endorsement, contents; they suit rentals and owner-occupied homes that don't qualify for an HO form.
357 words, about 2 min05Commercial Property and Commercial Package Policies
The Building and Personal Property Coverage Form (BPP) insures buildings, business personal property, and personal property of others at a described location. Key extensions include debris removal , preservation of property , valuable papers , and newly acquired or constructed property .
342 words, about 2 min06Casualty Insurance Basics and Liability Concepts
To collect, a claimant must prove four elements: a duty owed, breach of that duty, proximate cause , and actual damages . Duty varies by relationship: trespassers get the least protection, licensees more, and invitees (business customers) the highest duty of reasonable care and inspection.
308 words, about 2 min07Commercial General Liability
The CGL is written on an occurrence basis (injury or damage occurring during the policy period, reported later) or a claims-made basis (claim first made during the policy, with a retroactive date and optional extended reporting period). It has three coverages: A - Bodily Injury and Property Damage , B - Personal and Advertising Injury , and C - Medical Payments (no-fault, short-term, typically excluding the insured and employees).
308 words, about 2 min08Personal and Commercial Automobile Insurance
Four parts: A - Liability (bodily injury and property damage to others), B - Medical Payments , C - Uninsured/Underinsured Motorists , and D - Coverage for Damage to Your Auto (collision and other than collision, i.e., comprehensive). Definitions matter: your covered auto (listed autos, newly acquired autos, trailers, temporary substitute) and non-owned auto .
324 words, about 2 min09Workers' Compensation Insurance
Workers' compensation pays benefits for work-related injury or disease regardless of fault , and in exchange the employee gives up the right to sue the employer - the exclusive remedy doctrine. Benefits fall into four buckets: medical (usually unlimited and without deductible), disability income (temporary total, temporary partial, permanent partial, permanent total), death (funeral plus survivor benefits), and rehabilitation .
362 words, about 2 min10Other Coverages: Umbrella/Excess, Inland Marine, Crime, and Equipment Breakdown
An excess policy sits strictly above scheduled underlying limits and follows the underlying form. An umbrella does the same but also drops down to cover exposures the underlying policies exclude (for example, personal injury or certain watercraft), typically after the insured pays a self-insured retention .
328 words, about 2 min