70. In Alabama, an insurance binder is valid for __________ days or until a policy issued, whichever is less.
Answer: C
An insurance binder in Alabama is valid for 90 days or until a policy is issued, whichever is less.
In Alabama, an insurance binder remains effective for a maximum of 90 days, unless a policy is issued before that period ends.
A) 30
This option is incorrect because the duration of an insurance binder in Alabama exceeds 30 days. The state law specifies a longer validity period, making this choice insufficient.
B) 60
While 60 days is a longer duration than some states may allow, it does not meet the Alabama standard, which permits a binder to last up to 90 days. Therefore, this option is also incorrect.
C) 90
This option is correct, as Alabama law clearly states that an insurance binder is valid for 90 days or until the issuance of a policy, whichever occurs first. This reflects the maximum duration allowed by the state.
D) 120
This option is incorrect because it exceeds the maximum validity period established by Alabama law. An insurance binder cannot be valid for 120 days, making this choice invalid.
Conclusion
The correct answer is C) 90, as it aligns with Alabama's legal stipulations regarding insurance binders. Options A, B, and D do not meet the required duration, demonstrating a clear misunderstanding of the state's regulations on insurance binders.