Alabama Property and Casualty Exam questions with answers

Alabama Property and Casualty Exam |\ |\ |\ |\ |\




questions with answers |\ |\




If a company cancels an auto policy mid term, the refund
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will be made on|\ |\ |\ |\




a. pro rata basis
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b. short rate basis
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c. retroactive basis
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d. coinsurance basis - CORRECT ANSWERS ✔✔Pro Rata
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Basis


What is the term used to describe terminating the
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insurance relationship at the end of the policy period ?
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a. cancellation
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b. nonrenewal
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c. separation
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d. exclusion - CORRECT ANSWERS ✔✔Nonrenewal
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Which is the best example of an indirect loss ?
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a. sequential loss
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,b. liability loss
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c. employee theft
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d. loss of use - CORRECT ANSWERS ✔✔Loss of Use
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Which is a two party contract?
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A. property
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B. casualty
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C. liability
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D. auto - CORRECT ANSWERS ✔✔Property
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Insurance Contracts offset |\ |\




a. speculative risk
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b. pure risk
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c. gambling
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d. created risk - CORRECT ANSWERS ✔✔Pure Risk
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Which of the following is a third party contract ?
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a. property
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b. casualty
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c. earthquake
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d. theft - CORRECT ANSWERS ✔✔Casualty
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, Risk is best defined as
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a. chance of loss
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b. certainty of loss
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c. financially loss
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d. sentimental loss - CORRECT ANSWERS ✔✔Chance of
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loss


Being subject to a loss is |\ |\ |\ |\ |\




a. liability
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b. indemnity
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c . exposure
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d. subrogation - CORRECT ANSWERS ✔✔Exposure
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The ranking insured in a personal lines contract is the
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a. named insured
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b. first named insured
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c. mortgagee
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d. husband - CORRECT ANSWERS ✔✔Named Insured
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To be paid under a P&C contract, insurable interest must
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exist