AL P&C University of Alabama Study
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Guide questions wit answers |\ |\ |\
If a company cancels an auto policy mid-term, the refund will be made
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on a : |\ |\
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 ✔✔A. Pro Rata Basis
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What is the term used to describe terminating the insurance relationship
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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 ✔✔B. 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 ✔✔D. 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 ✔✔A. Property
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Insurance contracts offset
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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 ✔✔B. 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 ✔✔B. Casualty
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Risk is best define as
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A. chance of loss
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B. certainty of loss
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C. financial loss
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D. sentimental loss - CORRECT ANSWERS ✔✔A. chance of loss
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Being subject to a loss is
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A. liability
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B. indemnity
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C. exposure
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D. subrogation - CORRECT ANSWERS ✔✔C. 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 ✔✔A. named insured
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To be paid a claim under a P & C contract, insurable interest must exist
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A. At the time of application
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B. on the policy date
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C. at the time of loss
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D. at the time of claim settlement - CORRECT ANSWERS ✔✔C. at the
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time of loss
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This type of company is run for the benefit of the policyowners:
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A. Stock
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B. Mutual
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C. Foreign
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D. Alien - CORRECT ANSWERS ✔✔B. Mutual
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Ohio Casualty is doing regular business in Indiana. Within the same
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state of Indiana, Ohio Casualty would be considered a(n)
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Guide questions wit answers |\ |\ |\
If a company cancels an auto policy mid-term, the refund will be made
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
on a : |\ |\
A. pro rata basis
|\ |\ |\
B. short rate basis
|\ |\ |\
C. retroactive basis
|\ |\
D. coinsurance basis - CORRECT ANSWERS ✔✔A. Pro Rata Basis
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What is the term used to describe terminating the insurance relationship
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
at the end of the policy period?
|\ |\ |\ |\ |\ |\ |\
A. Cancellation
|\
B. Nonrenewal
|\
C. Separation
|\
D. Exclusion - CORRECT ANSWERS ✔✔B. 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
|\ |\
C. Employee theft
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D. Loss of use - CORRECT ANSWERS ✔✔D. 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 ✔✔A. Property
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Insurance contracts offset
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A. speculative risk
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B. pure risk
|\ |\
C. gambling
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D. created risk - CORRECT ANSWERS ✔✔B. 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 ✔✔B. Casualty
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Risk is best define as
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A. chance of loss
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B. certainty of loss
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C. financial loss
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D. sentimental loss - CORRECT ANSWERS ✔✔A. chance of loss
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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 ✔✔C. 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 ✔✔A. named insured
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To be paid a claim under a P & C contract, insurable interest must exist
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A. At the time of application
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B. on the policy date
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C. at the time of loss
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D. at the time of claim settlement - CORRECT ANSWERS ✔✔C. at the
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time of loss
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This type of company is run for the benefit of the policyowners:
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A. Stock
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B. Mutual
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C. Foreign
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D. Alien - CORRECT ANSWERS ✔✔B. Mutual
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Ohio Casualty is doing regular business in Indiana. Within the same
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state of Indiana, Ohio Casualty would be considered a(n)
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