Personal Lines Alabama State Exam
study guide COMPLETE EXAM
Questions and Answers (Verified
Answers) (Latest Update 2026)
UPDATE!!
What type of risk is insuring your home or auto? - ( answers)Pure risk
A good definition for risk is: - ( answers)The chance of loss
The primary insured in an insurance contract is the: - ( answers)First named insured
In property insurance, coinsurance is designed to: - ( answers)Cover all losses in full if you
purchase at least 80% insurance to value
All of the following are correct about binders EXCEPT: - ( answers)The binder is good for a set
number of days, or until the policy is issued, whichever is longer.
Which risk management method is used when you decide to purchase insurance to cover a
risk? - ( answers)None of the above
A risk management method where one party agrees to release the other party from any liability
or damage that might arise out of the transaction involved is called: - ( answers)A hold-harmless
agreement
In the lesson chapter, two types of risk were discussed. What is the only type of risk that
insurance companies want to insure? - ( answers)Pure risk
1
study guide COMPLETE EXAM
Questions and Answers (Verified
Answers) (Latest Update 2026)
UPDATE!!
What type of risk is insuring your home or auto? - ( answers)Pure risk
A good definition for risk is: - ( answers)The chance of loss
The primary insured in an insurance contract is the: - ( answers)First named insured
In property insurance, coinsurance is designed to: - ( answers)Cover all losses in full if you
purchase at least 80% insurance to value
All of the following are correct about binders EXCEPT: - ( answers)The binder is good for a set
number of days, or until the policy is issued, whichever is longer.
Which risk management method is used when you decide to purchase insurance to cover a
risk? - ( answers)None of the above
A risk management method where one party agrees to release the other party from any liability
or damage that might arise out of the transaction involved is called: - ( answers)A hold-harmless
agreement
In the lesson chapter, two types of risk were discussed. What is the only type of risk that
insurance companies want to insure? - ( answers)Pure risk
1
