ALABAMA PROPERTY AND CASUALTY EXAM 2026 SPRING-SUMMER TEST QUESTIONS WITH ACCURATE SOLUTIONS

ALABAMA PROPERTY AND CASUALTY EXAM 2026 SPRING-SUMMER TEST QUESTIONS
WITH ACCURATE SOLUTIONS



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



a. pro rata basis

b. short rate basis

c. retroactive basis

d. coinsurance basis

Pro Rata Basis




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

Nonrenewal




Which is the best example of an indirect loss ?



a. sequential loss

b. liability loss

c. employee theft

d. loss of use

,Loss of Use




Which is a two party contract?



A. property

B. casualty

C. liability

D. auto

Property




Insurance Contracts offset

a. speculative risk

b. pure risk

c. gambling

d. created risk

Pure Risk




Which of the following is a third party contract ?

a. property

b. casualty

c. earthquake

d. theft

Casualty

, Risk is best defined as

a. chance of loss

b. certainty of loss

c. financially loss

d. sentimental loss

Chance of loss




Being subject to a loss is

a. liability

b. indemnity

c . exposure

d. subrogation

Exposure




The ranking insured in a personal lines contract is the

a. named insured

b. first named insured

c. mortgagee

d. husband

Named Insured