UNIVERSITY OF ALABAMA AL P&C STUDY TEST QUESTIONS (VERIFIED SOLUTIONS) 2024.

UNIVERSITY OF ALABAMA AL P&C STUDY TEST
QUESTIONS (VERIFIED SOLUTIONS) 2024.
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 answer ✅B. Nonrenewal



Which is the best example of an indirect loss?



A. Sequential loss

B. Liability loss

C. Employee theft

D. Loss of use - correct answer ✅D. Loss of use



Which is a two party contract?

,A. Property

B. Casualty

C. Liability

D. Auto - correct answer ✅A. Property



Insurance contracts offset



A. speculative risk

B. pure risk

C. gambling

D. created risk - correct answer ✅B. Pure risk



Which of the following is a third party contract?



A. Property

B. Casualty

C. Earthquake

,D. Theft - correct answer ✅B. Casualty



Risk is best define as



A. chance of loss

B. certainty of loss

C. financial loss

D. sentimental loss - correct answer ✅A. chance of loss



Being subject to a loss is



A. liability

B. indemnity

C. exposure

D. subrogation - correct answer ✅C. exposure



The ranking insured in a Personal Lines contract is the

, A. named insured

B. first named insured

C. mortgagee

D. husband - correct answer ✅A. named insured



To be paid a claim under a P & C contract, insurable interest must exist



A. At the time of application

B. on the policy date

C. at the time of loss

D. at the time of claim settlement - correct answer ✅C. at the time of loss



This type of company is run for the benefit of the policyowners:



A. Stock

B. Mutual

C. Foreign

D. Alien - correct answer ✅B. Mutual