AL P&C University Of Alabama Question And Answers With Complete Solutions.

AL P&C University Of Alabama Question And Answers With Complete Solutions. If aa aacompany acancels aan aauto apolicy amid-term, athe arefund awill abe amade aon aa a: A. apro arata abasis B. ashort arate abasis C. aretroactive abasis D. acoinsurance abasis a- a a a acorrect aanswer a: aA. aPro aRata aBasis What ais athe aterm aused ato adescribe aterminating athe ainsurance arelationship aat athe aend aof athe apolicy aperiod? A. aCancellation B. aNonrenewal C. aSeparation D. aExclusion a- a a a acorrect aanswer a: aB. aNonrenewal Which ais athe abest aexample aof aan aindirect aloss? A. aSequential aloss B. aLiability aloss C. aEmployee atheft D. aLoss aof ause a- a a a acorrect aanswer a: aD. aLoss aof ause Which ais aa atwo aparty acontract? A. aProperty B. aCasualty C. aLiability D. aAuto a- a a a acorrect aanswer a: aA. aProperty Insurance acontracts aoffset A. aspeculative arisk B. apure arisk C. agambling D. acreated arisk a- a a a acorrect aanswer a: aB. aPure arisk Which aof athe afollowing ais aa athird aparty acontract? A. aProperty B. aCasualty C. aEarthquake D. aTheft a- a a a acorrect aanswer a: aB. aCasualty Risk ais abest adefine aas A. achance aof aloss B. acertainty aof aloss C. afinancial aloss D. asentimental aloss a- a a a acorrect aanswer a: aA. achance aof aloss Being asubject ato aa aloss ais A. aliability B. aindemnity C. aexposure D. asubrogation a- a a a acorrect aanswer a: aC. aexposure The aranking ainsured ain aa aPersonal aLines acontract ais athe a A. anamed ainsured B. afirst anamed ainsured C. amortgagee D. ahusband a- a a a acorrect aanswer a: aA. anamed ainsured To abe apaid aa aclaim aunder aa aP a& aC acontract, ainsurable ainterest amust aexist A. aAt athe atime aof aapplication B. aon athe apolicy adate C. aat athe atime aof aloss D. aat athe atime aof aclaim asettlement a- a a a acorrect aanswer a: aC. aat athe atime aof aloss This atype aof acompany ais arun afor athe abenefit aof athe apolicyowners: A. aStock B. aMutual C. aForeign D. aAlien a- a a a acorrect aanswer a: aB. aMutual Ohio aCasualty ais adoing aregular abusiness ain aIndiana. aWithin athe asame astate aof aIndiana, aOhio aCasualty awould abe aconsidered aa(n) A. adomestic acompany a B. anonadmitted acompany C. aalien acompany D. aforeign aCompany a- a a a acorrect aanswer a: aD. aForeign Ohio aCasualty ais adoing aregular abusiness ain aIndiana. aWithin athe astate aof aIndiana, aOhio aCasualty awould abe aconsidered aa(an) A. aadmitted acompany B. adomestic acompany C. aunauthorized acompany D. arisk aretention agroup a- a a a acorrect aanswer a: aA. aadmitted acompany A acompany achartered ain aGuam aor aPuerto aRico adoing aregular abusiness ain aNew aYork awould abe aconsidered aby aNew aYorkers ato abe aa(n) A. adomestic acompnay B. aforeign acompany C. aalien acompany D. ainternational acompany a- a a a acorrect aanswer a: aB. aforeign acompany With aregard ato ainsurance, athe aterm aconsideration ameans A. athe apremium aand athe astatements aon athe aapplication B. athe ainsurer's amethod aof aevaluating athe aapplicant afor acoverage C. athe ascreening aprocess aall aagents aundergo aprior ato alicensing. a D. athe aside-by-side apolicy acomparison aby athe aapplicant a- a a a acorrect aanswer a: aA. athe apremium aand athe astatements aon athe aapplication Which aof athe afollowing aterms aindicates athat aan ainsurance acontract acontains athe alegal aenforceable apromises aof aonly aone aparty? A. aAdhesion B. aUnilateral C. aConditional a D. aAleatory a- a a a acorrect aanswer a: aB. aUnilateral In apurchasing aan ainsurance acontract, athe aapplicant amust aaccept athe acontract aas awritten. aThis atype aof acontract ais areferred ato aas aa(n) A. asettled acontract B. aaleatory acontract C. acontract aof aadhesion D. apersonal acontract a- a a a acorrect aanswer a: aC. aContract aof aadhesion Which aof athe afollowing aprinciples astates athat ain aforming aan ainsurance acontract, aboth aparties ahave aa aresponsibility ato athe aorder? a A. aDoctrine aof aWarranties B. aDoctrine aof aRepresentations C. aDoctrine aof aUtmost aGood aFaith D. aDoctrine aof aReasonable aExpectations a- a a a acorrect aanswer a: aC. aDoctrine aof aUtmost aGood aFaith An aincorrect astatement amade aintentionally aon aa aPersonal aAuto ainsurance aapplication ais aa a A. aFraud B. aWarranty C. aMisrepresentation D. aConceament a- a a a acorrect aanswer a: aC. aMisrepresentation A abinder ais aa(n) A. aInterim ainsuring aagreement B. aApplication C. aCounteroffer D. aEndorsement a- a a a acorrect aanswer a: aA. aInterim ainsuring aagreement Which aof athe afollowing ais aNOT atrue aregarding aconsideration ain aa aP a& aC apolicy? A. aPart aof athe ainsured's aconsideration ais athe apremium B. aParts aof athe ainsured's aconsideration aare athe astatements aon athe aapplication C. aParts aof athe acompany's aconsideration aare athe apromises ain athe apolicy D. aPart aof athe acompany's aconsideration ais athe apayment aof aa aclaim a- a a a acorrect aanswer a: aD. aPart aof athe acompany's aconsideration ais athe apayment aof aa aclaim Any aambiguities ain aa aP a& aC apolicy awill abe aresolved ain afavor aof athe apolicyowner abecause athe apolicy ais aa(n) A. acontract aof aadhesion B. aconditional acontract C. aunilateral acontract D. aAleatory acontract a- a a a acorrect aanswer a: aA. acontract aof aadhesion A aperson awho ahas aresponsibility afor athe afinancial awellbeing aof aanother ais aa(n) A. aaccountant B. aattorney-in-fact C. abroker D. afiduciary a- a a a acorrect aanswer a: aD. afiduciary A abinder acan aexpire aon aall aof athe afollowing aEXCEPT: A. adate aof aapplication B. aday acoverage agoes ainto aeffect C. aday athe abinder aexpires D. aday afollowing athe anotification athat athe abinder ahas abeen acancelled a- a a a acorrect aanswer a: aA. aDate aof aapplication Which ais aNOT atrue aregarding ahazards aand aperils? A. aHazards acome ain athree agroups: aBasic, aBroad, aand aSpecial B. aPerils aare aactive aand ahazards aare ainactive C. aHazards acan abe aphysical, amoral, aand amorale D. aPeril's acome ain athree agroups: aBasic, abroad, aand aspecial a- a a a acorrect aanswer a: aA. aHazards acome ain athree agroups: aBasic, aBroad, aand aSpecial A abox aof adynamite ais aa(n) A. amoral ahazard B. aphysical ahazard C. amorale ahazard D. aexcellent aaddition ato aa atoy acollection a- a a a acorrect aanswer a: aB. aPhysical ahazard If ayou alook ato abe acovered aby aeverything awhich ais anot aexcluded, ayou ashould abuy A. aspecial acause aof aloss B. abasic acause aof aloss C. abroad acause aof aloss D. anamed aperil acoverage a- a a a acorrect aanswer a: aA. aSpecial aCause aof aloss All aof athe afollowing astatements aconcerning avaluation ain aa aproperty apolicy aare atrue aEXCEPT: A. aUnder aAgreed aValue, athe ainsured aand athe acompany aestablish athe avalue abefore athe aloss aoccurs B. aUnder athe aStated aAmount, athe ainsured adoes anot aknow awhat awill abe apaid aon aa aloss auntil athe aloss aoccurs C. aUnder aStated aAmount, athe ainsured ais aguaranteed athe alimit aon athe aDec apage afollowing aa aloss D. aFunctional aReplacement ais aalso aknown aas aRepair aCost a- a a a acorrect aanswer a: aC. aUnder aStated aAmount, athe ainsured ais aguaranteed athe alimit aon athe aDec apage afollowing aa aloss Andy ahas atwo aproperty apolicies awith aidentical aperil apower acovering ahis aproperty. aThe afirst ahas aa alimit aof a$75,000 aand athe asecond ahas aa alimit aof a$25,000. aIf aAndy asuffers aa a$4000 acovered aloss, ahow awill athe atwo apolicies apay? A. aThe afirst awill apay a$3,000 aand athe asecond awill apay a$1,000. B. aThe afirst awill apay a$4,000 aand athe asecond awill apay anothing. C. aThe apolicies awill aeach apay a$2,000 D. aThe afirst awill apay anothing aand athe asecond awill apay a$4,000 a- a a a acorrect aanswer a: aA. aThe afirst awill apay a$3,000 aand athe asecond awill apay a$1,000. The apolicy aprovision awhich aallows apolicyowners ato aenjoy aenhancements amade aby athe acompany ato athe apolicy aform athey ahave ain aforce awithout awaiting auntil aa apolicy arenewal adate ais aknown aas A. asubrogation B. asalvage C. aliberalization D. acoinsurance a- a a a acorrect aanswer a: aC. aliberalization The ainsured's ahone ais adestroyed aby aa aplumber awith aan aout aof acontrol ablowtorch. aThe acompany apays afor athe aloss aand athen asues athe aplumber. aThis aprocess ais aknown aas A. aliberalization B. asubrogation C. asalvage D. ainsurable ainterest a- a a a acorrect aanswer a: aB. asubrogation Under aa aSpecial aCause aof aLoss aform, athe aburden aof aproof afollowing aa aclaim ais aon athe a A. ainsured B. acompany C. aassignee D. amortgagee a- a a a acorrect aanswer a: aB. acompany Under athe aBroad aForm aCause aof aLoss, athe aburden aof aproof afollowing aa aclaim ais athe aresponsibility aof athe a A. aInsured B. acompany C. aassignee D. amortgagee a- a a a acorrect aanswer a: aA. aInsured In aP a& aC apolicies, athe apart aof athe apolicy awhich anames athe ainsured, athe aproperty ato abe acovered aand athe alimits aof athe apolicy ais aknown aas athe a A. apolicy afarce B. ainsuring aagreement a C. adeclarations D. aconditions a- a a a acorrect aanswer a: aC. adeclarations Which aof athe afollowing adoes aNOT afollow athe aconcept aof aindemnification? A. aCompensatory adamages B. aSpecial aDamages C. aGeneral aDamages D. aPunitive aDamages a- a a a acorrect aanswer a: aD. aPunitive aDamages Which ais atrue aabout aUmbrella aLiability apolicies? A. athey aare aextremely aexpensive B. athey aare adesigned ato abe athe aprimary apayor C. athey aare awritten afor aexcessive aamounts D. athey aare athe asame aas aExcess aLiability apolicies. a- a a a acorrect aanswer a: aC. athey aare awritten afor aexcessive aamounts A ademolition acompany ais ausing adynamite ato adestroy aan aold adowntown abuilding. aWhich aof athe afollowing aapplies? A. aNegligence B. aStrict aLiability C. aPremises aLiability D. aProducts aLiability a- a a a acorrect aanswer a: aB. aStrict aLiability The aliability aterm aused ato adescribe adamage ato aan aindividual's amental astate ais: A. abodily ainjury B. aproperty adamage C. apersonal ainjury D. aadvertising ainjury a- a a a acorrect aanswer a: aC. apersonal ainjury Which aof athe afollowing ais atrue aconcerning athe aMedical aPayments asection aof aa aliability acontract? A. aIt apays aonly aif athe ainsured ais alegally aliable B. aIt acan apay afor athe ainjured aparty's alost awages C. aIt ahas arather alow adollar alimits D. ait apays ain aaddition ato aany aliability ajudgments a- a a a acorrect aanswer a: aC. aIt ahas arather alow adollar alimits You aare ahit aby aa aGreyhound abus, athis aincident ais aa(n)