ALABAMA PROPERTY AND
CASUALTY SPOT-ON EXAM
SOLUTIONS 2025
,
, 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 - correct answer ✔✔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 - correct answer ✔✔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 ✔✔Loss of Use
Which is a two party contract?
A. property
CASUALTY SPOT-ON EXAM
SOLUTIONS 2025
,
, 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 - correct answer ✔✔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 - correct answer ✔✔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 ✔✔Loss of Use
Which is a two party contract?
A. property
