Alabama Personal Lines
Exam questions and answers
Which Homeowner's policy provides all risk or open peril
coverage on the dwelling but broad form coverage on the
personal property? - answer HO-3
The HO-4 is basically intended to cover which of the
following types of risks? - answer An apartment-dweller's
personal property
An individual otherwise qualified except for having taken
and passed the examination can be issued a temporary
insurance producer license, which is valid for a maximum
period of - answer six months
Who of the following would have Liability coverage under
Chuck's Personal Auto policy? - answer All of the above
The authority given by the company to the agent is NOT
formally written or communicated is called - answer
implied authority
Which of the following correctly identifies common
characteristics of Fidelity Bonds? - answer Fidelity Bonds
,commonly provide coverage for an insured act occurring
during the bond period and discovered before the end of
the discovery period.
An automobile collision would be considered - answer an
accident and an occurrence
Which of the following are excluded property losses under
all Homeowner's forms? - answer All of the above
What type of Ocean Marine insurance covers goods while
they are in transit over water? - answer cargo
Under the Personal Auto policy, Uninsured Motorists
coverage provides coverage for bodily injury for which
the insured is legally entitled to recover that results from
an accident with - answer all of the above
Which of the following statements about notice of
cancellation of an Alabama automobile polity is
CORRECT? - answer For reasons other than non-payment
of premium, the insurer must provide at least 20 days
notice of cancellation of an automobile policy.
,Assume the following items were stolen from the
insured's home. Which one of the these losses would be
fully covered under Coverage C (Personal Property) of the
Homeowner's policy, assuming the loss was for the full
value of the property described? - answer A $1,000
emerald bracelet
Which Homeowner's coverage provides indirect loss
coverage? - answer Coverage D (Loss of Use)
Coverage D under a standard Homeowner's policy
contains coverage for - answer loss of use
All of the following are correct statements regarding
coverage under a Boatowner's policy EXCEPT - answer
Most Boatowner's policies have no limitations or
exclusions related to how the boat may be used.
To file a claim for coverage under Part B (Med Pay) of the
Personal Auto policy, the claimant - answer must incur
expenses within three years of the accident
Xavier's car is insured by ABC Insurance Company. Xavier
took out a loan with First City Bank to purchase the car,
and is still making payments on the car loan. Who has an
, insurable interest in the car? - answer Xavier and First
City Bank
Historically, which of the following statements regarding
Ocean Marine Insurance is correct? - answer Most marine
policies are written on a standard form basis
Which of the following losses would be EXCLUDED under
the Liability section of a Personal Auto policy? - answer
The insured backs out of her garage and runs over her
son's new 10-speed bike.
Which of the following perils are NOT covered by the
Equipment Breakdown Coverage policy? - answer
Under the NFIP policy, all of the following are generally
considered to be floods EXCEPT - answer sewer backup
In a Fidelity Bond, the employee is known as the - answer
Which of the following is NOT a standard exclusion found
in Section II (Liability) of a Homeowner's policy? - answer
When does Flood insurance begin? - answer 30 days after
the application date
Exam questions and answers
Which Homeowner's policy provides all risk or open peril
coverage on the dwelling but broad form coverage on the
personal property? - answer HO-3
The HO-4 is basically intended to cover which of the
following types of risks? - answer An apartment-dweller's
personal property
An individual otherwise qualified except for having taken
and passed the examination can be issued a temporary
insurance producer license, which is valid for a maximum
period of - answer six months
Who of the following would have Liability coverage under
Chuck's Personal Auto policy? - answer All of the above
The authority given by the company to the agent is NOT
formally written or communicated is called - answer
implied authority
Which of the following correctly identifies common
characteristics of Fidelity Bonds? - answer Fidelity Bonds
,commonly provide coverage for an insured act occurring
during the bond period and discovered before the end of
the discovery period.
An automobile collision would be considered - answer an
accident and an occurrence
Which of the following are excluded property losses under
all Homeowner's forms? - answer All of the above
What type of Ocean Marine insurance covers goods while
they are in transit over water? - answer cargo
Under the Personal Auto policy, Uninsured Motorists
coverage provides coverage for bodily injury for which
the insured is legally entitled to recover that results from
an accident with - answer all of the above
Which of the following statements about notice of
cancellation of an Alabama automobile polity is
CORRECT? - answer For reasons other than non-payment
of premium, the insurer must provide at least 20 days
notice of cancellation of an automobile policy.
,Assume the following items were stolen from the
insured's home. Which one of the these losses would be
fully covered under Coverage C (Personal Property) of the
Homeowner's policy, assuming the loss was for the full
value of the property described? - answer A $1,000
emerald bracelet
Which Homeowner's coverage provides indirect loss
coverage? - answer Coverage D (Loss of Use)
Coverage D under a standard Homeowner's policy
contains coverage for - answer loss of use
All of the following are correct statements regarding
coverage under a Boatowner's policy EXCEPT - answer
Most Boatowner's policies have no limitations or
exclusions related to how the boat may be used.
To file a claim for coverage under Part B (Med Pay) of the
Personal Auto policy, the claimant - answer must incur
expenses within three years of the accident
Xavier's car is insured by ABC Insurance Company. Xavier
took out a loan with First City Bank to purchase the car,
and is still making payments on the car loan. Who has an
, insurable interest in the car? - answer Xavier and First
City Bank
Historically, which of the following statements regarding
Ocean Marine Insurance is correct? - answer Most marine
policies are written on a standard form basis
Which of the following losses would be EXCLUDED under
the Liability section of a Personal Auto policy? - answer
The insured backs out of her garage and runs over her
son's new 10-speed bike.
Which of the following perils are NOT covered by the
Equipment Breakdown Coverage policy? - answer
Under the NFIP policy, all of the following are generally
considered to be floods EXCEPT - answer sewer backup
In a Fidelity Bond, the employee is known as the - answer
Which of the following is NOT a standard exclusion found
in Section II (Liability) of a Homeowner's policy? - answer
When does Flood insurance begin? - answer 30 days after
the application date
