ALABAMA INSURANCE PROPERTY AND
CASUALTY ACTUAL EXAM 2026
COMPLETE QUESTIONS AND VERIFIED
SOLUTIONS
⩥ If the state's minimum auto liability limits are 25/50/25, a driver with
the limits of 10/20/10 is considered to be an: Answer: Uninsured
Motorist
⩥ The insurer's promise to pay benefits according to the terms of the
policy is found in what part of an insurance agreement? Answer:
Insuring Agreement
⩥ Unendorsed homeowners policy will cover? Answer: A Private
residence in which the owner maintains an office for business.
⩥ The action in which a natural and continuous sequence, produces a
loss is known as? Answer: Proximate Cause
⩥ The DP-1 form covers personal property off premises for? Answer:
Anywhere in the world up to %10 of the coverage C amount.
⩥ Which of the following types of personal property would not be
covered under a homeowners policy?
, -pets
-jewelry
-watercraft
-money Answer: Pets
⩥ Open peril coverage for both the dwelling and personal property is
provided by? Answer: HO-5
⩥ What is the minimum NFIP deductible for residential dwellings?
Answer: $500
⩥ Liability loss in a business policy normally requires? Answer: Being
sued
⩥ Which element of a legal contract does an insurance payment
represent? Answer: Consideration
⩥ Insurance is a means of ________ risk? Answer: Transferring
⩥ What kind of policy would a 30 foot speedboat with a 75hp engine
need? Answer: A boatowners or watercraft policy
⩥ What is an insurance policy with little or no input from the insured?
Answer: Adhesion Contract
CASUALTY ACTUAL EXAM 2026
COMPLETE QUESTIONS AND VERIFIED
SOLUTIONS
⩥ If the state's minimum auto liability limits are 25/50/25, a driver with
the limits of 10/20/10 is considered to be an: Answer: Uninsured
Motorist
⩥ The insurer's promise to pay benefits according to the terms of the
policy is found in what part of an insurance agreement? Answer:
Insuring Agreement
⩥ Unendorsed homeowners policy will cover? Answer: A Private
residence in which the owner maintains an office for business.
⩥ The action in which a natural and continuous sequence, produces a
loss is known as? Answer: Proximate Cause
⩥ The DP-1 form covers personal property off premises for? Answer:
Anywhere in the world up to %10 of the coverage C amount.
⩥ Which of the following types of personal property would not be
covered under a homeowners policy?
, -pets
-jewelry
-watercraft
-money Answer: Pets
⩥ Open peril coverage for both the dwelling and personal property is
provided by? Answer: HO-5
⩥ What is the minimum NFIP deductible for residential dwellings?
Answer: $500
⩥ Liability loss in a business policy normally requires? Answer: Being
sued
⩥ Which element of a legal contract does an insurance payment
represent? Answer: Consideration
⩥ Insurance is a means of ________ risk? Answer: Transferring
⩥ What kind of policy would a 30 foot speedboat with a 75hp engine
need? Answer: A boatowners or watercraft policy
⩥ What is an insurance policy with little or no input from the insured?
Answer: Adhesion Contract
