Alabama Insurance test study Test Exam with 113questions
and answers 100%Correctly verified answers latest update
2026/2027 RATED A+
Loss Sustained Form - CORRECT ANSWERS Form that covers losses actually sustained
during the policy period and discovered no later than one year after policy expiration.
Fiduciary Responsibility - CORRECT ANSWERS The legal duty of a representative to
manage property in the interest of the owner.
Directors and Officers Liability Insurance - CORRECT ANSWERS This insurance is
designed to pay for damages arising from wrongful acts that do not lead to property damage,
bodily injury, advertising injury, or personal injury.
if an insured bakery is sued because its marketing states the products of another bakery may
not be safe
falls under the CGL policy - CORRECT ANSWERS Personal and Advertising Injury Liability
30 days - CORRECT ANSWERS property coverage under DP applies on a pro rata basis
at both locations, how many days if an insured is in process of moving to a new location?
Personal Injury Protection - CORRECT ANSWERS Not an additional liability coverage
automatically in home owners policy
Homeowners protection (HO) most similar to - CORRECT ANSWERS Business owners
protection (BOP) is most similar to
HO-6 - CORRECT ANSWERS designed to provide named peril coverage for personal
property to individuals who rent an apartment.
how soon after an insurer received proof of loss must they make the payment? - CORRECT
ANSWERS 60 days
provided by insureds policy on excess basis - CORRECT ANSWERS Under PAP (personal
automobile policy), Liability for bodily injury (BI) resulting from insureds use of a non owned
automobile is
, Alabama Insurance test study Test Exam with 113questions
and answers 100%Correctly verified answers latest update
2026/2027 RATED A+
Statements regarding insurable risks - CORRECT ANSWERS -must involve loss that
definite as to cause/time/place/amount
-insureds can be randomly selected
-insurance cannot be mandatory
-insurance risks needs to be statistically predictable
If a policy holder has an equipment breakdown policy with a $200k limit and a boiler explosion
causes $100k damage to itself, $50k to the building, and $30k in expediting expenses, how
much will the insured collect under policy? - CORRECT ANSWERS $180k
Which liability exposure is most likely for a small specialty clothing retail boutique - CORRECT
ANSWERS premises liability exposure
Premises and operations liability - CORRECT ANSWERS If a customer injured in a
supermarket parking lot when a grocery cart collided with the customers leg what type of claim
would this be provided under?
embezzlement - CORRECT ANSWERS wrongful acts do not include what with regard to
coverage provided by directors and officers liability insurance
Transportation expenses are covered under PAP for how much a day and whats the maximum:
- CORRECT ANSWERS $20, Max $600
Designated symbols used in CAP (commercial auto policy) can be found in which policy
section? - CORRECT ANSWERS covered auto
Under Business owners policy, inspections and surveys condition does not specify what -
CORRECT ANSWERS insurer does not have right to inspect insureds property and
operations
under personal automobile policy (PAP), owned trailers being towed by an insured auto are
automatically covered for - CORRECT ANSWERS UIM coverage (uninsured motorists)
and answers 100%Correctly verified answers latest update
2026/2027 RATED A+
Loss Sustained Form - CORRECT ANSWERS Form that covers losses actually sustained
during the policy period and discovered no later than one year after policy expiration.
Fiduciary Responsibility - CORRECT ANSWERS The legal duty of a representative to
manage property in the interest of the owner.
Directors and Officers Liability Insurance - CORRECT ANSWERS This insurance is
designed to pay for damages arising from wrongful acts that do not lead to property damage,
bodily injury, advertising injury, or personal injury.
if an insured bakery is sued because its marketing states the products of another bakery may
not be safe
falls under the CGL policy - CORRECT ANSWERS Personal and Advertising Injury Liability
30 days - CORRECT ANSWERS property coverage under DP applies on a pro rata basis
at both locations, how many days if an insured is in process of moving to a new location?
Personal Injury Protection - CORRECT ANSWERS Not an additional liability coverage
automatically in home owners policy
Homeowners protection (HO) most similar to - CORRECT ANSWERS Business owners
protection (BOP) is most similar to
HO-6 - CORRECT ANSWERS designed to provide named peril coverage for personal
property to individuals who rent an apartment.
how soon after an insurer received proof of loss must they make the payment? - CORRECT
ANSWERS 60 days
provided by insureds policy on excess basis - CORRECT ANSWERS Under PAP (personal
automobile policy), Liability for bodily injury (BI) resulting from insureds use of a non owned
automobile is
, Alabama Insurance test study Test Exam with 113questions
and answers 100%Correctly verified answers latest update
2026/2027 RATED A+
Statements regarding insurable risks - CORRECT ANSWERS -must involve loss that
definite as to cause/time/place/amount
-insureds can be randomly selected
-insurance cannot be mandatory
-insurance risks needs to be statistically predictable
If a policy holder has an equipment breakdown policy with a $200k limit and a boiler explosion
causes $100k damage to itself, $50k to the building, and $30k in expediting expenses, how
much will the insured collect under policy? - CORRECT ANSWERS $180k
Which liability exposure is most likely for a small specialty clothing retail boutique - CORRECT
ANSWERS premises liability exposure
Premises and operations liability - CORRECT ANSWERS If a customer injured in a
supermarket parking lot when a grocery cart collided with the customers leg what type of claim
would this be provided under?
embezzlement - CORRECT ANSWERS wrongful acts do not include what with regard to
coverage provided by directors and officers liability insurance
Transportation expenses are covered under PAP for how much a day and whats the maximum:
- CORRECT ANSWERS $20, Max $600
Designated symbols used in CAP (commercial auto policy) can be found in which policy
section? - CORRECT ANSWERS covered auto
Under Business owners policy, inspections and surveys condition does not specify what -
CORRECT ANSWERS insurer does not have right to inspect insureds property and
operations
under personal automobile policy (PAP), owned trailers being towed by an insured auto are
automatically covered for - CORRECT ANSWERS UIM coverage (uninsured motorists)
