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ALABAMA PROPERTY AND
CASUALTY EXAM WITH 100%
CORRECT ANSWER S
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Question : If a company cancels an auto policy mid term,
the refund will be made on
CORRECT ANSWER : b. short rate basis
Question : What is the term used to describe terminating
the insurance relationship at the end of the policy period ?
CORRECT ANSWER : b. nonrenewal
Question : Which is the best example of an indirect loss ?
CORRECT ANSWER : d. loss of use
Question : Which is a two party contract?
CORRECT ANSWER : A. property
Question : Insurance Contracts offset
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CORRECT ANSWER : b. pure risk
Question : Which of the following is a third party contract
?
CORRECT ANSWER : b. casualty
Question : Risk is best defined as
CORRECT ANSWER : a. chance of loss
Question : Being subject to a loss is
CORRECT ANSWER : c . exposure
Question : The ranking insured in a personal lines
contract is the
CORRECT ANSWER : b. first named insured
Question : To be paid under a P&C contract, insurable
interest must exist
CORRECT ANSWER : c. at the time of the loss
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Question : This type of company benefits the
policyowners
CORRECT ANSWER : b. mutual
Question : Ohio Casualty is doing regular business in
Indiana. Within the State of Indiana, Ohio Casualty would be considered ?
CORRECT ANSWER : d. foreign company
Question : Ohio Casualty is doing regular business in
Indiana. Within the State of Indiana, Ohio Casualty would be considered ?
CORRECT ANSWER : a. admitted company
Question : A company chartered in Guam or Puerto Rico
doing regular business in New York would be considered by New Yorkers to be ?
CORRECT ANSWER : b. foreign company
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Question : the term consideration means what ?
CORRECT ANSWER : a. the premiums and the
statements on the application
Question : What is a unilateral contract?
CORRECT ANSWER : a. contains the legally
enforceable promise of only one party
Question : Accepting an insurance contract as it is written
is known as
CORRECT ANSWER : c. contract of adhesion
Question : Which of the following principle state that in
forming an insurance contract, both parties have a responsibility to each other ?
CORRECT ANSWER : c. doctrine of utmost good faith
Question : An incorrect statement made intentionally a
person auto insurance application is a ?