ALABAMA PROPERTY AND CASUALTY

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ALABAMA PROPERTY AND CASUALTY

EXAM | QUESTIONS WITH 100%

CORRECT ANSWERS | VE RIFIED |

LATEST UPDATE

Question :If a company cancels an auto policy mid term, the

refund will be made on

• pro rata basis
• short rate basis
• retroactive basis
• coinsurance basis

Correct answer: Pro Rata Basis

Question :What is the term used to describe terminating the

insurance relationship at the end of the policy period ?

• cancellation
• nonrenewal
• separation
• exclusion

Correct answer: Nonrenewal

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Question :Which is the best example of an indirect loss ?

• sequential loss
• liability loss
• employee theft
• loss of use

Correct answer: Loss of Use

Question :Which is a two party contract?

• property
• casualty
• liability
• auto

Correct answer: Property

Question :Insurance Contracts offset

• speculative risk
• pure risk
• gambling

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• created risk

Correct answer: Pure Risk

Question :Which of the following is a third party contract ?

• property
• casualty
• earthquake
• theft

Correct answer: Casualty

Question :Risk is best defined as

• chance of loss
• certainty of loss
• financially loss
• sentimental loss

Correct answer: Chance of loss

Question :Being subject to a loss is

• liability

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• indemnity

c . exposure

• subrogation

Correct answer: Exposure

Question :The ranking insured in a personal lines contract is

the

• named insured
• first named insured
• mortgagee
• husband

Correct answer: Named Insured

Question :To be paid under a P&C contract, insurable interest

must exist

• at the time of the application
• on the policy date
• at the time of the loss
• at the time of claim settlement