Alabama Property & Casualty Insurance Law (With complete solution) Property & Casualty Final & State Exam 2024 (100% Verified answers) Fact Check -- Alabama Property & Casualty (100% Verified) Alabama P&C Insurance Exam (A+ GRADED)
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If a company cancels an auto policy mid term, the refund will be made on a. pro rata basis b. short rate basis c. retroactive basis d. coinsurance basis correct answers Pro Rata Basis What is the term used to describe terminating the insurance relationship at the end of the policy period ?...
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Add to cartIf a company cancels an auto policy mid term, the refund will be made on a. pro rata basis b. short rate basis c. retroactive basis d. coinsurance basis correct answers Pro Rata Basis What is the term used to describe terminating the insurance relationship at the end of the policy period ?...
An incorporated insurance company which is run by a board of directors is known as correct answers a capital-stock company Which of the following statements is true regarding a binder? a. a binder guarantees that a policy will be issued by the insurance company. b. a binder guarantees coverage ...
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Add to cartAn incorporated insurance company which is run by a board of directors is known as correct answers a capital-stock company Which of the following statements is true regarding a binder? a. a binder guarantees that a policy will be issued by the insurance company. b. a binder guarantees coverage ...
2 reasons - No Flood correct answers Catastophic, adverse selection Watercraft Policy correct answers Open cockpit, 26 feet or less in length Absolute Liabilty correct answers Strong Liklihood of harming others Intervening Cause correct answers Disruption in chain of events Negligence co...
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Add to cart2 reasons - No Flood correct answers Catastophic, adverse selection Watercraft Policy correct answers Open cockpit, 26 feet or less in length Absolute Liabilty correct answers Strong Liklihood of harming others Intervening Cause correct answers Disruption in chain of events Negligence co...
Abandonment correct answers An attempt by an insured to receive full value for a partially damaged item by offering the damaged property to the insurance company. The company is under no obligation to pay for abandoned property. Absolute Liability correct answers A tort law concept in which an in...
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Add to cartAbandonment correct answers An attempt by an insured to receive full value for a partially damaged item by offering the damaged property to the insurance company. The company is under no obligation to pay for abandoned property. Absolute Liability correct answers A tort law concept in which an in...
Which statement concerning a Binder is true? correct answers A Binder is valid for a maximum of 90 days. An Adjusters license could not be issued to correct answers An 18 year old. Unless suspended or revoked, an Adjuster's License remains in effect for: correct answers One year A Surplus ...
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Add to cartWhich statement concerning a Binder is true? correct answers A Binder is valid for a maximum of 90 days. An Adjusters license could not be issued to correct answers An 18 year old. Unless suspended or revoked, an Adjuster's License remains in effect for: correct answers One year A Surplus ...
Insurance correct answers The transfer of risk through a legal contract Property correct answers Covers real property and personal property against damage or loss resulting from covered causes of loss called perils. Casualty correct answers Covers non-property loss (by a 3rd party) Personal...
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Add to cartInsurance correct answers The transfer of risk through a legal contract Property correct answers Covers real property and personal property against damage or loss resulting from covered causes of loss called perils. Casualty correct answers Covers non-property loss (by a 3rd party) Personal...
What is a hazard? correct answers an increase in the possibility that a loss might occur transfer risk from a person or business to an insurance company that agrees to to pay for losses in exchange for a premium. correct answers insurance The type of insurance company in which the policyholder...
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Add to cartWhat is a hazard? correct answers an increase in the possibility that a loss might occur transfer risk from a person or business to an insurance company that agrees to to pay for losses in exchange for a premium. correct answers insurance The type of insurance company in which the policyholder...
What is hazard? correct answers An increase in the possibility that a loss might occur What rating method involves modifying the premium based on the insureds loss experience over a specified period of time? correct answers Experience Rating In a particular state, an insurance company must fil...
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Add to cartWhat is hazard? correct answers An increase in the possibility that a loss might occur What rating method involves modifying the premium based on the insureds loss experience over a specified period of time? correct answers Experience Rating In a particular state, an insurance company must fil...
As an inducement to insurance, giving any special discount, reduction of premium, special favor, or other valuable consideration is called? correct answers Rebating 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: correct ans...
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Add to cartAs an inducement to insurance, giving any special discount, reduction of premium, special favor, or other valuable consideration is called? correct answers Rebating 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: correct ans...
Which Business Auto Symbol is the most broad of all Symbols? A Symbol 3 B Symbol 2 C Symbol 4 D Symbol 1 correct answers Symbol 1 Symbol 1 includes any auto, whether owned or not by the insured if it is used in the insured business. Which of the following would NOT be found in the policy dec...
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Add to cartWhich Business Auto Symbol is the most broad of all Symbols? A Symbol 3 B Symbol 2 C Symbol 4 D Symbol 1 correct answers Symbol 1 Symbol 1 includes any auto, whether owned or not by the insured if it is used in the insured business. Which of the following would NOT be found in the policy dec...
If a company cancels an auto policy mid-term, the refund will be made on a : A. pro rata basis B. short rate basis C. retroactive basis D. coinsurance basis correct answers A. Pro Rata Basis What is the term used to describe terminating the insurance relationship at the end of the policy pe...
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Add to cartIf a company cancels an auto policy mid-term, the refund will be made on a : A. pro rata basis B. short rate basis C. retroactive basis D. coinsurance basis correct answers A. Pro Rata Basis What is the term used to describe terminating the insurance relationship at the end of the policy pe...
Moral hazards correct answers are tendencies or traits of an individual that increase the chance of a loss. Bad credit is an example of a moral hazard affecting property. Morale hazard correct answers individual tendencies, but they arise from a state of mind, attitude, or indifference to loss. ...
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Add to cartMoral hazards correct answers are tendencies or traits of an individual that increase the chance of a loss. Bad credit is an example of a moral hazard affecting property. Morale hazard correct answers individual tendencies, but they arise from a state of mind, attitude, or indifference to loss. ...
The term "Risk" means correct answers Uncertainty of loss Techniques for handling risk correct answers Avoid the Risk Retain the Risk Reduce the Risk Transfer the Risk The Law of Numbers correct answers The more examples used to develop a statistic, the more reliable the statistic will be...
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Add to cartThe term "Risk" means correct answers Uncertainty of loss Techniques for handling risk correct answers Avoid the Risk Retain the Risk Reduce the Risk Transfer the Risk The Law of Numbers correct answers The more examples used to develop a statistic, the more reliable the statistic will be...
Insurance correct answers The equitable transfer of risk from one entity to another in exchange for payment Risk correct answers The Chance of Loss; the Uncertainty of Loss; and the difference between expected losses and actual losses over time Peril correct answers A Cause of loss is often ca...
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Add to cartInsurance correct answers The equitable transfer of risk from one entity to another in exchange for payment Risk correct answers The Chance of Loss; the Uncertainty of Loss; and the difference between expected losses and actual losses over time Peril correct answers A Cause of loss is often ca...
The portion of covered loss that is not paid by the insurance company is called?: (a) A deductible (b) Facultative reinsurance (c) Treaty reinsurance (d) Limit of liability correct answers A deductible The best example of risk retention is: (a) Deductibles (b) Coinsurance (c)...
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Add to cartThe portion of covered loss that is not paid by the insurance company is called?: (a) A deductible (b) Facultative reinsurance (c) Treaty reinsurance (d) Limit of liability correct answers A deductible The best example of risk retention is: (a) Deductibles (b) Coinsurance (c)...
The ________________ condition states that an act/neglect by any individual, other than the insured, beyond the insured's control will not affect insurance. correct answers control of property T/F: If an insured breaches a condition with regard to a specific location, all locations are affected....
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Add to cartThe ________________ condition states that an act/neglect by any individual, other than the insured, beyond the insured's control will not affect insurance. correct answers control of property T/F: If an insured breaches a condition with regard to a specific location, all locations are affected....
Binders (27-14-18) correct answers A binder is an instrument designed to provide immediate, temporary insurance coverage. Binders can be either written or oral. In the state of Alabama, how long are binders valid? correct answers 90 days or until a policy is issued. Whichever is less In the st...
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Add to cartBinders (27-14-18) correct answers A binder is an instrument designed to provide immediate, temporary insurance coverage. Binders can be either written or oral. In the state of Alabama, how long are binders valid? correct answers 90 days or until a policy is issued. Whichever is less In the st...
personal auto policy (PAP) (LMPDA/IMCONOV/BIPBIOPDO/10D/20D) correct answers provides protection for liability, medical payments, and damage to the automobile for individuals and married couples and their owned and nonowned vehicles; most widely used personal lines auto contract in US and Alabama, l...
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Add to cartpersonal auto policy (PAP) (LMPDA/IMCONOV/BIPBIOPDO/10D/20D) correct answers provides protection for liability, medical payments, and damage to the automobile for individuals and married couples and their owned and nonowned vehicles; most widely used personal lines auto contract in US and Alabama, l...
If a company cancels an auto policy mid-term, the refund will be made on a A. pro rata basis B. short rate basis C. retroactive basis D. coinsurance basis correct answers A. pro rata basis What is the term used to describe terminating the insurance relationship at the end of the policy per...
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Add to cartIf a company cancels an auto policy mid-term, the refund will be made on a A. pro rata basis B. short rate basis C. retroactive basis D. coinsurance basis correct answers A. pro rata basis What is the term used to describe terminating the insurance relationship at the end of the policy per...
Under a Watercraft Policy, which of the following would be covered? 1 - Bodily Injury 2 - Property Damage 3 - Medical Payments to Others correct answers 1,2, and 3 Who pays for the services of the arbitrators under/uninsured motorist coverage? a - The Insurance Company b- The Insured c-...
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Add to cartUnder a Watercraft Policy, which of the following would be covered? 1 - Bodily Injury 2 - Property Damage 3 - Medical Payments to Others correct answers 1,2, and 3 Who pays for the services of the arbitrators under/uninsured motorist coverage? a - The Insurance Company b- The Insured c-...
Assume your Personal Auto policy has Un/Underinsured limits of 100/300/100. You are injured by a negligent driver with minimum state limits of 30/60/25. You are injured to the extent of $110,000. How much will your Underinsured Motorist coverage pay? correct answers $70,000 If your house is insur...
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Add to cartAssume your Personal Auto policy has Un/Underinsured limits of 100/300/100. You are injured by a negligent driver with minimum state limits of 30/60/25. You are injured to the extent of $110,000. How much will your Underinsured Motorist coverage pay? correct answers $70,000 If your house is insur...
Dishonesty correct answers Deceit, misrepresentation, untruthfulness, falsification Insurers correct answers insurance companies or carriers who manufacture and sell insurance coverage by way of policies or contracts. Insurance Agencies correct answers independent organizations that recruit, c...
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Add to cartDishonesty correct answers Deceit, misrepresentation, untruthfulness, falsification Insurers correct answers insurance companies or carriers who manufacture and sell insurance coverage by way of policies or contracts. Insurance Agencies correct answers independent organizations that recruit, c...
The Commercial Property policy applies a limit of what dollar amount for business personal property temporarily away from the premises? correct answers $10,000 What is the name of the organization created to provide auto insurance to individuals who have been unable to obtain it through the priva...
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Add to cartThe Commercial Property policy applies a limit of what dollar amount for business personal property temporarily away from the premises? correct answers $10,000 What is the name of the organization created to provide auto insurance to individuals who have been unable to obtain it through the priva...
Abandonment correct answers an attempt by an insured to receive full value for a partially damaged item by offering the damaged property to the insurance company. The company is under no obligation to pay for abandoned property. Absolute Liability correct answers A tort law concept in which an in...
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Add to cartAbandonment correct answers an attempt by an insured to receive full value for a partially damaged item by offering the damaged property to the insurance company. The company is under no obligation to pay for abandoned property. Absolute Liability correct answers A tort law concept in which an in...
Which of the following statements about surplus line brokers is CORRECT? correct answers An Alabama resident must post a bond of at least $50,000 to be licensed as a surplus line broker. A Commercial Package policy myst contain at least ___ coverage participants. correct answers two Under a Pe...
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Add to cartWhich of the following statements about surplus line brokers is CORRECT? correct answers An Alabama resident must post a bond of at least $50,000 to be licensed as a surplus line broker. A Commercial Package policy myst contain at least ___ coverage participants. correct answers two Under a Pe...
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