Alabama Property and Casualty Sample Quiz 1-100 (100% correct answers)

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 is considered an owner, with the right to vote and share in the profits is a correct answers mutual company Jewel Canford's home is insured by XYZ Insurance Company. Last year she made the final mortgage payment to FBN Mortgage Company. Jewel is considering selling her home to her niece, Cynthia. Who has an insurable interest in the home? correct answers Jewel Canford Risk of loss is a speculative risk correct answers Which one of the following is NOT an element of insurability? a. Loss must be calculable b. Risk of loss must represent a financial harship c. Cost of insurance must be affordable d. Risk of loss is a speculative risk The principle that states that an insured should be restored to approximately the same financial position after a loss as before is known as... correct answers indemnity Declarations correct answers What part of an insurance policy personalizes the policy as to who and what are insured? An insurance policy is prepared by the insurance company, with little or no input from the insured. This means that an insurance policy is a/an... correct answers adhesion contract An individual who owns and lives in a condominium can obtain broad coverage for personal property in the condo under which Homeowners form? correct answers HO-6 What is the purpose of the Fair Credit Reporting Act? correct answers to give the consumer recourse if insurance is denied on the basis of a credit report. a fire that was caused by the insureds negligence burns a neighbors building, the owner of the building sues the insured. correct answers Which of the following is a liability loss? What rating method involves modifying the premium based on the insured's loss experience over a specified period of time? correct answers Experience rating Most Flood insurance coverage is provided by correct answers a federal government program