AL P&C University of Alabama Study Guide (A+ GUARANTEED)

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 period? A. Cancellation B. Nonrenewal C. Separation D. Exclusion correct answers B. Nonrenewal Which is the best example of an indirect loss? A. Sequential loss B. Liability loss C. Employee theft D. Loss of use correct answers D. Loss of use Which is a two party contract? A. Property B. Casualty C. Liability D. Auto correct answers A. Property Insurance contracts offset A. speculative risk B. pure risk C. gambling D. created risk correct answers B. Pure risk Which of the following is a third party contract? A. Property B. Casualty C. Earthquake D. Theft correct answers B. Casualty