Alabama Property And Casualty Study Guide Questions With Solved Solutions 2024.

What is a hazard? Answer 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. Answer 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 Answer 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? Answer Jewel Canford Risk of loss is a speculative risk Answer 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... Answer indemnity Declarations Answer 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... Answer adhesion contract