Alabama Personal Lines Insurance Exam
Review Latest Update 2025 With Complete
Questions And Verified Answers(verified by
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Arbitration - CORRECT ANSWER-A means of transferring to the insurance company the insured's right
to collect from a negligent third party.
Flood Definition under NFIP - CORRECT ANSWER-Generally includes mudslides, runoff of surface
water, and overflow of tidal waters.
Insurance Binder Validity - CORRECT ANSWER-In Alabama, it is valid for 30 days or until a policy is
issued, whichever is less.
Coverage D under Homeowner's Policy - CORRECT ANSWER-Contains coverage for loss of use.
, Expense Ratio - CORRECT ANSWER-An insurer compares what it paid in claims against the amount
received in premium.
Loss Ratio - CORRECT ANSWER-An insurer compares what it paid in claims against the amount received
in premium.
Uninsured Motorist Coverage - CORRECT ANSWER-In Alabama, the minimum limits are $20,000 per
person and $40,000 per accident for bodily injury.
Named Peril Policy - CORRECT ANSWER-The burden of proving that a loss is covered lies with the
insured.
Coverage E (Personal Liability) - CORRECT ANSWER-The standard policy limit under Section II of the
Homeowner's policy is $100,000 per occurrence.
Automobile Collision - CORRECT ANSWER-Would be considered an accident and an occurrence.
FORTIFIED Upgrade - CORRECT ANSWER-Before beginning, it is important to receive an evaluation and
Current Conditions Report.
Debris Removal - CORRECT ANSWER-Under a Homeowner's policy, it is covered if the loss is due to a
covered peril.
Excluded Property Losses - CORRECT ANSWER-Loss due to earth movement, neglect to preserve
property following a loss, and flood are excluded.
FORTIFIED Home - CORRECT ANSWER-The Bronze level requires a continuous load path, providing
connections from roof to wall, wall to floor, and floor to foundation.
Review Latest Update 2025 With Complete
Questions And Verified Answers(verified by
experts)|Already Graded A+|Assured Success!!!
Arbitration - CORRECT ANSWER-A means of transferring to the insurance company the insured's right
to collect from a negligent third party.
Flood Definition under NFIP - CORRECT ANSWER-Generally includes mudslides, runoff of surface
water, and overflow of tidal waters.
Insurance Binder Validity - CORRECT ANSWER-In Alabama, it is valid for 30 days or until a policy is
issued, whichever is less.
Coverage D under Homeowner's Policy - CORRECT ANSWER-Contains coverage for loss of use.
, Expense Ratio - CORRECT ANSWER-An insurer compares what it paid in claims against the amount
received in premium.
Loss Ratio - CORRECT ANSWER-An insurer compares what it paid in claims against the amount received
in premium.
Uninsured Motorist Coverage - CORRECT ANSWER-In Alabama, the minimum limits are $20,000 per
person and $40,000 per accident for bodily injury.
Named Peril Policy - CORRECT ANSWER-The burden of proving that a loss is covered lies with the
insured.
Coverage E (Personal Liability) - CORRECT ANSWER-The standard policy limit under Section II of the
Homeowner's policy is $100,000 per occurrence.
Automobile Collision - CORRECT ANSWER-Would be considered an accident and an occurrence.
FORTIFIED Upgrade - CORRECT ANSWER-Before beginning, it is important to receive an evaluation and
Current Conditions Report.
Debris Removal - CORRECT ANSWER-Under a Homeowner's policy, it is covered if the loss is due to a
covered peril.
Excluded Property Losses - CORRECT ANSWER-Loss due to earth movement, neglect to preserve
property following a loss, and flood are excluded.
FORTIFIED Home - CORRECT ANSWER-The Bronze level requires a continuous load path, providing
connections from roof to wall, wall to floor, and floor to foundation.
