Alabama Property and Casualty Exam – Questions with 100% Accurate Answers

ALABAMA PROPERTY AND CASUALTY EXAM
QUESTIONS WITH 100% ACCURATE ANSWERS
ALABAMA PROPERTY & CASUALTY




ALABAMA PROPERTY &
STUDYGLOBAL 5/16/25
CASUALTY

, 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 - Accurate answers 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 - Accurate answers Nonrenewal

Which is the best example of an indirect loss ?

a. sequential loss
b. liability loss
c. employee theft
d. loss of use - Accurate answers Loss of Use

Which is a two party contract?

A. property
B. casualty
C. liability
D. auto - Accurate answers Property

Insurance Contracts offset
a. speculative risk
b. pure risk
c. gambling
d. created risk - Accurate answers Pure Risk

Which of the following is a third party contract ?
a. property
b. casualty
c. earthquake
d. theft - Accurate answers Casualty

Risk is best defined as
a. chance of loss
b. certainty of loss
c. financially loss
d. sentimental loss - Accurate answers Chance of loss