ALABAMA PROPERTY AND CASUALTY SAMPLE
QUIZ 1-100 QUESTIONS WITH 100% ACCURATE
ANSWERS
ALABAMA PROPERTY & CASUALTY
ALABAMA PRORERTY &
STUDYGLOBAL 5/16/25
CASUALTY
, What is a hazard? - Accurate 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. - Accurate 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 - Accurate 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? - Accurate answers Jewel Canford
Risk of loss is a speculative risk - Accurate 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... - Accurate answers indemnity
Declarations - Accurate 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... - Accurate 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? - Accurate answers HO-6
What is the purpose of the Fair Credit Reporting Act? - Accurate 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. - Accurate 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? - Accurate answers Experience rating
Most Flood insurance coverage is provided by - Accurate answers a federal government program
Which of the following businesses could be eligible for a Business owners policy?
a. Hometown Bank & Trust
b. Rest Easy Motel
QUIZ 1-100 QUESTIONS WITH 100% ACCURATE
ANSWERS
ALABAMA PROPERTY & CASUALTY
ALABAMA PRORERTY &
STUDYGLOBAL 5/16/25
CASUALTY
, What is a hazard? - Accurate 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. - Accurate 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 - Accurate 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? - Accurate answers Jewel Canford
Risk of loss is a speculative risk - Accurate 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... - Accurate answers indemnity
Declarations - Accurate 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... - Accurate 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? - Accurate answers HO-6
What is the purpose of the Fair Credit Reporting Act? - Accurate 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. - Accurate 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? - Accurate answers Experience rating
Most Flood insurance coverage is provided by - Accurate answers a federal government program
Which of the following businesses could be eligible for a Business owners policy?
a. Hometown Bank & Trust
b. Rest Easy Motel
