ALABAMA INSURANCE COMPREHENSIVE EXAM 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔primary insurance - ✔✔is property coverage that provides benefits up to the limits of
a policy
✔✔excess insurance - ✔✔property coverage above the primary amount
✔✔unoccupancy - ✔✔is a property that has personal property but no person
✔✔insuring agreement - ✔✔states that the insurer will indeminfy the insured for a
coered loss
✔✔additional or supplementary coverage - ✔✔coerage for incidental expenses that
frequently occur in connection with causes of loss stated in the policy
✔✔concealment - ✔✔policy can be voided if ther is any type of misrepresentation
✔✔assignment - ✔✔the insured may not transfer rights of ownershop or interest in an
insurance policy to another party without the insurers written consent
✔✔subrogation - ✔✔legal process by which an insurere seeks recovery of the amount
paid to the insured from a third party responsible for having caused the loss. trnasfers
an insureds legal right of recovery the insuere has pad a claim
✔✔insureable interest - ✔✔specifies that the insurer will not be responsible for an
amount which is greater than the financial interest of an insured person or more than
the limit of liability stated on the dec page
✔✔apprasial - ✔✔specifies that if the insured and insurer cannot agree on the amount
of loss they
✔✔loss payment - ✔✔specifies the time fram within which the insurer must pay a loss to
the insured after the insurere has received the insureds proof of loss and reached an
agreement with the insured
✔✔abandonment of property - ✔✔specifies that the insured may not abandon or
relinquish ownership of property to the insurer for disposal or repair
✔✔mortgage clause - ✔✔states and protects the mort lenders finacial interest in the
property insured by the policy
✔✔exclusion - ✔✔specifies the cause of loss or perperty not covered (earth quake flood
war)
, ✔✔endorsements - ✔✔written amendments attached to teh policy to broaden or restict
coverage or to furter define ceratin policy provisions typically attached to the policy at
inception
✔✔named insurend - ✔✔person firm or org designated by the name on the dec page
✔✔first named insured - ✔✔person firm or org that appears first on the dec page
(primary insured
✔✔additional insured - ✔✔another person firm or org usually added by endorsement
(bank or lender)
✔✔deductible - ✔✔specific dollar amount of each covered property loss that na insured
must bear this helps reduce the number of frivolous claims higher amount lower amount
insured pays
✔✔coinsurance - ✔✔provision contained in most polices insurening commercial
property used to encourage the insured to purchase and maintain insurance value.
applies to only in the event of a partial loss as total losses typically are paid in
accordance with the VPL
✔✔monoline policy - ✔✔policy that provides only one type of insurance coverage
✔✔home owners periles basic forms are - ✔✔fire, lightening, internal expolsion, wind,
hail, aircraft, riot, vandalism,expolsion, smoke, theft
✔✔home owners periles broad forms are - ✔✔plumbing, falling objects, weight of snow
or ice,
✔✔ho2 broad form covers - ✔✔dwelling and other structures with loss on replacement
cost, contents and personal property paid on actual cash value
✔✔ho2 broad form does not cover - ✔✔fences, driveways or walkways damaged by the
vehicle owned or operated by the insured
✔✔ho3 special form covers - ✔✔dwelling and other structureson open peril losses paid
on replacement cost, contents and personal property paid on actual cash value,
coverage does extend to fences driveways and walkways
✔✔ho4 broad form or renters policy covers - ✔✔named perils for contents and personal
property of the insured paid on actual cash value, additional coverage of trees or shurbs
provides 10% with no more than 500$ per tree or 5000$ total
QUESTIONS WITH SOLUTIONS RATED A+
✔✔primary insurance - ✔✔is property coverage that provides benefits up to the limits of
a policy
✔✔excess insurance - ✔✔property coverage above the primary amount
✔✔unoccupancy - ✔✔is a property that has personal property but no person
✔✔insuring agreement - ✔✔states that the insurer will indeminfy the insured for a
coered loss
✔✔additional or supplementary coverage - ✔✔coerage for incidental expenses that
frequently occur in connection with causes of loss stated in the policy
✔✔concealment - ✔✔policy can be voided if ther is any type of misrepresentation
✔✔assignment - ✔✔the insured may not transfer rights of ownershop or interest in an
insurance policy to another party without the insurers written consent
✔✔subrogation - ✔✔legal process by which an insurere seeks recovery of the amount
paid to the insured from a third party responsible for having caused the loss. trnasfers
an insureds legal right of recovery the insuere has pad a claim
✔✔insureable interest - ✔✔specifies that the insurer will not be responsible for an
amount which is greater than the financial interest of an insured person or more than
the limit of liability stated on the dec page
✔✔apprasial - ✔✔specifies that if the insured and insurer cannot agree on the amount
of loss they
✔✔loss payment - ✔✔specifies the time fram within which the insurer must pay a loss to
the insured after the insurere has received the insureds proof of loss and reached an
agreement with the insured
✔✔abandonment of property - ✔✔specifies that the insured may not abandon or
relinquish ownership of property to the insurer for disposal or repair
✔✔mortgage clause - ✔✔states and protects the mort lenders finacial interest in the
property insured by the policy
✔✔exclusion - ✔✔specifies the cause of loss or perperty not covered (earth quake flood
war)
, ✔✔endorsements - ✔✔written amendments attached to teh policy to broaden or restict
coverage or to furter define ceratin policy provisions typically attached to the policy at
inception
✔✔named insurend - ✔✔person firm or org designated by the name on the dec page
✔✔first named insured - ✔✔person firm or org that appears first on the dec page
(primary insured
✔✔additional insured - ✔✔another person firm or org usually added by endorsement
(bank or lender)
✔✔deductible - ✔✔specific dollar amount of each covered property loss that na insured
must bear this helps reduce the number of frivolous claims higher amount lower amount
insured pays
✔✔coinsurance - ✔✔provision contained in most polices insurening commercial
property used to encourage the insured to purchase and maintain insurance value.
applies to only in the event of a partial loss as total losses typically are paid in
accordance with the VPL
✔✔monoline policy - ✔✔policy that provides only one type of insurance coverage
✔✔home owners periles basic forms are - ✔✔fire, lightening, internal expolsion, wind,
hail, aircraft, riot, vandalism,expolsion, smoke, theft
✔✔home owners periles broad forms are - ✔✔plumbing, falling objects, weight of snow
or ice,
✔✔ho2 broad form covers - ✔✔dwelling and other structures with loss on replacement
cost, contents and personal property paid on actual cash value
✔✔ho2 broad form does not cover - ✔✔fences, driveways or walkways damaged by the
vehicle owned or operated by the insured
✔✔ho3 special form covers - ✔✔dwelling and other structureson open peril losses paid
on replacement cost, contents and personal property paid on actual cash value,
coverage does extend to fences driveways and walkways
✔✔ho4 broad form or renters policy covers - ✔✔named perils for contents and personal
property of the insured paid on actual cash value, additional coverage of trees or shurbs
provides 10% with no more than 500$ per tree or 5000$ total
