Alabama Personal Lines Insurance Exam Test Bank Latest 2025 With Practice Questions
and Correct Answers| Alabama Personal Lines Test Preparation Test bank (new!)
Expense Ratio - (answer)An insurer compares what it paid in claims against the amount received in
premium.
Loss Ratio - (answer)An insurer compares what it paid in claims against the amount received in
premium.
Uninsured Motorist Coverage - (answer)In Alabama, the minimum limits are $20,000 per person and
$40,000 per accident for bodily injury.
Named Peril Policy - (answer)The burden of proving that a loss is covered lies with the insured.
Coverage E (Personal Liability) - (answer)The standard policy limit under Section II of the Homeowner's
policy is $100,000 per occurrence.
Automobile Collision - (answer)Would be considered an accident and an occurrence.
FORTIFIED Upgrade - (answer)Before beginning, it is important to receive an evaluation and Current
Conditions Report.
Debris Removal - (answer)Under a Homeowner's policy, it is covered if the loss is due to a covered peril.
Excluded Property Losses - (answer)Loss due to earth movement, neglect to preserve property following
a loss, and flood are excluded.
FORTIFIED Home - (answer)The Bronze level requires a continuous load path, providing connections
from roof to wall, wall to floor, and floor to foundation.
Coverage A under a Dwelling Policy - (answer)Contains coverage for the dwelling and all permanent
attachments.
, Alabama Personal Lines Insurance Exam Test Bank Latest 2025 With Practice Questions
and Correct Answers| Alabama Personal Lines Test Preparation Test bank (new!)
Broad Cause of Loss Form - (answer)Adds coverage for damages caused by all except Theft.
Personal Auto Policy - (answer)Following a physical damage loss, it pays the amount necessary to repair
or replace the auto or the auto's actual cash value.
Coverage F - Medical Payments to Others - (answer)Under the standard Homeowner's policy, the basic
limit is $1,000.
Homeowner's Form - (answer)The form also known as the Condominium Owner's form is HO-6.
Arbitration - (answer)A means of transferring to the insurance company the insured's right to collect
from a negligent third party.
Flood Definition under NFIP - (answer)Generally includes mudslides, runoff of surface water, and
overflow of tidal waters.
Insurance Binder Validity - (answer)In Alabama, it is valid for 30 days or until a policy is issued,
whichever is less.
Coverage D under Homeowner's Policy - (answer)Contains coverage for loss of use.
Subrogation - (answer)A means of transferring to the insurance company the insured's right to collect
from a negligent third party.
Casualty Insurance - (answer)Includes liability insurance.
Personal Property Valuation - (answer)Under the Dwelling forms, personal property is generally valued
at Actual Cash Value.
and Correct Answers| Alabama Personal Lines Test Preparation Test bank (new!)
Expense Ratio - (answer)An insurer compares what it paid in claims against the amount received in
premium.
Loss Ratio - (answer)An insurer compares what it paid in claims against the amount received in
premium.
Uninsured Motorist Coverage - (answer)In Alabama, the minimum limits are $20,000 per person and
$40,000 per accident for bodily injury.
Named Peril Policy - (answer)The burden of proving that a loss is covered lies with the insured.
Coverage E (Personal Liability) - (answer)The standard policy limit under Section II of the Homeowner's
policy is $100,000 per occurrence.
Automobile Collision - (answer)Would be considered an accident and an occurrence.
FORTIFIED Upgrade - (answer)Before beginning, it is important to receive an evaluation and Current
Conditions Report.
Debris Removal - (answer)Under a Homeowner's policy, it is covered if the loss is due to a covered peril.
Excluded Property Losses - (answer)Loss due to earth movement, neglect to preserve property following
a loss, and flood are excluded.
FORTIFIED Home - (answer)The Bronze level requires a continuous load path, providing connections
from roof to wall, wall to floor, and floor to foundation.
Coverage A under a Dwelling Policy - (answer)Contains coverage for the dwelling and all permanent
attachments.
, Alabama Personal Lines Insurance Exam Test Bank Latest 2025 With Practice Questions
and Correct Answers| Alabama Personal Lines Test Preparation Test bank (new!)
Broad Cause of Loss Form - (answer)Adds coverage for damages caused by all except Theft.
Personal Auto Policy - (answer)Following a physical damage loss, it pays the amount necessary to repair
or replace the auto or the auto's actual cash value.
Coverage F - Medical Payments to Others - (answer)Under the standard Homeowner's policy, the basic
limit is $1,000.
Homeowner's Form - (answer)The form also known as the Condominium Owner's form is HO-6.
Arbitration - (answer)A means of transferring to the insurance company the insured's right to collect
from a negligent third party.
Flood Definition under NFIP - (answer)Generally includes mudslides, runoff of surface water, and
overflow of tidal waters.
Insurance Binder Validity - (answer)In Alabama, it is valid for 30 days or until a policy is issued,
whichever is less.
Coverage D under Homeowner's Policy - (answer)Contains coverage for loss of use.
Subrogation - (answer)A means of transferring to the insurance company the insured's right to collect
from a negligent third party.
Casualty Insurance - (answer)Includes liability insurance.
Personal Property Valuation - (answer)Under the Dwelling forms, personal property is generally valued
at Actual Cash Value.
