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Alabama Personal Lines Insurance Exam
Review Questions and Correct Answers/
Latest Update / Already Graded
Expense Ratio
Ans: An insurer compares what it paid in claims against the
amount received in premium.
Loss Ratio
Ans: An insurer compares what it paid in claims against the
amount received in premium.
Uninsured Motorist Coverage
Ans: In Alabama, the minimum limits are $20,000 per person
and $40,000 per accident for bodily injury.
Named Peril Policy
Ans: The burden of proving that a loss is covered lies with the
insured.
Coverage E (Personal Liability)
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Ans: The standard policy limit under Section II of the
Homeowner's policy is $100,000 per occurrence.
Automobile Collision
Ans: Would be considered an accident and an occurrence.
FORTIFIED Upgrade
Ans: Before beginning, it is important to receive an evaluation
and Current Conditions Report.
Debris Removal
Ans: Under a Homeowner's policy, it is covered if the loss is
due to a covered peril.
Excluded Property Losses
Ans: Loss due to earth movement, neglect to preserve property
following a loss, and flood are excluded.
FORTIFIED Home
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Ans: 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
Ans: Contains coverage for the dwelling and all permanent
attachments.
Broad Cause of Loss Form
Ans: Adds coverage for damages caused by all except Theft.
Personal Auto Policy
Ans: 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
Ans: Under the standard Homeowner's policy, the basic limit is
$1,000.
Homeowner's Form
All rights reserved © 2025/ 2026 |
Alabama Personal Lines Insurance Exam
Review Questions and Correct Answers/
Latest Update / Already Graded
Expense Ratio
Ans: An insurer compares what it paid in claims against the
amount received in premium.
Loss Ratio
Ans: An insurer compares what it paid in claims against the
amount received in premium.
Uninsured Motorist Coverage
Ans: In Alabama, the minimum limits are $20,000 per person
and $40,000 per accident for bodily injury.
Named Peril Policy
Ans: The burden of proving that a loss is covered lies with the
insured.
Coverage E (Personal Liability)
All rights reserved © 2025/ 2026 |
, Page |2
Ans: The standard policy limit under Section II of the
Homeowner's policy is $100,000 per occurrence.
Automobile Collision
Ans: Would be considered an accident and an occurrence.
FORTIFIED Upgrade
Ans: Before beginning, it is important to receive an evaluation
and Current Conditions Report.
Debris Removal
Ans: Under a Homeowner's policy, it is covered if the loss is
due to a covered peril.
Excluded Property Losses
Ans: Loss due to earth movement, neglect to preserve property
following a loss, and flood are excluded.
FORTIFIED Home
All rights reserved © 2025/ 2026 |
, Page |3
Ans: 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
Ans: Contains coverage for the dwelling and all permanent
attachments.
Broad Cause of Loss Form
Ans: Adds coverage for damages caused by all except Theft.
Personal Auto Policy
Ans: 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
Ans: Under the standard Homeowner's policy, the basic limit is
$1,000.
Homeowner's Form
All rights reserved © 2025/ 2026 |
