P & C Practice Exam
Study online at https://quizlet.com/_edg5dr
1. After passing the Alabama state licensing exam, a license candidate must
complete which of the following actions to receive their license?: Submit a uniform
application for licensure with the Commissioner
2. Equipment breakdown losses covered by the Equipment Breakdown Protec-
tion Coverage Form are settled on what basis?: Replacement cost
3. If an insured submits a fraudulent claim, the insurer may:: Void the policy from the
beginning
4. The Emergency Program of the National Flood Insurance Program (NFIP) is
intended for:: Communities in the earliest stages of NFIP participation
5. Under a Commercial Crime policy written on the Discovery Form, what is the
latest date that a covered loss can occur?: The policy expiration date
6. When a limit of insurance is indicated on the Declarations page of the Equip-
ment Breakdown Protection Coverage Form, expediting expenses coverage
pays for which of the following?: Temporary expenses to expedite permanent repairs of damaged
property essential for the operation of the business
7. All of the following statements about rehabilitation benefits provided for
workplace injuries in Alabama are correct, except:: Vocational rehabilitation must be request-
ed by the employee
8. A certificate of insurance includes which of the following pieces of informa-
tion?: The effective date, names of the insurer and named insured, and the limits of liability
9. Coverage E - Additional Living Expense is what type of coverage?: Indirect loss
coverage
10. Under the Business Auto Coverage Form, mobile equipment does NOT in-
clude:: Motor vehicles designed for use on public roads
11. Which type of state provides Workers' Compensation insurance only through
a state fund?: Monopolistic
12. Under the Motor Carrier Act of 1980, what is the minimum limit of liability
required when transporting oil or other hazardous materials?: $1,000,000
13. The part of an insurance policy that states where the risk is located is
the:: Declarations
14. Unlike all unendorsed Dwelling policies, Homeowners policies automatically
include which of the following coverages?: Liability
1/9
, P & C Practice Exam
Study online at https://quizlet.com/_edg5dr
15. When an insured obtains a liability insurance policy, which of the following
statements about their policy will be correct?: The insured's medical payments coverage has a
per person limit
16. Which of the following is an eligible risk under the Businessowners Coverage
Form?: Dental lab
17. A property purchased 10 years ago for $100,000 has a replacement value
today of $200,000. The property has depreciated by 30% over the course of
ownership, and it is insured on an actual cash value basis. If a loss occurs, what
is the actual cash value of the property today?: $140,000
18. Common types of property insured by the Commercial Inland Marine Cover-
age Part include all of the following, except:: Exports traveling over water
19. After a Personal Auto policy is in effect for 60 days, which of the following is
not a valid reason to cancel the policy?: Claims history
20. Under a commercial property policy with the Value Reporting Form Endorse-
ment, which of the following is NOT correct?: The insured is only required to report 80% of value
of the property
21. Which of the following is not an example of personal and advertising injury,
as understood by the CGL?: A broken leg
22. Which of the following is not a coverage under any Farm Property coverage
form?: Coverage H - Bodily Injury and Property Damage Liability
23. Which of the following would not be a covered auto under the Mobile
Equipment Endorsement added to a Business Auto policy?: Truck operated on public
roads
24. Which of the following is the best definition of actual cash value in property
insurance?: Replacement cost minus depreciation
25. All of the following statements regarding property insurance terminology
are true, except:: Proximate cause is a secondary cause of loss
26. Water damage caused by which of the following could be a covered loss
under a Dwelling policy?: Discharge of water caused by a plumbing failure
27. When a commercial Auto policy is written with the Auto Medical Payments
Coverage Endorsement, medical payments coverage is provided to which of
the following?: An insured incurs funeral expenses as a result of an auto accident
2/9
Study online at https://quizlet.com/_edg5dr
1. After passing the Alabama state licensing exam, a license candidate must
complete which of the following actions to receive their license?: Submit a uniform
application for licensure with the Commissioner
2. Equipment breakdown losses covered by the Equipment Breakdown Protec-
tion Coverage Form are settled on what basis?: Replacement cost
3. If an insured submits a fraudulent claim, the insurer may:: Void the policy from the
beginning
4. The Emergency Program of the National Flood Insurance Program (NFIP) is
intended for:: Communities in the earliest stages of NFIP participation
5. Under a Commercial Crime policy written on the Discovery Form, what is the
latest date that a covered loss can occur?: The policy expiration date
6. When a limit of insurance is indicated on the Declarations page of the Equip-
ment Breakdown Protection Coverage Form, expediting expenses coverage
pays for which of the following?: Temporary expenses to expedite permanent repairs of damaged
property essential for the operation of the business
7. All of the following statements about rehabilitation benefits provided for
workplace injuries in Alabama are correct, except:: Vocational rehabilitation must be request-
ed by the employee
8. A certificate of insurance includes which of the following pieces of informa-
tion?: The effective date, names of the insurer and named insured, and the limits of liability
9. Coverage E - Additional Living Expense is what type of coverage?: Indirect loss
coverage
10. Under the Business Auto Coverage Form, mobile equipment does NOT in-
clude:: Motor vehicles designed for use on public roads
11. Which type of state provides Workers' Compensation insurance only through
a state fund?: Monopolistic
12. Under the Motor Carrier Act of 1980, what is the minimum limit of liability
required when transporting oil or other hazardous materials?: $1,000,000
13. The part of an insurance policy that states where the risk is located is
the:: Declarations
14. Unlike all unendorsed Dwelling policies, Homeowners policies automatically
include which of the following coverages?: Liability
1/9
, P & C Practice Exam
Study online at https://quizlet.com/_edg5dr
15. When an insured obtains a liability insurance policy, which of the following
statements about their policy will be correct?: The insured's medical payments coverage has a
per person limit
16. Which of the following is an eligible risk under the Businessowners Coverage
Form?: Dental lab
17. A property purchased 10 years ago for $100,000 has a replacement value
today of $200,000. The property has depreciated by 30% over the course of
ownership, and it is insured on an actual cash value basis. If a loss occurs, what
is the actual cash value of the property today?: $140,000
18. Common types of property insured by the Commercial Inland Marine Cover-
age Part include all of the following, except:: Exports traveling over water
19. After a Personal Auto policy is in effect for 60 days, which of the following is
not a valid reason to cancel the policy?: Claims history
20. Under a commercial property policy with the Value Reporting Form Endorse-
ment, which of the following is NOT correct?: The insured is only required to report 80% of value
of the property
21. Which of the following is not an example of personal and advertising injury,
as understood by the CGL?: A broken leg
22. Which of the following is not a coverage under any Farm Property coverage
form?: Coverage H - Bodily Injury and Property Damage Liability
23. Which of the following would not be a covered auto under the Mobile
Equipment Endorsement added to a Business Auto policy?: Truck operated on public
roads
24. Which of the following is the best definition of actual cash value in property
insurance?: Replacement cost minus depreciation
25. All of the following statements regarding property insurance terminology
are true, except:: Proximate cause is a secondary cause of loss
26. Water damage caused by which of the following could be a covered loss
under a Dwelling policy?: Discharge of water caused by a plumbing failure
27. When a commercial Auto policy is written with the Auto Medical Payments
Coverage Endorsement, medical payments coverage is provided to which of
the following?: An insured incurs funeral expenses as a result of an auto accident
2/9
