University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
If a company cancels an auto policy mid-term, the refund will be made on a :
A. pro rata basis
B. short rate basis
C. retroactive basis
D. coinsurance basis - correct answer ✅A. Pro Rata Basis
What is the term used to describe terminating the insurance relationship at
the end of the policy period?
A. Cancellation
B. Nonrenewal
C. Separation
D. Exclusion - correct answer ✅B. Nonrenewal
Which is the best example of an indirect loss?
University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
,University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
A. Sequential loss
B. Liability loss
C. Employee theft
D. Loss of use - correct answer ✅D. Loss of use
Which is a two party contract?
A. Property
B. Casualty
C. Liability
D. Auto - correct answer ✅A. Property
Insurance contracts offset
A. speculative risk
B. pure risk
C. gambling
University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
,University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
D. created risk - correct answer ✅B. Pure risk
Which of the following is a third party contract?
A. Property
B. Casualty
C. Earthquake
D. Theft - correct answer ✅B. Casualty
Risk is best define as
A. chance of loss
B. certainty of loss
C. financial loss
D. sentimental loss - correct answer ✅A. chance of loss
Being subject to a loss is
University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
, University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
A. liability
B. indemnity
C. exposure
D. subrogation - correct answer ✅C. exposure
The ranking insured in a Personal Lines contract is the
A. named insured
B. first named insured
C. mortgagee
D. husband - correct answer ✅A. named insured
To be paid a claim under a P & C contract, insurable interest must exist
A. At the time of application
B. on the policy date
University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
(Verified Solutions) 2023
If a company cancels an auto policy mid-term, the refund will be made on a :
A. pro rata basis
B. short rate basis
C. retroactive basis
D. coinsurance basis - correct answer ✅A. Pro Rata Basis
What is the term used to describe terminating the insurance relationship at
the end of the policy period?
A. Cancellation
B. Nonrenewal
C. Separation
D. Exclusion - correct answer ✅B. Nonrenewal
Which is the best example of an indirect loss?
University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
,University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
A. Sequential loss
B. Liability loss
C. Employee theft
D. Loss of use - correct answer ✅D. Loss of use
Which is a two party contract?
A. Property
B. Casualty
C. Liability
D. Auto - correct answer ✅A. Property
Insurance contracts offset
A. speculative risk
B. pure risk
C. gambling
University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
,University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
D. created risk - correct answer ✅B. Pure risk
Which of the following is a third party contract?
A. Property
B. Casualty
C. Earthquake
D. Theft - correct answer ✅B. Casualty
Risk is best define as
A. chance of loss
B. certainty of loss
C. financial loss
D. sentimental loss - correct answer ✅A. chance of loss
Being subject to a loss is
University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
, University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
A. liability
B. indemnity
C. exposure
D. subrogation - correct answer ✅C. exposure
The ranking insured in a Personal Lines contract is the
A. named insured
B. first named insured
C. mortgagee
D. husband - correct answer ✅A. named insured
To be paid a claim under a P & C contract, insurable interest must exist
A. At the time of application
B. on the policy date
University of Alabama AL P&C Study Test Questions
(Verified Solutions) 2023
