AL Practice Exam - Adjusting

1. The insured carries a BOP policy with protective systems such as a sprinkler system. If the system becomes inoperative, the insured must advise the insurance company of the problem within _______ if the system cannot be restored to working order - Answer- 48 hours Your Answer 2. Tina has two policies (Policy X and Policy Y) that cover the same risk on a pro rata basis. Policy X has a limit of $100,000 and Policy Y has a limit of $25,000. When Tina suffers a loss totaling $75,000, how will the two policies respond? - Answer- . Policy X will pay $60,000 and Policy Y will pay $15,000 C. D. This provision in Ocean Marine insurance obligates insurers of various interests to share the cost of losses associated with a captain's decision to voluntarily sacrifice a part of the ship or its cargo. - Answer- General Average Which of the following incidents would a liability insurance policy cover? - Answer- D. A man slips inside a grocery store and injures himself. Which of the following does NOT apply to commercial property insurance? - Answer- B. Because of their complexity, commercial policies only offer named-peril coverage. Which of the following perils is excluded from coverage in a National Flood Insurance Program policy? - Answer- C. Water-main breakage Sam, who has a typical HO-3 policy, is forced to evacuate his home by civil authorities due to rising flood waters in his neighborhood. It takes a month before Sam is allowed to come back to his home. During this time, he has spent $3,000 in hotel expenses, on top of his monthly mortgage payment of $850. When he files a claim, how much will Sam receive under Coverage D - Loss of Use? - Answer- A. D. $0 Which of the following insurance packages will indemnify a policyholder for a variety of hospital-related expenses such as nursing care, supplies, and rooming charges? - Answer- A. Hospitalization Expense insurance Which of the following statements about Alabama's approach to Workers' Comp insurance is true? - Answer- A. WC is compulsory, and Alabama has no state WC fund. B.