AL P&C University of Alabama Study Guide Questions and Answers Rated A+

AL P&C University of Alabama Study Guide Questions and Answers Rated A+ 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 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 B. Nonrenewal Which is the best example of an indirect loss? A. Sequential loss B. Liability loss C. Employee theft D. Loss of use D. Loss of use Which is a two party contract? A. Property B. Casualty C. Liability D. Auto A. Property Insurance contracts offset A. speculative risk B. pure risk C. gambling D. created risk B. Pure risk Which of the following is a third party contract? A. Property B. Casualty C. Earthquake D. Theft B. Casualty Risk is best define as A. chance of loss B. certainty of loss C. financial loss D. sentimental loss A. chance of loss Being subject to a loss is A. liability B. indemnity C. exposure D. subrogation C. exposure The ranking insured in a Personal Lines contract is the A. named insured B. first named insured C. mortgagee D. husband 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 C. at the time of loss D. at the time of claim settlement C. at the time of loss This type of company is run for the benefit of the policyowners: A. Stock B. Mutual C. Foreign D. Alien B. Mutual Ohio Casualty is doing regular business in Indiana. Within the same state of Indiana, Ohio Casualty would be considered a(n) A. domestic company B. nonadmitted company C. alien company D. foreign Company D. Foreign