Alabama Property and Casualty Sample Quiz 1-100 Already Passed

Alabama Property and Casualty Sample Quiz 1-100 Already Passed What is a hazard? an increase in the possibility that a loss might occur transfer risk from a person or business to an insurance company that agrees to to pay for losses in exchange for a premium. insurance The type of insurance company in which the policyholder is considered an owner, with the right to vote and share in the profits is a mutual company Jewel Canford's home is insured by XYZ Insurance Company. Last year she made the final mortgage payment to FBN Mortgage Company. Jewel is considering selling her home to her niece, Cynthia. Who has an insurable interest in the home? Jewel Canford Risk of loss is a speculative risk Which one of the following is NOT an element of insurability? a. Loss must be calculable b. Risk of loss must represent a financial harship c. Cost of insurance must be affordable d. Risk of loss is a speculative risk The principle that states that an insured should be restored to approximately the same financial position after a loss as before is known as... indemnity Declarations What part of an insurance policy personalizes the policy as to who and what are insured? An insurance policy is prepared by the insurance company, with little or no input from the insured. This means that an insurance policy is a/an... adhesion contract An individual who owns and lives in a condominium can obtain broad coverage for personal property in the condo under which Homeowners form? HO-6 What is the purpose of the Fair Credit Reporting Act? to give the consumer recourse if insurance is denied on the basis of a credit report. a fire that was caused by the insureds negligence burns a neighbors building, the owner of the building sues the insured. Which of the following is a liability loss? What rating method involves modifying the premium based on the insured's loss experience over a specified period of time? Experience rating Most Flood insurance coverage is provided by a federal government program Which of the following businesses could be eligible for a Business owners policy? a. Hometown Bank & Trust b. Rest Easy Motel c. Family Fun Time Amusement Park d. Joe's Bar and Grill Rest Easy Motel Pain and Suffering Which one of the following types of benefits is generally not provided by a state's workers compensation law? foreign Which of the following describes an insurance company doing business in a state other than the one where it is incorporated? provide temporary protection for the insured between the time the application is made and the policy is issued or the binder expires The purpose of a binder is to Agent Michelle is under contract with the XYZ Insurance Company to represent and sell insurance only for XYZ. This is an example of what type of agency system? Exclusive/captive What type of insurance policy insures against all risks of loss that are not specifically excluded by the policy? Open peril policy