Alabama Property and Casualty Exam Questions and Answers Graded A+

Alabama Property and Casualty Exam Questions and Answers Graded A+ If a company cancels an auto policy mid term, the refund will be made on a. pro rata basis b. short rate basis c. retroactive basis d. coinsurance basis 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 Nonrenewal Which is the best example of an indirect loss ? a. sequential loss b. liability loss c. employee theft d. loss of use Loss of Use Which is a two party contract? A. property B. casualty C. liability D. auto Property Insurance Contracts offset a. speculative risk b. pure risk c. gambling d. created risk Pure Risk Which of the following is a third party contract ? a. property b. casualty c. earthquake d. theft Casualty Risk is best defined as a. chance of loss b. certainty of loss c. financially loss d. sentimental loss Chance of loss Being subject to a loss is a. liability b. indemnity c . exposure d. subrogation Exposure The ranking insured in a personal lines contract is the a. named insured b. first named insured c. mortgagee d. husband Named Insured To be paid under a P&C contract, insurable interest must exist a. at the time of the application b. on the policy date c. at the time of the loss d. at the time of claim settlement At the time of the loss This type of company benefits the policyowners a. stock b. mutual c. foreign d. alien Mutual Ohio Casualty is doing regular business in Indiana. Within the State of Indiana, Ohio Casualty would be considered ? a. domestic company b. nonadmitted company c. alien company d. foreign company Foreign Company Ohio Casualty is doing regular business in Indiana. Within the State of Indiana, Ohio Casualty would be considered ? a. admitted company b. domestic company c. unauthorized company d. risk retention group Admitted Company A company chartered in Guam or Puerto Rico doing regular business in New York would be considered by New Yorkers to be ? a. domestic company b. foreign company c. alien company d. international company Foreign Company the term consideration means what ? a. the premiums and the statements on the application b. the insurer method of evaluating the application for coverage c. screening process d. side by side policy comparison The premiums and statements on the application What is a unilateral contract? a. contains the legally enforceable promise of only one party b. contains the legally enforceable promise of only two parties c. binding contract d. insurance best option Contains the legally enforceable promise of only one party Accepting an insurance contract as it is written is known as a. settled contract b. aleatory contract c. contract of adhesion d. personal contract Contract