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Al P&C University Of Alabama Study Guide Final Exam Questions And Answers

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AL P&C UNIVERSITY OF ALABAMA STUDY GUIDE FINAL EXAM QUESTIONS AND ANSWERS 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? 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 D. created risk - CORRECT ANSWER -B. Pure risk Which of the following is a third party contract? A. Property B. Casualty C. Earthquake

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