Alabama Property and Casualty UPDATED Exam Questions and CORRECT Answers

Alabama Property and Casualty UPDATED Exam Questions and CORRECT Answers 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 - CORRECT AN SWER - 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 - Nonrenewal Which is the best example of an indirec t loss ? a. sequential loss b. liability loss c. employee theft d. loss of use - CORRECT ANSWER - Loss of Use Which is a two party contract? A. property B. casualty C. liability D. auto - CORRECT ANSWER - Property Insurance Contracts offset a. speculative risk b. pure risk c. gambling d. created risk - CORRECT ANSWER - Pure Risk Which of the following is a third party contract ? a. property b. casualty c. earthquake d. theft - CORRECT ANSWER - Casualty Risk is best defined as a. chance of loss b. certainty of loss c. financially loss d. sentimental loss - CORRECT ANSWER - Chance of loss Being subject to a loss is a. liability b. indemnity c . exposure d. subrogation - CORRECT ANSWER - Exposure The ranking insured in a personal lines contra ct is the a. named insured b. first named insured c. mortgagee d. husband - CORRECT ANSWER - 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 - CORRECT ANSWER - At the time of the loss This type of company benefits the policyowners a. stock b. mutual c. foreign d. alien - CORRECT ANSWER - Mutual Ohio Casualty is doing regular business in Indiana. Within the St ate of Indiana, Ohio Casualty would be considered ? a. domestic company b. nonadmitted company c. alien company d. foreign company - CORRECT ANSWER - 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 - CORRECT ANSWER - Admitted Company A company chartered in Guam or Puerto Rico doing regular business in New York would be considered by New Yorkers to be ?