ALABAMA PROPERTY AND CASUALTY FINAL PAPER
2025/2026 QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔Which of the following entities was created to protect insureds against an insurer's
insolvency? - ✔✔the insurance Guaranty Association
✔✔Business personal property coverage form covers all of the following - ✔✔machinery
that is not permanently installed, stock, and furniture and fixtures
✔✔The part of the insurance contract that describes the covered perils and the nature
of coverage of the contractual agreement between the insurer and the insured is called
the - ✔✔insuring agreement
✔✔Which is true regarding business liability and medical payments coverage - ✔✔Loss
of electronic data is excluded under a business liability policy
✔✔Besides the peril of earthquake, which other peril is covered by the earthquake
cause of loss form under a commercial property policy - ✔✔Volcanic eruption
✔✔The insured's car was hit and damaged by a deer. Under which of the following
coverages in a personal auto policy would this loss be paid - ✔✔Other-than-Collision
(Comp)
✔✔According to the standard workers compensation and employer liability policy form,
a state should be listed in Part 3 - other states' insurance of the workers compensation
and employers liability policy when - ✔✔the insured expects to extend operations to that
state
✔✔Which homeowners forms is designed for individuals that own and reside in a condo
- ✔✔Ho 6
✔✔Which of the following commercial crime coverages would cover a loss resulting
from theft of the company's money and securities from the armored vehicle making a
delivery - ✔✔Outside the premises
✔✔Which is a method of claim settlement used in casualty insurance when the insured
and insurer cannot agree on how to settle a claim - ✔✔Arbitration
✔✔If only one party to an insurance contract has made a legally enforceable promise,
what kind of contract is it - ✔✔Unilateral
✔✔A commercial package policy (CPP) allows the insured to select the coverage
needed and customize the policy to meet the needs of the insured's business. In a CPP
, the business owner may select from all of the following types of coverage - ✔✔Crime
Coverage, Boiler and Machinery Coverage, GL Coverage
✔✔Under the dwelling policy, if an insurer chooses to repair or replace damaged or lost
policy, it must inform the insured within how many days of receiving proof of loss -
✔✔30 days
✔✔If a licensee wants to transact insurance under a different name than that listed on
his or her producer's license, which of the following must occur - ✔✔The change must
be reported to the commissioner
✔✔What is classified as personal property for insurance purposes - ✔✔furniture,
vehicle, equipment
✔✔A business entity acting as an insurance producer is required to do all of the
following - ✔✔obtain an insurance producer license, pay the fees established by the
insurance code, designate a licensed individual producer to be responsible for the
licensee's compliance with the insurance laws of the state.
✔✔CGL Coverage B (Personal and Advertising Injusry) will cover - ✔✔Inadverdent
injury to others in the course of advertising the insured's project
✔✔transportation expenses are covered under a personal auto policy for - ✔✔$20 per
day for a max of $600
✔✔What method of premium computation relates an employer's losses, payroll, and
premiums to the rating bureau's classifications of operations - ✔✔Experience
Modification Factor
✔✔What are things not covered by an HO policy - ✔✔Birds, fish, and animals; a sports
car kept in an attached garage; property of a tenant not related to the insured
✔✔A commercial property special form covers property in transit up to - ✔✔$5k
✔✔Which rating method provides an insurer with that portion of a rate that does not
include provisions of expenses (other than adjusting expense) or profit and is based on
historical aggregate loss and loss adjustment expenses projected through development
to their ultimate value and through trending to a future point in time - ✔✔Loss costs
rating
✔✔Within the first 60 days of coverage under a dwelling policy, how much notice is
required for the cancellation of a policy - ✔✔10 days
2025/2026 QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔Which of the following entities was created to protect insureds against an insurer's
insolvency? - ✔✔the insurance Guaranty Association
✔✔Business personal property coverage form covers all of the following - ✔✔machinery
that is not permanently installed, stock, and furniture and fixtures
✔✔The part of the insurance contract that describes the covered perils and the nature
of coverage of the contractual agreement between the insurer and the insured is called
the - ✔✔insuring agreement
✔✔Which is true regarding business liability and medical payments coverage - ✔✔Loss
of electronic data is excluded under a business liability policy
✔✔Besides the peril of earthquake, which other peril is covered by the earthquake
cause of loss form under a commercial property policy - ✔✔Volcanic eruption
✔✔The insured's car was hit and damaged by a deer. Under which of the following
coverages in a personal auto policy would this loss be paid - ✔✔Other-than-Collision
(Comp)
✔✔According to the standard workers compensation and employer liability policy form,
a state should be listed in Part 3 - other states' insurance of the workers compensation
and employers liability policy when - ✔✔the insured expects to extend operations to that
state
✔✔Which homeowners forms is designed for individuals that own and reside in a condo
- ✔✔Ho 6
✔✔Which of the following commercial crime coverages would cover a loss resulting
from theft of the company's money and securities from the armored vehicle making a
delivery - ✔✔Outside the premises
✔✔Which is a method of claim settlement used in casualty insurance when the insured
and insurer cannot agree on how to settle a claim - ✔✔Arbitration
✔✔If only one party to an insurance contract has made a legally enforceable promise,
what kind of contract is it - ✔✔Unilateral
✔✔A commercial package policy (CPP) allows the insured to select the coverage
needed and customize the policy to meet the needs of the insured's business. In a CPP
, the business owner may select from all of the following types of coverage - ✔✔Crime
Coverage, Boiler and Machinery Coverage, GL Coverage
✔✔Under the dwelling policy, if an insurer chooses to repair or replace damaged or lost
policy, it must inform the insured within how many days of receiving proof of loss -
✔✔30 days
✔✔If a licensee wants to transact insurance under a different name than that listed on
his or her producer's license, which of the following must occur - ✔✔The change must
be reported to the commissioner
✔✔What is classified as personal property for insurance purposes - ✔✔furniture,
vehicle, equipment
✔✔A business entity acting as an insurance producer is required to do all of the
following - ✔✔obtain an insurance producer license, pay the fees established by the
insurance code, designate a licensed individual producer to be responsible for the
licensee's compliance with the insurance laws of the state.
✔✔CGL Coverage B (Personal and Advertising Injusry) will cover - ✔✔Inadverdent
injury to others in the course of advertising the insured's project
✔✔transportation expenses are covered under a personal auto policy for - ✔✔$20 per
day for a max of $600
✔✔What method of premium computation relates an employer's losses, payroll, and
premiums to the rating bureau's classifications of operations - ✔✔Experience
Modification Factor
✔✔What are things not covered by an HO policy - ✔✔Birds, fish, and animals; a sports
car kept in an attached garage; property of a tenant not related to the insured
✔✔A commercial property special form covers property in transit up to - ✔✔$5k
✔✔Which rating method provides an insurer with that portion of a rate that does not
include provisions of expenses (other than adjusting expense) or profit and is based on
historical aggregate loss and loss adjustment expenses projected through development
to their ultimate value and through trending to a future point in time - ✔✔Loss costs
rating
✔✔Within the first 60 days of coverage under a dwelling policy, how much notice is
required for the cancellation of a policy - ✔✔10 days
