ALABAMA PROPERTY AND CASUALTY ELITE
REVIEW STUDY GUIDE COMPREHENSIVE
QUESTIONS AND DETAILED SOLUTIONS 2026
◉Watercraft Policy . Answer: Open cockpit, 26 feet or less in length
◉Absolute Liabilty . Answer: Strong Liklihood of harming others
◉Intervening Cause . Answer: Disruption in chain of events
◉Negligence . Answer: LBPD - Legal Duty Owed, Breach of Legal
Duty, Proximate Cause, and Damages.
◉25 mph . Answer: What is the maximum horesepower a boat can have
and be covered under a H.O. Policy
◉Personal Liability Coverage . Answer: Single Occurrence Limit -
$100,000 - non business activities
◉Defense Costs . Answer: Pay in Addition
, ◉Med Pay . Answer: Is to others
◉Med Pay Purpose . Answer: To avoid lawsuits
◉The most an insurer will pay for ONE breakdown is? . Answer:
$25,000
◉Primary Excess Rule . Answer: Insurance Follows car, if driven by
someone else their insurance would be secondary
◉Assigned Risk . Answer: Share poor driving risks among themselves
◉Uninsured Motorists . Answer: Optional
◉Collision coverage Pays . Answer: Market Value
◉Pure No Fault Plan . Answer: Each party - own insurance pays
◉Completed Operations . Answer: After car leaves shop - $100
deductible
◉Section II - Garage Liability . Answer: Covers property for which the
insured is legally responsible
REVIEW STUDY GUIDE COMPREHENSIVE
QUESTIONS AND DETAILED SOLUTIONS 2026
◉Watercraft Policy . Answer: Open cockpit, 26 feet or less in length
◉Absolute Liabilty . Answer: Strong Liklihood of harming others
◉Intervening Cause . Answer: Disruption in chain of events
◉Negligence . Answer: LBPD - Legal Duty Owed, Breach of Legal
Duty, Proximate Cause, and Damages.
◉25 mph . Answer: What is the maximum horesepower a boat can have
and be covered under a H.O. Policy
◉Personal Liability Coverage . Answer: Single Occurrence Limit -
$100,000 - non business activities
◉Defense Costs . Answer: Pay in Addition
, ◉Med Pay . Answer: Is to others
◉Med Pay Purpose . Answer: To avoid lawsuits
◉The most an insurer will pay for ONE breakdown is? . Answer:
$25,000
◉Primary Excess Rule . Answer: Insurance Follows car, if driven by
someone else their insurance would be secondary
◉Assigned Risk . Answer: Share poor driving risks among themselves
◉Uninsured Motorists . Answer: Optional
◉Collision coverage Pays . Answer: Market Value
◉Pure No Fault Plan . Answer: Each party - own insurance pays
◉Completed Operations . Answer: After car leaves shop - $100
deductible
◉Section II - Garage Liability . Answer: Covers property for which the
insured is legally responsible
