ALABAMA INSURANCE MAIN EXAMINATION TEST
2025/2026 QUESTIONS WITH SOLUTIONS RATED A+
✔✔Building parking lots - ✔✔The building and business personal property coverage
form of a commercial property policy covers all of the following except:
✔✔House:$200,000
Detached garage: $15,000
Automobile: $12,000
Personal property: $85,000
Additional living expenses: 35,000
Disregarding any deductible how much will the company pay?
$335,000 - ✔✔Assume that you insure your $200,000 home for $200,000 under a HO-
3. When your home, your auto and detached garage are destroyed by fire the damages
are all as follows
✔✔Property is a two party contract, casualty is a third party contract - ✔✔Which of the
following is true concerning property and casualty contract
✔✔$125,000 - ✔✔Your pit bull, Crowbar attacks. And kills cream puff, a world champion
Cockapoo. Cream puffs owner sues you for $200,000 the judge awards him $120,000
and your defense cost amount of $25,000. All you have for liability coverage is your HO-
3 with standard limits. How much will your company pay out on this loss
✔✔Pure risk - ✔✔Insurance address what kind of risk
✔✔Liability - ✔✔what is section 2 of a the homeowners policy
✔✔24 hours - ✔✔The transportation reimbursement benefits which can be provided
under damage to your auto coverage of the PAP utilize a time of deductible of
✔✔$100,000 - ✔✔If your house and the attached garage are insured for $100,000 how
much coverage exists on the garage
✔✔Theft - ✔✔Which of the following is a homeowners basic peril
✔✔30 days - ✔✔Flood coverage begins ____ days after your application is received
✔✔Exposure - ✔✔Another word for risk is
✔✔Business income coverage - ✔✔An important commercial property coverage for.
Bubba's bowling alley is which of the following?
, ✔✔Actual cash value - ✔✔Under the PAP damage to your auto coverage, claims are
paid on the basis of which of the following
✔✔$70,000 - ✔✔Assume your personal auto policy has underinsured limits of
100/300/100. You are injured by a negligent driver with minimum state limit of 30/60/25
you are injured to the extent of $110,000. How much will your underinsured motorist
coverage pay?
✔✔$10,000 - ✔✔If your house is insured for $100,000 then your homeowners policy
automatically provides coverage for up to what amount on your detached garage shed?
✔✔Principal - ✔✔An employee covered by a fidelity bond is which of the following
✔✔Coverage A was broad forms peril and now it is special forms peril - ✔✔Your client
was covered with an HO-2 when you upgrade him to an HO-3 how has the upgrade
affected his coverage?
✔✔Personal property losses are settled in replacement cost basis - ✔✔You have your
$250,000 house covered for $250,000 under an HO-5. All of the following are true
concerning your coverage except:
✔✔$50,000 - ✔✔You are driving with PAP liability limits of 30/60/25 when you run a
stop sign and hit Calvin and his wife Clara in their sedan. You are hurt, both vehicles
are damaged and both Calvin and Clara are injured. Calvin in the amount of $20,000
and Clara in the amount of $40,000 how much will your policy pay for the injuries
sustained by both Calvin and Clara,
✔✔It is both and accident and occurrence - ✔✔A wheel falls of a commercial aircraft
and through the roof of your home. Which of the following best describes the event?
✔✔Part A- liability, Part B-Med Pay, part C- uninsured and underinsured motorist,
coverage D- damage to your auto - ✔✔Which is the correct format of a personal auto
policy?
✔✔$4,500 - ✔✔Your weird artist friend, Vincent Van Gone is in your apartment when he
trips over you is in your apartment when he trips over your Pekingese dog and sprains
his wrist. Your HO-4 covers the $500 for urgent care clinic charged to wrap his wrist
under coverage F. When Vincent sues you for the injury, the two weeks he is unable to
work and pain and suffering, a jury awards him $5,000. Your company will now pay
Vincent?
✔✔Building B is the higher risk - ✔✔Building A is unoccupied and identical building B is
vacant. Which is A higher risk?
2025/2026 QUESTIONS WITH SOLUTIONS RATED A+
✔✔Building parking lots - ✔✔The building and business personal property coverage
form of a commercial property policy covers all of the following except:
✔✔House:$200,000
Detached garage: $15,000
Automobile: $12,000
Personal property: $85,000
Additional living expenses: 35,000
Disregarding any deductible how much will the company pay?
$335,000 - ✔✔Assume that you insure your $200,000 home for $200,000 under a HO-
3. When your home, your auto and detached garage are destroyed by fire the damages
are all as follows
✔✔Property is a two party contract, casualty is a third party contract - ✔✔Which of the
following is true concerning property and casualty contract
✔✔$125,000 - ✔✔Your pit bull, Crowbar attacks. And kills cream puff, a world champion
Cockapoo. Cream puffs owner sues you for $200,000 the judge awards him $120,000
and your defense cost amount of $25,000. All you have for liability coverage is your HO-
3 with standard limits. How much will your company pay out on this loss
✔✔Pure risk - ✔✔Insurance address what kind of risk
✔✔Liability - ✔✔what is section 2 of a the homeowners policy
✔✔24 hours - ✔✔The transportation reimbursement benefits which can be provided
under damage to your auto coverage of the PAP utilize a time of deductible of
✔✔$100,000 - ✔✔If your house and the attached garage are insured for $100,000 how
much coverage exists on the garage
✔✔Theft - ✔✔Which of the following is a homeowners basic peril
✔✔30 days - ✔✔Flood coverage begins ____ days after your application is received
✔✔Exposure - ✔✔Another word for risk is
✔✔Business income coverage - ✔✔An important commercial property coverage for.
Bubba's bowling alley is which of the following?
, ✔✔Actual cash value - ✔✔Under the PAP damage to your auto coverage, claims are
paid on the basis of which of the following
✔✔$70,000 - ✔✔Assume your personal auto policy has underinsured limits of
100/300/100. You are injured by a negligent driver with minimum state limit of 30/60/25
you are injured to the extent of $110,000. How much will your underinsured motorist
coverage pay?
✔✔$10,000 - ✔✔If your house is insured for $100,000 then your homeowners policy
automatically provides coverage for up to what amount on your detached garage shed?
✔✔Principal - ✔✔An employee covered by a fidelity bond is which of the following
✔✔Coverage A was broad forms peril and now it is special forms peril - ✔✔Your client
was covered with an HO-2 when you upgrade him to an HO-3 how has the upgrade
affected his coverage?
✔✔Personal property losses are settled in replacement cost basis - ✔✔You have your
$250,000 house covered for $250,000 under an HO-5. All of the following are true
concerning your coverage except:
✔✔$50,000 - ✔✔You are driving with PAP liability limits of 30/60/25 when you run a
stop sign and hit Calvin and his wife Clara in their sedan. You are hurt, both vehicles
are damaged and both Calvin and Clara are injured. Calvin in the amount of $20,000
and Clara in the amount of $40,000 how much will your policy pay for the injuries
sustained by both Calvin and Clara,
✔✔It is both and accident and occurrence - ✔✔A wheel falls of a commercial aircraft
and through the roof of your home. Which of the following best describes the event?
✔✔Part A- liability, Part B-Med Pay, part C- uninsured and underinsured motorist,
coverage D- damage to your auto - ✔✔Which is the correct format of a personal auto
policy?
✔✔$4,500 - ✔✔Your weird artist friend, Vincent Van Gone is in your apartment when he
trips over you is in your apartment when he trips over your Pekingese dog and sprains
his wrist. Your HO-4 covers the $500 for urgent care clinic charged to wrap his wrist
under coverage F. When Vincent sues you for the injury, the two weeks he is unable to
work and pain and suffering, a jury awards him $5,000. Your company will now pay
Vincent?
✔✔Building B is the higher risk - ✔✔Building A is unoccupied and identical building B is
vacant. Which is A higher risk?
