Alabama Property and Casualty Exam.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/Alabama%20Property%
Alabama Property and Casualty Exam
1. 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
ANS Pro Rata Basis
2. What is the term used to describe terminating the insurance relationship atthe end of
the policy period ?
a. cancellation
b. nonrenewal
c. separation
d. exclusion
ANS Nonrenewal
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,Alabama Property and Casualty Exam.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/Alabama%20Property%
3. Which is the best example of an indirect loss ?
a. sequential loss
b. liability loss
c. employee theft
d. loss of use
ANS Loss of Use
4. Which is a two party contract?
A. property
B. casualty
C. liability
D. auto
ANS Property
5. Insurance Contracts offset
a. speculative risk
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,Alabama Property and Casualty Exam.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/Alabama%20Property%
b. pure risk
c. gambling
d. created risk
ANS Pure Risk
6. Which of the following is a third party contract ?
a. property
b. casualty
c. earthquake
d. theft
ANS Casualty
7. Risk is best defined as
a. chance of loss
b. certainty of loss
c. financially loss
d. sentimental loss
ANS Chance of loss
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8. Being subject to a loss is
a. liability
b. indemnityc
. exposure
c. subrogation
ANS Exposure
9. The ranking insured in a personal lines contract is the
a. named insured
b. first named insured
c. mortgagee
d. husband
ANS Named Insured
10. To be paid under a P&C contract, insurable interest must exist
a. at the time of the application
b. on the policy date
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