Alabama Property and Casualty Sample Quiz 1-100.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/Alabama%20Property%
Alabama Property and Casualty Quiz 1-100
1. What is a hazard?
ANS an increase in the possibility that a loss might occur
2. transfer risk from a person or business to an insurance company that agrees to to pay for
losses in exchange for a premium.
ANS insurance
3. The type of insurance company in which the policyholder is considered an owner, with
the right to vote and share in the profits is a
ANS mutual company
4. Jewel Canford's home is insured by XYZ Insurance Company. Last year she made the
final mortgage payment to FBN Mortgage Company. Jewel is considering selling her
home to her niece, Cynthia. Who has an insurable interest in the home?
ANS Jewel Canford
5. Risk of loss is a speculative risk
ANS Which one of the following is NOT an element of insurability?
a. Loss must be calculable
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,Alabama Property and Casualty Sample Quiz 1-100.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/Alabama%20Property%
b. Risk of loss must represent a financial harship
c. Cost of insurance must be affordable
d. Risk of loss is a speculative risk
6. The principle that states that an insured should be restored to approximate- ly the same
financial position after a loss as before is known as...
ANS indemnity
7. Declarations
ANS What part of an insurance policy personalizes the policy as to who and what are insured?
8. An insurance policy is prepared by the insurance company, with little or no input from
the insured. This means that an insurance policy is a/an...
ANS adhesion contract
9. An individual who owns and lives in a condominium can obtain broad cover- age for
personal property in the condo under which Homeowners form?
ANS HO-6
10. What is the purpose of the Fair Credit Reporting Act?
ANS to give the consumer recourse if insurance is denied on the basis of a credit report.
11. a fire that was caused by the insureds negligence burns a neighbors building, the
owner of the building sues the insured.
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,Alabama Property and Casualty Sample Quiz 1-100.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/Alabama%20Property%
ANS Which of the following is a liability loss?
12. What rating method involves modifying the premium based on the in- sured's
loss experience over a specified period of time?
ANS Experience rating
13. Most Flood insurance coverage is provided by
ANS a federal government pro- gram
14. Which of the following businesses could be eligible for a Business owners policy?
a. Hometown Bank & Trust
b. Rest Easy Motel
c. Family Fun Time Amusement Park
d. Joe's Bar and Grill
ANS Rest Easy Motel
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