Alabama Property and Casualty Sample Quiz 1-100 with 100% Correct Answers
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Course
Alabama Insurance
Institution
Alabama Insurance
Alabama Property and Casualty Sample
Quiz 1-100 with 100% Correct Answers
What is a hazard? - Answer️️ -an increase in the possibility that a loss
might occur
transfer risk from a person or business to an insurance company that
agrees to to pay for losses in exchange for a premium. - Answe...
Alabama Property and Casualty Sample
Quiz 1-100 with 100% Correct Answers
What is a hazard? - Answer✔️✔️-an increase in the possibility that a loss
might occur
transfer risk from a person or business to an insurance company that
agrees to to pay for losses in exchange for a premium. - Answer✔️✔️-
insurance
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 - Answer✔️✔️-
mutual company
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? - Answer✔️✔️-Jewel Canford
Risk of loss is a speculative risk - Answer✔️✔️-Which one of the following is
NOT an element of insurability?
a. Loss must be calculable
b. Risk of loss must represent a financial harship
The principle that states that an insured should be restored to
approximately the same financial position after a loss as before is known
as... - Answer✔️✔️-indemnity
Declarations - Answer✔️✔️-What part of an insurance policy personalizes
the policy as to who and what are insured?
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... -
Answer✔️✔️-adhesion contract
An individual who owns and lives in a condominium can obtain broad
coverage for personal property in the condo under which Homeowners
form? - Answer✔️✔️-HO-6
What is the purpose of the Fair Credit Reporting Act? - Answer✔️✔️-to give
the consumer recourse if insurance is denied on the basis of a credit report.
a fire that was caused by the insureds negligence burns a neighbors
building, the owner of the building sues the insured. - Answer✔️✔️-Which
of the following is a liability loss?
What rating method involves modifying the premium based on the
insured's loss experience over a specified period of time? - Answer✔️✔️-
Experience rating
Most Flood insurance coverage is provided by - Answer✔️✔️-a federal
government program
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 - Answer✔️✔️-Rest Easy Motel
Pain and Suffering - Answer✔️✔️-Which one of the following types of
benefits is generally not provided by a state's workers compensation law?
foreign - Answer✔️✔️-Which of the following describes an insurance
company doing business in a state other than the one where it is
incorporated?
provide temporary protection for the insured between the time the
application is made and the policy is issued or the binder expires -
Answer✔️✔️-The purpose of a binder is to
Agent Michelle is under contract with the XYZ Insurance Company to
represent and sell insurance only for XYZ. This is an example of what type
of agency system? - Answer✔️✔️-Exclusive/captive
What type of insurance policy insures against all risks of loss that are not
specifically excluded by the policy? - Answer✔️✔️-Open peril policy
prior approval state - Answer✔️✔️-In a particular state, an insurance
company must file policy forms and rates with the state insurance
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