Alabama Insurance: Property and Casualty Test

What type of risk is insuring your home or auto? - answer-Pure risk A good definition for risk is: - answer-The chance of loss The primary insured in an insurance contract is the: - answer-First named insured In property insurance, coinsurance is designed to: - answer-Cover all losses in full i...

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...

If a company cancels an auto policy mid-term, the refund will be made on a : A. pro rata basis B. short rate basis C. retroactive basis D. coinsurance basis - answer-A. Pro Rata Basis What is the term used to describe terminating the insurance relationship at the end of the policy period? A....

In Alabama, all health maintenance organizations must: - answer-Have a complaint system to resolve written complaints from enrollees. An insurance producer who offers a potential client something of value as an incentive to purchase insurance is engaging in: - answer-Rebating Medicare suppleme...

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 - answer-Pro Rata Basis What is the term used to describe terminating the insurance relationship at the end of the policy period ? a. cance...

An incorporated insurance company which is run by a board of directors is known as - answer-a capital-stock company Which of the following statements is true regarding a binder? a. a binder guarantees that a policy will be issued by the insurance company. b. a binder guarantees coverage and that...