AL P&C University of Alabama Study Guide (2023/2024) 100% Pass

AL P&C University of Alabama Study Guide (2023/2024) 100% Pass 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 A. Pro Rata Basis What is the term used to describe terminating the insurance relationship at the end of the policy period? A. Cancellation B. Nonrenewal C. Separation D. Exclusion B. Nonrenewal Which is the best example of an indirect loss? A. Sequential loss B. Liability loss C. Employee theft D. Loss of use D. Loss of use Which is a two party contract? A. Property B. Casualty C. Liability D. Auto A. Property Insurance contracts offset A. speculative risk B. pure risk C. gambling D. created risk B. Pure risk Which of the following is a third party contract? A. Property B. Casualty C. Earthquake D. Theft B. Casualty Risk is best define as A. chance of loss B. certainty of loss C. financial loss D. sentimental loss A. chance of loss Being subject to a loss is A. liability B. indemnity C. exposure D. subrogation C. exposure The ranking insured in a Personal Lines contract is the A. named insured B. first named insured C. mortgagee D. husband