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Alabama Insurance Personal Lines Questions and Answers Fully Solved
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Alabama Insurance Personal Lines
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Alabama Insurance Personal LinesWhen the insurance company terminates your policy at the end of the policy period, this
is called: - answer Nonrenewal
A covered peril causes the insured premises to become uninhabitable until repairs can
be made. What type of loss does this describe? - answer Indirect Loss
The primary insured in an insurance contract is the: - answer First named insured
The process of classification, rating, and selection of risks is called: - answer
Underwriting
Which risk management method is used when you decide to purchase insurance to
cover a risk? - answer None of the above
A risk management method where one party agrees to release the other party from any
liability or damage that might arise out of the transaction involved is called: - answer A
hold-harmless agreement
The type of company organized for the benefit of the policy owners is a: - answer
Mutual company
Canada Life doing business in North Carolina would be considered what type of
company? - answerAlien company
Joe decides to give up his two favorite hobbies, skydiving, and scuba diving, because
they are too risky and could lead to his premature death. The method of dealing with
risk is called: - answerRisk Avoidance
A peril is defined as: - answerThe cause of loss
Anthony is severely injured in an automobile accident because he refused to wear his
seat belt. This is an example of a: - answerMorale Hazard
A mechanism used to spread the potential financial losses of an individual among a
large number of people describes: - answerInsurance
The law of large numbers is primarily used for what purpose by insurance companies? -
answerTo estimate the future losses of a particular group
, As a captive agent, who do you represent in an insurance transaction? - answerThe
insurer
Of the following. Which is not considered to be a risk management tool? -
answerObligatory
The tendency for people with a greater than average risk to purpose insurance is called:
- answerAdverse selection
A morale hazard is defined as - answerSomething that occurs through an individuals
carelessness or irrespobsinke actions
A written modification that either adds or deletes coverage in a policy is called -
answerAn exclusion
A continuous or repeated exposure which results in bodily injury or property damage
which is not expected or intended defines what? - answerOccurrence
Vacancy means only the absence of peolel - answerFalse
Specific insurance provides coverage for different classes of property under on policy -
answerFalse
The value that the insurance company would pay to replace a structure at its pre-loss
condition is called; - answerReplacement value
A society of meme era both corporate and individual who underwrite in syndicates on
whose behalf of progressional underwrites accept risk is called: - answerLloyd's
associations
What exposure unit is used in calculating property insurance rates? - answer$100
A term that represents an insurers average future claim costs and loss adjustment
expenses would be called: - answerLoss costs
Joe and Jane own Tightwad Hardware Store. They are both listed in the business policy
declarations. The declarations also list Big Money Bank which loaned Joe and Jane
money to start the business. Who is considered a named insured on the policy? -
answerJoe and Jane
How many parties are there to a property insurance contract? - answerTwo
The primary insured in an insurance contract is the: - answerFirst named insured
All of the following are correct about binders EXCEPT: - answerThe binder is good for a
set number of days, or until the policy is issued, whichever is longer.
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