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Alabama Property and Casualty Insurance
Comprehensive Questions (Frequently
Tested) with Verified Answers Graded A+
2 reasons - No Flood - Answer: Catastophic, adverse selection Watercraft Policy - Answer: Open cockpit, 26 feet or less in length Absolute Liabilty - Answer: Strong Liklihood of harming others Intervening Cause - Answer: Disruption in chain of events Negligence - Answer: LBPD - Legal Duty Owed, Breach of Legal Duty, Proximate Cause, and Damages. 25 mph - Answer: What is the maximum horesepower a boat can have and be covered under a H.O. Policy Personal Liability Coverage - Answer: Single Occurrence Limit - $100,000 - non business activities Defense Costs - Answer: Pay in Addition Med Pay - Answer: Is to others
Med Pay Purpose - Answer: To avoid lawsuits The most an insurer will pay for ONE breakdown is? - Answer: $25, Primary Excess Rule - Answer: Insurance Follows car, if driven by someone else their insurance would be secondary Assigned Risk - Answer: Share poor driving risks among themselves Uninsured Motorists - Answer: Optional Collision coverage Pays - Answer: Market Value Pure No Fault Plan - Answer: Each party - own insurance pays Completed Operations - Answer: After car leaves shop - $100 deductible Section II - Garage Liability - Answer: Covers property for which the insured is legally responsible Trucker's Coverage Form - Answer: Hauling the goods of others Hazardous Material min. legal Liability - Answer: $1,000, To qualify for Commercial auto fleet rates - Answer: 5 or more autos Comprehensive - Answer: Pays for anything other than collision that is not excluded
Is Irrigation Equipment Excluded? - Answer: Yes BOP Deductible - Answer: $500-$2, Protective Safeguards - Answer: Notify within 48 hours Property temporarily stored elsewhere - Answer: covered for 30 days Business owners policy deductible - Answer: $500-$2, BOP acts as excess when - Answer: There is other collectible Insurance CPP - Answer: Pick and Choose Is Personal property open Peril? - Answer: Yes and blanket Personal Liability - Answer: Occurrence limit is $100, Ocean Marine General Average is the same as - Answer: Partial Loss Who is Flood Insurance available through? - Answer: The Federal Government or private companies who are reimbursed by the federal government NFIP Regular Limits - Answer: $250,000 Dwelling - $100,000 Contents How many deductibles could you have under the NFIP? - Answer: 2
What are the elements of Insurability or Insurance Risks? - Answer: Affordable, Calculable, Economic hship, Exclude, Accidental. Predictable. Dwelling policy covers business run out of a home as long as they are what type of business? - Answer: Servicce type Dwelling - DP-3 Form - Answer: Broadest Coverage What does a dwelling policy cover? - Answer: Property Is a dwelling policy considered a Monoline Policy? - Answer: Yes Rule of Indemnification - Answer: 80% R/C is reimbursed @ 80% of depreciated value Contents Coverage - Answer: Coverage C of a H.O. Policy Vacancy for more than 60 days excludes - Answer: Vandalism Coverage B - Answer: Detached structures or Other Structures Coverage D - Answer: Loss of rental value H.O. - 8 - Answer: Least perils covered, modified form H.O.-3 - Answer: Open Peril Coverage
Host Liquor Liablity - Answer: Covered under a CGL policy Products and Completed operations - separate aggregate limit? - Answer: Yes Commercial General Liability Form - Answer: Pays at Retroactive date Does commercial crime coverage - forgery or alterations include defense costs? - Answer: Yes Commercial Crime Form - Answer: New Employees and Additional Premises - covered for 90 days. Commercial crime coverage form C covers - Answer: Money and Securities Does Fire Legal Liability have a separate aggregate limit? - Answer: Yes Product liability may arise out of - Answer: Warranty or Negligence. If property is away from the premises it is covered by - Answer: Products and Completed Operations Minimum Liability under a BOP - Answer: $300,000 per occurrence Products and Completed Operations Aggregate Limit is: - Answer: Twice the liability and medical expense limit
Damages to premises rented to you is covered by: - Answer: Fire Legal Liability and does not reduce aggregate limit Workers Compensation is determined by: - Answer: State Law Are medical benefits paid regardless of negligence? - Answer: Yes The Jones Act applies to - Answer: Crews of Ocean Vessels What are the workers comp minimum limits? - Answer: $100,000 per accident or $100,000 per disease Part 1 of workers comp policy is the - Answer: Compensation Part 2 of the workers comp policy is the - Answer: Employers Liability Risk sharing is also called: - Answer: Reinsurance In MOST states workers comp is: - Answer: Compulsory Compulsory means - Answer: Required by Law Fiduciary Bond - Answer: Appointed by court Fidelity Bond - Answer: A type of honesty bond Self Insured Retention Deductible (SIR) - Answer: Must be met before an umbrella policy pays
Acceptable ways to pay DMV- - Answer: Liability policy, cash or a Bond Who is reponsible for the licensing of Agents? - Answer: Individual State Insurance Companies Who grants authority to become a surety and how often? - Answer: Circuit Judge - annually How long does a lapsed producer have to reinstate? - Answer: 12 months Does med pay cover insured in autos and boats? - Answer: Yes Uninsured and Underinsured covers: - Answer: Bodily injury only without an endorsement Does OTC cover hitting an animal? - Answer: Yes Who does a broker represent? - Answer: The Insured Who does an Agent represent? - Answer: The Insurer What are the elements of a legal contract? - Answer: Agreement, Consideration, Competent Parties, and Legal Purpose What does the McCarron-Freguson Act deal with? - Answer: Fraud What are the Characteristics of an Insurance Contract? - Answer: Contract of Adhesion, Aleatory Contract, Personal Contract, Unilateral Contract, Conditional Contract, Contract of Indemnity.
Valuable Papers and Records - Answer: $2, How much money must an insurance company have in surplus to start up in Alabama? - Answer: $1,000, DP-1 Basic form pays - Answer: ACV Livestock are covered - Answer: ACV and named Open peril coverages are found - Answer: HO-3 and HO-5 only The Special Form is ALWAYS - Answer: OPEN Perils
