Alabama Insurance: Property and
Casualty Test |Questions and
Answers|2025 Update|100% Correct.
Which of the following losses would be considered a "collision" loss?
a. the insureds car is totaled when it hits a deer in the road
b. the insured car hits an icy patch in the road, flips and rolls
c. the insured car windshield is broken by gravel falling off the back of a truck
d. the insureds car is damaged by someone who scratches their intitials into the hood of
the car - ANSWER-b
All of the following dwelling fire forms provide replacement cost coverage on the house
except the
a. Special Form
b. Broad Form
c. Open Peril Form
d. Basic Form - ANSWER-d
Under the building and Personal Property coverage form, excepting notice for non-
payment, how many days notice is required to cancel the policy? - ANSWER-30 days
Which of the following statements is false?
a. business income coverage may be subject to a coinsurance penalty
b. extra expense coverage reimburse the insured for expenses incurred to keep a
business going after a loss cause by a peril insured against
c. dependent Properties business income coverage protects owned property off
premises
d. rental value insurance covers loss of rents while a building cannot be occupied due to
damage by an insured peril - ANSWER-c
Contracts written for a specified amount as agreed to by both the insured and insurer at
policy inception are known as - ANSWER-valued or stated value contracts
All of the following must be present to establish negligence except
a. duty owed and breach of that duty
b. a proximate cause of loss
c. damages must exist
