ALABAMA PROPERTY AND CASUALTY

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ALABAMA PROPERTY AND CASUALTY

INSURANCE UPDATED ACTUAL EXAM

WITH CORRECT SOLUTIONS.

• reasons - No Flood - correct answer- Catastophic, adverse

selection

Watercraft Policy - correct answer- Open cockpit, 26 feet or less in length

Absolute Liabilty - correct answer- Strong Liklihood of harming others

Intervening Cause - correct answer- Disruption in chain of events

Negligence - correct answer- LBPD - Legal Duty Owed, Breach of Legal Duty, Proximate Cause, and Damages.

25 mph - correct answer- What is the maximum horesepower a boat can have and be covered under a H.O. Policy 1 / 3

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Personal Liability Coverage - correct answer- Single Occurrence Limit - $100,000 - non business activities

Defense Costs - correct answer- Pay in Addition

Med Pay - correct answer- Is to others

Med Pay Purpose - correct answer- To avoid lawsuits

The most an insurer will pay for ONE breakdown is? - correct answer- $25,000

Primary Excess Rule - correct answer- Insurance Follows car, if driven by someone else their insurance would be secondary

Assigned Risk - correct answer- Share poor driving risks among themselves

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Uninsured Motorists - correct answer- Optional

Collision coverage Pays - correct answer- Market Value

Pure No Fault Plan - correct answer- Each party - own insurance pays

Completed Operations - correct answer- After car leaves shop - $100 deductible

Section II - Garage Liability - correct answer- Covers property for which the insured is legally responsible

Trucker's Coverage Form - correct answer- Hauling the goods of others

Hazardous Material min. legal Liability - correct answer-

$1,000,000

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