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Commercial Insurance

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Licensure Insurance (Quizzes) Quiz sobre Commercial Insurance, criado por Heather Donaldson em 28-07-2016.
Heather Donaldson
Quiz por Heather Donaldson, atualizado more than 1 year ago
Heather Donaldson
Criado por Heather Donaldson quase 8 anos atrás
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Resumo de Recurso

Questão 1

Questão
Under the commercial property coverage part of the CPP, the causes of loss -- broad form insures against:
Responda
  • Risks of direct physical loss unless specifically excluded.
  • A list of basic named perils.
  • A list of basic and extended coverage perils.
  • Earthquake only

Questão 2

Questão
A builders risk coverage form can be written to provide an amount of insurance:
Responda
  • (A) Based on the anticipated completed value of the building.
  • (B) Which increases gradually as the value of the building under construction increases
  • Based on either A or B
  • Equal 50% of anticipated value during the entire construction period

Questão 3

Questão
The primary purpose of business income coverage is to reimburse the insured for:
Responda
  • Expenses incurred to prevent a suspension of business following a loss caused by a peril insured against.
  • The costs of debris removal following loss from a peril insured against.
  • Loss of income resulting from property damage at the insured's property.
  • Loss due to employees work related injuries

Questão 4

Questão
Which one of the following is a coverage extension under the building and personal property forms?
Responda
  • Debris removal
  • Business personal property
  • Property off-premises
  • Fire department service charge

Questão 5

Questão
The purpose of extra expense coverage is to provide:
Responda
  • Additional money to pay for property damage losses at a covered location.
  • Payment for unforeseen expenses an insured may incur while the business is shut down following a property loss.
  • Coverage which will permit the insured to continue in business without interruption following a property damage loss.
  • Extra money for an insured whose accounts receivable records have been damaged.

Questão 6

Questão
Under the commercial property coverage form, breakage of glass is covered under what form?
Responda
  • Basic, broad, and special.
  • Broad and special.
  • All forms.
  • Not covered under any form.

Questão 7

Questão
A building was covered by Insurance for such perils as fire and loss due to vehicles, but not for earthquake damage. The commercial property form had a provision in it which excluded concurrent losses. A man who had auto insurance lost control of his car due to an earthquake and collided with a building. Two hours later gas leaking from the car caused a fire that burned the building. It was determined that the damage was 25% due to the earthquake, 25% due to the car, and 50% due to the fire. What percent of the building would be covered by the fire policy?
Responda
  • 25%
  • 50%
  • 75%
  • Nothing

Questão 8

Questão
A building that had been vacant for 60 consecutive days burned. How much will be paid by the fire policy?
Responda
  • Entire loss
  • 50%
  • 85%
  • Nothing

Questão 9

Questão
Builder's risk insurance is to cover:
Responda
  • Loss of earnings
  • Loss to building under construction, temporary structures, and building materials and supplies.
  • Injury to an employee on the job.
  • Loss of personal possessions from business premises.

Questão 10

Questão
In a business income coverage form, business interruption is covered only if the loss is due to a peril insured against in the cause of loss form.
Responda
  • True
  • False

Questão 11

Questão
Business income insurance covers:
Responda
  • Net income, continuing expenses, and payroll.
  • Gross income
  • Net income, continuing expenses minus payroll expenses.
  • Net income minus taxes.

Questão 12

Questão
Which of the following is a correct definition of coinsurance?
Responda
  • Two or more policies which apply to the same property
  • A requirement that the insured carry insurance equal to a specified percentage of property value, to be fully indemnified under the policy.
  • Two or more buildings which are covered under a single policy.
  • A clause which allows the insurer to take action against a third party for reimbursement of loss settlements made with the insured.

Questão 13

Questão
What is the function of the coinsurance clause in fire policies?
Responda
  • To require the insured to carry insurance to value.
  • To discourage the insured from insuring to value.
  • When more than one company is insuring the same subject of insurance, the coinsurance clause apportions the loss among them.
  • When a policy covers several buildings under one amount of insurance, the coinsurance clause distributes the amount of coverage on the buildings.

Questão 14

Questão
Property valued at $500,000. It is insured for $300,000 with an 80% coinsurance clause. If there is a $200,000 loss, the insurer will pay how much?
Responda
  • 100,000
  • 150,000
  • 200,000
  • 500,000

Questão 15

Questão
The insurer will pay a reduced amount on the loss, the insured becomes a coinsurer by the amount of the penalty and must pay that amount himself.
Responda
  • Cause of loss form
  • Inventory
  • Obligations
  • Audit

Questão 16

Questão
On commercial property policies, basic coverage insures against loss by all of the following perils except:
Responda
  • Falling objects
  • Vandalism
  • Windstorm
  • Sprinkler leakage

Questão 17

Questão
Under the commercial property basic form, what would be covered?
Responda
  • Falling objects
  • Flood
  • Earth movement
  • Sprinkler leakage

Questão 18

Questão
Operations at ABC company depend on a steady flow of supplies from XYZ Inc. What coverage would protect ABC against income losses due to damage at XYZ which prevents shipments of supplies?
Responda
  • Coverage for contributing locations
  • Coverage for recipient locations
  • Coverage for leader locations
  • Coverage for manufacturing locations

Questão 19

Questão
In a business income coverage form, loss of income is covered while repairs are being made and for the subsequent 30 days after the business is resumed.
Responda
  • True
  • False

Questão 20

Questão
Who may cancel a commercial property policy as long as it is not contrary to law?
Responda
  • The insured
  • The insurer
  • First named insured
  • First named insured or the insurer

Questão 21

Questão
A tenant is in the middle of a ten-year lease. He has spent $50,000 in improvements for such things as lighting fixtures, shelves, and carpeting. Which of the following types of coverage would best suit his needs in the event of a claim?
Responda
  • Improvement or betterment
  • Building ordinance
  • Consequential losses
  • Extra expense

Questão 22

Questão
A building insured under a commercial property policy was left vacant for a period of 90 days. The owner notified the insurer of this prior to the vacancy. In the event of a 50% loss, how much will the insurer pay?
Responda
  • Nothing
  • The entire loss
  • 50%
  • 85%

Questão 23

Questão
A commercial plan designed expressly to protect against losses during construction is:
Responda
  • Builder's Risk
  • Leasehold interest
  • Legal liability
  • Extra expense coverage

Questão 24

Questão
A policy that has a single limit of insurance for all property at multiple locations is known as?
Responda
  • Schedule coverage
  • Blanket coverage
  • Specific coverage
  • Reporting form

Questão 25

Questão
Under a commercial property policy if there are two or more policies covering the same property under the same plan, terms, and conditions, how will the claim be handled?
Responda
  • Each policy shall contribute pro rata to the payment of such whole or partial loss.
  • Only the first policy issued will be responsible for the payment
  • Secondary carriers will only pay losses in excess of amounts due from the primary carrier
  • No benefits will be paid as it is illegal to carry insurance with more than one carrier

Questão 26

Questão
A policy which provides an amount of insurance for specific types of property at a specific location is known as:
Responda
  • Blanket coverage
  • Scheduled coverage
  • Specific coverage
  • Named peril coverage

Questão 27

Questão
In commercial property in the building and personal property coverage form, coverages a, b, and c refer to:
Responda
  • Building, business personal property of the insured, and personal property of others.
  • Business personal property of the insured, building and personal property of others.
  • Building, property off premises, and business personal property of the insured.
  • Building, newly acquired or constructed property, personal property of others

Questão 28

Questão
The coverages under a dwelling form policy as compared to a homeowner's policy is similar to comparing a commercial property policy to a:
Responda
  • Business income policy
  • Businessowners Policy
  • Business personal property
  • Commercial general liability

Questão 29

Questão
In making sure client has the proper coverage on a commercial property, there are three loss exposures to be considered. The loss exposures are:
Responda
  • The building to be covered / the perils to be covered / potential financial loss.
  • The building to be covered / fire prevention / maximum financial loss.
  • The building to be covered / the hazards to consider / maximum loss per occurrence.
  • The building to be covered / fire protection / financial loss.

Questão 30

Questão
All of the following are categories of inland marine insurance except:
Responda
  • Domestic shipments
  • Personal property floater risk
  • Furniture and fixtures
  • Instrumentalities of transportation and communication

Questão 31

Questão
Inland marine insurance commonly provides _______ coverage
Responda
  • Basic
  • Open peril
  • Broad
  • Standard

Questão 32

Questão
In a commercial package inland marine policy, which of the following would not be covered:
Responda
  • Accounts receivable from customers
  • An automobile being kept for an individual in a parking lot
  • Jewelry and watches

Questão 33

Questão
A provision commonly found in liability insurance, thus creating a need for inland marine would be?
Responda
  • A valuation provision
  • Debris removal
  • A care, control, and custody exclusion
  • A coinsurance requirement

Questão 34

Questão
Why would someone be in need of adding a boiler and machinery coverage part to a commercial package policy?
Responda
  • A separate coverage form is needed as most lines of insurance exclude boiler and machinery risks.
  • There is no need to add boiler and machinery as it is included in all commercial coverage forms.
  • Boiler and machinery offers loss protection, but not loss prevention.
  • Boiler and machinery can be written only as a monoline policy and never part of a commercial package policy.

Questão 35

Questão
The majority of the premium paid for boiler and machinery coverage is used for:
Responda
  • Anticipated losses
  • Inspection
  • Company overhead
  • Underwriting

Questão 36

Questão
An important loss control feature of the boiler and machinery insurance program is:
Responda
  • The audit function
  • Inspection
  • A disappearing deductible
  • Retention

Questão 37

Questão
A boiler and machinery policy would exclude all of the following except:
Responda
  • Interruption of business
  • Lack of power, light, heat, steam, or refrigeration
  • Boiler explosion
  • Flood

Questão 38

Questão
All of the following are true about boiler and machinery except:
Responda
  • They can be either monoline or part of a commercial package policy.
  • The property must be owned by the insured.
  • It is written on a replacement cost basis except if changed to ACV (Actual Cash Value)
  • Supplemental payments provided with additional policy limits

Questão 39

Questão
Under a farm property coverage plan, what would be covered?
Responda
  • Liability
  • Property
  • Property but not liability
  • Liability and property

Questão 40

Questão
Under the commercial general liability policy, a separate aggregate limit applies to the:
Responda
  • Products-completed operations hazard.
  • Premises and operation hazard.
  • Owners and contractors protective hazard.
  • Contractual liability hazard.

Questão 41

Questão
Under the commercial general liability coverage form, liability assumed under contract is:
Responda
  • Excluded
  • Excluded, except for contracts specifically defined as insured.
  • Covered, except for incidental contracts.
  • Covered, except for property leases.

Questão 42

Questão
Under the commercial general liability coverage form, personal injury is:
Responda
  • Bodily injury suffered by the named insured.
  • Bodily injury for which the named insured is liable.
  • Injury, other than bodily injury, arising out of such things as slander, libel, and invasion of privacy.
  • Injury arising out of the misappropriation of advertising ideas.

Questão 43

Questão
Under the commercial general liability coverage form, the term personal injury is defined as: "bodily injury such as the injury caused by wrongful eviction"
Responda
  • True
  • False

Questão 44

Questão
Under the claims made commercial general liability coverage form, the first date that an event may occur and still be covered under the policy is the:
Responda
  • Retroactive date
  • Policy expiration date
  • Extended reporting period inception date
  • Policy inception date

Questão 45

Questão
Commercial general liabilty would cover an injury to:
Responda
  • The insured
  • The insureds employee
  • A customer on the premises
  • An employee while not working

Questão 46

Questão
Who would be in need of purchasing a liquor liability form?
Responda
  • A company hosting a cocktail party on its premises
  • A company that deals in the illegal manufacturing and distribution of alcohol
  • A company that has a company sponsored picnic where alcohol will be served
  • A company whose business is selling and serving of alcohol beverages

Questão 47

Questão
In a commercial general liability form, the term YOUR means:
Responda
  • First named insured
  • Any insured
  • All property for which the business has care, custody, and control
  • Any person who can show an insurable interest in the property

Questão 48

Questão
A commercial general liability policy would cover which of the following situations?
Responda
  • An employee is hurt in the course of working
  • An employee working in a customer's home does damage to the customer's property (causes an injury to the customer)
  • Injury intended by the insured.
  • Liability of someone engaged in the alcoholic beverage business who serves alcohol to a minor

Questão 49

Questão
Which of the following would be true under a commercial general liability policy if you switched from the claims made form to the occurrence form?
Responda
  • There are no differences in coverage
  • There may be a gap in coverage
  • There may be additional benefits
  • None of the above

Questão 50

Questão
Which is true about the CGL general aggregate limit?
Responda
  • It applies to completed operations hazard.
  • It is the amount an insurer will pay for one loss.
  • It is the most an insurer will pay for an occurrence.
  • It does not apply to the products completed operations hazard.

Questão 51

Questão
The liability exposure arising out of a business location or activities is known as:
Responda
  • Premises and operations hazard
  • Completed operations hazard
  • Products completed operations hazard
  • Exposure hazard

Questão 52

Questão
The medical payments of a commercial general liability policy will cover:
Responda
  • A hired person who is hurt while fixing a broken window for a tenant
  • An employee while working
  • Injury caused by an employee while working
  • Injury to employee while engaged in the business' sports team

Questão 53

Questão
The retroactive date in a claims-made commercial general liability policy is:
Responda
  • The inception date of the policy
  • The last date a claim may be filed and covered by the policy
  • The first date that an event may occur and be covered by the policy.
  • The policy expiration date

Questão 54

Questão
In a commercial general liability, what do coverages A, B, and C represent?
Responda
  • (A) Bodily injury and property damage; (B) personal and advertising in jury; (C) medical payments
  • (A) Medical payments; (B) Personal liability; (C) Bodily injury
  • (A) Personal injury; (B) Bodily Injury; (C) Medical Payments
  • (A) Professional liability; (B) Property damage; (C) Personal Property

Questão 55

Questão
Under the commercial crime coverage part, loss resulting from employee dishonesty is:
Responda
  • Always excluded
  • Always covered, provided the employee has not been previously responsible for such a loss.
  • Excluded unless an employee dishonesty coverage form is attached
  • Always covered

Questão 56

Questão
Which of the following is a commercial crime coverage form that provides virtually all risk coverage for money and securities?
Responda
  • Robbery and safe burglary coverage form.
  • Premises theft and robbery outside the premises coverage form
  • Theft, disappearance, and destruction coverage form.
  • Premises burglary coverage form

Questão 57

Questão
A person has a commercial business policy with an employee dishonesty endorsement. Which of these is covered under the policy?
Responda
  • Robbery of an employee
  • Theft of inventory (theft of business stock)
  • Burglary of business stock
  • Employee who lost deposit on the way to the bank

Questão 58

Questão
When would the insured collect under the employee dishonesty section of the commercial crime policy? 1. Theft of money 2. Theft of property 3. Theft of securities 4. Shortages of inventory
Responda
  • 1 only
  • 1 & 2
  • 1, 2, & 3
  • 1, 2, 3, & 4

Questão 59

Questão
Under commercial crime, the loss sustained during prior insurance clause covers the crime loss subject to:
Responda
  • 6 months
  • 9 months
  • 1 year
  • 2 years

Questão 60

Questão
Which of the following offers the broadest crime coverage?
Responda
  • Theft
  • Burglary
  • Robbery
  • Larceny

Questão 61

Questão
Under commercial crime coverage, employee dishonesty does not cover:
Responda
  • Theft of business stock
  • Shortages of inventory
  • Theft of securities
  • Theft of cash

Questão 62

Questão
Employers that wish to cover employees use of their own cars in the employer's business should opt to have business auto liability coverage apply to which of the following groups of autos?
Responda
  • Hired autos
  • Miscellaneous vehicles
  • Owned autos
  • Nonowned autos

Questão 63

Questão
Employees are using their own cars for business purposes. The employer is concerned about liability exposure. What should the agent advise?
Responda
  • Tell employees to have their employer added to their policies as an additional insured.
  • Tell employees not to use their own autos for business.
  • Have all employees insure their cars with the same insurer that the employer uses.
  • Have the employer add non-owned autos to his business auto coverage.

Questão 64

Questão
An insured whose business is earth moving wants to cover his equipment while it is being transferred from location to location. The insured would probably need:
Responda
  • Fixed property coverage
  • Floater coverage
  • Binder coverage
  • Short rate coverage

Questão 65

Questão
An owner of a parking lot wants coverage for her liability for damage to vehicles left in her custody. She needs:
Responda
  • Business auto coverage
  • Garage liability coverage
  • Garagekeepers coverage
  • Employers nonownership liability

Questão 66

Questão
The type of insurance that an auto repair shop should carry is:
Responda
  • Garage keepers insurance
  • Commercial auto insurance
  • Professional liability
  • None of these

Questão 67

Questão
General liability policies and business auto policies define the word "auto" and "mobile equipment":
Responda
  • The same, to avoid confusion.
  • The same as the policy writers lack imagination.
  • Differently, to avoid gaps in coverage.
  • Differently but it has nothing to do with gaps in coverage.

Questão 68

Questão
Business autos are identified by nine symbols in the declarations. The symbol #4 refers to:
Responda
  • Owned autos only
  • Owned autos other than private passenger autos
  • Owned private passenger autos only
  • Non-owned autos only

Questão 69

Questão
A business auto policy (BAP) has four coverages under physical damage. Which can be written together?
Responda
  • Comprehensive, specified cause of loss, and collision.
  • Comprehensive, specified cause of loss, and towing and labor.
  • Comprehensive, collision, towing and labor.
  • None of these answers.

Questão 70

Questão
Commercial auto:
Responda
  • Covers garage liability
  • Automatically includes uninsured motorist coverage
  • Automatically includes medical payments
  • Allows the insured to tailor the policy by deciding what coverages should be applied to different vehicles.

Questão 71

Questão
Which of the following would have a need for commercial automobile policy?
Responda
  • Owner of a trucking fleet
  • Homeowner
  • Individual with two autos
  • Farmer

Questão 72

Questão
All are mobile equipment under a commercial auto policy except:
Responda
  • Bulldozer
  • Forklift
  • Street sweeper which is self-propelled.
  • Tractor on crawlers.

Questão 73

Questão
An insurer cannot rate a commercial auto policy based on the personal driving record of a hired driver while using his own vehicle.
Responda
  • True
  • False

Questão 74

Questão
What cannot be covered under a commercial auto policy?
Responda
  • An owner of a parking lot who wishes to cover cards in her custody.
  • A garage that repairs cars.
  • Physical damage to mobile equipment.
  • The owner of a trucking fleet.

Questão 75

Questão
Under a commercial auto policy reimbursement for towing expenses:
Responda
  • Is not provided
  • Provided only for private passenger type autos
  • Provide only for a limit of $25
  • Provided for trucks only

Questão 76

Questão
Business autos are identified by nine symbols in the declarations. The symbol #7 refers to:
Responda
  • Owned autos only
  • Hired autos only
  • Specifically described autos only
  • Owned autos other than private passenger autos

Questão 77

Questão
Which of the following is not available under the commercial package policy?
Responda
  • Ocean marine
  • Crime
  • Boiler and machinery
  • Inland marine

Questão 78

Questão
Commercial package policies may have a number of coverage forms. Which would not be covered under a commercial package policy?
Responda
  • Commercial property
  • Dwelling property
  • Commercial crime
  • Boiler and machinery

Questão 79

Questão
Under the commercial package policy, who may cancel the policy in writing, is authorized to make changes to the policy with the consent of the insurer and is responsible for paying premiums?
Responda
  • The first named insured.
  • The last named insured.
  • Any named insured.
  • Any insured.

Questão 80

Questão
According to the common conditions of a commercial package policy, the insurer can do an audit of insured's books and records any time during the policy period and during the three months following expiration of the policy.
Responda
  • True
  • False

Questão 81

Questão
According to the common conditions of a commercial package policy, the insurer can do an audit of an insured's books and records any time during the policy period and for a specified amount of time after the policy expires.
Responda
  • True
  • False

Questão 82

Questão
All of the following are part of the common conditions in a commercial package policy except:
Responda
  • Inspections and surveys
  • Examination of books and records
  • Cancellation terms
  • Named perils

Questão 83

Questão
A monoline policy:
Responda
  • Is a policy that is written to cover property only
  • Is any insurance written as a single line policy
  • Is a policy that covers only lines of insurance which cannot be part of package policies
  • There is no such thing

Questão 84

Questão
What are the advantages of having a commercial package policy compared to having monoline policies? 1. Convenience of having coverage under one policy. 2. Cost. 3. No gap in coverage 4. No duplication of coverage
Responda
  • 1 & 2
  • 3 & 4
  • 2, 3, & 4
  • All are correct

Questão 85

Questão
What is an advantage to having a commercial package policy instead of several monoline policies:
Responda
  • There are fewer exclusions.
  • Convenience of having coverage under one policy.
  • There are broader coverages
  • Claims are covered on an occurrence basis.

Questão 86

Questão
Commercial package policies must include:
Responda
  • Common declarations
  • Common conditions
  • Two or more coverage forms
  • All are correct.

Questão 87

Questão
Commercial package policies must include:
Responda
  • Cause of loss forms
  • Common conditions
  • Common exclusions
  • All are correct

Questão 88

Questão
In a commercial package policy under common policy conditions "changes", it states that a policy can be amended or waived:
Responda
  • Only by endorsement from the insurer made part of the policy.
  • By endorsement in writing from an agent or the insured without consent of the insurer.
  • Only at renewal; never during a policy period.
  • None of these answers.

Questão 89

Questão
In commercial policies, the use of a value reporting form:
Responda
  • Allows values for commercial property policies to be modified.
  • Allows values on business income policies to be modified.
  • Applies to commercial auto policies.
  • States the specified amount the policy will pay for an entire loss.

Questão 90

Questão
According to the common conditions of a commercial package policy, the insurer can do an audit of an insured's books and records:
Responda
  • During the policy period and for three months after expiration of the policy.
  • Only during the policy period.
  • During the policy period and for three years after expiration of the policy.
  • Only with the consent of the insured.

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