9-10 KS Casualty and Property Insurance
On a commercial property policy, outdoor signs attached to the building are covered up to what amount? A.) $2,500 B.) $3,000 C.) $5,000 D.) $1,000
A.) $2,500
Company Z's Commercial General Liability coverage part has a products-completed operations aggregate limit of $100,000, with a $20,000 limit for each occurrence. A product-related occurrence results in $25,000 in damages, and a second occurrence related to the insured's completed operations results in $15,000 in damages. How much of the product-completed operations aggregate limit remains available for completed operations losses? A.) $65,000 B.) $60,000 C.) $100,000 D.) $20,000
A.) $65,000
The Causes of Loss - Basic Form applicable to commercial property policies covers direct damage caused by bacteria during what period of time following policy inception? A.) 12 months B.) 6 months C.) 24 months D.) 18 months
A.) 12 months
Under the Business and Personal Property Coverage Form, a commercial building owned by the insured is considered vacant unless at least what percentage of the building's total square footage is rented or used to conduct customary operations? A.) 31% B.) 20% C.) 10% D.) 26%
A.) 31%
To report claims arising out of occurrences that took place after the retroactive date and before the end of the policy period, Claims-Made CGL policies offer a basic extended reporting period of: A.) 60 days B.) 1 year C.) 6 months D.) 30 days
A.) 60 days
Under the Commercial General Liability coverage part, which of the following injuries would NOT be covered under Coverage C - Medical Payments? A.) A child accidentally overdoses on cough medication taken from a parent's medicine cabinet B.) A carpet installer accidentally staples a customer's hand while installing carpet C.) A customer is injured by a flying lug nut while a mechanic is changing the customer's flat tire D.) A retail customer slips and falls from a leaking pipe in the store's restroom
A.) A child accidentally overdoses on cough medication taken from a parent's medicine cabinet
All of the following vehicles are considered mobile equipment by the CGL, except: A.) A pickup used on a farm B.) Forklifts C.) Bulldozers D.) A vehicle with a permanently attached power crane
A.) A pickup used on a farm
Under a Commercial General Liability policy, the maximum amount payable for certain types of losses within a policy period, regardless of the number of occurrences, is known as an: A.) Aggregate limit B.) Absolute limit C.) Comprehensive limit D.) Each occurrence limit
A.) Aggregate limit
As defined by a Commercial General Liability policy, an insured contract includes all of the following, except: A.) An indemnification agreement regarding property damage arising out of demolition operations affecting a railroad crossing B.) A lease of premises C.) An elevator maintenance agreement D.) A sidetrack agreement
A.) An indemnification agreement regarding property damage arising out of demolition operations affecting a railroad crossing
As defined by the CGL, personal and advertising injury includes all of the following, except: A.) Bodily injury from eviction B.) Libel and slander C.) Malicious prosecution D.) False arrest
A.) Bodily injury from eviction
All of the following statements about coverage provided by the Builders Risk Coverage Form are correct, except: A.) Coverage is always written on an open perils basis B.) Coverage does not apply to business personal property C.) There is no Vacancy provision D.)Coverage terminates when the policy expires or it is cancelled
A.) Coverage is always written on an open perils basis
An insured renting a commercial unit for their business has a Commercial General Liability policy written on the Claims-Made Form. A fire damages the premises. How does the insured's CGL respond? A.) Coverage is provided, subject to a separate Damage To Premises Rented To You Limit B.) Coverage is excluded under Section I - Coverages C.) Coverage is excluded because another type of insurance policy covers fire liability D.) Coverage is provided if the insured purchases the Damage To Premises Rented To You Endorsement
A.) Coverage is provided, subject to a separate Damage To Premises Rented To You Limit
Under a Commercial General Liability policy, which of the following would cause the insured's legal liability associated with a product to be excluded from policy coverage? A.) Expected or intended injury B.) Strict liability C.) Negligence D.) Breach of warranty
A.) Expected or intended injury
Commercial General Liability policies provide coverage for: A.) Liability arising out of the insured's operations B.) Professional liability coverages, such as Errors and Omissions insurance C.) Injuries to employees during the course of employment D.) Liability arising out of the escape of pollutants
A.) Liability arising out of the insured's operations
When ordered by a building, zoning, or land use law, the Ordinance or Law Coverage Endorsement covers all of the following losses, except: A.) Loss of value in the damaged portion of the building B.) Increased cost of repairing damaged parts of the building C.) Clearance of the undamaged parts of a building D.) Demolition of the undamaged parts of a building
A.) Loss of value in the damaged portion of the building
The condition that states that the insurance applies separately to each insured is called: A.) Severability B.) Legal Action C.) Other Insurance D.) Insured's Right
A.) Severability
An insured has a Commercial General Liability policy written on the Claims-Made Form. Which of the following is correct regarding the supplemental extended reporting period? A.) The SERP's premium is a one-time charge B.) The SERP covers occurrences that take place after the policy term during the supplemental extended reporting period C.) The SERP increases the policy's limits of insurance D.) Cancellation of the insured's SERP by the insurer requires 90 days' advance written notice
A.) The SERP's premium is a one-time charge
Under a Commercial Package policy, which of the following is found in the Common Policy Declarations? A.) The deductible B.) The provision that the first named insured is responsible for all premiums C.) The insurer's cancellation right D.) The provision granting the insurer the right to make inspections of insured property
A.) The deductible
An insured owns a commercial building and business personal property, insured on the Business and Personal Property Coverage Form with the Replacement Cost Optional Coverage. After a total loss to the building, the insured chooses to rebuild at a different location. Which of the following best describes the insurer's liability? A.) The insurer will pay the amount that would have been incurred if the building was rebuilt at the original location B.) The insurer will pay the actual cash value of the building in the new location C.) The insurer will not provide coverage for building at a new location D.) Because the building is in a new location, the insurer will pay up to $100,000 for the rebuilding cost
A.) The insurer will pay the amount that would have been incurred if the building was rebuilt at the original location
An insured has a Commercial General Liability policy written on the Claims-Made Form, with a retroactive date of 1/1/2018 and a basic extended reporting period. The BERP will be activated if any of the following occur, except: A.) The policy is replaced with a Claims-Made Form policy from a different insurer, with a retroactive date of 1/1/2018 B.) The policy is replaced with an Occurrence Form policy from a different insurer C.) The policy is nonrenewed and not replaced D.) The policy is replaced with a Claims-Made Form policy from a different insurer, with a retroactive date of 1/1/2019
A.) The policy is replaced with a Claims-Made Form policy from a different insurer, with a retroactive date of 1/1/2018
How many aggregate limits are included in Section III of a CGL policy? A.) Two B.) One C.) Three D.) Zero
A.) Two
Which of the following forms cannot be added to a Commercial Package policy? A.) Workers' Compensation B.) Commercial Inland Marine C.) Commercial Auto D.) Commercial General Liability
A.) Workers' Compensation
DPS Industries has a commercial property policy that covers buildings and business personal property using the Causes of Loss - Special Form, including the Property in Transit Coverage Extension. While the company's business personal property is being transported in a vehicle owned by the company, the property is damaged by a vehicle collision. How much coverage is provided by the policy to cover losses to the property in transit? A.) $1,000 B.) $5,000 C.) $10,000 D.) $0
B.) $5,000
The Non-owned Detached Trailers Coverage Extension on the Building and Personal Property Coverage Form provides up to what amount for non-owned trailers used in the insured's business? A.) $10,000 B.) $5,000 C.) $1,000 D.) $2,500
B.) $5,000
A bodily injury claim is made against the insured for an occurrence that took place during the policy period, but that has not been reported to the insurer. A Claims-Made Commercial General Liability policy with a basic extended reporting period would cover this claim if the claim is reported to the insurer within how many days after the policy expires? A.) 50 days B.) 60 days C.) 30 days D.) 10 days
B.) 60 days
When an insured has time element coverage for loss of business income, coverage is provided during the period of restoration, which begins at what time? A.) 7 days after the loss B.) 72 hours after the loss C.) 168 hours after the loss D.) Immediately after the loss
B.) 72 hours after the loss
A Builders Risk policy insuring a commercial building under construction automatically ends how many days after construction is complete? A.) 30 B.) 90 C.) 60 D.) 120
B.) 90
Under the Building and Personal Property Coverage Form, when may the insured abandon property to the insurer? A.) Abandonment is allowed only after written notice to the company B.) Abandonment is never allowed C.) Abandonment is allowed only in the cases of total loss D.) Abandonment is allowed whenever the insured and insurer fail to reach agreement on the amount of a loss
B.) Abandonment is never allowed
Unlike other Causes of Loss forms applicable to commercial property policies, the Special Form covers: A.) Rust B.) Chemical damage to glass C.) Delay or loss of use D.) Wear and tear
B.) Chemical damage to glass
Under a Commercial General Liability policy, all of the following statements regarding the insured's completed operations liability exposure are correct, except: A.) The exposure includes risks of defective or improper installation, construction, or repair B.) Coverage includes replacement of the work that caused the loss C.) The occurrence must take place away from the insured's premises D.) The exposure begins after the insured's operations are completed and the insured leaves the job site
B.) Coverage includes replacement of the work that caused the loss
The Causes of Loss - Basic Form covers loss resulting from all of the following perils, except: A.) Fire B.) Frost C.) Sinkhole collapse D.) Windstorm or hail
B.) Frost
The Causes of Loss - Basic Form covers losses to commercial property caused by: A.) Governmental action B.) Lava flow C.) Theft D.) Frost
B.) Lava flow
Medical payments coverage under the Commercial General Liability coverage part includes reasonable medical expenses incurred and reported within: A.) Ninety days of the accident B.) One year of the accident C.) Three years of the accident D.) Nine months of the accident
B.) One year of the accident
A tourist's car is damaged by paint spilled by a work crew on an overhead scaffold. Which type of liability exposure would apply? A.) Premises B.) Operations C.) Products D.) Completed Operations
B.) Operations
An insured protects their commercial property on the Building and Personal Property Coverage Form. The insured should consider purchasing the Value Reporting Form Endorsement if: A.) The insured is insuring property that has a relatively constant value B.) The insured has business personal property values that fluctuate, and needs protection for the values actually at risk C.) The insured is insuring buildings or structures only D.) The insured has increased stock during a designated season
B.) The insured has business personal property values that fluctuate, and needs protection for the values actually at risk
Under the Builders Risk Coverage Form, coverage for fixtures, machinery, and equipment used to service the building is provided if: A.) They are rented or leased to the insured B.) They are intended to be permanently located in or on the described building C.) The insured adds coverage by endorsement D.) They are intended to be located within 150 feet of the premises
B.) They are intended to be permanently located in or on the described building
Under the Building and Personal Property Coverage Form, after the insurer receives the sworn proof of loss, or the insurer and insured reach an agreed-upon settlement, loss payment must be made within how many days? A.) Ten days B.) Thirty days C.) Sixty days D.) Fifteen days
B.) Thirty days
Reasonable medical expenses incurred and reported within how many years following an accident are covered under medical payments coverage of a Commercial General Liability policy? A.) 3 years B.) years C.) 1 year D.) 5 years
C.) 1 year
How much can be paid under the Business and Personal Property Coverage Form for debris removal due to a covered loss? A.) $1,000 B.) 15% of Coverage A C.) 25% of the loss amount D.) $5,000
C.) 25% of the loss amount
The general aggregate limit of a Commercial General Liability policy may be subject to sublimits for all of the following losses, except: A.) Necessary medical and surgical costs paid to one customer injured due to the insured's operations B.) A claim payable after the insured libels a competitor in a print advertisement C.) A claim payable after the insured's faulty completed operations damages a customer's home D.) A claim payable after the insured is found responsible for fire damage to a premises the insured rents
C.) A claim payable after the insured's faulty completed operations damages a customer's home
The purpose of the Reporting Form Endorsement attached to the Builders Risk Coverage Form is to: A.) Change the loss valuation basis to replacement cost B.) Allow the insured to provide late value reports without a penalty C.) Allow the insured to make monthly reports of building values to gradually increase coverage as construction continues D.) Report the building's completed value to the insurer
C.) Allow the insured to make monthly reports of building values to gradually increase coverage as construction continues
An insured has a Commercial General Liability policy written on the Occurrence Form, effective as of January 1 and expiring on January 1 of the following year. A customer was injured on the insured's business premises on December 1. In order for the insured's policy to provide coverage, the legal claim against the insured must be made: A.) Within 5 years after the end of the policy B.) Within 60 days after the end of the policy C.) At any time D.) Within 60 days after the date of the occurrence
C.) At any time
Under Coverage B, a Commercial General Liability policy provides coverage for all of the following, except: A.) Malicious prosecution B.) False arrest C.) Defamation of another company's products that takes place on a chat room hosted by the insured D.) Libel and slander
C.) Defamation of another company's products that takes place on a chat room hosted by the insured
An insured rents a space for their business and has property coverage on a CPP through the Business and Personal Property Coverage Form. Business personal property coverage under the form protects what items of property? A.) Fire extinguishing equipment B.) Permanently attached machinery and equipment C.) Improvements and betterments made by the insured to the building D.) The business property of others that is in the insured's care
C.) Improvements and betterments made by the insured to the building
The Building and Personal Property Coverage Form does not cover: A.) Buildings B.) Personal property of others C.) Liability D.) Business personal property
C.) Liability
An insured has a Commercial Package policy with commercial property coverages. When writing the property coverages, the Building and Personal Property Coverage Form: A.) Must be written with a blanket limit on the insured's buildings B.) Must be written with building and personal property coverages at scheduled limits C.) May be written to include building coverage, personal property coverage, or both, as chosen by the insured D.) May be written to include personal property coverage, but building coverage is required
C.) May be written to include building coverage, personal property coverage, or both, as chosen by the insured
Under the Business Income With Extra Expense Coverage Form, extra expenses are defined to include all of the following expenses, except: A.) Expenses incurred to minimize the suspension of business B.) The cost to continue operations at the described location C.) Payroll D.) The costs to relocate and equip the temporary location
C.) Payroll
If the named insured on a CGL policy is designated as a corporation, all of the following are considered insureds, except: A.) Stockholders B.) Directors C.) The business owner's spouse D.) Executive officers
C.) The business owner's spouse
The Builders Risk Coverage Form includes all of the following conditions, except: A.) Payments for covered losses are subject to a deductible stated in the Declarations B.) Losses are settled on an actual cash value basis C.) The form includes an 80% coinsurance requirement D.) The insured may not abandon property to the insurer
C.) The form includes an 80% coinsurance requirement
Under a Commercial Package policy, which of the following is correct about the Inspections and Surveys condition included in the Common Policy Conditions? A.) Inspections or surveys must be made prior to the policy effective date, as the inspections are for underwriting and rating purposes only B.) The insurer may make inspections and surveys only during the first 90 days of the policy period C.) The insurer has the right, but is not obligated, to make inspections and surveys at any time D.) The insurer has the obligation to make inspections and inform the insured if the property has serious hazards
C.) The insurer has the right, but is not obligated, to make inspections and surveys at any time
A retail store has a Commercial General Liability policy written on the Claims-Made Form. The policy period runs from 1/1/2020 to 1/1/2021, with a retroactive date of 1/1/2015 and a basic extended reporting period. Which of the following claims would be covered by the store's policy? A.) The loss occurred on 1/1/2010, and the claim was made 1/1/2012 B.) The loss occurred on 2/1/2021, and the claim was made 6/1/2022 C.) The loss occurred on 3/1/2019, and the claim was made 2/1/2021 D.) The loss occurred on 2/1/2014, and the claim was made 2/1/2016
C.) The loss occurred on 3/1/2019, and the claim was made 2/1/2021
Which of the following is included in building coverage provided by the Building and Personal Property Coverage Form? A.) Tenant's improvements and betterments B.)Furniture and stock C.)Completed additions and outdoor fixtures D.)Machinery and equipment located in the open or in a vehicle within 100 feet of the premises
C.)Completed additions and outdoor fixtures
J is a salesperson for XYZ Company. The company wants J to attend a trade show to advertise and sell its products to new customers in the industry. The company has a Commercial Package policy, including property coverage through the Building and Personal Property Coverage Form, which has an 80% coinsurance requirement. Which of the following statements about the policy's Property Off Premises coverage is correct? A.) Coverage is automatically provided as an Additional Coverage B.) Coverage applies to the merchandise while it is in transit and in a company car the company gives to J C.)Coverage applies while the merchandise is in J's custody at the trade show D.)Coverage is only provided if the merchandise J takes is being removed to protect it from being damaged by a covered peril
C.)Coverage applies while the merchandise is in J's custody at the trade show
What is the limit of coverage for business personal property away from the premises under the Business and Personal Property Coverage Form? A.) $1,000 B.) $5,000 C.) $15,000 D.) $10,000
D.) $10,000
Business personal property is protected by the Business and Personal Property Coverage Form if it is in or on a described building or structure, or if it is located in the open within: A.) The distance specified in the Declarations B.) 200 feet of the premises C.)500 feet of the premises D.) 100 feet of the premises
D.) 100 feet of the premises
Coverage provided by the Builders Risk Coverage Form automatically ends at the earliest of all of the following, except: A.) Property is sold B.) Policy expires C.) Property is abandoned D.) 60 days after construction is complete
D.) 60 days after construction is complete
Under a Commercial General Liability policy, which of the following is not an insured contract? A.) Elevator maintenance agreement B.) Sidetrack agreement C.) Lease of premises D.) Advertising contract
D.) Advertising contract
Which of the following is not a peril covered by Coverage B - Personal and Advertising Injury of the CGL? A.) Libel B.) Wrongful eviction C.) Malicious prosecution D.) Breach of contract
D.) Breach of contract
BCD Corporation is purchasing a Commercial Package policy to protect against the commercial risks it faces. All of the following coverage forms may be added to its Commercial Package policy, except: A.) Building and Personal Property Coverage Form B.) Commercial Builders Risk Coverage Form C.) Business Income and Extra Expense Coverage Form D.) Businessowners policy (BOP)
D.) Businessowners policy (BOP)
An appliance manufacturer, which has a Commercial General Liability policy, sells an oven to a customer. Due to faulty design, the oven tips over after an object is placed on the door, causing property damage and bodily injury. Which of the following would not be covered by the manufacturer's CGL? A.) Damage to the customer's flooring caused by the falling oven B.) Burns sustained by the customer using the oven C.) Injury to the customer's child, who was trapped under the oven when it fell D.) Damage to the oven after it fell over
D.) Damage to the oven after it fell over
The Common Policy Conditions of a Commercial Package policy include all of the following, except: A.) Inspections and Surveys B.) Changes C.) Transfer of Your Rights and Duties Under This Policy D.) Fire Department Service Charge
D.) Fire Department Service Charge
As an exception to the CGL's exclusions, coverage is provided for fire damage to premises rented to the insured, or temporarily occupied by the insured with the owner's permission. This coverage is referred to as: A.) Damage to premises of other's coverage B.) Property damage liability C.) Rental fire damage coverage D.) Fire legal liability
D.) Fire legal liability
Which of the following is not considered a products liability exposure? A.) A product distributed to customers B.) Goods manufactured and sold to customers C.) A product consumed by a person at a restaurant D.) Goods stored on the insured premises
D.) Goods stored on the insured premises
Which of the following kinds of property may be covered under a Building and Personal Property Coverage Form? A.) Personal property in transit over water B.) Vehicles licensed for road use that are used in the insured's business C.) Personal property covered by the insured's Commercial Inland Marine coverage D.) Grain stored inside a building
D.) Grain stored inside a building
After a fire loss to a commercial building, an insured incurs expenses when they move business operations to a temporary replacement location while the building is repaired. Under the Extra Expenses Coverage Form, coverage for these expenses begins: A.) 24 hours after the fire loss B.) 72 hours after the fire loss C.) 48 hours after the fire loss D.) Immediately
D.) Immediately
Which of the following would NOT be excluded under Coverage A of a Commercial General Liability policy? A.) Damage to the insured's work B.) Injuries to employees covered by Workers' Compensation C.) Injuries resulting from a product that has been recalled D.) Injuries resulting from the insured's operation of mobile equipment
D.) Injuries resulting from the insured's operation of mobile equipment
All of the following are conditions of the insurance provided by a Commercial General Liability policy written on the Claims-Made Form, except: A.) Insurance applies as if each named insured were the only named insured, and separately to each insured against whom the claim is brought B.) The insured cannot sue the insurer until the insured has fully complied with all terms of the policy C.) The insured must maintain records necessary so the insurer may compute the premium D.) Insolvency of the insured relieves the insurer of any obligations under the policy
D.) Insolvency of the insured relieves the insurer of any obligations under the policy
All of the following are Causes of Loss forms under the commercial property coverage part of a CPP, except: A.) Special Form B.) Basic Form C.) Broad Form D.) Modified Form
D.) Modified Form
An insured covers their commercial property on the Building and Personal Property Coverage Form. A salesperson employed by the insured attends a trade show and must take property off the insured premises. Coverage for this property is: A.) Provided while it is in transit to the trade show, but not while at the trade show itself B.) Not provided by the policy C.) Provided as an Additional Coverage D.) Provided as a Coverage Extension
D.) Provided as a Coverage Extension
The Causes of Loss - Broad Form contains all of the following additional covered perils, except: A.) Water damage from accidental discharge B.) Weight of ice, snow, or sleet C.) Falling objects D.) Steam boiler explosion
D.) Steam boiler explosion
Which of the following is not included in the definition of an insured contract? A.) Sidetrack agreement B.) Easement agreement C.) Contract for the lease of premises D.) Tenant Agreement
D.) Tenant agreement
An LLC has a Commercial General Liability policy. Which of the following is considered an insured? A.) Stockholders B.) A member's spouse C.) A manager's spouse D.) The LLC's volunteer workers
D.) The LLC's volunteer workers
An insured, who has a Commercial General Liability policy written on the Claims-Made Form, is considering adding a supplemental extended reporting period to their policy. All of the following statements about the SERP are correct, except: A.) The SERP does not increase the policy limits B.) The SERP provides an unlimited period to report claims C.) The insured must request to add the SERP within 60 days after the end of the policy period D.) The SERP must be purchased at the beginning of the policy period
D.) The SERP must be purchased at the beginning of the policy period
Under the Earthquake and Volcanic Eruption Endorsement attached to the commercial property coverage part, which of the following statements is correct? A.) The endorsement's deductibles apply to business income and extra expense coverages B.) The endorsement insures against the peril of mudslide C.) The endorsement includes coverage for earthquakes that start within 168 hours after the expiration of the policy D.) The endorsement's deductibles apply separately for each building, personal property in each building, and personal property in the open
D.) The endorsement's deductibles apply separately for each building, personal property in each building, and personal property in the open
Coverage B - Personal and Advertising Injury Liability of a Commercial General Liability policy would cover which of the following claims? A.) A new business misappropriates the insured's business slogan in its advertisement B.) A competitor illegally uses the insured's copyrighted material C.) A customer falls on the insured's premises and breaks their leg D.) The insured was accused of causing a customer to be falsely arrested
D.) The insured was accused of causing a customer to be falsely arrested
Under bodily injury and property damage liability coverage of a Commercial General Liability policy, which of the following is NOT excluded? A.)Damage to the insured's work B.) Damage to the insured's product C.) Damage to impaired property D.)Host Liquor Liability
D.)Host Liquor Liability
