Commercial
Under the Building and Personal Property Coverage Form, what is the limit available under Fire Department Service charge? A- $1,000 B- $500 C- $250 D- $2,500
A- $1,000 (KNOW THAT)
What is the limit of coverage for business personal property away from the premises under the Building and Personal Property Coverage Form? A- $10,000 B- $1,000 C- $5,000 D- $25,000
A- $10,000
Under the Commercial Crime Coverage Part to the Commercial Package Policy, by definition, a person remains an "employee" for a period of how many days after termination of service? A- 30 days B- 60 days C- 90 days D- 180 days
A- 30 days
In the Business Income Coverage Form, the period of Restoration begins after how much time after the loss? A- 72 hours B- 90 hours C- 3 weeks D- Immediately
A- 72 hours
Which of the following agreements might be covered by contractual liability? A- An agreement to indemnify an architect for failure to render professional services B- A written hold harmless agreement C- An agreement to indemnify the owner of the property the insured rents for fire damage D- An agreement under which the insured assumes tort liability for damages after an injury has occurred
A- An agreement to indemnify an architect for failure to render professional services
The Condominium Association Coverage Form is used in place of which coverage form when insuring a condo building insured by the association? A- Building and Personal Property Coverage Form B- Homeowners Policy C- Dwelling Policy D- Condominium Commercial Unit-owners Coverage Form
A- Building and Personal Property Coverage Form
In Crime Insurance, for which term must visible signs of forcible entry or exit be present? A- Burglary B- Robbery C- Theft D- Mysterious Disappearance
A- Burglary
Which form is not included in the Commercial Crime Coverage Part to the commercial package policy? A- Commercial Crime Declarations B- Commercial Crime General Provisions C- Commercial Crime Cause of Loss. D- Commercial Crime Coverage Form
A- Commercial Crime Declarations
Which of the following legal liability exposures is covered if a business employs an independent contractor? A- Contingent liability/independent Contractors coverage B- Completed operations C- Premises and Operations D- Products
A- Contingent liability/independent Contractors coverage
Each of the following is true of a discovery crime coverage form, except: A- Covers a loss that did not necessarily occur during the policy period B- Covers a loss that was discovered during the policy period C- Might require the use of a Retroactive Date D- Covers a loss that was discovered within one year of the termination of the policy period
A- Covers a loss that did not necessarily occur during the policy period
Coverage B - Personal and Advertising injury would exclude all of the following, except: A- False arrest, detention, or imprisonment B- Breach of contract C- Damage that arises out of wrong description of goods, products, or services D- The oral or written publication of material by the insured, or at the insured's direction, when knowing the material is false
A- False arrest, detention, or imprisonment
Products and Completed Operations coverage does not provide coverage for: I. Property damage to the named insured's products arising out of the use of such products or any per thereof. II. Bodily Injury or Property Damage caused an occurrence if included within the Completed Operation hazard A- I only B- II only C- Both D- Neither
A- I only
Which of the following is not true about the 60-day basic extended reporting period (BERP), Mini Tail? A- It becomes effective automatically if needed when a claims-made policy expires without renewal. B- The insured must request in writing within 60 days after the policy expires C- It does not require an additional premium D- No separate endorsement is required to provide this expended reporting period
A- It becomes effective automatically if needed when a claims-made policy expires without renewal.
Which is correct about the Supplemental Extended Reporting Period (SERP) endorsement? A- It is purchased within Mini Tail period B- It is provided for no additional premium cost C- It provides a limited extension of the reporting period D- It provides coverage for occurrences occurring prior to the retroactive date
A- It is purchased within Mini Tail period
All of the following are excluded under Advertising Injury liability, except: A- Misusing others' advertising ideas or business style B- Wrongful description of the price of goods or its quality C- Breach of contract D- An offense by an insured whose business is advertising, broadcasting, publishing or telecasting
A- Misusing others' advertising ideas or business style
Mr. Smith, owner of the Alex Manufacturing company, is insured by a CGL policy. A customer suffers an injury as the result of the product manufactured by Smiths company. If the customer files suit, would Mr. Smith have protection under his policy? A- No, this type of loss is excluded B- Yes, this type of loss is covered C- No, his policy is not this type of liability insurance D- Yes, but no expense can be paid for property damage
A- No, this type of loss is excluded (products is added by endorsement)
In a commercial General Liability policy, which liability exposure has its own aggregate liability limit that is separate from the general aggregate liability limit for the rest of the policy? A- Products - completed operations B- Premises and operations C- Contractual liability D- Contingent liability
A- Products - completed operations
Nick Gillette insures a warehouse under a Building and Personal Property Coverage Form and a Basic Cause of Loss Form. Which of the following losses would be covered? A- Smoke from a nearby factory fire damages his warehouse B- A pipe freezes causing water damage. C- The weight of snow causes his building to collapse D- His truck is stolen from inside his warehouse
A- Smoke from a nearby factory fire damages his warehouse
Which of the following extended reporting periods, or tail coverage requires payment of premium? A- Supplemental Extended Reporting Period (SERP) B- Freedom tail C- Mini tail D- Midi tail
A- Supplemental Extended Reporting Period (SERP)
Which of the following is correct about Medical Payments under a CGL policy? A- The insurer will pay for medical expenses, due to the bodily injury, caused by an accident on the insured's premises or because of the insured's operations B- Coverage is provided for employees C- Coverage is provided for an insured D- Coverage is provided for the insured's tenants
A- The insurer will pay for medical expenses, due to the bodily injury, caused by an accident on the insured's premises or because of the insured's operations
Which of the following is a "Trigger" for the Occurrence CGL Form? A- The occurrence takes place during the policy period B- The notice of the occurrence takes place during the policy period C- Neither A or B D- Both A and B
A- The occurrence takes place during the policy period
Which term describes any act of stealing? A- Theft B- Burglary C- Robbery D- Extortion
A- Theft
Which of the following is not a CGL common policy condition? A- Transfer of the insured's rights and duties in this policy B- Other insurance C- Cancellation D- Inspections and surveys
A- Transfer of the insured's rights and duties in this policy
Which of the following is included in the CGL coverage territory? A- United States, its territories ad possessions, Puerto Rico and Canada B- United States, it's territories and possessions and Puerto Rico C- United States only D- United States, Canada and Mexico
A- United States, its territories ad possessions, Puerto Rico and Canada
The building and Personal Property Coverage Form, Extensions of Coverage, what is the limit for newly acquired or constructed buildings? A- $100,000 B- $250,000 C- $500,000 D- None of the above
B- $250,000
Under the Loss Sustained Form, coverage is provided for losses that took place during the policy period, but are discovered within which of the following? A- 60 days B- 1 year C- 30 days D- 5 years
B- 1 year
Under a Commercial General Liability policy, the aggregate limit is how many times the occurrence limit? A- The same B- 2 times the occurrence limit C- 3 times the occurrence limit D- Half the occurrence limit
B- 2 times the occurrence limit
Who of the following would NOT be considered a custodian while having care and custody of company property inside the premises? A- A company vice president B- A janitor C- A store clerk D- A partner
B- A janitor
All of the following are "insured contracts" as defined in a commercial general liability policy, except: A- An elevator maintenance agreement B- A professional services agreement C- A sidetrack agreement D- A lease agreement
B- A professional services agreement
Claims-made general liability coverage does not apply to bodily injury or property damage that occurs when? A- On the policy's retroactive date B- Before the policy's retroactive date C- After the policy's retroactive date D- Before the effective date, if there is no retroactive date
B- Before the policy's retroactive date
To complete the Building and Personal Property Coverage Form, the insure must choose of the following Cause of loss Forms, Except: A- Basic Cause of Loss B- Earthquake Cause of Loss C- Special Cause of Loss D- Broad Cause of Loss
B- Earthquake Cause of Loss
Under the commercial general liability claims-made coverage form, the supplemental extended reporting period (SERP) A- Extends the policy period B- Extends the reporting period by 60 days C- Must be attached to every expiring policy D- Provides full tail coverage of unlimited duration.
B- Extends the reporting period by 60 days
A newspaper is interested in protecting against additional costs of continuing to print the newspaper in the event its buildings were destroyed. Which of the following coverage's should the newspaper purchase? A- Open Perils (All Risk) B- Extra Expense C- Loss of Rents D- Contingent Gross Earnings
B- Extra Expense
Which of the following statements properly defines the term "Supplementary Payments"? I. Payments made as a result of the insured being disabled in an accident II. Payments made in addition to the applicable limits of liability stated in the policy A- I only B- II only C- Both D- Neither
B- II only
Lease agreement, sidetrack agreement, elevator maintenance agreement is part of what CGL definition? A- Named insured B- Insured Contract C- We, Us and Our D- Product Contract
B- Insured Contract
The most the insurer will pay during the policy period for medical expenses under Coverage, A, B and C is which of the following limits of liability? A- Personal and Advertising Injury Limit B- Medical Expense Limit C- General Aggregate Limit D- Per Occurrence Limit
B- Medical Expense Limit
The loss of property when the cause of loss is not known describes which of the following? A- Robbery B- Mysterious Disappearance C- Theft D- All of the above
B- Mysterious Disappearance
The Commercial Crime Coverage Part defines which of the following as a custodian? A- Night watch person B- Office manager C- Messenger D- Janitor
B- Office manager
A plumber, working on a building causes damage to the pipes of a shopping mall. The mall was forced to close early. Which of the following of the plumber's CGL policy would provide coverage? A- Completed operations B- Operations Liability C- Bodily Injury Liability D- Products liability
B- Operations Liability
Which of the following legal liability exposures is covered if the employee of a business causes bodily injury to another person while working at the insured's business location? A- Products B- Premises and Operations C- Completed operations D- Contingent liability
B- Premises and Operations
A woman is injured when she breaks a tooth on a rock that mysteriously found its way into a box of cereal. This is an example of which of the following? A- Premises and operations exposure B- Products- completed operations exposure C- Contingent liability exposure D- Contractual liability exposure
B- Products- completed operations exposure
Extra Expense insurance covers which of the following? A- The additional cost of maintaining a fire alarm. B- The additional cost of continuing a business after a loss C- The extra money to cover the loss of business income due to the fire D- The extra money to cover the landlord for their loss of rents.
B- The additional cost of continuing a business after a loss
The Inside the Premises: Theft of Money and Securities insuring agreement covers each of the following types of loss, except: A- Theft of money inside the insured's premises committed by a person present on the premises B- Theft of money and securities by an accountant C- Damage to the insured's premises or its exterior caused by a theft or attempted theft D- Damage to a locked safe, vault, cash register, box, or draw caused by a theft or attempted theft
B- Theft of money and securities by an accountant
Under the Cause of Loss Forms, Additional Coverage, limited Coverage for Fungus, Wet Rot, Dry Rot and bacteria is provided up to what limit? A- $10,000 aggregate for 12 months B- $5,000 aggregate for 12 months C- $15,000 aggregate for 12 months D- $2,500 aggregate for 12 months
C- $15,000 aggregate for 12 months
A commercial building is vacant beyond 60 consecutive days and incurs a covered loss. The loss is not excluded under the vacancy provision. The company will reduce their payment by which of the following? A- 10% B- 5% C- 15% D- 20%
C- 15% (ON FINAL)
If the insurer decides to non-renew a CGL policy, the First Named Insured is to be notified, in writing, how many days before the expiration date? A- 10 days B- 30 days C- 60 days D- 15 days
C- 60 days
Theft generally means which of the following? A- Employee dishonesty only B- Any act of stealing other than burglary or robbery C- Any act of stealing D- Employee dishonesty only
C- Any act of stealing
All of the following are CGL, Coverage A, exclusions, except: A- Intended or expected injury B- Workers Compensation C- Bodily injury and/or property damage D- Liquor liability for businesses in the liquor business
C- Bodily injury and/or property damage
Contractual liability coverage agrees to pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of: I. Bodily Injury or Property damage, to which the insurance applies, caused by an occurrence by reason of contractual liability II Bodily Injury or Property Damage caused by an accident, by reason of contractual liability assumed by the injured party under a contract formulated solely by the insured A- I only B- II only C- Both D- Neither
C- Both
In a Claims Made CGL policy, a loss is triggered if: A- A loss takes place after the retroactive date B- The loss is reported during the policy period C- Both A &B D- A only
C- Both A &B
Robbery means taking property from the care and custody or a person by one who has: A- Committed an obviously unlawful act witnessed by that person B- Caused or threatened to cause that person bodily harm C- Both the above D- Neither the above
C- Both the above
An individual who desires protection against loss of earnings of his business due to a loss at their premises which forced them to close for 3 months would purchase: A - Extra Expenses insurance B- Business Income from Dependent Properties C- Business Income Coverage D- General Liability coverage
C- Business Income Coverage
Which of the following is a personal and advertising injury? A- Broken leg B- Death C- Calling a client, a cheat and a fraud D- Dog bite
C- Calling a client, a cheat and a fraud
What is required if the insured adds Extortion to the Commercial Crime Form and wants coverage for a kidnapping? A- Agree to a personal background check when requested by the underwriter B- Immediately contact a newspaper or TV for help in identifying the kidnapper C- Contact a law enforcement agency. D- Name the persons to be covered by the endorsement
C- Contact a law enforcement agency.
All of the following are exclusions in Coverage A of the CGL policy, except: A- Liability arsing out of discharge, release or escape of pollutants B- Statutory liability for liquor manufacture, distribution or sale C- Damage to property the insured owns, rents, occupies or is in the insured's care, custody or control. D- Non-owned autos being parked on or next to the insured's property
C- Damage to property the insured owns, rents, occupies or is in the insured's care, custody or control.
The claims-made CGL includes six sections, while the Occurrence CGL includes five sections. What is contained in the extra section in the Claims-Made form? A- Contains the retroactive date B- Includes definitions C- Includes the extended reporting periods D- Contains exclusions
C- Includes the extended reporting periods
Which of the following forms covers loss of precious gems caused by the robbery of a custodian inside the insured premises? A- Inside premises theft of money and securities form B- Forgery or alteration C- Inside premises robbery and safe burglary of other property D- Employee theft or dishonesty
C- Inside premises robbery and safe burglary of other property
A building and Personal Property Coverage Form automatically provides for which of the following extensions of coverage? A- Outdoor Signs B- Replacement Cost C- Newly Acquired Property. D- Rental Value
C- Newly Acquired Property.
Which of the following is an excluded peril under a Business owners Policy? A- Lightning B- Civil commotion C- Nuclear contamination D- Smoke
C- Nuclear contamination
A continuous repeated exposure to conditions, which result in Bodily Injury or Property Damage neither expected nor intended from the insureds perspective, best defines a/an: A- Hazard B- Accident C- Occurrence D- Peril
C- Occurrence
Which CGL form provides coverage for a loss that takes place during the policy period and is not required to be reported within a certain time period. A- Claims-Made Form B- Special Coverage Form C- Occurrence Form D- Supplemental Coverage Form
C- Occurrence Form
Which loss would NOT be covered under Crime Insurance that provides robbery coverage? A- Property taken when a custodian is threatened with violence B- Property taken in the presence of an employee who witnesses the theft C- Property taken by an unknown shoplifter during a peak rush hour D- A "snatch and run" theft witnessed by a sales clerk
C- Property taken by an unknown shoplifter during a peak rush hour
What is the taking of property from the care of a person by threatening bodily harm? A- Burglary B- Attempted theft C- Robbery D- Mysterious Disappearance
C- Robbery
Under the Property section of a Building and Personal Property Coverage Form, which of the following forms, if any, would cover loss to merchandise caused by Burglary? A- Broad and Special Forms B- Broad form only C- Special Form only D- None
C- Special Form only
Any person the insured retains exclusively for the purpose of having care and custody of property inside the premises and who has no other duties is a: A- Messenger B- Custodian C- Watch person D- Janitor
C- Watch person
The XYZ Corporation carries $200,000 insurance on a storage building held under a $100,000 mortgage acknowledged in the policy. XYZ stores dynamite in the building without informing the insurance company. There is an explosion and the building is destroyed. Which of the following amounts is the maximum that the mortgagee can recover? A- $0 B- $200,000 C- $50,000 D- $100,000
D- $100,000
In the claims-made commercial general liability coverage form, how many days are provided for notice of occurrence that occurred during the policy period? A- 90 days B- 120 days C- 60 days D- 30 days
D- 30 days
Under the Building and Personal property coverage Form, what is the limit for Preservation of Property? A- 5 days B- 15 days C- 10 days D- 30 days
D- 30 days
An insured must file a proof of loss within how many days after a loss? A- 90 days B- 10 days C- 120 days D- 60 days
D- 60 days
Which of the following is true as it relates to the "Vacancy Provision" in Commercial Property? A- A building is considered vacant if 25% of the sq. footage is not in use B - A building is considered vacant if 31% of the sq. footage is not in use C- A building is considered vacant if 50% of the sq. footage is not in use D- A building is considered vacant if 75% of the sq. footage is not in use
D- A building is considered vacant if 75% of the sq. footage is not in use
All of the following contracts are "insured contracts" under a CGL Coverage Form, except: A- A sidetrack agreement B- A lease of premises C- An elevator maintenance agreement D- A construction contact
D- A construction contact
Based upon designation on the declarations with respect to the conduct of the insured business, which of the following is an insured under a CGL policy? A- An individual and his or her spouse B- A partnership or joint venture C- Any other person or organization having temporary custody of the insured's property if the insured dies D- All of the above
D- All of the above
Which of the following are excluded under a Coverage A of the CGL? A- Pollution losses caused by the insured B- Damage the insured causes intentionally C- Liquor liability for those in the business of serving liquor D- All of the above
D- All of the above
The Employee Dishonesty Form A provides coverage for which of the following? A- Money B- Securities C- Property other than money and securities D- All the above
D- All the above
Under the Extortion Coverage Form G, loss is excluded if property is surrendered before a reasonable effort has been made to notify which of the following? A- Local law enforcement authorities B- An associate C- The FBI D- All the above
D- All the above
What type of property is protected under Computer Fraud coverage? A- Money B- Securities C- Other property D- All the above
D- All the above
The products/completed operations hazard of the CGL policy would provide which of the following? A- Replacement of a defective product B- Recall of a defective product C- Contractual liability assumed by the insured D- Bodily Injury caused by a defect in the product
D- Bodily Injury caused by a defect in the product
The damage to Premises Rented to the insured (Fire Damage Legal) limit subject to which of the following? A- The Per Occurrence limit B- The Products-Completed Operations Aggregate limit C- The General Aggregate limit D- Both A & C
D- Both A & C
Which of the following defines Safe Burglary? A- The taking of property from within a locked safe or vault by a person unlawfully entering the safe or vault with visible marks of forcible entry on its exterior. B- The taking of property from within a locked safe or vault by a person unlawfully entering the safe or vault with visible marks or forcible entry on its interior C- Taking a safe or vault from inside the premises D- Both A & C
D- Both A & C
For a claim to be considered a Products Claim, which of the following is required? A- The product must be relinquished to others B- The product must leave the insured's premises C- Neither A or B D- Both A and B
D- Both A and B
Which of the following is not covered under personal injury liability? A- Wrongful eviction B- Malicious prosecution C- Libel D- Breach of Contract
D- Breach of Contract
All of the following are covered under Personal and Advertising Injury, except: A- Libel and slander B- Invasion or privacy C- False Arrest, detention or imprisonment D- Breach of contract
D- Breach of contract
Which of the following is covered under a CGL Policy? A- Bodily Injury to an employee during the working hours B- Damage to the insured's building as a result of the customer's negligence C- Damage to the insured's property as a result of a Peril D- Contractual liability
D- Contractual liability
Each of the following is true of a Discovery crime coverage form, except: A- Covers a loss that was discovered within 1 year of the termination of the policy period B- Covers a loss that was discovered during the policy period C- Might require the use of a Retroactive Date D- Covers a loss that did not necessarily occur during the policy period
D- Covers a loss that did not necessarily occur during the policy period
Which is the most significant difference between the CGL "Occurrence" and "Claims Made" forms A- One includes medical payment, one does not B- The insuring agreements for Coverage A, B and C are different C- Only the "Occurrence" form has aggregate limits D- Each has a different "trigger" for the insurance provided by Coverage A & B
D- Each has a different "trigger" for the insurance provided by Coverage A & B
The Basic Cause of Loss Form includes all of the following perils, EXCEPT: A- Sprinkler leakage B- Windstorm C- Riot D- Falling Objects
D- Falling Objects
Which of the following best describes the maximum limit the insurer will pay for Coverages A, B and C during the policy period? A- Per Occurance limit B- Fire Damage legal C- Products-Completed Operations Aggregate D- General Aggregate
D- General Aggregate
Which of the following types of property would be included under Coverage A of a Building and Personal Property Coverage Form? I. A Central air-conditioning system II. Wall-to-wall carpeting III. A permanently installed intercom system A- II only B- I and III only C- II and III only D- I, II, and III
D- I, II, and III
A firm covered by Business Income insurance suffers interruption due to a fire. The policy will cover losses until the: A- Production returns to the same level as before the fire B- Sales returns to the same level as before the fire C- Profits are restored tot the same level as before the fire. D- Insured property is restored to its condition before the fire
D- Insured property is restored to its condition before the fire
Which of the following is not considered a theft loss? A- Burglary B- Attempted theft C- Robbery D- Mysterious disappearance
D- Mysterious disappearance
In Commercial Crime Forms, any additional premises obtained through a consolidation or merger: A- Are automatically covered until the end of the policy period B- Are only covered if the insured provides immediate notification to the insurer C- Are automatically covered for 30/90 days D- None of the above
D- None of the above
Coverage for defense costs is included in which of the following? A- Computer Fraud Coverage B- Forgery or Alteration coverage C- All the Crime coverage's D- None of the crime coverage's
D- None of the crime coverage's
The interior of that portion of any building occupied by the insured for the insured's operation defines which of the following terms? A- Territory B- Robbery C- Structure D- Premises
D- Premises
All of the following reduce the CGL's General Aggregate Limit except which of the following? A- Medical Payments sub limit B- Personal and Advertising Injury limit C- Fire Damage limit D- Products - Completed Operations limit
D- Products - Completed Operations limit (separate from the other general limits added by endorsement)
Which of the following would not be covered under a CGL policy? A- Medical expenses B- Bodily Injury and property damage C- Personal injury and advertising injury D- Professional liability
D- Professional liability
Which of the following would be a basic requirement for a Commercial Package Policy? A- Property, Liability and Comprehensive Crime B- Property, Liability and Boiler & Machinery C- Property, Liability, Comprehensive Crime and Boiler & Machinery D- Property and Liability only
D- Property and Liability only
A date specified in the declarations of a claims-made liability coverage form and after which an occurrence must take place to be covered: A- Recovery date B- Retrospective date C- Reinsurance date D- Retroactive date
D- Retroactive date
In the Basic Cause of Loss Form, which peril is not covered? A- Volcanic action B- Sinkhole collapse C- Hail D- Water damage caused by accidental discharge.
D- Water damage caused by accidental discharge.
