Property and Casualty Insurance Quiz Ch 12

In the commercial articles coverage form, additional acquired property is automatically covered if it is a type of property already covered by the form for up to A. 30 days B. 45 days C. 60 days D. 90 days

A. 30 days

Which of the following is NOT a category that represents eligible risks for commercial inland marine insurance? A. Exports B. Domestic shipments C. Instrumentalities of transportation or communication D. Commercial floater risk

A. Exports

Which of the following is covered in the equipment dealers coverage form? A. Automobiles B. Construction equipment C. Motorcycles D. Furniture

B. Construction equipment

A loss is covered under a commercial inland marine form and another policy. Both policies are written on the same basis. The commercial inland marine form will A. not pay anything on the loss B. pay on a pro rata basis C. pay on an excess basis D. pay 50% of a pro rata basis and 50% of an excess basis

B. pay on a pro rata basis

A bailee's customer policy covers A. only the bailee's legal liability for damage to customers' property B. the customer for loss to customers property, regardless of liability C. the bailor for damage to property left in the custody of another D. the bailor for damage to the property when it leaves the bailor's custody

B. the customer for loss to customers property, regardless of liability

If the insurance company requests a proof of loss on a commercial inland marine claim, the insured must submit it within A. 10 days B. 30 days C. 60 days D. 90 days

C. 60 days

Which of the following policies became known as a "floater" since the property to which coverage was originally extended was literally "floating"? A. Marine insurance B. Ocean marine insurance C. Inland marine insurance D. Floater insurance

C. Inland marine insurance

Which of the following is NOT an example of a category of risk in commercial inland marine insurance? A. Domestic shipments B. Instrumentalities C. Personal inland marine insurance D. Commercial floater risks

C. Personal inland marine insurance

All of the following are examples of instrumentalities of communication EXCEPT A. bridges B. tunnels C. cell phone towers D. bailment

D. bailment

Domestic shipments inland marine transportation forms cover shipments traveling by all of the following EXCEPT A. mail B. train C. air D. car

D. car

What is the inland marine transportation form that protects all of the insured's incoming or outgoing shipments during the year against loss while in transit? A. Annual transit policy B. Trip transit policy C. Motor truck cargo policy D. Motor truck cargo-shipper's policy

A. Annual transit policy

Which inland marine transportation form protects the truck carrier for liability arising out of the transportation of cargo? A. Annual transit policy B. Trip transit policy C. Motor truck cargo policy D. Motor truck cargo-shipper's policy

C. Motor truck cargo policy

Which of the following is NOT covered in the jewelers block coverage form? A. Stock in trade B. Property sold but not delivered C. Property worn by the insured D. Precious metals and alloys

C. Property worn by the insured

The insured's accounting records are destroyed in a fire. Which of the following losses would NOT be covered under the insured's accounts receivables coverage form? A. Bill payments the insured cannot collect from customers because of damage to the records B. Interest on a short-term loan the insured obtains to stay in business while collections are impaired C. Fees charged by the collection agency the insured hired to collect payments D. A loss that required an audit of records to prove its existence

D. A loss that required an audit of records to prove its existence

Which of the following commercial inland marine coverage forms CANNOT be included in the commercial package policy? A. Film B. Physician's and surgeon's equipment C. Accounts receivable D. Bailee's customer

D. Bailee's customer

An inland marine coverage that insures against loss to machinery, equipment, building materials, and supplies in transit to or being used with or during the course of installation, testing, building, renovating, or repair is also known as A. an installation policy B. contract equipment floater C. bailee's customer policy D. electronic data processing equipment floater

A. an installation policy

The bailee policy pays A. the customer B. the business C. the insured D. the insurer

A. the customer

Which of these losses would NOT be covered under the signs coverage form? A. The electric sign above the insured's business is destroyed in a thunderstorm. B. The insured's neon sign is damaged when vandals throw rocks at it. C. During installation, several tubes in the insured's fluorescent sign are damaged. D. A sign attached to a building is damaged when a tree falls during a thunderstorm.

C. During installation, several tubes in the insured's fluorescent sign are damaged.

Sally left her fur coat at a dry cleaner to have it cleaned and returned to her. This in example of bailment. In this example, which of the following is the bailee? A. The fur coat B. Sally C. The dry cleaner D. The insurance company

C. The dry cleaner

Which of the following statements about commercial inland marine insurance coverages NOT correct? A. They are usually written open peril instead of named peril. B. They usually do not require the property to be at a specific location when a loss occurs. C. They are never included in a commercial package policy. D. They are often called floaters because the insurance moves with the property as it moves.

C. They are never included in a commercial package policy.