Chapter 12 Misc Commercial Policies

Medical expenses of the Farm Liability Coverage Form provide coverage if the accident is reported within: A 1 year B 4 years C 3 years D 2 years

3 The time limit to submit expenses under the Farm Liability Coverage Form for medical expenses is 3 years.

Which of the following is correct about aircraft liability insurance? A The limit of coverage is written as a split limit B Coverage is written on a per person basis C Collision insurance is available for ground and mid-flight collisions D A passenger may be covered by a sublimit

A passenger may be covered by a sublimit Aircraft liability coverage is written as a combined single limit of coverage and applies per occurrence. Policyholders may also purchase a sublimit of coverage that limits loss payments to a single person or passenger.

Which of the following is not covered under Equipment Breakdown Coverage? A Spoilage damage B Business income C Expediting expenses D Breakdown test

Breakdown test Coverages under the Equipment Breakdown Coverage form include property damage, expediting expenses, business income, spoilage, newly acquired premises, ordinance or law, errors and omissions, and brands and labels.

Which of the following is not covered under the Installation Floater? A Carpeting B Elevators C Electrical equipment D Construction equipment

Construction equipment Construction equipment is covered under the Equipment Dealers Floater.

The Farm Liability Coverage Form provides all of the following coverages, except: A Bodily injury B Contractual liability C Advertising injury D Property damage

Contractual

A bond that protects an employer against loss caused by the employee's dishonesty is called a: A Performance bond B License bond C Lender's bond D Fidelity bond

Fidelity bonds cover the dishonesty of employees.

In bonding, the surety is also known as the: A Guarantor B Principal C Obligee D Obligor

Guarantor The party that guarantees fulfillment of the obligation is the surety or guarantor.

Which of the following provisions in an Ocean Marine policy covers direct damage caused by bursting of boilers?

Inchmaree Clause The Inchmaree also covers direct damage caused by breaking of propeller shafts, or loss due to faults or errors in navigation by the crew, and it broadens the hull coverage.

The Mobile Agricultural Machinery and Equipment Coverage Form includes coverage for all of the following, except: A Farm tractors B Irrigation equipment C Cotton pickers D Hay balers

Irrigation equipment is excluded from coverage under the Mobile Agricultural Machinery & Equipment Form.

All of the following are true of Protection and Indemnity, except: A It covers damage to fixed objects B It does not cover injuries to seamen C It covers injuries caused by negligence D It covers cargo if lost or damaged through negligence

It does not cover injuries to seamen Protection and Indemnity covers injuries to sailors, as well as the other items.

Which of the following perils is not covered by Crop/Hail insurance? A Drought B Fire C Pollution D Lightning

Pollution Other perils that may be included in addition to hail are wind, freezing, insects and disease.

All of the following are true regarding Ocean Marine Insurance, except: A Rates for ocean marine insurance are strictly regulated B Breach of certain implied warranties may cause the contract to become void C There is no standard Ocean Marine Form D Cargo coverage is generally written on an open perils basis

Rates for ocean marine insurance are strictly regulated Ocean Marine coverage is generally unregulated with respect to both forms and rates.

Which of the following is not covered under the Valuable Papers and Records Floater? A Securities B Blueprints C Maps D Mortgages

Securities Money and securities are not covered under the Valuable Papers and Records Floater.

Which of the following is true about specialty or professional liability insurance? A They are written on non-standard forms B They protect businesses with few liability exposures C Volunteer workers are excluded from coverage D They provide excess coverage over the CGL policy

They are written on non-standard forms Specialty liability insurance is available for businesses with a higher than average exposure for being legally liable for a loss. These policies are written on non-standard forms with unique policy provisions and conditions. Executive officers and directors, stockholders and trustees, and volunteer workers and employees are included as insureds named in the declarations.