P and c continued
An employee of a service station failed to tighten the oil filter. The leaking oil ruined the engine, causing $700 damage. Section II of a Garage Coverage Form will pay:
$700 less the $100 mandatory deductible
Which Business Auto Symbol provides the broadest coverage?
1
All of the following are true, except:
A Products and Completed Operations Liability claim will reduce the General Aggregate Limit of the Commercial General Liability Coverage Part
Choose the false statement about the CGL policy.
A Products and Completed Operations Liability claim will reduce the General Aggregate Limit of the Commercial General Liability Coverage Part
A Trucker Coverage Form may be used for all of the following, except:
A borrowed tractor used for non-trucking purposes
All of the following are true of the Claims-Made Form, except:
A claim occurring less than 60 days prior to the retroactive date would be covered
Which coverage is not available under the Garage Coverage Form?
Advertising liability
Which statement is false regarding Supplementary Payments under the Commercial General Liability Coverage Forms?
Any payments made under this section will reduce the limits of the policy
Nonowned Autos under the Business Auto Coverage Form include:
Auto's owned by the insured's employees or members of their households, but only while being used in the insured's business or personal affairs
In the Garage Coverage Form, covered autos of dealers are usually written on a ___________ basis.
Blanket
Choose the peril that is not covered under Personal Injury Coverage.
Bodily Injury sustained during an eviction
Which of the following is included under Coverage C medical expense of the Commercial General Liability policy?
Bodily injury of any customer
The Garage Coverage Form may be written for all of the following firms, except a:
Car rental agency
Which of the following is not covered in the Limited Pollution Liability coverage and Pollution Extension endorsement.
Clean up costs
All of the following are true to the Business Auto Coverage Form, except:
Collision coverage includes damage to an insured vehicle that collided with a bird or animal
Choose the false statement about the Business Auto Coverage Form.
Collision coverage includes damage to an insured vehicle that collided with a bird or animal
All of the following are basic sections provided in the Garage Coverage Form, except:
Comprehensive Insurance
Which of the following is included in Section I of an Occurrence Form?
Coverage A - bodily injury and property damage
All of the following are true of medical payments under the Commercial General Liability Coverage Forms, except:
Coverage applies to the insured's injuries
All of the following are true of the Business Auto Coverage Form, except:
Covers injuries to employees
Which of the following claims is excluded under the Business Auto Policy?
Damage to property in the insured's care, custody, or control
Section II (Liability) of the Garage Coverage Form does not cover:
Damage to the customer's car in the insured's care
Which of the following is not covered under Section II - Liability of the Garage Coverage Form?
Damage to the customer's car in the insured's care
Which is the broadest basis for the Garagekeepers Coverage?
Direct primary basis
Which of the following would be considered Personal Injury?
False arrest
Specified Causes of Loss under Physical Damage Coverage of the Business Auto Coverage Form does not include ___________.
Glass breakage
For which of the following persons is the Drive Other Car endorsement intended?
Individuals who do not own an auto
Under bodily injury and property damage liability of the Commercial General Liability Coverage Part of the CPP, all of the following are excluded from coverage, except:
Operation of mobile equipment
Which of the following is provided by Coverage B of the CGL?
Personal Injury
Garagekeepers Coverage of the Garage Coverage Form covers:
Physical damage to a customer's car that is in the care and custody of an insured
Section II of the Garage Coverage Form covers:
Physical damage to a customer's car that is in the care and custody of an insured
Choose the false statement regarding commercial auto coverage.
The Garage Coverage Form - Section II does not include completed operations
All of the following are true, except:
The Pollution Extension Endorsement includes both sudden and non-sudden pollution events and includes clean up costs
Which of the following is true regarding the Medical Payments Coverage of the Business Auto Coverage Form?
The form does not automatically include Medical Payments Coverage
All of the following are true of the supplemental extended reporting period associated with the claims made form of the Commercial General Liability Coverage Part, except:
The insurer may cancel it after the premium has been paid by the insured
Which of the following would not reduce the General Aggregate Limit under a Commercial General Liability Coverage Form?
The insurer pays a claimant injured by a product made by the insured
All of the following are true of the Occurrence Form, except:
The length of the retroactive date will depend upon the insurer
All of the following are true, except:
The supplemental tail must be purchased at the beginning of the policy period
All of the following are true, except:
The supplemental tail requires an annual premium to be paid in advance
Which of the following is correct?
There would be no coverage under the Commercial General Liability Coverage Forms for an insured that is a subsidiary company not listed in the Declarations
A business firm may need to purchase a Commercial General Liability Insurance, if and when they have premise and operations exposures, because:
They could be held legally liable in the event of bodily injury and/or property damage arising out of conditions on or away from the premises (job site or vacant land)
Which of the following is needed because the insured owns a trucking company and often hires independent truckers who may have an accident and hold the insured liable?
Trailer Interchange Coverage
A firm that transports goods of others, rather than its own goods, should purchase a:
Trucker's Coverage Form
All of the following are true, except:
Under Section II (Who is an Insured) of the Commercial General Liability Coverage Forms, newly acquired organizations are automatically included for a maximum of 30 days or until expiration of the policy, whichever comes first
The limit of insurance that the insurer will pay for a physical damage loss is determined by which of the following?
Lesser of ACV or cost to repair or replace
All of the following are true, except:
Products and completed operations coverage under the Commercial General Liability Coverage Forms will cover damage to the insured's products
In explaining the CGL Premium Audit to his policyholder, the agent would make which of the following statements?
The advance premium is only a premium deposit, and the earned premium will be based on an audit at the end of the policy period
Which of the following is true regarding Completed Operations Coverage?
The coverage will pay for bodily injury and/or property damage caused by negligent or faulty work by the insured, but will not pay for the cost of replacing the work that caused the loss
Which of the following is not covered by Advertising Injury Coverage?
Wrongful entry
Bob had a Business Auto Coverage Form with liability limits of 100/300/50. In an accident for which Bob was liable, there were BI claims in the amounts of $80,000; $105,000; $115,000; and PD claims of $20,000 and $35,000. How much will his policy pay?
$280,000 BI and $50,000 PD
An insured had one claim for $35,000 in damages and another for $25,000. The insured's Commercial Package Policy has a Products and Completed Operations Aggregate Limit of $100,000 with a $20,000 limit per occurrence. How much of the aggregate remains for all other claims in the policy period?
$60,000
Medical payments coverage under the Commercial General Liability Coverage Forms includes reasonable medical expenses if they are incurred and reported within a maximum of _____ years from an accident.
1
Which of the following is not covered by a Business Auto Policy covering the named insured's small business?
A fellow employee injured while driving a covered auto
All of the following are eligible for a Business Auto Coverage Form, except:
A forklift used in the business
All of the following are included under Section II (Who is an Insured) of the Commercial General Liability Coverage Forms that is written on an occurrence basis, except:
A partner of an insured partnership while on personal business
At what point in time is the earned premium used to compute the final premium determined for the premium audit?
At the end of the policy period
What coverage form is designed for an individual who uses a pickup truck to transport his own tools and equipment to a job site?
Business Auto
An individual who uses a truck type vehicle to carry his own cargo would receive auto coverage under which of the following coverage forms:
Business Auto Coverage Form
Which of the following coverage forms covers those that sell liquor by the drink?
Dram Shop Liability Coverage
All of the following are true, except:
Dram Shop Liability protects against legal liability that may be imposed on a seller of a packaged liquor store
All of the following are true of the Commercial General Liability Conditions (Section IV) under the Claims-Made Form, except:
Insolvency of the insured relieves the insurer of any obligations under the policy
Which 1980 regulation deregulated the trucking industry?
Motor Carrier Act
Which of the following forms responds to losses that occur while the policy is in force and provides a defense and payment of claims for which the insured is legally liable, regardless of when the claim is made against the insured as long as the loss occurred during a policy period?
Occurrence Form
Which of the following pollution forms will an agent recommend to an insured whose business requires protection for pollution liability and clean-up costs?
Pollution Liability Coverage Form (Designated Sites)
An insured contract includes all of the following, except (under the premise and operations exposure):
Pollution liability
The Garage Liability section of the Garage Coverage Form covers which of the following?
Property damage for which the insured is legally responsible
Medical payments under the Business Auto Coverage Form include:
Reasonable, necessary, medical and funeral expense because of bodily injury that is caused by an accident that is sustained by an insured
All of the following are true, except:
Specified Peril Coverage pays for damage to an insured vehicle from almost any cause except collision
Choose the false statement about the commercial auto coverage
Specified Peril Coverage pays for damage to an insured vehicle from almost any cause except collision
An optional reporting period of unlimited duration that may be purchased by endorsement to a Claims-Made Form, if requested within 60 days of the end of the policy term, is called:
Supplemental Extended Reporting Period
All of the following are true of Supplementary Payments under the Commercial General Liability Coverage Forms, except:
Supplementary Payments apply to all Section I coverage
All of the following are true, except:
The aggregate limits of the policy that are stated in the Declarations are the maximum amount payable for a single claim in any policy period
Which of the following is true of Nonowned vehicles under the BAP?
The main distinction between a hired auto and a nonowned auto is whether or not the auto is owned by an employee
Which of the following is true of the Business Auto Coverage Form?
The main distinction between a hired auto and a nonowned auto is whether or not the auto is owned by an employee
All of the following are true of the financial requirements for Motor Carriers except:
The most common approach to satisfying financial requirements is bonds
All of the following are true of Supplementary Payments under the Commercial General Liability Coverage Forms, except:
They reduce the limits of insurance
The Truckers Coverage Form is designed for:
Those firms or persons that are in the business of transporting goods or commodities for another
The form that insures public truckers against their legal liability for loss or damage to cargo belonging to others in their possession, is called:
Trucker's Coverage Form
Which of the following is designed for a firm that transports goods of others, rather than its own goods?
Truckers Coverage Form
All of the following are true, except:
Under a liability policy, the insurer will pay any damages that any third party has suffered that are caused by the insured
Physical damage coverage under a Business Auto Coverage Form includes all of the following, except:
Uninsured Motorist Coverage
Choose the statement that is false regarding the Business Auto Coverage Form.
Uninsured Motorist Coverage is included in Section II
All of the following are true to the Business Auto Coverage Form, except:
Uninsured Motorist Coverage is included in Section II (Liability)
Which of the following covers claims of an employee injured in an auto accident while on company business?
Workers' Compensation Insurance
