Chapter 12: Miscellaneous Commercial Policies

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

A 3 years

Which of the following describes the term General Average under Ocean Marine Insurance? A A partial loss where the loss is shared B The average value per item of all the cargo on the ship C The average freight charges on the entire cargo of the ship D A partial loss where the loss is not shared

A A partial loss where the loss is shared

What is the name of the uniform document that common carriers are required to issue to the shipper of the goods being transported? A Bill of Lading B Bill of Transportation C Shipping Receipt D Bill of Acceptance

A Bill of Lading

The Collision or Running Down Clause in Ocean Marine Insurance covers: A Collision damage to another vessel when the shipper is liable B Collision damage to the insured vessel when it collides with another vessel C Collision damage to the insured vessel when it collides with a pier or fixed object D Damage to the insured vessel caused by running aground

A Collision damage to another vessel when the shipper is liable

While working together on the roof of a barn, the insured's neighbor fell off and broke his ankle. Which of the following is true about the resulting claim under the insured's Farm policy? A Coverage J - Medical Payments is no-fault coverage and will pay for necessary medical expenses that the neighbor incurred regardless of negligence B The neighbor's medical expenses are only payable under a Workers' Compensation insurance policy C There would be no coverage for this injury under any part of a Farm Policy D Coverage J - Medical Payments will not cover the neighbor's medical expenses unless the insured's negligence caused the accident

A Coverage J - Medical Payments is no-fault coverage and will pay for necessary medical expenses that the neighbor incurred regardless of negligence

Under the Farm Property Coverage Form, the definition of Farm Personal Property includes which of the following? A Equipment, supplies, and products of farming B Household furnishings of the farm dwelling occupied by the insured C Silos, grain bins, and fences used in the farm operation D Licensed vehicles owned by the insured and used in the farm operation

A Equipment, supplies, and products of farming

Inland Marine Policies are primarily designed to insure: A Property that is mobile in nature and may be away from insured's premises B Overseas shipments C Buildings and contents used for manufacturing D Exclusively for property being transported on inland waters

A Property that is mobile in nature and may be away from insured's premises

The Annual Transit Form is designed for which of the following? A Protecting property being shipped to others or being received from others on multiple occasions throughout the year B Businesses that desire coverage only on their shipments to others C Businesses that do not make regular shipments D Businesses that desire coverage only on shipments received from others

A Protecting property being shipped to others or being received from others on multiple occasions throughout the year

Which of the following is covered by Coverage E of the Farm Property Coverage Part? A Scheduled farm personal property B Unscheduled farm personal property C Other farm structures D Loss of use

A Scheduled farm personal property

Which statement is false regarding inland marine policies? A The Bailees' Customers Form covers the insured's property when he/she has property of others in his/her care, custody and control B The Accounts Receivable Coverage Form is a controlled form C The Installation Floater provides coverage while the property is in transit and during installation D The Contractor Equipment Floater is usually written on an open peril basis

A The Bailees' Customers Form covers the insured's property when he/she has property of others in his/her care, custody and control

Which statement is false regarding the Equipment Breakdown Protection Coverage Form? A The period of restoration ends 15 days after the damaged property is repaired or replaced B Covered equipment does not include catalysts, insulating, or refractory material C If an initial breakdown causes other breakdowns, they will all be considered one breakdown D Deductibles ordinarily apply separately to each applicable coverage

A The period of restoration ends 15 days after the damaged property is repaired or replaced its 5 days

Which of the following is not correct about the Crop/Hail policy? A The policy coverage begins at 12:01 a.m. on the day before the crop breaks through the ground B Crops are covered for fire, lightning, freezing, drought, insects, and disease C The payment of a loss reduces the total amount of available insurance D Failure to harvest a mature crop is not covered

A The policy coverage begins at 12:01 a.m. on the day before the crop breaks through the ground

What type of policy might cover an insurance producer's failure to renew a policy? A The producer's errors and omissions policy B The producer's performance bond C The producer's license bond D The producer's commercial CGL policy

A The producer's errors and omissions policy

Under Marine Policies, the term uncontrolled means forms that: A Are not approved by the National Association of Insurance Commissioners B Are not standardized by any rating bureau C Are filed with the State Insurance Department D Must be tailored to the individual insured by endorsement

B Are not standardized by any rating bureau

The Equipment Breakdown Coverage does not cover which of the following? A Expediting expenses B Breakdown test C Business income D Spoilage damage

B Breakdown test eqpt breakdown covers prop damage, expediting expenses, business income, spoilage damage, newly acquired premises, ordinance or law, E&O, and brands and labels

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

B Cotton pickers

Which Ocean Marine insurance provision protects against direct damage caused by bursting of boilers? A Boiler & Machinery Clause B Inchmaree Clause C Mechanical Failure Clause D Running Down Clause

B Inchmaree Clause covers direct damage caused by the bursting of boilers, breaking of propeller shafts, or loss due to faults or errors in navigation by the crew

Goods being transported would be covered by which of the following types of insurance? A Automobile B Inland Marine C Casualty D Surety

B Inland Marine

Which of the following covers equipment during transportation, unloading and installation up to the point control is given to the buyer? A Electronic Data Processing Floater B Installation Floater C Equipment Dealer's Coverage Form D Contractor's Equipment Floater

B Installation Floater

Which statement is true of the Equipment Breakdown Protection Coverage Form? A Explosion and damage during testing are covered B It can be written as a coverage part on the Commercial Package Policy C Every form automatically includes Business Income and Extra Expense Coverage D Computer viruses are included in the definition of a breakdown

B It can be written as a coverage part on the Commercial Package Policy

Which of the following is not an exclusion under the Umbrella policy? A Professional services B Personal injury C Product Recall D Contractual liability

B Personal injury

When does coverage cease under a Crop/Hail Insurance Policy? A At 12:01 am on December 31st of the year the policy was written B When the crop is harvested C At 12:01 am, 1 year from the date the policy is written D Once the crop is clearly visible above the ground

B When the crop is harvested

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

C A passenger may be covered by a sublimit combined single limit... applies per occurrence...

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

C Construction equipment construction equipment would be covered by equipment dealers floater

Which of the following perils is not insured against by the Special Causes of Loss form under the Farm Property policy? A Falling objects B Freezing of plumbing C Dishonest or criminal acts D Weight of Snow or Ice

C Dishonest or criminal acts

Which statement is true of the Equipment Breakdown Protection Coverage Form? A Explosion and damage during testing are covered B Defects, erasures, errors, limitations or viruses in computer equipment are included in the definition of breakdown C It may be written as a coverage part of the Commercial Package Policy D Every policy automatically includes Business Income and Extra Expense Coverage

C It may be written as a coverage part of the Commercial Package Policy

An Aircraft Hull Policy provides all the following coverage, except: A Damage to the insured aircraft while it is not in motion on the ground B Damage to the insured aircraft while it is in flight C Passenger Liability Coverage D Damage to the insured aircraft while it is in motion on the ground

C Passenger Liability Coverage

Property eligible to be insured under the Nationwide Marine Definition does not include: A Instruments of transportation B Imports and Exports C Personal property at the insured residence D Domestic shipments

C Personal property at the insured residence

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

C Rates for ocean marine insurance are strictly regulated

Which of the following is covered by Coverage E of the Farm Property Coverage Part? A Loss of use B Unscheduled farm personal property C Scheduled farm personal property D Other farm structures

C Scheduled farm personal property

The Accounts Receivable Coverage Form will cover loss of records that results from: A War B Normal wear and tear C The collapse of a building damaged by fire D Inherent vice

C The collapse of a building damaged by fire

Of the following parties to a surety bond, which one is the principal? A the employer B the insured C the insurer D the underwriter

C the insurer Insurer=obligor=principle... owing duty, performance, or honesty and is usually the insurance agent's client or insured

Which of the following is not a coverage under the Farm Property Coverage form? A Coverage H - Bodily Injury and Property Damage Liability B Coverage G - Other Farm Structures C Coverage E - Scheduled Farm Personal Property D Coverage C - Household Personal Property

Coverage H - Bodily Injury and Property Damage Liability READ!!!!!! PROPERTY!!! NOT LIABILITY AHHHHHHHHHHHHHHH

The Nationwide Marine Definition specifies risks that may be written under Marine Insurance. All of the following may be insured under marine policies, except: A Domestic Shipments B Bridges or Tunnels C Imports and Exports D Commercial Buildings

D Commercial Buildings

Which of the following is covered under Aircraft Liability Insurance? A The incidental auto liability exposure of private pilots B Legal liability of owners and operators of aircraft hangers and aircraft repair shops C Owners of private, municipal, and commercial airports D Liability claims arising from the ownership, maintenance or use of an aircraft

D Liability claims arising from the ownership, maintenance or use of an aircraft

All of the following are true of the Equipment Breakdown Protection Coverage Form, except: A Property is insured on a replacement cost basis, unless the Actual Cash Value Endorsement is chosen B Coverage is included for property of others in the insured's care, custody and control C Coverage is automatic, at newly acquired premises for a period of time specified in the Declarations D Malfunction is included in the definition of breakdown

D Malfunction is included in the definition of breakdown

Which statement is false regarding the Farm Liability Coverage Form? A Personal injury includes damages arising out of false arrest, malicious prosecution, libel and slander B Medical payments do not provide coverage for anyone eligible for Workers' Compensation C Medical payments would provide coverage for a neighbor who is injured while working the insured's livestock on a volunteer basis D Medical payments provide coverage only when the insured is legally liable

D Medical payments provide coverage only when the insured is legally liable

Ocean marine hull insurance covers a vessel for: A Cargo damage B Seaworthiness C Liability D Physical damage

D Physical damage

All of the following are true of Ocean Marine Insurance, except: A Coverage is voided if implied warranties are violated B General average refers to a partial loss where the loss is shared C Property coverage must be written to full value to avoid a penalty D Policies are standardized

D Policies are standardized

The person whose responsibility it is to fulfill the obligation of a surety bond is the: A Obligee B Insurance company C Surety D Principal

D Principal

Which type of cargo policy would cover a person who owns his/her own truck and hauls his/her own goods? A An Installation Floater Policy B The Motor Truck Cargo Truckers Form Policy C A Bailee Policy D The Motor Truck Cargo Owners Form

D The Motor Truck Cargo Owners Form

Which of the following is not true of the Multi-Peril Crop Insurance? A Adverse weather conditions is a covered peril B Tobacco is a covered crop C Cereal grains are a covered crop D The residual market provides this coverage at the state level

D The residual market provides this coverage at the state level

Which of the following forms is designed to insure a single shipment of goods? A Bailee's Customers Policy B Transportation Floater C Motor Truck Cargo Owners Form D Trip Transit Policy

D Trip Transit Policy

Which of the following pays the cost of replacing papers and records that are important for the continuation of business? A Business Property Coverage Form B Commercial Articles Coverage Form C Accounts Receivable Coverage Form D Valuable Papers and Records Coverage Form

D Valuable Papers and Records Coverage Form

In Surety bonding, the party to whom the surety is answerable is the: A Obligor B Surety C Obligee D Guarantor

Obligee... the party whose benefit the bond is written

Which of the following statements about the Commercial Umbrella Liability policies is false? A Policies generally cover first-party claims B Specific minimum limits for underlying coverage are required C Commercial Umbrella policies are excess policies D If the Umbrella Policy provides broader coverage than the underlying policy, the umbrella will cover the entire loss, less a retention

UGHHHHHH READ!!! A Policies generally cover first-party claims