Chapter 14 - Miscellaneous Commercial Lines Coverage

The Equipment Breakdown Protection Coverage Form would not cover which of the following? A Explosion of a steam boiler or steam engine B Accidental smoke damage to a machine caused by an employee C An air conditioning unit intentionally disabled by an employee D Spoilage of refrigerated materials following a transformer failure

C An air conditioning unit intentionally disabled by an employee

Coverage for catastrophic exposures commercial businesses may face is provided by which kind of policy? A Employers Liability policy B Businessowners policy C Commercial Umbrella Liability policy D Commercial General Liability policy

C Commercial Umbrella Liability policy

Which of the following is not a standard exclusion under a Commercial Umbrella Liability policy? A Product recall B Contractual liability C Personal injury D Professional services

C Personal injury

Under the Definitions section of the Equipment Breakdown Protection Coverage Form, covered equipment always includes: A Electrical equipment used in the generation or transmission of energy B Refractory material C Machinery used solely for research or diagnosis D Underground piping that would require excavation

A Electrical equipment used in the generation or transmission of energy

The standard minimum limit of liability for underlying primary insurance that a Commercial Umbrella Liability policy will require is: A $5 million B $1 million C $2 million D $10 million

B $1 million

Employment Practices Liability insurance is intended to provide coverage in the event that: A The error of an insurance agent results in a financial loss to an insured B An employer fires an employee for reporting a breach of employment contract C A medical professional is accused of malpractice D An officer of a business violates their duty of diligence to manage employees with reasonable care

B An employer fires an employee for reporting a breach of employment contract

Livestock is not eligible for coverage under which Covered Causes of Loss option available to Farm Property policies? A Covered Causes of Loss - Comprehensive B Covered Causes of Loss - Special C Covered Causes of Loss - Broad D Covered Causes of Loss - Basic

B Covered Causes of Loss - Special

Under Farm Property Coverages, Coverage A applies to: A Indirect losses B Direct physical loss to the residential dwelling and attached structures C Direct physical loss to barns and farm structures D Direct physical loss to other residential structures separate from the residential dwelling

B Direct physical loss to the residential dwelling and attached structures

All of the following are covered under the Covered Causes of Loss - Basic option to the Farm Property coverage forms, except: A Flood loss to livestock B Electrocution of livestock C Fire loss to livestock D Earthquake loss to livestock

B Electrocution of livestock

Which of the following is correct regarding Farm Property coverage? A The limit for Coverage G is the same as the limit of Coverage A B For coverage to apply, there must be a limit shown in the Declarations C Coverage B - Other Private Structures includes farm buildings and silos D Coverage G - Barns, Outbuildings, and Other Farm Structures includes loss of use coverage

B For coverage to apply, there must be a limit shown in the Declarations

Under the Farm Property coverage part, which of the following could be insured under Coverage E - Scheduled Farm Personal Property? A Chutes B Livestock C Pickups D Fences

B Livestock

An insured's equipment, protected by the Equipment Breakdown Protection Coverage Form, is exposed to dangerous conditions. The insured may: A Void coverage from the beginning of the policy period B Suspend coverage provided for that piece of equipment C Suspend all coverage and issue a short-rate return of premium D Terminate coverage for that equipment, with no option to reinstate coverage

B Suspend coverage provided for that piece of equipment

Under Coverage H - Bodily Injury and Property Damage Liability of the Farm Liability Coverage Form, liability arising out of the insured's custom farming operations is covered if the insured's custom farming receipts for the year are: A More than $10,000 B $10,000 or less C More than $5,000 D $5,000 or less

D $5,000 or less

ABC Company includes business income and extra expense coverage on its Equipment Breakdown Protection coverage part. Because this coverage is selected, the insured must: A Also obtain coverage for expediting expenses B Obtain a separate Equipment Breakdown Protection policy and remove the coverage part from its Commercial Package policy C Maintain 100% insurance to value D Complete and submit an Annual Report of Values form to the insurer

D Complete and submit an Annual Report of Values form to the insurer

A Director and Officers Liability policy may be useful for the director of an organization, who has all of the following duties, except: A Duty of loyalty B Duty of obedience C Duty of diligence D Duty to defend

D Duty to defend

All Commercial Umbrella Liability policies require underlying insurance to be in place in order to provide coverage, including all of the following coverages, except: A Employers Liability B Commercial Auto Liability C Commercial General Liability D Employee Theft

D Employee Theft Crime insurance is not one of the primary coverages expected to be in place before Commercial Umbrella Liability insurance may be obtained. Required underlying primary coverages include the CGL, Employers Liability, Liquor Liability (when applicable), and Commercial Auto Liability.

All of the following types of property are covered under Coverage G - Barns, Outbuildings, and Other Farm Structures of a Farm Property policy, except: A Silos described in the Declarations B Pens and chutes C Sheds attached to a farm structure D Field and pasture fences

D Field and pasture fences

Under the Equipment Breakdown Protection Coverage Form, which of the following would not be considered a breakdown? A Failure of pressure or vacuum equipment B Bursting caused by centrifugal force C Electrical failure causing damage to equipment D Leakage in a valve or fitting

D Leakage in a valve or fitting

Wrongful acts covered by an Employment Practices Liability policy include all of the following, except: A Workplace injuries B Wrongful termination of employment C Harassment D Discrimination in hiring

Workplace injuries