Chapter 14 - Miscellaneous Commercial Lines Coverage

Which of the following is not grounds for a claim under the EPLI policy? A Discrimination B Plant closure C Sexual harassment D Whistleblower status

B Plant closure

An Errors & Omissions Policy held by an insurance broker-agent will cover the broker-agent's liability for: A Bodily injury to a customer B Property damage to a consumer's property C Malpractice D Financial harm to a client

D Financial harm to a client

Statutory law exposures faced by directors and officers include all of the following, except: A Duty of diligence B Corporate fraud C Disclosure of trade secrets D Insider trading

A Duty of diligence

Wrongful acts covered by an Employment Practices Liability Policy include all of the following, except: A Fraudulent acts B Wrongful termination of employment C Harassment D Demotion of a whistleblower

A Fraudulent acts

Which of the following would not be considered a breakdown? A Leakage in a valve or fitting B Failure of pressure or vacuum equipment C Bursting caused by centrifugal force D Electrical failure causing damage to equipment

A Leakage in a valve or fitting

An employee provides a written report to the Equal Employment Opportunity Commission that their employer retaliated against them for pointing out a violation of the Equal Pay Act. Which of the following statements is correct regarding the employer's insurance coverage for damages for which the employer may be held liable? A The employer may settle the issue through the EEOC or report it as a claim under the employer's Employment Practices Liability Policy B Wrongful acts in employment are not covered by any insurance policy C Retaliation is covered by the employer's Professional Liability Policy D The claim will be denied by the insurer if it is reported after the policy's reporting period

A The employer may settle the issue through the EEOC or report it as a claim under the employer's Employment Practices Liability Policy

All of the following underlying coverages must be purchased in order to qualify for an Umbrella or Excess Liability policy, except: A Workers' Compensation B Employers Liability C Liquor Liability D Commercial General Liability

A Workers' Compensation

Typically, an insurer that issues Commercial Umbrella policies requires what amount of underlying coverage to be in place? A $10 million B $1 million C $25 million D $50 million

B $1 million

Professional Liability policies typically employ: A Claims-Made (CM) or Occurrence forms B Claims-Made (CM) or Claims-Made and Reported (CMR) forms C Claims-Made and Reported (CMR) or Occurrence forms D Claims-Made forms only

B Claims-Made (CM) or Claims-Made and Reported (CMR) forms

All of the following are Insuring Agreements found in a Directors and Officers Liability Policy, except: A C-Side Coverage for losses sustained by the company itself B D-Side Coverage for losses due to dishonesty by a director or officer C B-Side Coverage to reimburse the company for the amount spent indemnifying directors and officers for claims against them D A-Side Coverage for claims made against them for wrongful acts

B D-Side Coverage for losses due to dishonesty by a director or officer

All of the following statements about Commercial Umbrella insurance are correct, except: A The standard minimum limit of liability required for underlying primary insurance is $1 million B Most carriers use standardized Commercial Umbrella policy forms C An underlying Commercial General Liability Policy is usually required before an insurer will issue a Commercial Umbrella Policy D The standard limit of liability provided by a Commercial Umbrella Policy is at least $1 million

B Most carriers use standardized Commercial Umbrella policy forms

Which is not a coverage provided by the Equipment Breakdown policy? A Spoilage B Business Income C Builders Risk D Property Damage

C Builders Risk

The Federal Crop Insurance Corporation is important to Crop insurance because the FCIC does all of the following, except: A Establishes premium rates and insurance terms for products it develops B Reinsures all Crop coverage written by private insurers C Writes coverage as a residual market for Crop insurance D Approves rates and terms for products developed by private insurers

C Writes coverage as a residual market for Crop insurance

On a Boiler and Machinery Policy, the period of restoration after a breakdown lasts until how many days following the date of repair or replacement? A 25 B 15 C 10 D 5

D 5

Under Equipment Breakdown Insurance, which of the following describes one breakdown? A The one accident that apparently caused the damage B The last accident, when there is more than one accident simultaneously C The first accident, when there is more than one accident simultaneously D All breakdowns at any one premises that manifest themselves at the same time and are the direct result of the same cause

D All breakdowns at any one premises that manifest themselves at the same time and are the direct result of the same cause

Which of the following is true about Farm insurance? A Coverage F covers Other Farm Structures B It offers medical payments, bodily injury, and property damage, but no personal injury coverage C It offers commercial property coverage, but no liability coverage D Coverage E covers only those property types indicated in the Declarations

D Coverage E covers only those property types indicated in the Declarations

A Professional Liability Policy would cover which of the following? A Work-related injuries B Employment Practices Liability C Motor vehicles D Errors and omissions

D Errors and omissions

Which of the following forms would insure against the risk of a farm's reduced crop yield? A Commercial General Liability B Farm Property Coverage Form C Farm Liability Coverage Form D Multi-Peril Crop insurance

D Multi-Peril Crop insurance

Professional Liability policies issued in California will often require: A The insurer to settle when possible, even without the insured's consent B The policy to provide excess coverage over perils insured against by a CGL C The occurrence to take place during the policy period D The insurer to defend the insured

D The insurer to defend the insured

Which of the following would not be considered a breakdown? A Electrical failure B Mechanical failure of a conveyor belt C Boiler explosion D Valve leakage

D Valve leakage