Exam 12 - P&C

Commercial Inland Marine coverages may be written in which of the following ways? A Only as a stand-alone policy B As a stand-alone policy or as a coverage part in a Commercial Package policy C Only as a coverage part in a Commercial Package policy D Only be endorsement attached to another property policy

As a stand-alone policy or as a coverage part in a Commercial Package policy

When owned by the insured contractor, all of the following items of property can be protected by the Contractors Equipment Floater, except: A Blueprints B Generators C Forklifts D Small hand tools

Blueprints

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

Businesses that want to protect property being shipped to others or being received from others on multiple occasions throughout the year

The Electronic Data Processing Coverage Form typically provides coverage for which of the following items of property used for commercial purposes? A Computer hardware, data, and media B Notebooks C Tables D Laptops

Computer hardware, data, and media

ZYX Construction wants to protect its mobile tools and machinery, such as forklifts and small hand tools. Which Inland Marine form will provide this coverage? A Installation Floater B Bailees Customers Form C Builders Risk Coverage D Contractors Equipment Floater

Contractors Equipment Floater

f a Commercial Inland Marine insurance policy and another policy cover a loss on the same basis, the Inland Marine policy will: A Coordinate coverage on a pro rata basis B Cover the loss on an excess basis C Deny the loss D Each pay a portion of the loss on a contribution by equal shares basis

Coordinate coverage on a pro rata basis

Which of the following lines of insurance cannot be included in a Commercial Package policy? A Commercial Auto insurance B Ocean Marine insurance C Farm insurance D Commercial General Liability insurance

Farm insurance

Common exclusions of filed Commercial Inland Marine policies include all of the following, except: A Fire or lightning B Governmental action C Consequential loss D Criminal acts by an insured

Fire or lightning

With respect to Marine policies, the term uncontrolled means: A Forms that are not approved by the National Association of Insurance Commissioners B Forms that must be tailored to the individual insured by endorsement C Forms that are filed with the state insurance department by insurers D Forms that are not standardized by any rating bureau

Forms that are not standardized by any rating bureau

What type of Ocean Marine insurance provides physical damage coverage for the ship while it is in transit? A Freight B Inchmaree C Hull D Cargo

Hull

Damage to a vessel caused by a bursting boiler would be covered by which type of Ocean Marine coverage? A Running Down Clause B Freight coverage C Protection and Indemnity insurance D Inchmaree Clause

Inchmaree Clause

ABC Company sold an elevator system to a business and provides installation services. While being installed into the buyer's place of business, ABC Company may use which of the following Inland Marine forms to protect the elevator? A Installation Floater B Bailees Customers Coverage Form C Equipment Dealers Floater D Contractors Equipment Floater

Installation Floater

Which of the following statements regarding the Trip Transit Coverage Form is correct? A It covers shipments from the moment of purchase B It is used to insure single shipments C It can be written only on an open perils basis D It is used to insure only furniture or household goods

It is used to insure single shipments

In Ocean Marine insurance, all of the following would be considered perils of the seas, except: A Lightning B Barratry C Stranding D Piracy

Lightning

Commercial Inland Marine insurance can be used to provide insurance for all of the following, except: A Theft loss to property, when that coverage is excluded by other property insurance forms B Mobile equipment in use off of the owner's premises C Machinery and equipment permanently installed in a commercial building D Damage to property in the insured's care, custody, or control

Machinery and equipment permanently installed in a commercial building

Liability for cargo being transported by a commercial auto can be protected by which type of insurance coverage? A Motor Truck Cargo coverages B Commercial General Liability coverage C Commercial Auto coverages D Commercial property coverages

Motor Truck Cargo coverages

The Commercial Inland Marine transportation form used to insure a carrier's liability for damage to cargo it is transporting is the: A Trip Transit policy B Annual Transit policy C Bill of lading D Motor Truck Cargo policy

Motor Truck Cargo policy

Under Commercial Inland Marine policies, the insurer may do which of the following in the event of loss or damage to a pair or set? A Pay the salvage value of the pair or set B Pay the market value of the lost or damaged part of the pair or set C Pay the difference between the value of the pair or set before and after the loss D Repair or replace any part to restore the pair or set to a value that exceeds its original value

Pay the difference between the value of the pair or set before and after the loss

The implied warranty of seaworthiness is understood to mean which of the following? A The crewmembers are all certified B The ship must be seaworthy and have a competent crew C The ship has a full complement of emergency navigation equipment D The ship must have undergone a comprehensive inspection by the insurer

The ship must be seaworthy and have a competent crew

In the event a company's records are destroyed, the Accounts Receivable Coverage Form would cover uncollectable sums if the loss resulting from which of the following perils? A Theft B Arson committed by an employee C Falsification of records D Bookkeeping or accounting errors

Theft

Under the Jewelers Block Floater, which of the following losses can be covered by a Coverage Option when indicated in the Declarations? A Damage caused by wear and tear B Broken or smashed show windows C Theft of jewels stored in an on-premises show window that was smashed by burglars D Loss of market

Theft of jewels stored in an on-premises show window that was smashed by burglars

A person or business wanting to insure a single shipment of cargo would use the: A Trip Transit Coverage Form B Annual Transit Coverage Form C Cargo Owners Coverage Form D Shippers Coverage Form

Trip Transit Coverage Form

In Ocean Marine insurance, a general average loss is: A An accidental partial loss that one party bears B A total loss arising from a sacrifice of cargo to save the ship C A partial loss arising from a sacrifice of cargo to save remaining property D A loss that is general in nature

A partial loss arising from a sacrifice of cargo to save remaining property

Which of the following Inland Marine coverage forms covers property of others that is held by the insured for servicing or repair? A Contractors Equipment Floater B Bailees Customers Form C Installation Floater D Equipment Dealers Floater

Bailees Customers Form

According to the Nationwide Marine Definition, imports and exports are: A Eligible to be written under any part of the Commercial Package policy B Eligible for Inland Marine insurance only C Eligible for Ocean Marine insurance D Covered on a specific Commercial Import and Export Coverage Form

Eligible for Ocean Marine insurance

Common types of property insured by the Commercial Inland Marine Coverage Part include all of the following, except: A Mobile equipment and other tools used by a contractor B Cargo in the custody of a common carrier C Exports traveling over water D Property in transit

Exports traveling over water