RMI4224 Exam 2

The Guru of Good Times Brewing Company has an umbrella policy with a limit of $1 million and a SIR of $10k. It also carries a CGL policy with a limit of $500k. How much will each of these policies pay if a Guru employee as an at-fault auto accident (while in the course and scope of their employment) in Mexico City, Mexico that results in $750k of payable damages? a. BACF: $0, CLUP: $740k b. BACF: $0; CLUP: $750k c. BACF: $490k, CLUP: $260k d. BACF: $500k; CLUP: $250k

a. BACF: $0, CLUP: $740k

Which of the following statements about the claims-made CGL coverage form's retroactive date is/are true? I. The retroactive date limits coverage for losses that occur before the beginning of the policy period. II. Losses that occur prior to the retroactive date and discovered during the policy period are covered under the claims-made CGL coverage form. a. I only b. II only c. Both I and II d. Neither I nor II

a. I only

Which of the following statements concerning CGL Coverage Form Supplementary Payments- Coverages A and B is/are true? I. An insured can be paid up to $250/day to compensate for lost earnings while attending a deposition or trial II. Supplementary payments reduce the limits of insurance. a. I only b. II only c. Both I and II d. Neither I nor II

a. I only

Which of the following statements concerning workers comp is/are true? I. there are typically no deductible or coinsurance payments for medical benefits II. injuries to customers injured on the insured's premises are covered a. I only b. II only c. both d. neither

a. I only

Which of the following statements is/are true? I. One reason workers comp disability benefits dont pay 100% of a worker's lost wages is to discourage malingering II. All jurisdictions have a waiting period that delays the start of disability income benefits. The waiting period typically various from 3 to 7 days and functions like a coinsurance clause in a commercial coverage form. a. I only b. II only c. both d. neither

a. I only

The combination of the following three symbols: Symbol 2: Owned Autos Only Symbol 8: Hired Autos Only Symbol 9: Nonowned Autos Only Is the equivalent of which one of the following symbols under the Business Auto Coverage Form? a. Symbol 1- Any Auto b. Symbol 3- Owned private Passenger Autos c. Symbol 4- Owned Autos Other Than Private Passenger Autos Only d. Symbol 5- Owned Autos Subject to No-Fault

a. Symbol 1- Any Auto

Per the ISO eligibility rules, which of the following types of buildings would be eligible for coverage under a BOP? a. a 30k sq foot insurance agency b. a six story 120k sq foot office building c. a seven story 75k sq foot office building d. a 200k sq foot bakery w annual sales in excess of $6m

a. a 30k sq foot insurance agency

Which of the following statements is/are correct? i. the named perils endorsement (BP 10 09) to the businessowners coverage form provides the same cause of loss coverage as the causes of loss-basic form plus limited off premises transit coverage ii. this named perils coverage form is frequently used by businesses because it provides broad coverage at an economical price a. i only b. ii only c. both d. neither

a. i only

What is the legal concept that limits the amount of time a plaintiff has to initiate a lawsuit for negligence against a person the plaintiff contends caused the plaintiff's injuries/damages? a. statute of limitations b. statute of perpetuities c. statute of liberty d. statute of frauds

a. statute of limitations

All of the following are reasons a business might need a CLUP except a. the general public has grown more conservative over time and are less claims conscious b. negligence laws have evolved to modify or eliminate some traditional tort lawsuit defenses c. jurors today are more comfortable awarding large sums of money than previously d. commercial general liability insurance policies are written w relatively small max liability limits

a. the general public has grown more conservative over time and are less claims conscious

Which of the following can be a named insured for the CGL Coverage Form (select all that apply)? a. an individual b. a joint venture c. a limited liability company d. the spouse of an individual named insured

all of the above

The CGL generally excludes coverage for the use of aircraft, autos, or watercraft. Which of the following are circumstances under which the CGL will provide liability coverage to an insured for the use of aircraft, autos, or watercraft (select all that apply)? a. Use of a non-owned 28 foot motorized watercraft to take a business client fishing b. A watercraft while ashore on premises owned by the named insured c. An employee of a restaurant you own hits a parked and unoccupied car while valet parking a customer's car. d. Liability assumed under any type of contract for the ownership, maintenance or use of aircraft or watercraft.

b. A watercraft while ashore on premises owned by the named insured c. An employee of a restaurant you own hits a parked and unoccupied car while valet parking a customer's car.

Which of the following statements concerning liquor liability coverage provided by the CGL coverage form is/are true? I. The coverage form's exclusion for liquor liability excludes all coverage, no matter the nature of the insured's business, for bodily injuries or property damage that results from an insured causing or contributing to the intoxication of any person. II. Host liquor liability coverage is provided to businesses not engaged in the manufacturing, distribution, selling, serving or furnishing alcoholic beverages. a. I only b. II only c. Both I and II d. Neither I nor II

b. II only

Which of the following statements is/are true? I. The most commonly utilized CGL Coverage Form provides coverage on a claims-made basis. II. The retroactive reporting date for a claims-made CGL Coverage Form can be the policy's inception date or a date earlier than the policy inception date. a. I only b. II only c. Both I and II d. Neither I nor II

b. II only

ABC Insurance Company contracted with a independent claims adjuster firm, XYZ Corp, to provide 2 dozen independent property claims adjusters during a particularly busy hurricane season. XYZ provided the 2 dozen claims adjusters for 60 days. While working for ABC, one of the temp workers injured themselves falling off the steep roof of a customer's house and broke their left ankle. Which of the following statements concerning workers comp for this loss is true? a. ABC's workers comp policy will cover this claim b. XYZ's workers comp policy will cover this claim c. the ABC and XYZ workers comp policies will each cover 50% of claim d. neither workers comp policy will cover this claim since the worker was not injured in the course and scope of their employment

b. XYZ's workers comp policy will cover this claim

All of the following statements concerning excess and umbrella policies are true except a. one way an umbrella policy provides broader liability coverage than an underlying policy is via a broader definition of the coverage territory b. a follow form excess policy written over just one underlying policy is commonly referred to as a multi line excess policy c. a stand alone excess policy contains its own insuring agreement, exclusions, and conditions separate from the underlying policy d. a true umbrella policy always provides broader coverage than found in the underlying policies and becomes primary when aggregates are exhuasted

b. a follow form excess policy written over just one underlying policy is commonly referred to as a multi line excess policy

Which of the following is the method used by two insurance carriers sharing the payment of a loss whereby each contributes equally in the payment of the loss until the loss has been paid or their policy limits have been reached? a. pro rata b. contribution by equal shares c. primary/excess d. per stirpes

b. contribution by equal shares

Which one of the following statements is correct regarding the liability coverage under a BACF? a. separate coverage limits apply for bodily injury, property damage, and pollution costs b. coverage is excluded for any liability resulting from the handling of property after it has been moved from the covered auto to its place of final delivery by the insured c. supplementary payments reduce the limit of insurance under the BACF d. the insurer is only required to defend the insured against legitimate claims or suits

b. coverage is excluded for any liability resulting from the handling of property after it has been moved from the covered auto to its place of final delivery by the insured

Which of the following is a benefit paid by workers comp? a. property damages b. death benefits c. pain and suffering d. punitive damages

b. death benefits

The info page of workers comp and employers liability policy is synonymous to which of the following? a. conditions b. declarations c. duties d. insuring agreement

b. declarations

Each of the following are examples of occupational diseases covered by workers compensation EXCEPT: a. black lung disease b. flu/cold c. carpal tunnel d. silicosis

b. flu/cold

All of the following types of businesses are ineligible for the ISO BOP due to severity of risk and/or special coverage situations except a. auto repairs b. funeral homes c. bars/pubs/cocktail lounges d. financial institutions

b. funeral homes

Each of the following statements concerning Part 2- Employers Liability insurance of the Workers Comp and Employers Liability insurance policy are true except: a. it provides liability protection to employers for work related injury claims of employees not covered by workers comp law b. it does not include any coverage exclusions c. it contains an "other insurance" provision d. it provides coverage for dual capacity claims in states where such claims are permitted

b. it does not include any coverage exclusions

Each of the following is covered under the Supplementary Payments- Coverages A and B of the CGL Coverage Form except: a. all expenses incurred by the insurer to investigate a loss and defend the insured b. medical payments c. up to $250 per day of lost income by an insured to take time off from work to attend a trial at the insurer's request d. pre-judgement interest awarded against an insured

b. medical payments

Which federal law provides crew members of a vessel a tort remedy against their employers when they sustain a work related injury? a. Smith act of 1910 b. merchant marine act of 1920 c. edmond fitzgerald act of 1976 d. longshore and harbor workers comp act

b. merchant marine act of 1920

The amount deducted from a claim that is not covered by an underlying policy but is covered by an umbrella policy is known as a. deductible b. self insured retention c. drop down amount d. co insurance amount

b. self insured amount

An employer can be held legally liable for the negligent acts of their employee while the employee is in the course and scope of their employment. This is an example of what theory of liability? a. joint and several liability b. vicarious liability c. absolute liability d. strict liability

b. vicarious liability

The Guru of Good Times Brewing Company has an umbrella policy with a limit of $1 million and a SIR of $10k. It also carries a CGL policy with a limit of $500k. Guru has a claim filed against it for $750k bc of injuries sustained by a claimant resulting from the negligence of a Guru employee who was operating the covered company auto in the course and scope of their employment. Unfortunately for Guru, they didnt pay the most recent renewal premium for the BAP, that policy cancelled, and Guru failed to obtain new business auto coverage prior to this loss. Under these circumstances, how much will Guru's umbrella policy pay? a. $0 b. 200k c. 250k d. 700k e. 750k

c. 250k

Joe caused an accident while driving his dodge charger. Dave, the driver of the other car, was awarded $900k by a jury for his bodily injury claim. Joe was driving a vehicle owned by his business at the time of this loss w a $250k per person bodily injury liability limit which satisfied the underlying limits requirement for this $1 million CLUP. Joe's $1 m CLUP also included a $25k SIR. Assuming this damage award is payable under Joe's BACF, how much if anything will Joe's CLUP pay to satisfy the $900k judgement? a. $0 b. 600k c. 650k d. 900k

c. 650k

Mary was walking down Aisle 7 of her local grocery store when she tripped and fell over her own two feet. Mary sustained a fractured left elbow and incurred the following bodily injury damages as a result of this incident: Medical Bills- $5,000 Lost Wages- $2,500 Pain and Suffering: $10,000 How will the grocery store's CGL insurer likely respond to Mary's claim? a. Deny the claim as Mary's own negligence was the sole and proximate cause of her injuries. b. Pay Mary $17500 under Coverage A c. Pay Mary $5000 under Coverage C d. Pay Mary $250 under Supplementary Coverages

c. Pay Mary $5000 under Coverage C

The termination of a claims-made policy can create years of potential liability exposure for a business without corresponding insurance coverage. Which type of expended reporting period coverage provides the longest coverage for protection against occurrences not reported prior to the policy expiration date? a. Extended Reporting Periods coverage b. Basic Extended Reporting Period (BERP) coverage c. Supplemental Extended Reporting Period (SERP) coverage d. none of the above

c. Supplemental Extended Reporting Period (SERP) coverage

Which of the following statements concerning premium calculation for the workers comp and employers liability insurance policy is true? a. it costs an insurance company more to service one $100k premium policy than it does to service five smaller policies with premiums of $20k each b. an insured's premium level has no bearing on whether they will be eligible for experience rating c. an experience modification of less than 1 is favorable and more than 1 is unfavorable d. Job classifications are not a factor in calculating an insured's premium

c. an experience modification of less than 1 is favorable and more than 1 is unfavorable

Which of the following statement is/are true? I. Liability coverage for property damage to a customer's property in an insured's care, custody, or control is excluded by both the BACF and Auto Dealers Coverage Form II. Garagekeepers Coverage provides coverage for an insured's liability for damage to a customer's vehicle in the insured's care, custody, or control a. I only b. II only c. both d. neither

c. both

Coverage for damage to a customer's auto being serviced by the insured while in the insured's care, custody or control is referred to as: a. motor carrier coverage b. bailee's coverage c. garagekeepers coverage d. covered autos liability coverage

c. garagekeepers coverage

Each of the following statements concerning the CGL Coverage Form's coverage territory is true except: a. it includes the US (including its territories and possessions), Puerto Rico and Canada b. it can include international waters or airspace between coverage territory locations c. worldwide coverage is provided for injury or damage under limited circumstances d. "personal and advertising injury" offenses that take place via the internet are not considered part of the coverage territory under any circumstances

d. "personal and advertising injury" offenses that take place via the internet are not considered part of the coverage territory under any circumstances

The business income and extra expense coverage under a BOP is typically subject to which one of the following limitations? a. specific dollar amount b. coinsurance c. monthy limit of indemnity d. 12 consecutive months limitation

d. 12 consecutive months limitation

How many words and/or phrases are specifically defined in the CGL Coverage Form? a. 0 b. 11 c. 14 d. 22

d. 22

XYZ Company is covered under two business auto policies each one providing primary coverage with the following limits: Policy 1- $200k limit Policy 2- $50k limit If XYZ company incurs a $60k covered loss, how much will be covered under policy 1 under the other insurance provision of the BACF? a. 12k b. 15k c. 45k d. 48k

d. 48k

Compensatory damages include which of the following? a. special damages b. general damages c. punitive damages d. A and B only e. A B and C

d. A and B only

Which of the following is/are reasons for providing a no-fault medical expenses benefit under the CGL? a. goodwill b. reduction of lawsuits c. the coverage is inexpensive to provide d. A and B only e. A B and C

d. A and B only

Tom and Jerry are next door neighbors. One night, a tornado touched down in their neighborhood causing a tree on Tom's property to fall onto the roof of Jerry's home. Jerry files suit against Tom for the damage to Jerry's home caused by Tom's fallen tree. What is Tom's best defense to the lawsuit filed by Jerry? a. contributory negligence b. comparative negligence c. assumption of risk d. Act of God/Nature

d. Act of God/Nature

Punitive damages are intended to achieve which of the following objective(s)? a. compensate the victim for their economic and non-economic damages b. punish the individual or organization responsible for the plaintiff's injuries c. to deter the plaintiff (and others) from engaging in similar willful misconduct in the future d. B and C only d. A B and C

d. B and C only

Each of the following statements concerning workers comp statutes is true except a. prior to enactment of workers comp statutes, employees had difficulty receiving comp for workplace injuries b. percentage of wage loss payable varies by US states c. coverage is typically not provided to workers employed by federal gvt d. disability income benefits are not subject to a deductible in form of a waiting period

d. disability income benefits are not subject to a deductible in form of a waiting period

In the liability coverage agreement of the business auto policy, the insurer has all of the following duties, except: a. duty to pay covered pollution costs/expenses b. duty to pay covered bodily injury and property damage expenses c. duty to defend the insured d. duty to pay up to $2500 for bail bond costs

d. duty to pay up to $2500 for bail bond costs

Which of the following statements concerning umbrella liability policies is correct? a. umbrella policies typically provide broad coverage for pollution losses b. coverage exclusions found in most umbrella policies are usually broader than exclusions found in underlying liability policies c. umbrella policies never include coverage exclusions that dont exist in underlying liability policies d. each insurer writing umbrella liability coverage has its own requirements for the types and amounts of underlying insurance an insured is required to carry

d. each insurer writing umbrella liability coverage has its own requirements for the types and amounts of underlying insurance an insured is required to carry

All of the following are workers exempt from workers comp laws except: a. domestic workers b. agricultural workers c, casual laborers d. factory worker

d. factory worker

Which one of the following Commercial General Liability (CGL) Coverage Form conditions prohibits a person from naming the insurer in a lawsuit seeking damages from an insured? a. separation of insureds b. duties in the event of occurrence, offense, claim or suit c. transfer of rights of recovery against others to us d. legal action against us

d. legal action against us

Which of the following statements is/are true? I. one condition of the workers comp and employers liability insurance policy includes an obligation for the insurer to inspect the named insured's workplace II. Insurer inspections of an insured's workplace are safety instructions and serve as a warranty the insured's operations are safe and compliant with all safety laws and regulations a. i only b. ii only c. both d. neither

d. neither

Which one of the following statements is correct regarding conditions contained in the BACF? a. The Duties in the Event of Loss Condition prevents the named insured from bringing action against the insurer if the insured has failed to comply with the policy provisions b. the Transfer of Rights Against Others condition states that the insured must cooperate with the insurer in its investigation and defense of the loss c. the Liberalization condition indicates that coverage will be void if the named insured commits a fraud related to the coverage d. the Bankruptcy condition states that the bankruptcy or insolvency of the insured will not relieve the insurer of any of its obligations under the policy

d. the Bankruptcy condition states that the bankruptcy or insolvency of the insured will not relieve the insurer of any of its obligations under the policy

Which of the following statements concerning the businessowners coverage form section ii- liability is correct? a. the definition of products completed operations hazard found in the bop is narrowed in comparison to the same definition in the cgl coverage form b. the definition of the coverage territory for the bop is different from that of the cgl coverage form c. supplemental payments under the bop differ greatly from supplemental payments provided by the cgl coverage form d. the businessowners liability section is similar to the cgl coverage form in content, but differs in format

d. the businessowners liability section is similar to the cgl coverage form in content, but differs in format

If a worker from FL is injured in GA, which of the following factors would be considered when determining which state's workers comp benefits will apply? a. state where the worker was hired b. state where the worker lives c. state where the worker primarily works d. state where the worker was injured e. all above

e. all above

Which of the following is an element of negligence that must be present in order to successfully establish negligence against an individual or organization? a. legal duty owed b. breach of legal duty c. proximate cause d. damages e. all of the above

e. all of the above

When an employee is required to travel to another state, and the employee sustains an injury in the other state during the course and scope of their employment, which of the following is a consideration in determining which state's workers comp law will apply to the loss? a. age of the employee at time of loss b. state where employee was hired c. employee's salary at time of loss d. nature of employee's injury

b. state where employee was hired

What is another name for the process describe in the "Transfer of Rights of Recovery Against Others To Us" portion of the CGL Coverage Form? a. indemnification b. subrogation c. hold-harmless d. nullification

b. subrogation

Which of the following statements concerning premium computation for a workers comp and employers liability insurance policy is/are true? i. the riskier a job classification, the higher the premium rate is for that job classification ii. the premium rate for a clerical office employee is lower than the premium rate for a salesperson who works/travels outside the office a. i only b. ii only c. both d. neither

c. both

Which of the following statements is/are correct? i. the bop provides coverage for all buildings and structures located at the premises described in the declarations; that is, only the premises must be described for any building located at the described premises to be covered ii. the bpp coverage form only provides coverage for buildings or structures specifically described in declarations a. i only b. ii only c. both d. neither

c. both

Which of the following statements concerning workers comp statutes is correct? a. coverage is typically provided to workers employed by the federal gvt b. medical benefits are typically subject to deductibles and coinsurance c. disability benefits paid vary greatly by state d. burial expenses are never covered

c. disability benefits paid vary greatly by state

Examples of special damages include all of the following except: a. the cost to repair a damaged car b. lost wages c. disfigurement due to permanent scarring d. medical bills

c. disfigurement due to permanent scarring

Which of the following statement(s) is/are true concerning Hold Harmless/Indemnification Agreements? a. defined as liability that arises by way of negligence b. the two parties to this type of arrangement ate the bailor and bailee c. it is a common business practice for one party to contractually assume responsibility for liability of another d. assuming responsibility for the liability of another is a fairly low risk activity that only minimally increases exposure to loss

c. it is a common business practice for one party to contractually assume responsibility for liability of another

A grocery store employee just finished mopping up some spilled apple juice in aisle 4 but forgot to put up a sign warning that the floor was wet. Shortly thereafter, a customer slipped on the wet floor and injured their knee. This is an example of which one of the following types of commercial general liability loss? a. personal and advertising injury liability b. completed operations liability c. premises and operations liability d. contractual liability

c. premises and operations liability

Which of the following statements concerning the BOP is correct? a. manufacturing businesses are generally eligible for coverage b. it is most commonly used to insure large businesses c. the bop is designed to provide property and liability coverage for small or less complex businesses d. eligibility rules are based on an applicant's loss history

c. the bop is designed to provide property and liability coverage for small or less complex businesses

Which of the following statements concerning the non-renewal condition of the CGL Coverage Form is true? a. the nonrenewal notice can be sent to any insured listed on the Declarations b. the nonrenewal notice can be provide either orally or in writing c. the nonrenewal notice must be sent at least 30 days prior to the policy expiration date d. proof of mailing the non-renewal notice is not sufficient proof of notice

c. the nonrenewal notice must be sent at least 30 days prior to the policy expiration date

Which of the following statements regarding states which incorporate monopolistic state funds is true? a. the compete with private insurers to sell workers comp insurance in their state b. texas is an ex of a state that utilizes a monopolistic state fund approach to providing workers comp benefits c. they dont permit any other insurers to sell workers comp insurance in their state d. a majority of US states utilize the monopolistic state fund approach to providing insurance comp benefits

c. they dont permit any other insurers to sell workers comp insurance in their state

Which of the following statements concerning commercial excess liability insurance is/are true? i. a self contained excess policy covers losses that exceed the underlying limits only if the loss is covered by the underlying insurance policy ii. a following form excess policy covers liability losses that exceed the underlying limits only if the loss is covered under the terms of the excess policy a. i only b. ii only c. both d. neither

d. neither

Which of the following statement(s) concerning CGL limits and submits is/are true (select all that apply)? a. The CGL has annual caps on the amounts that can be paid in addition to caps for each accident/occurrence b. The CGL has 2 aggregate limits: The General Aggregate Limit and the Products-Completed Operations Aggregate Limit c. Coverage A, Coverage B, and Coverage C payments are components of the General Aggregate Limit d. Payments made for Damage to Premises Rented to You do not reduce the General Aggregate Limit.

a. The CGL has annual caps on the amounts that can be paid in addition to caps for each accident/occurrence b. The CGL has 2 aggregate limits: The General Aggregate Limit and the Products-Completed Operations Aggregate Limit c. Coverage A, Coverage B, and Coverage C payments are components of the General Aggregate Limit

Which is the most common method employers use to provide workers comp benefits for their covered workers? a. purchase of private insurance b. purchase of insurance from a state fund c. purchase of insurance from a monopolistic state fund d. self insurance

a. purchase of private insurance

Tom and Jerry go to a bar together to watch the Super Bowl. They drink six craft beers each during the game. At the end of the game, Tom offers to drive Jerry home. Despite having both the Uber and Lyft apps on his smart phone, Jerry accepts Tom's offer of a ride home. A short time after leaving the bar, an intoxicated Tom drives off the road and hits a tree. Jerry suffers a broken right ankle and facial abrasions as a result of the passenger side airbag deploying. Jerry retains an attorney and files suit against Tom for bodily injuries sustained as a result of Tom's negligence. What is Tom's best legal defense to Jerry's bodily injury lawsuit? a. Jerry had the last clear chance to avoid getting injured. b. Jerry assumed the risk of accepting a ride home from an intoxicated Tom c. A bailor-bailee relationship existed between Tom and Jerry d. Jerry violated the state's Dram Shop Act by drinking beer for several hours with Tom.

b. Jerry assumed the risk of accepting a ride home from an intoxicated Tom

Danny, a plumber, signs a contract with a builder to install plumbing in a new residential home. Danny injured his back while installing a bathroom vanity in the new home. Will the home builder's workers comp policy provide coverage to danny for his back injury? a. No, because Danny was responsible for causing his back injury b. no, because danny is an independent contractor c. yes, because danny was injured while in the course and scope of his employment d. yes bc workers comp statutes impose absolute liability on employer for injuries sustained by an employee during the course and scope of their environment

b. no, because danny is an independent contractor

All of the following statements concerning BOP Endorsement BP 04 04 are true except a. an insured business with a bop who doesnt own any autos and doesnt have a commercial auto policy would benefit from purchasing the hired auto and non owned auto liability endorsement b. the hired auto and non owned auto liability endorsement is also available under a cgl coverage form c. coverage under the hired auto and non owned auto liability endorsement can be purchased for hired auto liability and/or non owned auto liability d. a car rented by the named insured or an employee while on company business is an example of a hired auto

b. the hired auto and non owned auto liability endorsement is also available under a cgl coverage form

The Guru of Good Times Brewing Company has an umbrella policy with a limit of $1 million and a SIR of $10k. It also carries a CGL policy with a limit of $500k. How much will Guru's umbrella insurer pay if one of Guru's employees commits a personal injury offense not covered by Guru's underlying CGL policy if Guru is held legally liable for $200k because of this personal injury claim? Assume Guru's umbrella policy will respond to this loss by extending liability coverage. a. $0, the underlying CGL policy will pay the entire loss b. $160k, there is an 80% coinsurance clause applicable to the umbrella policy c. $190k d. $200k

c. $190k

Sally, who is insured under a BACF in the state of Florida, was driving the covered auto in Georgia. Sally's BACF has property damage liability coverage of $10000 per occurrence. Georgia requires a $25000 of property damage liability coverage per occurrence. If Sally has an at-fault accident in GA which results in $40000 in property damage, how much would be covered under Sally's BACF? a. 10000 b. 20000 c. 25000 d. 40000

c. $25000

VGBDC is covered under a business auto policy w a $250k limit. Donna, an employee, has a personal auto policy w $100k limit. She was driving her own car on company business when she had an accident. the accident resulted in $250k of covered damages. Of this amount, VGBDC's business auto policy would pay: a. $0 b. 100k c. 150k d. 250k

c. 150k

Barbara and Jennifer are both driving eastbound on Gaines Street in separate vehicles on their way to Doak Campbell Stadium to watch the FSU v. Miami game. Barbara's vehicle is directly in front of Jennifer's car. Barbara comes to complete stop at a red light; unfortunately, Jennifer wasn't maintaining a proper lookout and tapped the rear bumper of her Toyota Camry. Since it was a very minor accident and both drivers agreed neither vehicle was damaged as a result of this accident, Barbara and Jennifer didn't call the police and headed to the football game. Two months later, Jennifer was surprised to learn she had been sued by Barbara as a result of this very minor impact auto accident that resulted in no damage to either vehicle. Jennifer's best chance to get this case dismissed is to argue Barbara is unable to prove this required element of a negligence cause of action: a. Jennifer owed no duty of care to Barbara b. Jennifer breached no duty of care owed to Barbara c. Barbara's vehicle didn't sustain any damage as a result of Jennifer's negligence d. Jennifer's failure to maintain a proper lookout was not the proximate cause of the damage to Barbara's vehicle

c. Barbara's vehicle didn't sustain any damage as a result of Jennifer's negligence

All of the following statements concerning mobile equipment and the CGL are true except: a. coverage for mobile equipment is generally provided by the CGL b. Liability coverage for mobile equipment under Coverage A of the CGL is only excluded under two specific circumstances c. The CGL provides coverage for property damage liability arising out of the use of mobile equipment in a prearranged race d. The CGL defines mobile equipment to include vehicles that travel on crawler treads

c. The CGL provides coverage for property damage liability arising out of the use of mobile equipment in a prearranged race

Which of the following statements concerning a typical bussinessowners coverage form is/are true? i. the causes of loss are contained within the businessowners coverage form; this is in contrast to the bpp coverage form where the causes of loss form is attached to the bpp ii. the list of property not covered under the BOP is shorter than the list of property not covered under the bpp coverage form a. i only b. ii only c. both d. neither

c. both

Which of the following statements concerning differences between the bop and cgl policy is/are true? i. the bop has its own set of conditions contained within the businessowners coverage form while the cgl policy utilizes common policy conditions shared with other coverage forms ii. while the cgl states it provides primary coverage subject to a few exceptions, the bop is excess over any other applicable coverage a. i only b. ii only c. both d. neither

c. both

Which of the following statements concerning drop-down coverage provided by most umbrella liability policies is/are true? i. an umbrella policy provides additional liability coverage for claims not covered by an underlying policy because the underlying coverage aggregate limits have been depleted ii. an umbrella policy can provide liability coverage for some claims for which the underlying policy does not provide any coverage a. i only b. ii only c. both d. neither

c. both

Which one of the following statements is correct regarding Section III- Physical Damage Coverage of the BACF? a. the overturn of a business auto would be covered by Specified Causes of Loss Coverage under the policy b. the coverage limits for temporary transportation expenses are $25 per day up to a maximum of $750 per covered loss c. the covered vehicle overturned due to collision resulting in a shattered windshield. The only physical damage coverage carried by the insured is comprehensive coverage. The insurer will pay for the damaged windshield under the insured's comprehensive coverage d. substitute transportation costs are only covered if the insured auto is disabled due to a collision

c. the covered vehicle overturned due to collision resulting in a shattered windshield. The only physical damage coverage carried by the insured is comprehensive coverage. The insurer will pay for the damaged windshield under the insured's comprehensive coverage

Which of the following statement is correct regarding Coverage A exclusions under the Commercial General Liability (CGL) policy? a. Liquor Liability exclusion eliminates coverage whether or not the insured is in the alcoholic beverage business b. The Pollution exclusion applies to bodily injury caused by smoke from a hostile fire c. The Expected or Intended Injury exclusion applies to bodily injury resulting from the sue of reasonable force to protect property d. The Mobile Equipment exclusion eliminates coverage for bodily injury or property damage arising out of the use of mobile equipment in any prearranged racing activity.

d. The Mobile Equipment exclusion eliminates coverage for bodily injury or property damage arising out of the use of mobile equipment in any prearranged racing activity.

Which of the following statements concerning workers comp is/are true? I. Benefits for pain and suffering are typically paid if a worker sustains a life threatening injury II. Medical expenses incurred as the result of an injury sustained while commuting to work are covered a. i only b. ii only c. both d. neither

d. neither