Casualty Certification Exam

Which increment amount is generally used when writing Umbrella Policies?

$1 million

Under Part D of the personal auto policy, there is a maximum limit of _ for a non-owned trailer.

$1,500

The insured has an auto policy with liability limits of $30,000/$60,000/$10,000. He negligently runs off the road and causes $70,000 damage to an apartment building. How much will the policy pay?

$10,000

The CPP Special Form allows for _ in special limits for jewelry and watches.

$2,500

The CPP Special Form allows for _ in special limits for patterns, dies, forms, and molds.

$2,500

The insurer will pay a maximum of _ per day, put to $600, for transportation expenses incurred because of a collision or comprehensive loss.

$20

If a bail bond is required because of an auto accident, an auto policy will pay up to _ for the cost of the bail bond so one as the accident resulted in a covered bodily injury or property damage claim.

$250

The CPP Special Form allows for _ in special limits for stamps and tickets.

$250

Under Section III, the standard deductible for collision, comprehensive, and specified causes of loss is

$500

The Limited Mexico Coverage endorsement provides coverage only if the insured's visit to Mexico is of _ or fewer days duration.

10

Crime coverage is written for _ types of commercial enterprises.

2

Owned Autos Only, whether or not specifically listed on the policy are listed under Symbol

2

Owned Private Passenger Autos only, whether or not specifically listed on the policy are listed under symbol:

3

The common policy conditions of the CPP state the insurer may examine the insured's books and records anytime during the policy period and up to _ years afterward

3

Under Business Income and Extra Expense Coverage, the period of restoration begins _ hours after the time of loss.

72

A service contract is an example of

A claims-made form

All of the following are covered under the Building and Personal Property Coverage, Except:

Accounts, bills, currency, deeds, evidence of debt, money or securities

A contract where the exchange of value is unequal is what type of contract?

Aleatory

Which of the following is not eligible to be written on a Businessowners Policy?

An auto dealership

All of the following would be covered under Workers' Compensation Insurance, except:

An employee who contracts a cold in the winter

Coverage is NOT provided under Part C of the personal auto policy when any insured sustains bodily injury under which of the following circumstances

An insured is using a vehicle with a reasonable belief that he or she is entitled to drive it

The process of a neutral third party making a decision on a disputed claim is called:

Arbitration

The Businessowners Policy is the commercial lines equivalent of the _ policy.

Auto

Which of the following coverage forms cover property of others that is accepted by the insured for servicing or repair?

Bailees' Customer Form

Loss conditions in the business auto policy apply to which of the following?

Bankruptcy

What is a type of contract bond?

Bid Bond/Performance Bond/Payment Bonds

Equipment Breakdown Coverage was formerly known as:

Boiler & Machinery Coverage

The taking of property from inside its premises or a locked safe or vault by a person who commits forcible entry into, or exit from, the property of another while trespassing is known as:

Burglary

Which of the following is not considered livestock under the Livestock Coverage Form?

Chickens

A _ form provides coverage for losses that take place after the retroactive date and before the end of the policy period, and for which claims are made during the policy period or an extended reporting period.

Claims-made

Which insuring agreement covers loss of funds resulting from a fraudulent instruction that directs a financial institution to transfer, pay, or deliver funds from the insured's transfer account?

Computer Fraud

Which insuring agreement covers losses when a computer is fraudulently used to transfer money, securities, and other property from insured premises, banking premises, OR to a person or place outside the insured premises?

Computer Fraud

The willful hiding or obscuring of material facts pertinent to the issuance of insurance (or a claim) is called _

Concealment

When one party writes the contract, without input form the other party, it is which type of contract?

Contract of adhesion

In the event of a covered loss, Persons submitting claims to the insurance company are required to

Cooperate with the investigation

Which commercial policy provides coverage to protect the directors and officers of a corporation or other legal entity for wrongful acts committed while acting in their capacity as directors and officers for the organization?

Directors and Officers Liability

An uninsured vehicle is one that:

Doesn't have insurance or a bond in place at the time of the accident

All of the following are common examples of exempt workers not required to be covered under Workers' Compensation, exempt:

Domestic employee

Which of the following is not considered a covered peril under the Basic Cause of Loss form of the Commercial Property policy?

Earthquake/flood

Which of the following is not covered under a BOP unless coverage is activated on the Declarations page?

Employee dishonesty

Under Workers' Compensation, all the following injuries are covered, except:

Employee injury intentionally incurred by the injured employee

Which of the following provides businesses with coverage against claims made by former employees and potential employees alleging their legal rights were violated?

Employment Practices Liability Insurance (EPLI)

Which part of the insurance contract specifies the risks the policy will not cover?

Exclusions

What is a type of court bond?

Fiduciary Bond

Which of the following is a type of License and Permit Bond?

Fiduciary bond

Which of the following is not covered by CGL's supplementary payments coverage?

First Aid

The signing of the name of another person or organization with intent to deceive is called:

Forgery

Driving while intoxicated is an example of:

Gross negligence

The liability assigned to one party for the conduct of another, based solely on a relationship between the two, is:

Gross negligence

A commercial General Liability policy will exclude coverage for bodily injury and property damage arising from all of the following, except:

Host liquor liability

What Fidelity bond is used when an employer wishes to bond a single employee?

Individual bond

Which endorsement is sued to add family members to the definition of "insured" under any of the auto coverage forms?

Individual named insured

All of the following are true of the Extra Expense coverage form, except:

It is considered to be non-time element coverage

Which of the following is correct regarding the preservation of property additional coverage under the Building and Personal Property coverage form?

It provides off-premises coverage form named perils at any time the insured is temporally away from the premises

All of the following are time element coverage forms, except:

Legal Liability Coverage Form

The Businessowners Liability coverage form includes coverage for bodily injury, property damage, personal injury and advertising injury to which coverage applies, plus:

Liability assumed under an insured contract

Under the Personal Auto Policy, the definition of bodily injury includes all of the following, except:

Loss of use

The limit of of liability is the _ the insurer will pay for each person injured in any one accident.

Maximum

Which of the following is a commercial policy written for medical professionals to cover act that injure patients?

Medical Malpratice

Which coverage is provided under part B of the Personal Auto Policy?

Medical payments

Which of the following states allows for exclusionary endorsements to be added to property policies that exclude covergae for the peril of wind or windstorm?

Mississippi

An insured burns down his/her own house to collect the insurance payout is an example of _ hazard.

Moral

Indifference or carelessness of leaving one's house or vehicle unlocked is an example of a _ hazard.

Moral

The primary property insured under the installation floater is _ property.

Moveable

All of the following are correct concerning medical payments under Commercial General Liability Insurance, except:

N/A

All of the following drivers may be considered an uninsured motorists, except:

N/A

Coverage B under Section I of the CGL excludes:

N/A

Under Part D of the Personal Policy, coverage is not provided for:

N/A

What type of forms are used when the insured purchases inland marine insurance for shipments of goods via common or contract carriers?

N/A

Which of the following are not covered by the Equipment Dealers Floater?

N/A

Which of the following is an optional coverage under the BOP?

N/A

Which of the following is eligible for a BOP?

N/A

Which of the following is true of the Equipment Breakdown coverage form?

N/A

Which type of bill of lading is the less expensive shipping option>

N/A

Running a red light is an example of:

Negligence

Which of the following is not an element to a legal contract?

Negotiation

Under the Business Income coverage form, when proper entry is made in the declarations, the following are all Optional coverages, except:

Non-Time Element Coverage

Another word for principal is:

Obligor

Which of the following circumstances would not be covered under part B of the Personal Auto Policy if the insured sustained an injury while:

Occupying a vehicle with fewer than 4 wheels

An _ form provides coverage for losses that take place during the policy period.

Occurrence

What is the oldest form of property insurance?

Ocean marine

Which of the following statements regarding medical payments coverage is not correct?

Payments are considered an admission of guilt

A contract where the owner cannot transfer or assign ownership of an insurance policy (property and casualty) to another person is called a _ contract.

Personal

Which of the following is one of the 6 broad classes of covered property defined by the Nationwide Marine Definition?

Personal Property Floaters

Flammable material stored near a furnace is an example of a _ hazard.

Physical

A man who suffers an eye injury after the pen he's using explodes is an example of what type of exposure?

Products

Insurance that protects professionals from losses that arise out of their professional conduct is referred to as:

Professional liability

Which of the following definitions describes the taking of property by one who has caused or threatened bodily harm to that person?

Robbery

Which of the following is automatically covered under the Businessowners policy?

Signs attached to the building

Part Two of the Workers' Compensation Policy applies to:

Suits against the employer by an employee or another person because of injury to the employee

What is the type of injury that prevents the employee from doing any work, but from which the injured employee is expected to make a full recovery?

Temporary Total

Which of the following defines a hazard?

Th increase in the chance of a peril occurring

Which of thee following is true regarding the medical payments coverage of the business auto coverage form?

The Business Auto coverage form does not automatically include medical payments coverage

In surety bonding, which party's obligation is guaranteed?

The Guarnantor

Which of the following describes a date after which an occurrence ca take place and be covered under the claims-made form?

The Retroactive Date

Which of the following is true regarding the Supplemental Extended Reporting Period (SERP)?

The charge for the Supplemental Extended Reporting Period shall not exceed the premium of the expiring policy

Commercial Ocean Marine Insurance do not include:

The implied warranties are Legality, Seaworthiness and No Deviation in Voyage. The Protection Clause is not a warranty. Protection Clause/Deviation in voyage

The Motor Carrier Regulatory Reform and Modernization Act, known as the Motor Carrier Act of 1980, deregulated the _ industry.

Trucking

Which of the following is not an element of fraud?

True statement

What type of policy can broaden coverage and add further insurance for losses covered by the underlying policies?

Umbrella Liability

When only one party is legally bound to the contractual obligations after the premium is paid to the insurer, it is a _ contract.

Unilateral

Which of the following coverages will protect the insured against drivers who ave inadequate or insufficient coverage to respond to claims?

Uninsured motorists coverage

Which of the following is ineligible for a BOP?

Wholesalers

EPLI coverage excludes:

Workers' Compensation