Chapter 12 - Commercial Inland Marine

Newly acquired hand tools can be insured under a Contractors Equipment Floater if reported to the insurer within how many days? A 30 days B 45 days C 20 days D 60 days

60 days

The Valuation condition on Commercial Inland Marine policies states that property losses are valued on which loss settlement basis? A Salvage value B Actual cash value C Replacement cost D Market value

Actual cash value

Under Inland Marine insurance, controlled lines refer to forms that: A Are not approved by the National Association of Insurance Commissioners B Are not standardized by any rating bureau C Must be tailored to the individual insured by endorsement D Are filed with state insurance departments

Are filed with state insurance departments

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

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

An equipment dealer owns multiple store locations. At one location, required safeguards are not in operation while the location is closed. Coverage provided by the dealer's Equipment Dealers Floater will be: A Automatically suspended at all locations B Automatically terminated at that location C Terminated if safeguards are not in place for at least 10 days D Automatically suspended at that location

Automatically suspended at that location

L's Dry Cleaning suffered a fire that damaged clothing belonging to their customers. What Inland Marine coverage form would cover loss to the customers' clothes? A Bailees Customers Form B Builders Risk Coverage C Installation Floater D Contractors Equipment Floater

Bailees Customers Form

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

Bailees Customers Form

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

Blueprints

The Bailees Customers Coverage Form could be used to cover which of the following property belonging to a customer? A Animals and birds B Furs and jewelry C Clothing and storage property D Bills and money

Clothing and storage property

According to the Nationwide Marine Definition, all of the following risks may be insured by inland marine insurance, except: A Domestic shipments B Cargo being transported for export C Commercial autos D Transmission towers and their equipment

Commercial autos

The Nationwide Marine Definition specifies risks that may be written under Marine insurance. All of the following may be insured under Marine policies, except: A Imports and exports B Commercial buildings C Domestic shipments of goods for distribution D Bridges and tunnels

Commercial buildings

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

Which of the following is not covered under the Installation Floater? A Carpeting B Construction equipment C Elevators D Electrical equipment

Construction equipment

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 Builders Risk Coverage B Bailees Customers Form C Contractors Equipment Floater D Installation Floater

Contractors Equipment Floater

A company sells mobile equipment used for construction, and its stock is protected by an Equipment Dealers Floater. If the insured fails to maintain protective safeguards at its covered locations, how is coverage affected? A Coverage is automatically suspended at that location B Coverage is not affected C Coverage is provided after the insured pays an additional premium D Coverage is automatically terminated

Coverage is automatically suspended at that location

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

Exports traveling over water

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

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 are not standardized by any rating bureau C Forms that must be tailored to the individual insured by endorsement D Forms that are filed with the state insurance department by insurers

Forms that are not standardized by any rating bureau

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 Equipment Dealers Floater B Contractors Equipment Floater C Bailees Customers Coverage Form D Installation Floater

Installation Floater

Which of the following covers property during transportation, unloading, and installation, up to the point control is given to the buyer? A Equipment Dealers Floater B Contractors Equipment Floater C Installation Floater D Electronic Data Processing Floater

Installation Floater

Which of the following statements regarding the Commercial Articles Coverage Form is correct? A Coverage is provided while the property is in transit on land and at sea B It covers property used for business purposes, such as cameras and films C Coverage is only provided for property while on the insured's premises D Coverage is written on a named perils basis

It covers property used for business purposes, such as cameras and films

Which statement regarding the Accounts Receivable Coverage Form is correct? A It does not cover collection fees B It covers only the cost of reproducing the insured's destroyed accounts receivables records C It covers the insured's uncollectibles from customers due to a direct physical loss of the insured's business records D It does not cover the cost of reconstructing lost records

It covers the insured's uncollectibles from customers due to a direct physical loss of the insured's business records

Under the Contractors Equipment Floater, the coverage territory includes all of the following, except: A Canada B Mexico C Puerto Rico D Territories and possessions of the United States

Mexico

As provided by the Commercial Inland Marine Conditions Form, in the event of a partial loss to covered property, the claim payment will: A Not reduce the applicable sublimit, but the aggregate limit will be reduced B Reduce the limit of liability C Automatically be based on an appraisal D Not reduce the limit of liability

Not reduce the limit of liability

Under the Commercial Inland Marine Conditions Form, if an insured breaches a condition at one location, the breach will: A Result in a penalty on claim payments for all covered losses in the policy period B Affect coverage at every location C Be cause for the insurer to void the policy D Only affect coverage at that location

Only affect coverage at that location

Commercial Inland Marine policies are typically written on what basis? A Named perils B Open perils C Broad Form causes of loss D Specified causes of loss

Open perils

Under the Nationwide Marine Definition, property eligible to be insured by Inland Marine or Ocean Marine insurance does not include: A Imports and exports B Instruments of transportation C Personal property at the insured residence D Domestic shipments

Personal property at the insured residence

Inland Marine policies are primarily designed to insure: A Property that is mobile in nature and that may be away from insured's premises B Overseas shipments C Exclusively property being transported on inland waters D Buildings and contents used for manufacturing

Property that is mobile in nature and that may be away from insured's premises

Which of the following is not covered under the Valuable Papers and Records Floater? A Maps B Blueprints C Mortgages D Securities

Securities

The Accounts Receivable Coverage Form will cover loss of records that results from: A War B The collapse of a building damaged by fire C Normal wear and tear D Inherent vice

The collapse of a building damaged by fire

The Equipment Dealers Floater covers which of the following? A The office furniture and fixtures of equipment dealers B The tools and equipment in the equipment dealer's repair shop C The equipment dealer's stock, primarily consisting of mobile agriculture and construction equipment D The equipment dealer's building and contents

The equipment dealer's stock, primarily consisting of mobile agriculture and construction equipment

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 Arson committed by an employee B Bookkeeping or accounting errors C Falsification of records D Theft

Theft

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

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

Which of the following coverage forms covers the cost of replacing or reproducing documents that are important for the continuation of business, such as books, films, and maps? A Accounts Receivable Coverage Form B Commercial Articles Coverage Form C Business Property Coverage Form D Valuable Papers and Records Coverage Form

Valuable Papers and Records Coverage Form