Commercial Package Policy (CPP) questions

in a farm policy, which of the following coverages would reimburse the insured for loss of rental income following damage to the insured dwelling by an insured peril

D

all of the following types of property are covered by a standard builders risk from EXCEPT a. temporary structures b. machinery that will be permanently attached to the building c. tools 50 feet away from the building d. the building itself

Tools 50 feet away from the building

a liability policy that provides coverage for a claim for injury or damage if the claim is first reported or filed against the insured during the policy period is called

claims made form

which of the following is an additional coverage that is covered by the broad causes of loss form

collapse

a plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and hurts someone because he did not do do the job correctly

completed operations

A builder's risk form is most often written as which of the following?

completed value form

which of the following is NOT covered under accounts receivable coverage form A. Interest on loans required to offset uncollectible amounts pending payment of the insurance proceeds B. sums due the insured that are uncollectible due to a covered loss C. expenses to reestablish the records, if possible, and collection expenses that are in excess of normal costs D. any loans required to offset uncollectible amounts

any loans required to offset uncollectible amounts

In equipment breakdown coverage, all accidents would be considered a single accident if they occur

at a single location at the same time and from the same cause

in equipment breakdown coverage, all accidents would be considered a single accident if they occur

at a single location at the same time and from the same cause

according to the common policy conditions for a CCP, if the insured dies, the policy rights and duties

automatically transfer to a legal representative

business personal property coverage form covers all of the following EXCEPT A. automobiles held for sale B. furniture and fixtures C. machinery that is not permanently installed D. stock

automobiles held for sale

Under farm liability, Coverage H includes

bodily injury

the transfer of money from inside a banking premises to a person other than a messenger outside those premises or to a place outside those premises is covered under which commercial crime coverage

computer fraud

which of the following may be covered by electronic data processing coverage form under an inland marine policy

computer hardware that is specifically scheduled, extra expense the insured incurs to continue the business following a loss, data processing media, including magnetic tapes or paper tapes, punch cards and discs

an individual's construction company leaves mobile equipment and construction machinery on the job site until the project is completed. What could this individual use to insure it?

contractors equipment floater

which crime coverage form is used to cover securities held in trust by another party as collateral for some obligation

coverage J- Securities Deposited with Others

the extra expense coverage form provides

coverage that will permit the insured to continue in business without interruption following a property damage loss

a unique feature in a bailee form is that it covers

customers' property whether or not the insured has been negligent

the commercial property declarations page contains which of the following inforamtion

description of property insured

the commercial property declarations page contains which of the following information

description of the property insured

the legal liability coverage form provides coverage for damages for which the insured is legally liable arising from

direct physical damage to property of others in the insured care

which commercial crime form would provide coverage for a loss that did not necessarily happen during the policy period but was revealed during the policy period

discovery form

individuals in the business of selling construction equipment and mobile equipment should insure with

equipment dealers coverage form

in a commercial package policy, who may cancel the policy in writing and make changes to the policy with the consent of the insurer

first named insured

the major portion of the premium for an equipment breakdown policy pays

for inspections and examinations

If a farm building or structure is vacant or unoccupied, which is true a. if for 60 consecutive days, no coverage for vandalism and malicious mischief, glass breakage, or theft b. if for 60 consecutive days, amount paid for covered losses is reduced by 15% c. if for 120 consecutive days, the limits applicable to the building and its contents are reduced by 50% d. if for 30 consecutive days, no coverage for vandalism and malicious mischief, glass, breakage or theft

if for 120 consecutive days, the limits applicable to the building and its contents are reduced by 50%

CGL Coverage B (person and advertising injury) will cover

inadvertent injury to others caused in the course of advertising the insured's product

if a guest's property is lost or damaged while on the insured's premises or in their control, Crime Coverage Form L liability for Guests' Property- Premises covers the insured's

legal liability

if a guest's property is lost or damaged while on the insured's premises or in their control, Crime Coverage Form L- liability for Guests' Property-Premises covers the insured's

legal liability

all of the following are exclusions under farm policy EXCEPT for A. earth movement B. loss of use C. ordinance or law D. flood

loss of use

which of the following would be covered under the crime coverage inside the premises- theft of money and securities

loss or damage to a locked safe, vault, or cash register

under commercial crime coverage form K- Liability for Guests' Property- safe deposit box, which covered is included

loss resulting from acts of employee dishonesty

in what type of commercial crime policy coverage is trigged by a loss that happens during the policy period but is not necessarily discovered during the policy period

loss sustained form

what is not a consideration when making an inland marine claim

market value when property was first purchased

which inland marine coverage condition says than an insurer will settle with the actual owners of the property involved in a loss

privilege to adjust with the owner inland marine coverages can cover property of others in the insured's care, custody or control, the privilege to adjust with the owner says the insurer will settle with the actual owners of the property involved in a loss

which of the following statements is true regarding the commercial general liability policy's Coverage C- Medical Payments

the coverage is considered good will because payments are made without regard to fault

the common policy condition is a modular part combined with other parts to create the contract. the common policy condition section contains provisions that are applicable to all lines of coverage that may be included in the policy. Which of the following provisions would be found in the common policy conditions section of the policy?

the first named insured may cancel the policy at any time by giving written notice to the insurer

Crunchy Flakes Cereal Company shipped some of its product in faulty containers that caused spoilage. This resulted in some consumers becoming ill. If the company is sued for this event, it would be an example of

product liability claim

which inland marine coverage condition states that payment of any claim will not reduce the limit of insurance, except in a case of a total loss on a scheduled item

reinstatement of limit

all of the following are additional causes of loss included in the broad form of a commercial property policy EXCEPT A. water damage B. replacement cost C. falling objects D. weight of ice, snow, or sleet

replacement cost

a business owner whose inventory changes significantly throughout the year should consider having coverage written on what type of form

reporting form

for insurance purposes, when an insured loses property to another because the person used violence or threat of violence to gin property, this is defined as

robbery

in the event of a claim under a commercial general liability policy, the insured has all of the following duties to the insurer EXCEPT A. furnishing the insurer with copies of any demands, notices, or other legal papers received in connection with a claim or suit B. assisting the insurer upon request in the enforcement of any right against any person or organization that may be liable to the insured C. submitting to a medical exam when requested D. providing prompt written notice of any claim or suit actually filed against the insured

submitting to a medical exam when requested

burglary is defined as

taking of property from within the premises leaving visible signs of forced entry

the occurrence form trigger is based on which of the following A. the number of claims made during a policy period B. the date when injury or damage occurs C. the place where injury or damage occurs D. the amount of the insured's deductible

the DATE when injury or damage occurs

An insured's accounts receivable records have been damaged. The loss may be covered with

the accounts receivable coverage form

under the provisions of the business income coverage form, all of the following are true EXCEPT A. the insured is reimbursed for payroll that continues after the loss begins B. the insured is reimbursed for the loss from the date of loss to the date of restoration or policy expiration date, whichever comes first C. if the insured and insurer are unable to come to agreement as to the value of the loss, either party may make a written demand for an appraisal D. the insured agrees to resume all or part of operations as quickly as possible

the insured is reimbursed for the loss from the date of loss to the date of restoration or policy expiration date, whichever comes first

in a form policy, any cost incurred by the insurer for the investigation or defense of a claim will be paid by

the insurer

when Commercial Crime Coverage- Form M- Safe Depository Liability is written, what must be attached to the policy

the safe depository general provisions

a specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean

there is no coverage

a commercial package policy (CCP) allows the insured to select the coverage needed and customize the policy to meet the needs of the insured's business. In a CCP, the business owner may select from all of the following types of coverage EXCEPT A. crime coverage B. boiler and machinery coverage C. general liability coverage D. Works compensation coverage

workers compensation coverage

what is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy?

$10,000 for all expenses incurred during a 12-month period

A policyholder has an equipment breakdown policy with a $200,000 limit. if a boiler explosion causes a $100,000 damage to the boiler itself, $50,000 damage to the insured's building, and $30,000 of expediting expenses, how much will the insured collect under the policy

$175k

The cost of restoring farm records in an additional coverage offered under a farm policy. How much will the policy pay to restore the records

$2000

in the computer fraud crime coverage form, what limit is placed on each occurrence of the loss of manuscripts, drawings, or records

$5,000

under the commercial crime coverage inside the premises- robbery or safe burglary of other property, what is the special per occurrence limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records

$5,000

under coverage C of a farm policy, what is the limit payable on business property located away from the premises?

$500

personal business property out in the open is covered under commercial policy only

100FT of the described premises

the insured purchased a $200,000 extra expense policy .If the percentages applying to the limit of insurance are 40%, 80%, and 100%, what would be the maximum payable for a 47 day loss

160,000

what is the sublimit for hazardous substance cleanup or repair/ replacement of contaminated property

25,000

a business owner has a building and personal property policy that covers a shred in which he stores extra parts. If he buys a second shred for the same purposes, this will be automatically covered for how long

30 days -coverage is for 30 days for newly acquired buildings and personal property that are similar in use to the property insured

coverage under the builders risk form will end in all of the following situations EXCEPT a. 60 days after the building became occupied b. the insured has sold the property c. 60 days after construction has ended d. construction has been abandoned

60 days after construction has ended

coverage under the builders risk form will end in all of the following situations EXCEPT A. 60 days after the construction has ended B. construction has been abandoned C. 60 days after the building became occupied D. the insured has sold the property

60 days after the construction has ended

what is the required limit of insurance in the coinsurance clause for Coverage F- Unscheduled Farm Personal Property

80%

the employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to

90 days

which item would NOT be covered under building coverages in a building and personal property policy A. the tables and chairs used by a coffee shop as part of their outdoor seating B. the building housing a dress shop C. the ice cream case permanently installed in an ice cream shop D. The bulldozer being used as part of a business addition under construction that is parked 500 feet from the building

D. the bulldozer being used as part of a business addition under construction that is parked 500 feet from the building -building coverages insures the building described, including outdoor fixtures and furniture, items used to service the property, permanently installed machinery and equipment, and additions under construction, including the materials, supplies and equipment within 100 feet of the premises

all of the following excluded in the equipment breakdown policy EXCPET A. loss of power B. explosion steam boilers C. ordinance or law coverage D. business interruption

Explosion of steam boilers

An insured owns and operates a commercial business. He has included a business income coverage from with his commercial package policy. When the insured's business is severely damaged by fire, the business income coverage will pay for

Net income plus continuing expenses of the business In the event of a covered loss, the business income coverage will pay those profits that would have been realized if there had been no loss and the expenses of the business that continue, even though the business is not operating

erroneous publishing copied all the material from Angels Inc.'s book. the only changes made by erroneous were to rename the title and chapters, put a different cover on it, and distributes it as its own. angels inc. files a claim against Erroneous and seeks damage. Will a commercial general liability policy over the claim

No, because the claim results from copyright infringement and is not in an advertisement

a building insured with commercial property insurance has been vacant for 90 days. which of the following is not true A. payment for un named perils is reduced by 25% b. the insured has no coverage for losses caused by theft c. the insured has no coverage caused by glass breakge d. payment for un named perils is reduced by 15%

Payment for un named perils is reduced by 25%

HMS Toys carries more inventory from October 1 to December 31. Which of these would provide higher coverage limits during these months and lower limits the rest of the year?

Peak season

When Commercial Crime Coverage Form M- Safe Depository Liability is written, what must be attached to the policy

The Safe Depository General Provisions

A claim is considered to have been made

When notice is received and recorded by any insured or the insurer, whichever comes first.

in which of the following situations would the jewelers block extension cover a loss

a jeweler fixes a necklace and sends it by registered mail to the owner. When the necklace arrives, it has been damaged

According to Nationwide marine definitions, risks that may use inland marine insurance include all of the following except A. cargo tansported by truck B. shipments made by freight train C. property while stored at a warehouse D. a large pleasure boat

a large pleasure boat

what are common carriers required to issue to every shipper that it transports goods for

a uniform bill of lading

crime insurance is usually written on what basis

all-risk

an insured unintentionally accepted forged currency during the course of regular business. Which of the following crime coverages protects against such a loss

money orders and counterfeit paper currency

which policy consists of the declarations and conditions, endorsements, and other attachments applicable to a single line of insurance

monoline

a business using its own truck to move its own cargo would insure the cargo using

motor truck cargo- owners form

the livestock coverage form covers which of the following losses

named peril coverage for death of livestock

an insured owns and operates a commercial business. he has included a business income coverage form with his commercial package policy. When the insured's business is severely damaged by fire, the business income coverage will pay for

net income plus continuing expenses of the business

a loss has occurred before the first report has been filed on a value reporting coverage form. Which is NOT true A. full amount of loss up to the policy limit is paid if the loss occurs before the first report due date B. 75% of the loss is paid if the loss occurred after the first report due date C. Never more than 75% of the loss is paid D. Provisional premium is based on 75% of the full amount of coverage

never more than 75% of the loss is paid

when does the coverage begin under the builders risk form

on the date construction begins

a property insurance policy that insures a commercial building on a replacement cost basis includes the ordinance or law coverage endorsement. This endorsement will cover all of the following EXCEPT A. Loss to the undamaged portion of the building B. any increased cost of repairs or reconstruction C. Demolition and removal cost D. Ordinance with which the insured was required to comply prior to the loss

ordinance with which the insured was required to comply prior to the loss

a property insurance policy that insures a commercial building on a replacement cost basis includes the ordinance or law coverage endorsement. this endorsement will cover all of the following expenses EXCEPT A. ordinance with which the insured was required to comply prior to the loss B. loss to the undamaged portion of the building C. any increased cost of repairs or reconstruction D. demolition and removal cost

ordinance with which the insured was required to comply prior to the loss

which of the following commercial crime coverages would cover a loss resulting from theft of the company's money and securities from the armored vehicle making a delivery

outside the premises

When ABC appliance's marketing stated that its mowing machine was the only safe mower available for purchase in town, ABC was sued by XYZ Lawn and Garden. ABC's coverage would come from which part of its general liability coverage

personal and advertising injury liability

all of the following property is insured under Coverage A of a farm policy EXCEPT

personal lawnmower of a tenant used to service the described location

Which of the following liability exposures is most likely for a small specialty clothing retail boutique

premises liability exposure

valuable papers and records form provides coverage for the reconstruction of all of the following types of records EXCEPT A. historical records B. Prepackaged software C. blue prints D. deeds

prepackaged software

the business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of direct loss. What term best describes the nature of this type of coverage

time element

type of insurance that covers one specific trip

trip transit

which of the following exposures is insured under Coverage I- Personal and Advertising injury liability

unintentional acts arising from the operation of a farming business

Farm policy Coverage B - Structures would pay how much for loss of an outside antenna, tower, or satellite dish?

up to $1,000

all of the following are essential elements of a commercial package policy (CCP) EXCEPT A. interline endorsements B. Declarations page C. policy conditions D. Valuations and/ or settlement provisions

valuations and/ or settlement provisions

all of the following are essential elements in a CCP except a. interline endorsements b. declarations c. policy conditions d. valuation/ settlement provisions

valuations/ settlement provisions declarations, policy conditions, interline endorsements, and coverage parts in a CCP

which of the following is NOT one of the available additional coverages in the builders risk form

vandalism