Casualty Insurance Exam

How much are shrubs each?

$250

General aggregate refers to which policies combined?

A B and C

Which of the following liability limits is not applied on a per-occurrence basis?

Aggregate limit

Which of the following liability policies would cover actions such as discrimination, harassment, failure to promote, retaliation, and wrongful termination?

Employment practices liability insurance

Which of the following is an optional coverage in the businessowners policy that may require that the insured to pay an additional premium?

Equipment breakdown

What are the 2 major categories of court bonds?

Fiduciary bond and judicial bond

The drive other car endorsement covers who?

Individual name and spouse, extends company insurance to non owned vehicle, individual named does not own a vehicle

What are examples of named insureds?

Individuals and spouses, partners and spouses, corporations and directors, trusts

Requirements for BOP?

Less than 100 employees, revenues of 3 million or less, business occupying up to 25,000 sq ft, owned buildings up to 100,000 sq ft and less than 6 stories, a majority of operation is located on-premises

Which of the following covers an insureds legal liability from loss that arises from bodily injury, property damage, and personal advertising injury?

Liability coverage

Which of the following losses would be covered under the businessowners policy?

Loss caused by a power failure that occurred on the insureds premises

Which of the following is NOT covered under inside the premises—robbery or safe burglary of other property?

Money and securities

Theft includes all of the following except:

Mysterious disappearance

What are the types of fidelity bonds?

Named schedule, position schedule, commercial blanket, blanket position

What are the 5 types of risk exposures for CGL?

Premises and operations, products and completed operations, fire legal, contractual liability, independent contractors

Who makes the promise in a bond?

Principal

Which garage symbol stands for physical damage coverage only for the dealers autos, including owned autos, autos for sale, and autos on consignment

Symbol 31

How much are signs attached to the building?

$1,000

Rachelle missed three days of work at her insurers request. How much money will the supplementary payments form cover for her lost earnings?

$250 a day

In addition to maximum floor space of 25,000, the businessowners eligibility rules limit eligible risks to a maximum of:

$3 million in annual sales

What is the limit of liability for the transportation of hazardous materials such as radioactive materials, compressed gas, explosives, or oil?

$5 million

What is the limit of liability for interstate transportation of nonhazardous property?

$750,000

Commercial auto coverage must include _____ of ____ separate coverage forms and appropriate declarations forms?

1 of 5

Medical expenses will pay reasonable expenses for first aid, medical services, and funeral services within

1 year of the date of the accident

Personal property is covered when it is within how many feet of the premises?

100

Under BOP, materials, equipment, supplies, and temporary structures that are on or within ____ ft of premises

100

What is the limit per fire on BOP?

50,000

The largest office building risk that may be eligible for a businessowners policy is

6 stories or less and 100,000 sq ft

What is extended reporting?

60 days. Covered up to 5 years after expiration (tail)

Which of the following would NOT be covered under the business income and extra expense insuring agreement found in internet liability and network protection coverage?

A hard drive crash

All of the following are defenses against negligence EXCEPT:

Absolute Liability

Mechanical breakdown coverage is:

An option BOP coverage

The aggregate is restored back to its original limit

At policy renewal

Which of the following covers property damage and bodily injury to passengers on a privately owned airplane?

Aviation liability insurance

What are the 4 contract surety bonds?

Bid bonds, performance bonds, payment bonds, supply bonds

Difference in blanket position bonds and commercial blanket bonds?

Blanket position bonds apply separately to each employee involved in a loss

What does coverage A in CGL stand for?

Bodily injury and property damage

___ is taking the property from inside the premises with VISIBLE evidence of forced entry

Burglary

Which of the following coverage forms is used to insure the private passenger and commercial exposures of all businesses other than garages, truckers, and motor carrier?

Business auto coverage form

The phrase "put to its intended use" describes

Completed operations

According to the other insurance condition, which of the following are methods used to decide how the claim will be divided?

Contribution by equal shares or contribution with limits

Heather, the insured, was texting and driving and caused an accident that injured a passenger in another vehicle. The passenger in the other vehicle cannot be held liable for any damages. Which of the following defenses of negligence confirms the statement?

Contributory negligence

A&A Glass company needs coverage for autos used in its business that are not leased, hired, rented, or borrowed. It also wants coverage on autos that are owned by its employees and used for business purposes. Which of the following coverage's should they get?

Coverage 9- non owned autos only

Which of the following coverages would apply if one of the insured's competitors sues the insured fir slander on social media?

Coverage B

Which of the following covers liability arising out of slander, libel, or advertisements?

Coverage B

Coverage that is triggered when a claim is first made against the insured, regardless of when the injury took place, is known as

Coverage under the claims-made form

Who is someone who has care or custody or property inside the premises?

Custodian

All of the statements about difference in conditions (DIC) insurance are true except:

Deductibles are generally low due to the type of risks being insured

When an insurer is settling a physical damage claim for a total loss, the insurer will consider which of the following when determining actual cash value?

Depreciation and physical condition

Loss sustained form occurs during the policy period and is discovered when?

During the policy or within 1 year of expiration

Discovery form occurs any time and is discovered when?

During the policy or within 60 days of the expiration

What are examples of insureds by definition?

Employees, named insureds legal representative,

Which of the following refers to a professional liability policy written for other professionals, such as insurance agents, accountants, architects, stockbrokers, engineers, consultants, and attorneys?

Errors and Omissions

Which of the following professional liability policies is an insurance agent likely to have?

Errors and omissions

Which of the following is NOT an element that must be included in a commercial auto policy?

Exclusions

The individual name insured extends company insurance to who?

Family members

All of the following statements about supplementary payments in a liability policy are true EXCEPT:

First aid to others up to a year after the accident is covered

What 3 things does comprehensive cover?

Glass breakage, hitting animal, falling objects

Fiduciary bonds and court bonds are both a type of:

Judicial bond

Which of the following bonds is specifically used to protect individuals from possible losses pending civil court proceedings?

Judicial bond

Inside the premises has what 2 types of coverage?

Loss of other property while inside and loss of property from a safe and also covers damage to building

Which of the following crime forms covers losses that occur during the policy period or up to one year after?

Loss sustained form

Which of the following is NOT included under the physical damage coverage portion of the business auto coverage form?

Mechanical breakdown

Which of the following limits of liability in a commercial general liability policy is the most that will be paid for coverage c because of bodily injury sustained to one person?

Medical expense limit

The garage coverage form included all of the following except:

Medical payments

What does coverage C in CGL stand for?

Medical payments to others (without regard to fault)

Who is insured under a limited liability company?

Members and managers

Who is someone who has care and custody of property when it is outside the premises?

Messenger

All of the following statements are true about negligence EXCEPT:

Negligence is a civil wrong that unfairly causes someone to suffer a loss

Who is the person that a promise is made to during a bond?

Obligee

Which of the following terms is triggered by damage or injury that occurs during the policy period, even though a claim may be made after the policy has expired?

Occurrence form

Who is insured under a corporation?

Officers and directors

Which of the following would NOT be covered under building coverage of the business owners policy?

Outdoor fences

osses covered under the supplementary payments section of liability are:

Paid in addition to the policy's limit of liability

Which of the following coverages is NOT included in the businessowners policy?

Professional liability

All of the following statements about professional liability are true EXCEPT:

Professional liability is included in all commercial general liability policies

What do surplus lines do?

Provide coverage for high-risk insureds and they are written by non admitted insurers

To which risk on CGL does LEASE refer to, and what does it stand for?

Refers to contractual liability. Stands for Lease of a premises, easement agreement, agreement to indemnify a municipality, sidetrack agreement with railroad, elevator maintenance agreement

Samuel Jones is employed as a shipping clerk. As he is stacking boxes in the storage room, he is surprised by two men carrying guns. The men proceed to empty the warehouse of the boxes. This is an example of:

Robbery

____ is the unlawful taking of property from another with violence or threat

Robbery

Joey was driving too fast on a busy highway during a snow storm. She caused a collision and totaled Ray's car. Ray suffered from a broken leg, broken arm, and lost wages after having to miss work for 6 weeks. Ray's specific and provable expenses are called:

Special damages

Who is the party in a bond that promises to pay if promise is broken?

Surety

Amusement parks and car racing venues would most likely purchase which type of insurance?

Surplus lines

What is the broadest coverage symbol for any auto?

Symbol 1

Which business auto coverage form symbol is the any auto symbol used only to designate liability coverage?

Symbol 1

What symbol refers to customers autos left with the insured for service, repair, storage, or safekeeping? (Garage symbol)

Symbol 30

If an insured wants collision coverage for only a few autos out of an entire fleet, which symbol would be used on the declarations?

Symbol 7

What is the most restrictive symbol for a specific auto?

Symbol 7

Which of the following statements about the hired auto and nonowned auto liability endorsement are true EXCEPT:

The endorsement covers the employee, not the business

All of the following statements are correct about the discovery form EXCEPT:

The extended periods to discover losses terminate one year after the insured obtains commercial crime insurance

In a liability loss, who is the first party?

The insured

Unlike surety bonds, fidelity bonds are purchased by:

The obligee

All of the following statements about a commercial umbrella policy are true EXCEPT:

The umbrella policy is designed to handle usual and everyday exposures

____ means unlawful taking of property and includes burglary and robbery

Theft

Outside the premises covers what?

Theft, disappearance, or destruction, money and securities, custody of messenger

Claims-made form:

Trigger- claim made and reported during policy and cannot occur before retroactive date

Occurrence form:

Trigger- injury or damage occurs while policy in force and claim can be made after expiration

Which of the following is NOT included in the business auto coverage form?

Uninsured motorist coverage

Who is someone retained specifically by the insured whose sole duty is to have care and custody of property inside the premises?

Watchperson

What are some exclusions to physical damage?

Wear and tear, freezing, mechanical breakdown, road damage to tires