Chapter 12 - Miscellaneous Commercial Policies

Medical expenses of the Farm Liability Coverage Form provide coverage if the accident is reported within: A 1 year B 4 years C 3 years D 2 years

3 years

Bonds that are used in court proceedings are called: A Judicial Bonds B Permit Bonds C Performance Bonds D Tax Bonds

A

Ocean marine hull insurance covers a vessel for: A Physical damage B Liability C Cargo damage D Seaworthiness

A

Under Equipment Breakdown Insurance, which of the following is considered 'one breakdown'? A All breakdowns occurring at the same time that are the direct result of the same cause B The last accident, when there is more than one accident causing a loss C The accident that apparently caused the damage D The first accident, when there is more than one accident causing a loss

A

What type of insurance would an insurance agent buy to protect his/her liability risks? A Errors and Omissions B Risk Adequacy Insurance C Agent Risk Coverage D Producer's Liability Insurance

A

What type of policy might cover an insurance producer's failure to renew a policy? A The producer's errors and omissions policy B The producer's performance bond C The producer's commercial CGL policy D The producer's license bond

A

Which of the following covers equipment during transportation, unloading and installation up to the point control is given to the buyer? A Installation Floater B Contractor's Equipment Floater C Equipment Dealer's Coverage Form D Electronic Data Processing Floater

A

Which of the following is NOT a type of coverage provided under a farm liability policy? A Professional liability B Medical payments C Bodily injury and property damage liability D Personal and advertising injury

A

Which of the following is an element of fiduciary responsibility? A Duty of loyalty B Clean credit history C Liability protection D Contractual responsibility

A

Which of the following is correct regarding coverage under the Farm Property Coverage Form? A For coverage to apply, there must be a limit shown in the Declarations B Coverage G includes loss of use C The limit for Coverage G is the same as the limit of Coverage A D Coverage B - Other Private Structures includes farm buildings and silos

A

Which statement is true of the Equipment Breakdown Protection Coverage Form? A It may be written as a coverage part of the Commercial Package Policy B Every policy automatically includes Business Income and Extra Expense Coverage C Defects, erasures, errors, limitations or viruses in computer equipment are included in the definition of breakdown D Explosion and damage during testing are covered

A

What is the name of the uniform document that common carriers are required to issue to the shipper of the goods being transported? A Bill of Lading B Bill of Acceptance C Bill of Transportation D Shipping Receipt

A (The Bill of Lading is a receipt for the goods being shipped that sets forth the basic agreement between the carrier and the shipper.)

Which statement is false regarding the Equipment Breakdown Protection Coverage Form? A The period of restoration ends 15 days after the damaged property is repaired or replaced B Covered equipment does not include catalysts, insulating, or refractory material C If an initial breakdown causes other breakdowns, they will all be considered one breakdown D Deductibles ordinarily apply separately to each applicable coverage

A (The period of restoration ends 5 days after the date the damaged property is repaired or replaced.)

A bond that protects an employer against loss caused by the employee's dishonesty is called a: A Lender's bond B Fidelity bond C License bond D Performance bond

B

All of the following are true of the Equipment Breakdown Protection Coverage Form, except: A Coverage is included for property of others in the insured's care, custody and control B Malfunction is included in the definition of breakdown C Coverage is automatic, at newly acquired premises for a period of time specified in the Declarations D Property is insured on a replacement cost basis, unless the Actual Cash Value Endorsement is chosen

B

The implied warranty of seaworthiness is understood to mean which of the following? A The crewmembers are all certified B The ship must be seaworthy and have a competent crew C The ship has a full complement of emergency navigation equipment D The ship must have undergone a comprehensive inspection by the insurer

B

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, files, and maps? A Business Property Coverage Form B Valuable Papers and Records Coverage Form C Commercial Articles Coverage Form D Accounts Receivable Coverage Form

B

Which of the following forms is designed to insure a single shipment of goods? A Transportation Floater B Trip Transit Policy C Bailee's Customers Policy D Motor Truck Cargo Owners Form

B

Which of the following is not correct about the Crop/Hail policy? A Failure to harvest a mature crop is not covered B The policy coverage begins at 12:01 a.m. on the day before the crop breaks through the ground C The payment of a loss reduces the total amount of available insurance D Crops are covered for fire, lightning, freezing, drought, insects, and disease

B

Which of the following perils is not covered by Crop/Hail insurance? A Fire B Pollution C Drought D Lightning

B

All of the following are true of Ocean Marine Insurance, except: A Coverage is voided if implied warranties are violated B General average refers to a partial loss where the loss is shared C Policies are standardized D Property coverage must be written to full value to avoid a penalty

C

The Collision or Running Down Clause in Ocean Marine Insurance covers: A Collision damage to the insured vessel when it collides with another vessel B Collision damage to the insured vessel when it collides with a pier or fixed object C Collision damage to another vessel when the shipper is liable D Damage to the insured vessel caused by running aground

C

When does coverage cease under a Crop/Hail Insurance Policy? A At 12:01 am on December 31st of the year the policy was written B Once the crop is clearly visible above the ground C When the crop is harvested D At 12:01 am, 1 year from the date the policy is written

C

Which of the following is false about Livestock Coverage Form? A Classes of animals may be subject to a sublimit B Mules are considered livestock C Livestock are covered while in transit by common carrier D Poultry is not considered a type of livestock

C

Livestock is not eligible for coverage on which Farm policy? A Broad Cause of Loss Form B Basic Cause of Loss Form C Special Cause of Loss Form D Livestock Coverage Form

C (The Special Cause of Loss Form specifically excludes coverage for livestock. The Basic form covers flood and earthquake loss to livestock and the Broad form covers electrocution of covered livestock.)

All of the following are types of Professional Liability Insurance, except: A Fiduciary liability insurance B Errors and omissions insurance C Physicians, surgeons and dentists liability insurance D Commercial umbrella insurance

D

Goods being transported would be covered by which of the following types of insurance? A Automobile B Casualty C Surety D Inland Marine

D

The Equipment Breakdown Coverage does not cover which of the following? A Expediting expenses B Business income C Spoilage damage D Breakdown test

D

Under the Farm Property Coverage Form, the Special Causes of Loss form would insure against all of the following, except: A Weight of Snow or Ice B Falling objects C Freezing of plumbing D Dishonest or criminal acts, pollutants, or contaminants

D

Which of the following is true about specialty or professional liability insurance? A They protect businesses with few liability exposures B Volunteer workers are excluded from coverage C They provide excess coverage over the CGL policy D They are written on non-standard forms

D

Which of the following statements is correct regarding the Commercial Articles Coverage floater? A The policy is written on a named perils basis B Coverage is only provided for property while on the insured's premises C Property is covered on land and at sea D It covers property used for business purposes

D

Which statement is false regarding inland marine policies? A The Installation Floater provides coverage while the property is in transit and during installation B The Accounts Receivable Coverage Form is a controlled form C The Contractor Equipment Floater is usually written on an open peril basis D The Bailees' Customers Form covers the insured's property when he/she has property of others in his/her care, custody and control

D

While working together on the roof of a barn, the insured's neighbor fell off and broke his ankle. Which of the following is true about the resulting claim under the insured's Farm policy? A There would be no coverage for this injury under any part of a Farm Policy B Coverage J - Medical Payments will not cover the neighbor's medical expenses unless the insured's negligence caused the accident C The neighbor's medical expenses are only payable under a Workers' Compensation insurance policy D Coverage J - Medical Payments is no-fault coverage and will pay for necessary medical expenses that the neighbor incurred regardless of negligence

D

A value limitation for a shipment is not included in which type of bill of lading? A Released B Waiver C Cargo D Straight

D (A straight bill of lading doesn't contain a value limitation for the cargo being shipped, meaning the carrier is legally responsible for the full value of transported goods while it is in the carrier's care.)