prop and cas state exam ch12
An entity who owns a fleet of trucks and hauls its own goods should purchase: A A Motor Truck Cargo Owners Form B A Bailee Policy C An Installation Floater Policy D A Motor Truck Cargo Truckers Form Policy
A Motor Truck Cargo Owners Form
Which of the following is correct about aircraft liability insurance? A Collision insurance is available for ground and mid-flight collisions B A passenger may be covered by a sublimit C Coverage is written on a per person basis D The limit of coverage is written as a split limit
A passenger may be covered by a sublimit
Which of the following scenarios would be covered by E&O insurance? A An agent neglects to renew a customer's policy after they paid the premium B An agent is in a car accident with a customer in the agency parking lot and causes bodily injury C An agent is sued for personal injury for providing testimony in a lawsuit D An agent deposits a commission check in the same account as the client's premium check
An agent neglects to renew a customer's policy after they paid the premium
The Equipment Breakdown policy would not cover which of the following? A Destruction of several computers, photocopiers, and other electronic equipment following a power surge B An air conditioning unit intentionally disabled by an employee C Spoilage of refrigerated following a transformer failure D Accidental smoke damage to a machine caused by an employee
An air conditioning unit intentionally disabled by an employee
Which of the following is not covered under Equipment Breakdown Coverage? A Breakdown test B Expediting expenses C Spoilage damage D Business income
Breakdown test
Which source of liability would a trucker be liable for under a Motor Truck Cargo form?
Cargo damage from overturn
The Running Down Clause would cover which of the following claims? A Collision damage to the insured vessel when it collides with a pier or fixed object B Collision damage to the insured vessel when it collides with another vessel C Damage to the insured vessel caused by running aground D Collision damage to another vessel when the insured is liable
Collision damage to another vessel when the insured is liable
The Collision or Running Down Clause in Ocean Marine Insurance covers:
Collision damage to another vessel when the shipper is liable
Which of the following would not be covered under an Installation Floater? A Construction equipment B Carpeting C Elevators D Electrical equipment
Construction equipment
Which of the following is true about the Builders Risk Floater? A Fixtures that will become part of the building are not covered until they are installed B Scaffolding is excluded from coverage C Coverage can be provided for farms D The floater covers the building for named perils
Coverage can be provided for farms
What type of insurance would an insurance agent buy to protect his/her liability risks?
Errors and Omissions
Hull Coverage and Cargo Coverage under Ocean Marine Insurance are generally written on which basis?
Full Value
All of the following are considered implied warranties, except: A No Deviation in Voyage B Legality C General Average D Seaworthiness
General Average
In bonding, the surety is also known as the: A Obligor B Guarantor C Principal D Obligee
Guarantor
Which of the following provisions in an Ocean Marine policy covers direct damage caused by bursting of boilers? A Inchmaree Clause B Boiler and Machinery Clause C Mechanical Failure Clause D Running Down Clause
Inchmaree Clause
Goods being transported would be covered by which of the following types of insurance? A Surety B Inland Marine C Automobile D Casualty
Inland Marine
Which of the following coverage forms covers equipment during transportation, unloading and installation until control is given to the purchaser? A Contractor's Equipment Floater B Electronic Data Processing Floater C Installation Floater D Equipment Dealer's Coverage Form
Installation Floater
Which of the following statements is correct regarding the Commercial Articles Coverage floater? A Property is covered on land and at sea B Coverage is only provided for property while on the insured's premises C The policy is written on a named perils basis D It covers property used for business purposes
It covers property used for business purposes
Which of the following is covered under Aircraft Liability Insurance? A The incidental auto liability exposure of private pilots B Owners of private, municipal, and commercial airports C Liability claims arising from the ownership, maintenance or use of an aircraft D Legal liability of owners and operators of aircraft hangers and aircraft repair shops
Liability claims arising from the ownership, maintenance or use of an aircraft
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 Coverage is automatic, at newly acquired premises for a period of time specified in the Declarations C Property is insured on a replacement cost basis, unless the Actual Cash Value Endorsement is chosen D Malfunction is included in the definition of breakdown
Malfunction is included in the definition of breakdown
Which statement is false regarding the Farm Liability Coverage Form? A Medical payments do not provide coverage for anyone eligible for Workers' Compensation B Medical payments would provide coverage for a neighbor who is injured while working the insured's livestock on a volunteer basis C Personal injury includes damages arising out of false arrest, malicious prosecution, libel and slander D Medical payments provide coverage only when the insured is legally liable
Medical payments provide coverage only when the insured is legally liable
Which statement is false regarding the Farm Liability Coverage Form? A Medical payments would provide coverage for a neighbor who is injured while working the insured's livestock on a volunteer basis B Medical payments do not provide coverage for anyone eligible for Workers' Compensation C Personal injury includes damages arising out of false arrest, malicious prosecution, libel and slander D Medical payments provide coverage only when the insured is legally liable
Medical payments provide coverage only when the insured is legally liable
Which statement is false regarding the Farm Liability Coverage Form? A Personal injury includes damages arising out of false arrest, malicious prosecution, libel and slander B Medical payments provide coverage only when the insured is legally liable C Medical payments do not provide coverage for anyone eligible for Workers' Compensation D Medical payments would provide coverage for a neighbor who is injured while working the insured's livestock on a volunteer basis
Medical payments provide coverage only when the insured is legally liable
The party for whose benefit a surety bond is written is the:
Obligee
Inland Marine policies generally cover property that is in which of the following locations? A On ocean-going vessels once they reach inland river ways and ports B Being shipped by motor truck only C On land only D Shipped by sea to other countries
On land only
An Aircraft Hull Policy provides all the following coverage, except: A Damage to the insured aircraft while it is in flight B Damage to the insured aircraft while it is not in motion on the ground C Damage to the insured aircraft while it is in motion on the ground D Passenger Liability Coverage
Passenger Liability Coverage
Which of the following is not an exclusion under the Umbrella policy? A Contractual liability B Personal injury C Product Recall D Professional services
Personal injury
Ocean marine hull insurance covers a vessel for: A Cargo damage B Liability C Physical damage D Seaworthiness
Physical damage
All of the following are true of Ocean Marine Insurance, except: A General average refers to a partial loss where the loss is shared B Policies are standardized C Coverage is voided if implied warranties are violated D Property coverage must be written to full value to avoid a penalty
Policies are standardized
ll of the following are true of Ocean Marine Insurance, except: A General average refers to a partial loss where the loss is shared B Property coverage must be written to full value to avoid a penalty C Policies are standardized D Coverage is voided if implied warranties are violated
Policies are standardized
In surety bonding, the party whose obligation is guaranteed is called the: A Surety B Principal C Guarantor D Obligee
Principal
The person whose responsibility it is to fulfill the obligation of a surety bond is the:
Principal
hich of the following is NOT a type of coverage provided under a farm liability policy? A Professional liability B Personal and advertising injury C Medical payments D Bodily injury and property damage liability
Professional liability
The Annual Transit Form is designed for which of the following? A Protecting property being shipped to others or being received from others on multiple occasions throughout the year B Businesses that do not make regular shipments C Businesses that desire coverage only on shipments received from others D Businesses that desire coverage only on their shipments to others
Protecting property being shipped to others or being received from others on multiple occasions throughout the year
Which of the following is not covered under the Valuable Papers and Records Floater? A Maps B Mortgages C Blueprints D Securities
Securities
Livestock is not eligible for coverage on which Farm policy? A Basic Cause of Loss Form B Special Cause of Loss Form C Livestock Coverage Form D Broad Cause of Loss Form
Special Cause of Loss Form
Under the Equipment Breakdown Protection Coverage Form, Expediting Expenses coverage pays for which of the following? A Temporary expenses to expedite permanent repairs of damaged property essential for the operation of the business B Damage caused by hazardous substances used to hasten the repair of the damaged equipment C Newly acquired property necessary to replace damaged property D Lost income
Temporary expenses to expedite permanent repairs of damaged property essential for the operation of the business
The Accounts Receivable Coverage Form will cover loss of records that results from:
The collapse of a building damaged by fire
The Equipment Dealer's Coverage Form covers which of the following? A The equipment dealer's stock, primarily consisting of mobile agriculture and construction equipment, such as forklifts B The office furniture and fixtures of equipment dealers C The equipment dealer's building and contents D The tools and equipment in the equipment dealer's repair shop
The equipment dealer's stock, primarily consisting of mobile agriculture and construction equipment, such as forklifts
Which of the following is not correct about the Crop/Hail policy? A Crops are covered for fire, lightning, freezing, drought, insects, and disease B The payment of a loss reduces the total amount of available insurance C Failure to harvest a mature crop is not covered D The policy coverage begins at 12:01 a.m. on the day before the crop breaks through the ground
The policy coverage begins at 12:01 a.m. on the day before the crop breaks through the ground
he implied warranty of seaworthiness is understood to mean which of the following? A The ship has a full complement of emergency navigation equipment B The ship must have undergone a comprehensive inspection by the insurer C The ship must be seaworthy and have a competent crew D The crewmembers are all certified
The ship must be seaworthy and have a competent crew
Which of the following is true regarding Trip Transit Forms? A They are used to insure only furniture or household goods B They are used to insure single shipments C They cover shipments only while aboard, or being loaded or unloaded from a vehicle D The conveying vehicle must be described and listed in the policy
They are used to insure single shipments
What is the purpose of an Umbrella Liability Policy? A To combine all the insured's insurance exposures under a single policy B To cover large and catastrophic losses C To provide professional liability coverage D To provide liquor liability coverage
To cover large and catastrophic losses
What is the purpose of an Umbrella Liability Policy? A To provide liquor liability coverage B To cover large and catastrophic losses C To provide professional liability coverage D To combine all the insured's insurance exposures under a single policy
To cover large and catastrophic losses
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 At 12:01 am, 1 year from the date the policy is written C Once the crop is clearly visible above the ground D When the crop is harvested
When the crop is harvested
