Unit 18 (Miscellaneous Commercial)

What is Network security liability?

Covers the insureds liability if a person gains unauthorized access to the insureds computer system, and this unauthorized access results in the publication of clients personal information. In addition it covers the insureds unintentional transmission of a computer virus to another party

All of the following statements about difference in condition (DIC) insurance are true EXCEPT -deductibles are generally high due to the type of risks being insured -DIC insurance covers high severity, low frequency perils -DIC policies are typically written on a named peril coverage form -DIC policies do not generally have a coinsurance requirement

DIC policies are typically written on a named peril coverage form

Which of the following provides broad coverage to fill the gaps in commercial property coverage?

Difference in conditions insurance (DIC)

An ex employee files suit against her former employer. She believes she was dismissed for missing work to perform jury duty. Which one of the following policies would cover damages paid to the employee of she proves her case?

Employment practice liability (EPL)

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

Errors and Omissions (E&O)

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

Errors and omissions (E&O)

Which of the following would NOT be covered under the business income and extra expense insuring agreement found in the internet liability and protection coverage? -a malicious computer instruction -a virus -an extortion threat -a hard drive crash

a hard drive crash

directors and officers may be held liable for all of the following EXCEPT -the commission of an illegal act -the performance of an act in an improper manner -a persons failure to perform an act he has duty to perform -a persons failure to conform to the performance of an act in a proper manner

a persons failure to conform to the performance of an act in a proper manner

A difference in condition contract is

a policy issued to cover what is normally excluded in other property insurance contracts

Insurance companies that are nonadmitted insurers fall into 2 categories. They are either an authorized nonadmitted carrier or an unauthorized nonadmitted insurer. What type of license would a person need to sell for an authorized nonadmitted insurer?

a surplus lines license

Liquor liability insurance would cover which of the following scenarios?

after drinking heavily at bobby's bar, louis gets in a car accident and injures another person

All of the following statements about surplus lines are true EXCEPT -the insured usually must be given a disclosure stating that the policy is placed with a nonadmitted carrier -agents can place directly with surplus lines companies -policies are usually not protected by state guaranty associations -each state insurance department determines which types of risks may be put in the surplus and excess market

agent can place directly with surplus lines companies

When business is placed with a nonadmitted insurer, all of the following are correct EXCEPT -an agent can place business directly with a surplus lines company -the policy is not protected by state guarantee associations -each state insurance department determines which types of risks may be put in the excess market -the insured must be given a disclosure that the policy is placed with a nonadmitted carrier

an agent can place business directly with a surplus lines company

The type of professional liability policy that provides coverage for insurance agents, as well as certain types of professionals, is typically referred to as

an error and omissions policy

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

aviation liability insurance

All property policies contain exclusions. An insured may be interested in covering these gaps. A difference in conditions policy bridges these gapes by covering events

commercial property policies otherwise exclude and excluding coverage normally found in a commercial property policy

Which of the following entities could bring an errors and omissions claim against an insurance agent?

companies an agent represents and clients they represent

Aviation insurance provides coverage for liability arising from the operation of an aircraft. All of the following statements are true EXCEPT -property damage liability is covered -coverage is provided only for the owner -medical payments for injuries to passengers regardless of fault is covered -bodily injury to passenger's is covered

coverage is provided only for the owner

What is cyber extortion?

covers extortion expenses and ransom payments due to an extortion threat to infect the insureds computer system with a virus, or to publish clients personal information

What is business income and extra expense?

covers loss of business income or extra expense due to an interruption in the insureds business due to a virus, malicious computer instruction or extortion threat

What is replacement or restoration of electronic data?

covers the cost to replace or restore electronic data destroyed due to a virus, or malicious computer instructions designed to disrupt or destroy an insureds computer system

What is Website publishing liability?

covers the insureds liability due to an unintentional error or misstatement posted on the insureds website. Ex: Copyright infringement, defamation, privacy violations

aircraft hull insurance will provide coverage for which of the following?

damage to or loss of the aircraft hull, engines, electronic navigation and communication equipment

Of the following occupations, which would NOT use an errors and omissions policy to provide coverage for professional losses? -consultant -insurance agent -attorney -doctor

doctor

What policy provides coverage for professional liability?

errors and omissions policy

Which one of the following perils is normally excluded in a difference in conditions (DIC) policy?

fire

All of the following statements about commercial umbrella policy are true except -the insured must have underlying liability coverage before an umbrellas policy will be issued -a commercial umbrella policy is designed to provide catastrophic liability coverage for business risks -losses that are excluded from underlying coverage are also excluded from the umbrellas policy - a commercial umbrella policy provides coverage one the policy limits of an underlying policy have been exhausted

losses that are excluded from underlying coverage are also excluded from the umbrellas policy

Which one of the following would NOT be covered under an employment practices liability insurance policy? -mass layoffs of employees -wrongful discharge -sexual harassment -age of discrimination

mass layoffs of employees

Which policy would provide coverage for a surgeon when his patient is injured because of the doctors failure to correctly perform a heart operation?

medical malpractice

Which of the following insuring agreements in internet liability and network protection coverage covers the insureds liability if a person gains unauthorized access to the insureds computer system resulting in publication of clients personal data?

network security liability

Aviation physical damage coverage, also known as aircraft hull insurance covers all of the following EXCEPT -engines -controls -personal effects -electronic navigation

personal effects

Which of the following is NOT covered under employment practices liability insurance? -discrimination, harassments, and wrongful termination -failure to promote -retaliation -physical injury

physical injury

All of the following statements about proffesional liability are true EXCEPT -each professional liability policy is tailored to fit a specfiic occupational need -professional liability is liability arisiing out of rendering or failing to render services of a professional nature -most professional liability policies are written on a claims made basis -professional liability may be included by endorsement to coverage B of CGL policies

professional liability may be included by endorsement to coverage B of CGL policies

Employment practices liability insurance (EPLI) provides coverage for all of the following EXCEPT -age discrimination -requiring overtime -sexual harassments -wrongful termination

requiring overtime

Of the following statements regarding employment practices liability (EPL) insurance which is NOT correct? -Retaliation is not covered in an EPL policy -wrongful termination, failure to promote, and discrimination are covered in an EPL policy -harassments is covered in an EPL policy -the policy covers legal costs whether the company wins or not

retaliation is not covered by an EPL policy

Henry is a pilot who just purchased his first cessna skyhawk single engine airplane. He asks his insurance agent about aviation liability insurance and learns that this type of insurance is part of a special line of insurance business requiring a different age. To which special line of insurance business is the agent referring?

surplus lines

Certain transactions that may be legally conducted by nonadmitted insurers without requiring a certificate of authority are known as

surplus lines coverage

Amusement pars and car racing venues would most likely purchase which of the following types of insurance coverage ?

surplus lines insurance

Which of the following statements regarding surplus insurance is NOT correct? -the business must be obtained through a licensed surplus lines producer agent or broker -surplus lines coverages are those that are not available or that cannot be obtained from authorized insurers -surplus lines insurers must become authorized to write insurance in their states -many states have an approved list of surplus line carriers and require surplus lines to be placed with those carriers

surplus lines insurers must become authorized to write insurance in their states

If an agent is unable to place business with an authorized insurer or company licensed to do business in the state, where would he look to place this type of risk?

surplus lines market

if an agent is unable to place business with an admitted insurer or a company licensed to do business in the state where would he look to place this type of risk?

surplus lines market

which of the following statements about commercial liability insurance is NOT true? -they require another policy to be in place before they can be issued -they provide catastrophic liability coverage for business risks -the policy will only pay once the policy limits on an underlying policy have been met -they exclude catastrophic liability coverage for business risks

they exclude catastrophic liability coverage for business risks

an errors and omissions policy could be issued to cover the following occupations EXCEPT -architects -insurance agents -veterinarians -accountants

veterinarians

What type of coverage is typically found in professional liability policy?

wrongful acts errors or omissions the insured commits and in some cases bodily injury