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
