Chapter 14 - Miscellaneous Commercial Lines Coverage - Practice Questions

Common exposures covered by Professional Liability policies include: A. Cyber risks B. Personal injury C. Bodily injury and property damage D. Workplace injuries

A. Cyber risks

All Commercial Umbrella Liability policies require underlying insurance to be in place in order to provide coverage, including all of the following coverages, except: A. Employee Theft B. Employers Liability C. Commercial Auto Liability D. Commercial General Liability

A. Employee Theft

When the Actual Cash Value Endorsement is attached to the Equipment Breakdown Protection Coverage Form, how much will the insurer provide for damaged property that is obsolete? A. No coverage is provided B. Up to a $1 sublimit C. Up to a $25,000 sublimit D. Up to the limit of insurance

A. No coverage is provided

Coverage for steam boiler explosions is provided by: A. The Equipment Breakdown Protection Coverage Form B. A Farm Property policy C. A commercial property policy written using the Causes of Loss - Broad Form D. A Commercial Inland Marine policy

A. The Equipment Breakdown Protection Coverage Form

A Farm Property policy insures personal property inside a building against windstorm and hail losses under what condition? A. The exterior is damaged first to allow rain, snow, or dust to enter the structure B. Windstorm or hail is not a covered peril for items of personal property C. The coverage is provided as an endorsement D. The insured has excess property insurance coverage in place

A. The exterior is damaged first to allow rain, snow, or dust to enter the structure

Wrongful acts covered by an Employment Practices Liability policy include all of the following, except: A. Workplace injuries B. Discrimination in hiring C. Harassment D. Wrongful termination of employment

A. Workplace injuries

Employment Practices Liability insurance is intended to provide coverage in the event that: A. A medical professional is accused of malpractice B. An employer fires an employee for reporting a breach of employment contract C. The error of an insurance agent results in a financial loss to an insured D. An officer of a business violates their duty of diligence to manage employees with reasonable care

B. An employer fires an employee for reporting a breach of employment contract

Under the Equipment Breakdown Coverage Form, which of the following describes expediting expenses? A. Cost of repairs made necessary by a local building ordinance B. Cost of repairs that shorten the period of restoration C. Cost of property on exhibition at fairs and trade shows D. Cost of newly acquired property necessary to replace damaged property

B. Cost of repairs that shorten the period of restoration

An insured's Livestock Coverage Form will insure livestock against which of the following causes of loss? A. Drowning B. Attacks by wild animals C. Collision D. Electrocution

C. Collision

The Equipment Breakdown Protection Coverage Form always excludes coverage for which of the following? A. Spoilage damage B. Business income C. Damage to equipment during a breakdown test D. Expediting expenses

C. Damage to equipment during a breakdown test

Coverage H of the Farm Liability Coverage Form provides coverage for bodily injury and property damage arising out of: A. Motor vehicles B. Aircraft C. Farm products liability D. Livestock used for a stunting activity

C. Farm products liability

The Business Income - Report of Values Endorsement on an Equipment Breakdown Protection policy is designed to: A. Allow a return of premium if the insured purchased more insurance than was needed based on its actual monthly business income values B. Report quarterly profits, charges, and expenses to the insurer to estimate those values for the next quarter C. Fulfill the annual report of values requirement applying to business income and extra expense coverage D. Report weekly or monthly values to the insurer to maintain insurance to value

C. Fulfill the annual report of values requirement applying to business income and extra expense coverage

Under Equipment Breakdown Protection insurance, which of the following is considered one breakdown? A. All breakdowns that occur within 48 hours after the first instance of breakdown B. The last accident, when there is more than one accident causing a loss C. The first accident, when there is more than one accident causing a loss D. All breakdowns occurring at the same time that are the direct result of the same cause

D. All breakdowns occurring at the same time that are the direct result of the same cause

A policy written through the NFIP will provide coverage for: A. Extra expenses B. Loss of business income C. Loss of use D. Increased costs to comply with local floodplain management laws

D. Increased costs to comply with local floodplain management laws

Under the Equipment Breakdown Protection Coverage Form, which of the following would not be considered a breakdown? A. Failure of pressure or vacuum equipment B. Electrical failure causing damage to equipment C. Bursting caused by centrifugal force D. Leakage in a valve or fitting

D. Leakage in a valve or fitting