CPCU 557 Questions
Which one of the following is an example of the exclusion for Indirect Loss in the ISO Commercial Crime Coverage Form? Select one: A. Business income loss B. Counterfeit money loss C. Computer fraud loss D. Disappearance of property loss
A. Business income loss
Workers compensation benefits include which one of the following? Select one: A. Rehabilitation benefits B. Property damage benefits C. Death benefits of 100 percent of wage loss D. Pain and suffering benefits
A. Rehabilitation benefits
BBC Manufacturing (BBC) has an unendorsed Commercial General Liability (CGL) Coverage Form. BBC has expanded its sales outside the United States. Due to injuries from alleged defective products of BBC, lawsuits are brought in Europe, Mexico, Canada and Puerto Rico. Which one of the following statements describes the extent for which BBC's insurer will provide coverage or defense in these jurisdictions? Select one: A. There is coverage and defense for Canada and Puerto Rico, since these are covered territories. B. There is coverage and defense for all but the European suits since Europe is not part of the territory covered. C. There is coverage and defense for the Puerto Rico lawsuit only as it is a territory of the United States. D. There is no coverage or defense, as none of these jurisdictions meet the territorial requirement.
A. There is coverage and defense for Canada and Puerto Rico, since these are covered territories.
Betty's Birdhouses constructs and sells birdhouses. Betty discovered a fungus in the wood used to construct the birdhouses that would kill birds. Betty withdrew her entire stock of birdhouses to avoid any claims from environmental organizations for loss to wildlife. Which one of the following statements is correct regarding whether Betty's Commercial General Liability (CGL) Coverage Form will cover the cost to withdraw the birdhouses and feeders? Select one: A. No, because the fungus is considered an excluded pollutant B. No, because the cost to withdraw Betty's product is excluded C. Yes, because withdrawing the birdhouses eliminated property damage claims D. Yes, because the damage was not expected or intended by Betty
B. No, because the cost to withdraw Betty's product is excluded
If a state is designated in Item 3.C of the Workers Compensation and Employers Liability Insurance Policy Information Page, and the insured begins operations in that state, the policy provides which one of the following? Select one: A. Limited coverage until the state is added to Item 3.A B. The same coverage as if that state were listed in Item 3.A C. Only workers compensation coverage in that state D. The coverages and limits outlined in Item 3.C
B. The same coverage as if that state were listed in Item 3.A
There are several types of breakdown losses to fired pressure vessels. Which one of the following is an example of this type of loss? Select one: A. Shorting of windings B. Electrical disturbance C. Bulging D. Moisture excess
C. Bulging
Smith Construction Company is covered under an unendorsed Commercial General Liability (CGL) Coverage Form. While working at a job site, Smith ruptured a natural gas line causing a small fire to a neighboring retail store. The following claims have been made against Smith due to this occurrence. Fire damage to the neighboring store Pain and suffering claimed by the store owner Loss of income by the store owner until repairs are made to the store Fire damage to the backhoe owned by Smith Which one of the following statements is correct? A. Loss of income is not loss of tangible property. B. Fire damage is not covered by the CGL policy. C. The backhoe is property owned and is excluded. D. Pain and suffering does not meet the definition of bodily injury.
C. The backhoe is property owned and is excluded.
Crime loss exposures of financial institutions are covered by financial institution bonds. These policies were developed by Select one: A. The National Council on Compensation Insurance (NCCI). B. The Internal Revenue Service (IRS). C. The Federal Deposit Insurance Corporation (FDIC). D. The Surety and Fidelity Association of America (SFAA).
D. The Surety and Fidelity Association of America (SFAA).
All of the following statements apply to an Additional Insured—Owners, Lessees or Contractors—Automatic Status When Required in Construction Agreement endorsement to the Commercial General Liability Coverage Form, EXCEPT: Select one: A. This endorsement extends coverage to include any injury or damage arising from professional, architectural, engineering, or surveying services. B. This endorsement provides coverage in construction agreements for an additional insured without the requirement to name the additional insured. C. This endorsement eliminates coverage for bodily injury occurring after work at the location has been completed. D. This endorsement provides coverage for the liability of the additional insured only for damage arising from the named insured's performance of operations for the additional insured.
This endorsement extends coverage to include any injury or damage arising from professional, architectural, engineering, or surveying services.
UD Building Supply has a CGL policy with a Deductible Liability Insurance endorsement with a $5,000 per-claim deductible. One snowy Saturday, two customers fell in the parking lot and one slipped and fell inside the store. The claimants were awarded damages of $6,500, $3,500, and $9,000. How much will the insurer pay? Select one: A. $5,500 B. $9,000 C. $14,000 D. $15,500
A. $5,500
The Workers Compensation and Employers Liability (WC&EL) Insurance Policy coverage applies differently to employees outside the United States. John has been assigned to work in Germany for an unspecified time period but is expected to be there for at least two years. Which one of the following is a true statement regarding the coverage for John under the WC&EL? Select one: A. A foreign voluntary workers compensation endorsement would provide coverage equal to federal compensation benefits. B. No coverage is available for John under the WC&EL policy. C. John's employer would have to purchase workers compensation coverage from the German government. D. The extraterritorial provisions of the statute of the state that John was hired out of would extend coverage.
A. A foreign voluntary workers compensation endorsement would provide coverage equal to federal compensation benefits.
Which one of the following would always be excluded under employers liability insurance? Select one: A. An employee files a claim for depression resulting from harassment at work. B. Claims by family members of injured employees for care and loss of services. C. Occupational disease an employee was exposed to during the policy period but didn't fully develop until after retirement. D. A U.S. citizen injures himself while traveling overseas on a business trip.
A. An employee files a claim for depression resulting from harassment at work.
An insured plumbing contractor is installing copper water lines in a new building for a general contractor. While soldering a connection, the plumber causes a fire that damages the building, including the copper water lines. The plumber is covered under an unendorsed Commercial General Liability (CGL) Coverage Form. Which one of the following best explains how the plumber's CGL Coverage Form applies to a claim for the building damage, including damage to the copper water lines? Select one: A. Coverage applies to the building damage but excludes the damage to the copper water lines being installed by the plumber. B. Coverage applies because the damaged property was in the plumber's care, custody, or control. C. Coverage does not apply because the general contractor's CGL policy would respond. D. Coverage applies to the building damage including damage to the copper water lines being installed by the plumber.
A. Coverage applies to the building damage but excludes the damage to the copper water lines being installed by the plumber.
The specified causes of loss coverage of the business auto policy includes coverage for which one of the following? Select one: A. Derailment of a conveyance transporting the insured vehicle. B. Towing and labor costs resulting from disablement. C. Direct and accidental loss or damage resulting from overturn. D. Glass breakage whether caused by collision or some other cause.
A. Derailment of a conveyance transporting the insured vehicle.
Which one of the following endorsements to the Business Auto Coverage Form (BACF) covers employees when renting vehicles in their own names to conduct the employer's business? Select one: A. Employee Hired Autos B. Driver Other Car—Broadened Coverage C. Employees as Insureds D. Rental Reimbursement
A. Employee Hired Autos
Which one of the following exclusions applies to the Computer and Funds Transfer Fraud insuring agreement? Select one: A. Fraudulent instructions B. Trading C. Confidential information D. Money operated devices
A. Fraudulent instructions
Northern Company (Northern) uses a large forklift in its operations. The forklift is subject to the state compulsory auto insurance law and has a license tag. In the process of moving some items on Northern's premises, the operator loses control of the forklift and runs into a car owned by a customer. Which one of the following statements is true regarding coverage for this loss under Northern's Commercial General Liability (CGL) Coverage Form? Select one: A. No coverage applies under the CGL Coverage Form because the forklift is considered to be an "auto," and coverage would be provided by a commercial auto policy. B. The CGL Coverage Form excludes liability for bodily injury and property damage arising out of acts of employees. C. The CGL Coverage Form would provide coverage because although subject to the state insurance law, the forklift was being operated on the insured premises and therefore would be considered mobile equipment. D. The forklift is considered mobile equipment and therefore coverage applies under the CGL Coverage Form.
A. No coverage applies under the CGL Coverage Form because the forklift is considered to be an "auto," and coverage would be provided by a commercial auto policy.
Workers compensation statutes require employers to demonstrate financial ability to pay any claims that might arise. Possible methods for meeting this obligation include which one of the following? Select one: A. Obtain coverage from an assigned risk plan B. Adding coverage to a Commercial General Liability Coverage Form C. Adding coverage to a Business Auto Coverage Form D. Purchasing voluntary insurance from a federal plan
A. Obtain coverage from an assigned risk plan Correct. Possible methods for demonstrating the financial ability to pay workers compensation claims include purchasing coverage from an assigned risk plan.
Under the Commercial General Liability (CGL) Coverage Form, the named insured's employees and volunteer workers are insureds for liability claims arising from which one of the following? Select one: A. The employees' or volunteer workers' duties as such, subject to certain exceptions. B. Property damage to property owned by the named insured or the named insured's workers. C. Bodily injury or personal advertising injury to the named insured. D. Advertising injury arising out of the employee's or volunteer worker's failure to provide professional healthcare services.
A. The employees' or volunteer workers' duties as such, subject to certain exceptions.
Bea's Breakfast Spot (Bea's) is located on the first floor of a two story building. The building is owned by Joseph, who runs his accounting business on the second floor. Bea's has a CGL policy with the following limits: Each Occurrence $1,000,000 Damage to Premises Rented to You $50,000 Medical Expense $5,000 General Aggregate $2,000,000 Products-Completed Operations Aggregate $2,000,000 There was a fire in Bea's kitchen one morning that resulted in damage to Bea's premises ($30,000) and personal property ($25,000), and some damage to the remainder of the building ($10,000). The cook at Bea's was injured ($15,000) and two customers suffered minor injuries ($3,000 each) in the rush to escape. What is the total amount that Bea's CGL insurer would pay for this occurrence? A. $45,000 B. $46,000 C. $66,000 D. $86,000
B. $46,000
All of the following are included in the Commercial Crime Coverage Form's definition of occurrence, EXCEPT: Select one: A. A series of acts B. An accident C. An individual act D. The combined total of all separate acts
B. An accident
Regarding coverage under the ISO Commercial Crime Coverage Form, which one of the following statements about custodians or messengers is true? Select one: A. A custodian has care and custody of property outside the premises. B. An employee taking the day's receipts to the bank is an example of a messenger, but not a custodian. C. A messenger has care and custody of property inside the premises. D. A watchperson or janitor can be either a messenger or a custodian, but not both.
B. An employee taking the day's receipts to the bank is an example of a messenger, but not a custodian. Correct. Once off the premises making a delivery, an employee is a messenger while a custodian is one who holds a valuable item while on the premises.
Which one of the following is an example of a loss covered by Part 2—Employers Liability Insurance? Select one: A. An employee is injured in an employment-related accident that occurs outside of the United States, its territories and possessions, or Canada B. An injured employee sues a third party who, in turn, sues the injured person's employer for negligence that resulted in the injury C. An employee sues an employer for damages arising out of demotion, evaluation, harassment, discrimination, or termination D. An employee is injured and entitled to damages under the Migrant and Seasonal Agricultural Worker Protection Act
B. An injured employee sues a third party who, in turn, sues the injured person's employer for negligence that resulted in the injury
Which one of the following types of coverage can be used to insure those classes of farm personal property for which a specific limit of insurance is shown in the declarations? Select one: A. Inland Marine Farm Floater B. Coverage E C. Barns and Outbuildings Coverage Form D. Coverage F
B. Coverage E
The Employees as Insureds endorsement of the Business Auto Coverage Form (BACF) Select one: A. Covers employees while operating autos rented in the employees' names while on the named insured's business. B. Covers employees while driving their own cars on the named insured's behalf. C. Covers named employees who are provided with company cars if they rent or borrow vehicles from others. D. Supplements the business coverage for employees with coverages similar to those in a Personal Auto Policy.
B. Covers employees while driving their own cars on the named insured's behalf.
Carol Corporation's risk manager recommended that it add the Employee Benefits Liability Coverage endorsement to its Commercial General Liability (CGL) Coverage Form. Which one of the following statements about the Employee Benefits Liability Coverage endorsement is true? Select one: A. It must be written with an occurrence coverage trigger. B. It has an aggregate limit and a per-employee limit. C. It provides coverage for both bodily injury and property damage. D. It covers claims based on breach of contract.
B. It has an aggregate limit and a per-employee limit.
The Commercial Lines Manual requires which one of the following endorsements to be added to any policy containing a commercial liability coverage part? Select one: A. Electronic Data Liability endorsement B. Nuclear Energy Liability Exclusion endorsement C. Exclusion—Explosion, Collapse, and Underground Property Damage endorsement D. Exclusion—Volunteer Workers endorsement
B. Nuclear Energy Liability Exclusion endorsement
Farmer Dan owns several thresher combines and six pieces of irrigation equipment. Which one of the following would be most appropriate to cover losses to Dan's equipment? Select one: A. Scheduled under Coverage D B. Scheduled under Coverage E C. Scheduled under Coverage F D. Scheduled under Coverage G
B. Scheduled under Coverage E
Which one of the following statements is correct with respect to the Building and Personal Property Coverage Form (BPP)? Select one: A. The BPP must be written to provide coverage for all of the following: buildings, business personal property, and personal property of others. B. The BPP lists several classes of property or kinds of property losses that do not qualify as covered property. C. The BPP covers business personal property and property of others up to a specified percentage of the building coverage limit. D. The BPP provides coverage against both direct and indirect loss or damage caused by a covered cause of loss.
B. The BPP lists several classes of property or kinds of property losses that do not qualify as covered property.
Commercial general liability (CGL) policies are often issued with estimated premiums. When is the final premium determined? Select one: A. After the first three years of claim experience have occurred B. Thirty days after the policy inception C. After the policy has expired D. On the date an insured accepts the policy
C. After the policy has expired
The owners of BB Hotel wanted to make sure that they were covered for damage to the air conditioning and refrigeration equipment. In equipment breakdown insurance, air conditioning and refrigeration equipment includes components such as Select one: A. Circuit breakers. B. Liquefied gas tanks. C. Coils. D. Distribution panels.
C. Coils.
Carl's Cabinets sells and installs cabinets in apartment buildings. After installation but before an apartment is occupied, two of the cabinets are damaged when they fall from the wall as a result of improper installation. Carl's Commercial General Liability (CGL) Coverage Form excludes coverage for the damage to the cabinets because of which one of the following exclusions? Select one: A. Damage to Your Product B. Damage to Property Not Physically Injured C. Damage to Your Work D. Damage to Impaired Property
C. Damage to Your Work
Which one of the following property coverages is often included or available as an option in a businessowners policy (BOP)? Select one: A. Nuclear hazard B. Flood C. Employee dishonesty D. Earthquake, landslide, and subsidence
C. Employee dishonesty
Which one of the following major sections of the general liability coverage form would be found only in a form with a claims-made trigger? Select one: A. Conditions B. Limits of Insurance C. Extended Reporting Periods D. Who Is an Insured
C. Extended Reporting Periods
Under which one of the following provisions of the Building and Personal Property Coverage Form (BPP) is the maximum payment $10,000 or five percent of the building limit, whichever is less? Select one: A. Outdoor Property coverage extension B. Pollutant Cleanup and Removal additional coverage C. Increased Cost of Construction additional coverage D. Debris Removal additional coverage
C. Increased Cost of Construction additional coverage
Which one of the following statements is correct with respect to the Causes of Loss-Basic Form? Select one: A. The Water exclusion contains an exception for damage due to the backing up of sewers, drains, or sumps. B. It excludes loss caused by power failure only if the damage causing such failure occurs on the described premises. C. It excludes loss caused by earth movement, other than by sinkhole collapse. D. The War and Military Action exclusion eliminates coverage for loss caused by acts of terrorism, such as the terrorist attacks of September 11, 2001.
C. It excludes loss caused by earth movement, other than by sinkhole collapse.
Which one of the following statements is correct with respect to limits of liability applicable to Part 2—Employers Liability Insurance? Select one: A. Punitive damages are covered in addition to the limits of liability. B. It includes a property damage by accident limit. C. It includes a bodily injury by disease policy limit. D. Supplementary payments are covered within the stated limits of liability.
C. It includes a bodily injury by disease policy limit.
Employers liability insurance covers an employer against which one of the following? Select one: A. Liability for suits alleging negligence on the part of its employees B. Liability for damage to employees' property caused by its negligence C. Its liability for an employee's occupational injury or disease that is not covered by a workers compensation statute D. Liability for damages arising out of its employment practices
C. Its liability for an employee's occupational injury or disease that is not covered by a workers compensation statute
Purchasing workers compensation insurance from a private insurer is one way employers demonstrate their ability to pay their financial obligations to injured workers. Which one of the following is another acceptable method of meeting this obligation? Select one: A. Purchasing insurance from a federal fund B. Keeping a reserve of easily accessible funds C. Meeting state requirements to qualify as a self-insurer D. Using a Comprehensive General Liability Coverage Form
C. Meeting state requirements to qualify as a self-insurer
Which one of the following statements is correct with respect to the businessowners policy (BOP)? Select one: A. BOP policies are, with a few, limited exceptions, rated manually. B. Business income coverage on BOP policies is most often separately rated. C. The available limits for certain property such as money orders are often quite low with minimal or no options for higher limits. D. Whether a building is frame, joisted masonry, or fire resistive is an underwriting consideration, not a rating factor.
C. The available limits for certain property such as money orders are often quite low with minimal or no options for higher limits.
An independent contractor, while working at the insured's premises, gained access to a company computer and diverted a $50,000 shipment of platinum from the insured's premises to another address unauthorized by the insured. The platinum importer is demanding payment for the shipment it delivered. The insured carries a $100,000 computer and funds transfer fraud limit of liability under the ISO Commercial Crime Coverage Form. How much should the insurer pay for this loss? Select one: A. The insurer should pay nothing. Platinum is excluded from the policy since it is a precious metal. B. The insurer should pay $5,000, the occurrence limit for this type of loss. C. The insurer should pay $50,000, which is within the $100,000 limit of liability. D. The insurer should pay the full $100,000 limit of liability.
C. The insurer should pay $50,000, which is within the $100,000 limit of liability. Correct. The insurer should pay $50,000 because no special limits apply to precious metal stolen through computer fraud.
Taunton Company (Taunton) has a Commercial Package Policy (CPP) that has a Building and Personal Property Coverage Form (BPP) with a Causes of Loss—Broad Form. Because the building is older and has unique architectural features, Taunton decided to insure the building on a replacement cost basis. There is a $2 million coverage limit on the building, with a 90 percent coinsurance clause and $2,000 deductible. The building was struck by lightning and a resulting fire caused substantial damage to the building. The cost to repair the damaged portion of the building with materials of like kind and quality was $500,000. At the time of the loss, the replacement cost value of the building was determined to be $2.2 million. How much would the insurer pay when the repairs are completed if the replacement cost option is activated? Select one: A. $0 B. $448,000 C. $450,000 D. $498,000
D. $498,000
A claim representative explains the settlement of a claim to an insured. The insured is concerned that he will not be able to replace his damaged business personal property when he learns that depreciation will be applied. The cost to replace property with new property of like kind and quality less depreciation is referred to as the Select one: A. Selling price. B. Replacement cost. C. Depreciated value. D. Actual cash value.
D. Actual cash value.
Some of the "property not covered" exclusions in the Building and Personal Property Coverage Form (BPP) are not included in the BOP. Which one of the following is a reason why this is true? Select one: A. Because the BOP has no exclusions. B. Because insurers offer endorsements to allow insureds to "buy back" excluded property coverage. C. Because the policies are not similar to one another. D. Because some of the "property not covered" exclusions apply to types of businesses that are not eligible for a BOP.
D. Because some of the "property not covered" exclusions apply to types of businesses that are not eligible for a BOP.
Which one of the following Additional Coverage Extensions is covered under the Causes of Loss—Special Form but not under the Causes of Loss—Broad Form? Select one: A. Vandalism. B. "Fungus", Wet Rot, Dry Rot and Bacteria C. Collapse D. Property in Transit
D. Property in Transit
Under the conditions of ISO Commercial Crime Coverage Form, which one of the following is a duty of the insured after discovering a loss or a situation that might result in a loss? Select one: A. File a proof of loss with the police within 10 days of the loss. B. Notify the insurer within 60 days. C. Provide an examination under oath, whether or not the insurer requests it. D. Submit a detailed, sworn proof of loss within 120 days.
D. Submit a detailed, sworn proof of loss within 120 days.
The named insured under a Commercial General Liability (CGL) Coverage Form dies, and Sarah becomes a temporary custodian of the named insured's property. The coverage for Sarah under the deceased named insured's CGL form applies only to liability arising out of Select one: A. The named insured's premises. B. Losses that occurred within 60 days after the death of the named insured. C. Contractual obligations. D. The maintenance or use of the named insured's property.
D. The maintenance or use of the named insured's property.
Richard's Clothing Store has a $500,000 Business Income (and Extra Expense) Coverage Form on which there is an 80 percent coinsurance clause. A fire swept through the store. Richard's Clothing Store estimates that its net income plus all operating expenses for the policy period would have been $1,875,000. The estimated business income loss is $300,000. How much will the insurer pay? Select one: A. $100,000 B. $200,000 C. $300,000 D. $375,000
A. $100,000
Which one of the following statements is correct with respect to the Causes of Loss—Special Form? Select one: A. It shifts the burden of proof as to whether a loss is covered from the insured to the insurer. B. It specifically excludes all loss or damage caused by or resulting from vehicles owned by the named insured or operated in the course of the named insured's business. C. It covers theft by looting at the time of a riot or civil commotion, but it does not cover theft under any other circumstances. D. It includes a much longer list of specified causes of loss than either the basic or the broad form.
A. It shifts the burden of proof as to whether a loss is covered from the insured to the insurer.
Which one of the following property coverages is often included or available as an option in a businessowners policy (BOP)? Select one: A. Outdoor signs B. Aircraft, automobiles, and watercraft C. Land on which the property is located, growing crops, and lawns D. Radio, television, or satellite antennas and their wiring, masts or towers
A. Outdoor signs
Which one of the following coverages provides blanket coverage on unscheduled farm personal property? Select one: A. Coverage E B. Coverage F C. Coverage G D. Coverage H
B. Coverage F
The Thomas Company has been insured under a loss sustained crime insurance form with a $100,000 limit for employee dishonesty coverage for the past three years. It recently discovered an employee dishonesty loss of $75,000 that occurred during a prior policy period while it carried a $50,000 limit. The discovery is after the prior policy discovery period. How much will the present insurer pay toward this loss? Select one: A. Nothing B. $25,000 C. $50,000 D. $75,000
C. $50,000
In an unendorsed Business Income (Without Extra Expense) Coverage Form, how is coverage provided for necessary expenses incurred by the named insured to reduce business income loss? Select one: A. As an exception to an exclusion B. As a coverage extension C. As an additional coverage D. Not at all
C. As an additional coverage
Which one of the following is an exclusion unique to the Causes of Loss—Special Form? Select one: A. Mudslide or mudflow B. War C. Wear and tear D. Rupture or bursting of water pipes
C. Wear and tear
All of the following are examples of a coverage that is excluded under Coverage A of the CGL coverage form because it is insured under another policy, EXCEPT: Select one: A. Automobile liability B. Pollution liability C. Workers compensation D. Liquor liability
D. Liquor liability
The Morlyn Corporation has a Business Auto Coverage Form (BACF) that provides liability coverage for any auto. In addition to the named insured, which one of the following would also be an insured under Morlyn's BACF when driving a covered auto? Select one: A. An employee of another business that borrows one of Morlyn's covered autos B. An employee driving his or her personally owned car on an errand for Morlyn C. An owner of a private passenger auto that Morlyn borrows D. An employee of an independent service station that is test driving a covered auto after a tune up
A. An employee of another business that borrows one of Morlyn's covered autos
Which one of the following commercial auto coverage forms provides the equivalent of commercial general liability insurance and business auto insurance in a single coverage form? Select one: A. Auto Dealers Coverage Form B. Business Auto Coverage Form C. Motor Carrier Coverage Form D. Personal Auto Coverage Form
A. Auto Dealers Coverage Form
Loss to property after it has been transferred or surrendered is an exclusion that applies under certain circumstances to which one of the following Commercial Crime insuring agreements? Select one: A. Inside the Premises—Theft of Money and Securities B. Employee Theft C. Inventory Shortages D. Computer and Funds Transfer Fraud
A. Inside the Premises—Theft of Money and Securities
Which one of the following statements about the Farm Liability Coverage Form of the ISO farm program is true? Select one: A. It covers both personal and farm liability exposures. B. It covers only farm business liability exposures. C. It provides liability in excess of homeowners and other farm liability policies. D. It includes coverage for recreational motor vehicle liability.
A. It covers both personal and farm liability exposures.
The Separation of Insureds condition states that the insurance provided by the policy applies in which one of the following ways? Select one: A. Separately to each person insured B. As a separate limits to separate insureds C. According to the order set forth in the policy declarations as requested by the insured D. Rights and duties are the same for all persons insured under the policy
A. Separately to each person insured
A widely used financial institution bond is Select one: A. Standard Form No. 24. B. The fidelity bond. C. The commercial general liability fiduciary bond. D. The Insurance Services Office Financial Institution Crime Policy for Banks and Saving Institutions.
A. Standard Form No. 24.
A small retail store, which carries a $20,000 limit for Robbery of Safe Burglary of Other Property under an ISO Commercial Crime Coverage Form, discovered its building window was damaged and the safe door was missing on Monday morning when an employee arrived at work. The storeowner immediately reported this incident to its insurance carrier. The theft consisted of precious metal gemstones that totaled $19,000 in value. How much should the retail store's insurer pay for this loss? Select one: A. The insurer should pay nothing because precious metals are excluded from Inside the Premises—Robbery or Safe Burglary of Other Property coverage. B. The insurer should pay $5,000, the special limit for this type of property under Inside the Premises—Robbery or Safe Burglary of Other Property. C. The insurer should pay $19,000, since it is falls within the limit of liability under Inside the Premises—Safe Burglary of Other Property. D. The insurer should pay $20,000, the limit of liability under Inside the Premises—Safe Burglary of Other Property.
B. The insurer should pay $5,000, the special limit for this type of property under Inside the Premises—Robbery or Safe Burglary of Other Property.
Peter has a Commercial Package Policy (CPP) that has a Building and Personal Property Coverage Form (BPP) with a Causes of Loss - Broad Form covering his building with a $750,000 limit.A tropical storm struck the area near Peter's building and the strong winds tore most of the shingles from the building's roof and shattered multiple windows with flying debris. An outside fixture also sustained heavy damage due to the wind.The total amount of damages was $40,000 for the windows and shingles; and $10,000 for the outside fixture. How much will Peter's insurer pay for damage to his outside fixture? Select one: A. The loss is not covered. B. $5,000 C. $10,000 D. $40,000
C. $10,000 Peter's insurer will pay $10,000. The BPP's definition of Building includes outdoor fixtures and windstorm is a covered cause of loss in the Broad Form. Outdoor fixtures do not fall under the Outdoor Property coverage extension, which excludes coverage for windstorm damage.
Which one of the following is the coinsurance basis under a Business Income Coverage Form (BIC)? Select one: A. The replacement cost of the building B. The same as the property covered C. The projected net income and all operating expenses except for certain deductible items D. The actual cash value of the building
C. The projected net income and all operating expenses except for certain deductible items
Which one of the following statements about excess liability insurance coverage and umbrella liability insurance coverage is most accurate? Select one: A. Neither excess liability policies nor umbrella liability policies would provide primary coverage for a loss unless it was already covered by a primary insurance policy. B. Both excess liability policies and umbrella liability policies typically provide primary coverage for certain types of losses not covered by underlying insurance. C. Excess liability policies typically provide primary coverage for certain types of losses not covered by underlying insurance, while umbrella liability policies typically do not. D. Umbrella liability policies typically provide primary coverage for certain types of losses not covered by underlying insurance, while excess liability policies typically do not.
D. Umbrella liability policies typically provide primary coverage for certain types of losses not covered by underlying insurance, while excess liability policies typically do not.
Which one of the following does Part Three—Other States Insurance of the Workers Compensation and Employers Liability Insurance Policy require the insured to do? Select one: A. "Advise us within thirty days if you commence operations in any state listed in Item 3.A" B. "Tell us at once if you begin work in any state listed in Item 3.C of the Information Page." C. "Inform us if you are considering expanding operations into any state other than those in which you currently operate" D. "Notify us immediately if you expand operations into any state with a monopolistic state workers compensation fund."
B. "Tell us at once if you begin work in any state listed in Item 3.C of the Information Page."
The policy valuation approach that determines the basis for using new property of like kind and quality and adjusts for depreciation to determine the amount to be paid at the time of a loss is called Select one: A. Replacement cost. B. Actual cash value. C. Reporting value. D. Agreed value.
B. Actual cash value.
Shelton Industries is considering switching to a self-insured plan for its workers compensation exposure. Which one of the following requirements must be met before an employer may operate a "qualified" self-insurance workers compensation plan? Select one: A. Rejection by private insurers B. Posting a surety bond C. Purchase of excess insurance D. A small number of employees located in several states
B. Posting a surety bond
Which one of the following symbols in the Business Auto Coverage Form (BACF) indicates personal injury protection (PIP) coverage is provided for those autos that are required by law to have it? Select one: A. Symbol 3—Owned Private Passenger Autos Only B. Symbol 4—Owned Autos Other Than Private Passenger Autos C. Symbol 5—Owned Autos Subject to No-Fault D. Symbol 6—Owned Autos Subject to a Compulsory Uninsured Motorists Law
C. Symbol 5—Owned Autos Subject to No-Fault
Sarah's Flower Shop (SFS) is insured under a Business Income (and Extra Expense) Coverage Form with a $1 million Business Income limit of insurance for the store location, subject to option (2) Business Income Other Than "Rental Value". None of the optional coverages of the Business Income (and Extra Expense) are in effect and no endorsements apply to SFS's Business Income (and Extra Expense) Coverage Form. The one year policy period shown in the declarations began on February 1, 20X1. On February 1, 20X1, SFS suffered a partial physical fire loss and was closed for four months until the building could be repaired and the personal property replaced. During the four month interruption, SFS's actual revenue was reduced to nil and the expenses such as payroll, electricity and overtime labor totaled $200,000. SFS expected to gain $550,000 in revenue and have $300,000 in expenses. What is SFS's business income loss? Select one: A. $50,000 B. $250,000 C. $350,000 D. $450,000
D. $450,000 SFS's business income loss is $450,000. Expected net income = $250,000. Actual net income = (-$200,000). Therefore, the business income loss is $450,000.
John, a store owner, has an unendorsed Commercial General Liability (CGL) Coverage Form. A customer has sued John alleging he was injured when John restrained him and a scuffle ensued. John claims he used reasonable force to restrain the customer from damaging a display of merchandise in the store. Which one of the following is true regarding coverage for this lawsuit under John's CGL policy? Select one: A. Defense and coverage would apply even if John used excessive force with the customer. B. The insurer has no duty to defend the lawsuit as the allegations are groundless. C. Coverage and defense does not apply because John intended to injure the customer. D. Coverage and defense applies as John was using reasonable force to protect his property.
D. Coverage and defense applies as John was using reasonable force to protect his property.
James is in the process of forming his own brokerage company which will include several employees. James will be best protected by purchasing which one of the following to cover the crime loss exposures of his company? Select one: A. Surety Bond. B. Fidelity Bond. C. Commercial Crime Insurance. D. Financial Institution Bond.
D. Financial Institution Bond. Stockholders are eligible for a Financial Institution Bond, which will cover their crime loss exposures.
The insurance agent recommended that Sentry Factory purchase a trip transit policy for its exposure. Trip transit insurance is used to Select one: A. Cover property solely by parcel post or the United State Post Office. B. Insure firms that transport their own property on their own vehicles. C. Cover a trucking company's liability for damage to cargo of others being transported by the trucking company. D. Insure property such as a valuable piece of equipment moved from its place of manufacture to its place of use.
D. Insure property such as a valuable piece of equipment moved from its place of manufacture to its place of use.
The workers compensation policies for some monopolistic fund states do not include employers liability coverage. Which one of the following should an employer purchase to address this coverage gap? Select one: A. Stop gap coverage B. Contractual liability coverage C. Voluntary compensation coverage D. Other states coverage
A. Stop gap coverage
An insured has a Business Income (with Extra Expense) Coverage Form with a Maximum Period of Indemnity coverage option. Following a covered loss and after the period of restoration begins, it takes 120 days to complete repairs and another 60 days for revenue to return to normal. How would the policy provide coverage for this loss of business income? Select one: A. The policy would provide coverage for 120 days after the period of restoration begins. B. The policy would provide coverage for the full 180 days after the period of restoration begins to return to normal operations. C. The policy would provide coverage for 120 days after the period of restoration begins and 15 additional days. D. The policy would provide coverage for 120 days after the period of restoration begins and 30 additional days.
A. The policy would provide coverage for 120 days after the period of restoration begins.
The Fredine Farm insures its livestock under Coverage F—Unscheduled Farm Personal Property of the Farm Personal Property Coverage Form, for the broad causes of loss. Which one of the following losses is covered under the form? Select one: A. Eight hens are killed by the farm owner's dog. B. A herd of sheep drowns when a stream overflows on Fredine's property. C. Several horses crowd together during a violent rainstorm, and one is smothered. D. Several prize Koi fish die when a pond on the property is polluted with chemicals.
B. A herd of sheep drowns when a stream overflows on Fredine's property.
The change to Coverage A addressed in the Unmanned Aircraft exclusion Select one: A. States that coverage does not apply to personal and advertising injury arising from certain activities of "unmanned aircraft." B. Affirms that coverage does not apply to bodily injury or property damage arising from certain activities of "unmanned aircraft." C. Provides an identical restatement of the CGL's Aircraft, Auto, or Watercraft exclusion. D. Confirms the exception for liability assumed under an insured contract for the ownership, maintenance, or use of an unmanned aircraft.
B. Affirms that coverage does not apply to bodily injury or property damage arising from certain activities of "unmanned aircraft."
Joe's Cleaning Service is having a very good year, with close to a 30 percent increase in sales. Joe is wondering if this growth will affect his general liability premium at the end of the policy period. Which one of the following sections of the general liability coverage form will provide this information? Select one: A. Limits of Insurance B. Declarations Form C. Endorsements D. Extended Reporting Period
B. Declarations Form
The Grandfather Clock Company (GCC) ships clocks all over the U.S. It ships frequently over 10,000 shipments each year and ships its goods by common carrier. All of its shipping contracts say "FOB, buyer's address." GCC believes that it needs insurance for the risk that its clocks will be damaged during shipment. Which one of the following is the best insurance advice for GCC? Select one: A. GCC doesn't need insurance—the buyer assumes the risk of shipment. B. GCC needs insurance and should purchase an annual transit floater C. GCC doesn't need insurance—the common carrier is liable for all loss or damage to the goods shipped by GCC. D. GCC needs insurance and should obtain a trip transit policy.
B. GCC needs insurance and should purchase an annual transit floater. Correct. Under the terms of the shipping agreement, risk of loss remains with GCC until the buyer receives the goods. GCC thus needs insurance. The annual transit floater is the best due to the volume of GCC's shipping. The common carrier does bear responsibility for many losses occurring during shipment but not all losses. GCC should obtain insurance under the annual transit floater.
Which one of the following statements about provisions in Part 1 of the Workers Compensation and Employers Liability Insurance Policy is true? Select one: A. An employee retains any rights of recovery against a third party. B. The accident causing the injury must occur during the policy period. C. Coverage only applies to disease that occurred prior to the policy period. D. Obligations of the insurer are null and void if the employer fails to comply with policy requirements.
B. The accident causing the injury must occur during the policy period.
An electrical contractor is contemplating how much liability coverage is needed. The contractor believes the $1 million limit on his commercial general liability (CGL) policy is more than adequate for the small jobs that he is completing. Additionally, the contractor should also consider Select one: A. That the potential for a large loss is remote and not worth the cost of an insurance premium for additional coverages. B. The difficulty in estimating a maximum possible loss and the need for excess or umbrella coverage. C. General contractors will most likely not require excess or umbrella coverage and the $1 million CGL limit will satisfy their requirements. D. That its exposures are strictly limited to the buildings or construction sites on which it is working.
B. The difficulty in estimating a maximum possible loss and the need for excess or umbrella coverage.
Which one of the following statements is correct with regard to the Causes of Loss—Broad Form? Select one: A. The water damage cause of loss excludes the cost of tearing out and replacing any part of an insured building to repair damage to any appliance or system that leaked water or steam. B. The weight of snow, ice, or sleet cause of loss does not cover damage to personal property in the open. C. The water damage cause of loss includes coverage for damage due to discharge or leakage from roof drains, gutters, downspouts, or similar fixtures or equipment D. The falling objects cause of loss provides coverage for falling objects that damage personal property in the open.
B. The weight of snow, ice, or sleet cause of loss does not cover damage to personal property in the open.
Marnell, Inc., is a large, national retailer that sells a variety of consumer goods. Marnell carries a Commercial Package Policy that includes Insurance Services Office's Commercial Crime Coverage Form (Loss Sustained) with the following insuring agreements: Employee Theft; Forgery or Alteration; Inside the Premises—Theft of Money and Securities; and Inside the Premises—Robbery or Safe Burglary of Other Property. The limit of insurance for each one of these insuring agreements is $100,000 and the deductible per occurrence for each one of these insuring agreements is $1,000. The policy year is 20X1. During 20x1, Marnell performed an inventory calculation and determined that the actual physical inventory on hand was $105,000 less than what the company's records indicated. Marnell was able to prove that the loss was a result of employee theft and it was covered under the Employee Theft insuring agreement of Marnell's Commercial Crime Coverage Form. How much will the insurer pay for this loss? Select one: A. $0 B. $99,000 C. $100,000 D. $101,000
C. $100,000 The loss amounts to $105,000 which exceeds the $100,000 limit of insurance for employee theft. The insurer will pay the amount of the loss in excess of the deductible up to the limit of insurance ($105,000 -$1,000 = $104,000). The limit of insurance in this case is $100,000 (The deductible comes off the amount of loss, not the limit).
Sam's Dry Cleaners (SDC) is insured under a Business Income (and Extra Expense) Coverage Form with a $1 million Business Income limit of insurance for the dry cleaners location, subject to option (2) Business Income Other Than "Rental Value". None of the optional coverages of the Business Income (and Extra Expense) are in effect and no endorsements apply to SDC's Business Income (and Extra Expense) Coverage Form. The one year policy period shown in the declarations began on July 1, 20X1. On October 1, 20X1, SDC suffered a direct physical loss to its building and contents due to a fire. The resulting loss of business income that SDC sustained was $800,000, including a $5,000 loss for the first 72 hours following the physical loss. After the period of restoration ended and SDC resumed operations at the insured premises, the dry cleaners continued to sustain loss of business income loss for 90 days due to customers using other dry cleaners in the neighborhood. The first period of 30 days after reopening was $15,000, second period of 30 days was $10,000 and third period of 30 days was $5,000. How much of SDC's business income loss would be covered under the Business Income (and Extra Expense) Coverage Form? Select one: A. $800,000 B. $810,000 C. $820,000 D. $835,000
C. $820,000 $820,000 of SDC's business income loss would be covered under the Business Income (and Extra Expense) Coverage Form. $795,000 is covered after 72 hour deductible. An additional $25,000 (60 days) is covered due to Extended Business Income Additional Coverage. Remember that EBI is an 'additional coverage.' Recall: coverage extensions - coverage provided within the limits of insurance; additional coverages - coverage in addition to the limits of insurance; optional coverages - insured has option to purchase. The BIC includes EBI as an additional coverage.
The purpose of the Representations condition of the Commercial General Liability (CGL) Coverage Form is to Select one: A. Allow the insured to obtain legal representation of the insured's choosing when policy interpretation is required. B. Ensure that the producer properly binds coverage according to the policy insuring agreements. C. Encourage the named insured to read the policy declarations and ensure that the representations made during policy negotiations are correct. D. Certify the veracity and authenticity of statements of both the insurer and the insured.
C. Encourage the named insured to read the policy declarations and ensure that the representations made during policy negotiations are correct.
All of the following losses are covered under the Inside the Premises—Robbery or Safe Burglary of Other Property insuring agreement, EXCEPT: Select one: A. Burglary committed against an employee of the insured B. Robbery committed against a cashier working inside the insured's store C. Robbery committed against a watchperson working inside the insured's store D. Burglary committed against a salesperson working inside the insured's store
C. Robbery committed against a watchperson working inside the insured's store Correct. Robbery committed against a watchperson working inside the insured's store would not be covered under the Inside the Premises—Robbery or Safe Burglary of Other Property insuring agreement.
Smith Company owns two cars, two pickup trucks, and two large dump trucks. Desired insurance coverage is as follows: All vehicles: Liability insurance Medical payments Uninsured motorists (UM) Business Auto Coverage (BAC) symbols: Symbol 1—Any AutoSymbol 2—Owned "Autos" OnlySymbol 3—Owned Private Passenger "Autos" Only Symbol 7—Specifically Described "Autos" Symbol 8—Hired "Autos" OnlySymbol 9—Nonowned "Autos" Only What Business Auto Coverage Form symbols would be used to provide the best protection for Smith? Select one: A. Symbol 1 for each desired coverage indicated B. Symbol 2 for each desired coverage indicated C. Symbol 1 for liability; symbol 2 for medical payments and UM D. Symbol 2 for liability; symbol 1 for medical payments and UM
C. Symbol 1 for liability; symbol 2 for medical payments and UM
The named insured under a Commercial General Liability (CGL) Coverage Form dies, and Sarah becomes a temporary custodian of the named insured's property. The coverage for Sarah under the deceased named insured's CGL form applies only to liability arising out of Select one: A. Losses that occurred within 60 days after the death of the named insured. B. The named insured's premises. C. The maintenance or use of the named insured's property. D. Contractual obligations.
C. The maintenance or use of the named insured's property.
A manufacturer enters into an arrangement with an employment leasing firm to provide clerical help at the manufacturer's facility. The manufacturer is concerned with providing workers compensation coverage for the clerical workers. Which one of the following actions should the manufacturer take to avoid gaps or duplicate coverage in workers compensation? Select one: A. The employee leasing company should provide coverage through a Voluntary Compensation and Employers Liability Coverage Endorsement. B. The manufacturer should provide coverage through a Voluntary Compensation and Employers Liability Coverage Endorsement. C. The manufacturer should be added to the employee leasing company's workers compensation coverage through an Alternate Employer Endorsement. D. The employee leasing company should be added to the manufacturer's workers compensation coverage through a Leased Employer Endorsement.
C. The manufacturer should be added to the employee leasing company's workers compensation coverage through an Alternate Employer Endorsement.
For which one of these does the Coverage A Mobile Equipment exclusion eliminate coverage? Select one: A. An airplane owned by the insured B. A watercraft owned by the insured C. The transportation of mobile equipment by an auto that is owned by an insured D. An auto owned by the insured
C. The transportation of mobile equipment by an auto that is owned by an insured
Raw Goods, an organization that supplies raw materials is evaluating its options to insure a few shipments of goods per year to its distributor. Which one of the following types of inland/ocean marine insurance would likely be most appropriate? Select one: A. Annual transit insurance B. Motor truck cargo insurance C. Trip transit insurance D. Mail insurance
C. Trip transit insurance
One distinction between the umbrella liability policy and the excess liability policy is that an Select one: A. Excess policy includes coverage not provided by the underlying policy. B. Umbrella policy generally does not provide defense coverage. C. Umbrella policy provides broader protection than the underlying policy. D. Excess policy has a self-insured retention and an umbrella policy does not.
C. Umbrella policy provides broader protection than the underlying policy.
A federal workers compensation statute eliminates the right of most maritime workers (other than crew members of vessels) to sue their employers and in return requires such employers to provide injured or ill workers with benefits like those provided by state workers compensation statutes. The name of this statute is the Select one: A. United States Merchant Marine Act. B. Jones Act. C. United States Longshore and Harbor Workers' Compensation Act (LHWCA). D. Federal Employers' Liability Act.
C. United States Longshore and Harbor Workers' Compensation Act (LHWCA).
XYZ Company's home office is in state A. Emily is XYZ's only employee in state B, which requires workers compensation insurance from companies that employ more than 10 people in that state. In order to provide benefits for Emily for on-the-job injuries, which one of the following endorsements should XYZ add to its Workers Compensation and Employers Liability Insurance Policy (WC&EL policy)? Select one: A. Foreign Voluntary Compensation Coverage Endorsement B. Waiver of Our Right to Recover From Others Endorsement C. Voluntary Compensation and Employers Liability Coverage Endorsement D. Alternate Employer Endorsement
C. Voluntary Compensation and Employers Liability Coverage Endorsement
An insured's office building is valued at $500,000, business personal property valued at $100,000 and leased computers valued at $50,000. The insured wants to be certain covered property can be repaired or replaced without any coinsurance or depreciation penalties in the event of physical loss or damage. Which Limits and Optional Coverage(s) on the Building and Personal Property Coverage Form would best suit the insured? Select one: A. Seek no Optional Coverages but make sure to provide the insurer a signed statement of values B. Building $500,000 with Agreed Value Optional Coverage; Business Personal Property $100,000 with Agreed Value Optional Coverage; Extension of Replacement Cost to Personal Property of Others $50,000 C. Building $480,000 with Replacement Cost Optional Coverage; Business Personal Property $80,000 with Replacement Cost and Agreed Value Optional Coverages; Extension of Replacement Cost to Personal Property of Others $40,000 D. Building $500,000 with Replacement Cost and Agreed Value Optional Coverages; Business Personal Property $100,000 with Replacement Cost and Agreed Value Optional Coverages; Extension of Replacement Cost to Personal Property of Others $50,000
D. Building $500,000 with Replacement Cost and Agreed Value Optional Coverages; Business Personal Property $100,000 with Replacement Cost and Agreed Value Optional Coverages; Extension of Replacement Cost to Personal Property of Others $50,000
Lance purchased an electric knife from Sharp Objects. When he first used the knife to carve a turkey, it malfunctioned resulting in injury to Lance. Sharp Objects' Commercial General Liability (CGL) Coverage Form will do which one of the following? Select one: A. Cover any damages payable as a result of Lance's injuries up to the general aggregate limit B. Cover the cost of replacing the knife but not cover Lance's injuries C. Cover any medical expenses incurred by Lance under Coverage C as well as the damage to the knife under Coverage B D. Cover any damages payable as a result of Lance's injuries subject to both the each occurrence limit and the products-completed operations aggregate limits
D. Cover any damages payable as a result of Lance's injuries subject to both the each occurrence limit and the products-completed operations aggregate limits Sharp Objects' CGL Coverage Form would cover Lance's claim as a products loss which is subject to both the each occurrence limit and the products-completed operations aggregate limit.
Large Manufacturer, Inc. needs to move its expensive three ton piece of equipment that it manufactured from its manufacturing plant to the buyer's premises some 50 miles away. Which one of the following is the best way to insure this equipment for the move? Select one: A. Purchase open cargo insurance B. Purchase annual transit insurance C. Purchase motor truck cargo insurance D. Purchase trip transit insurance
D. Purchase trip transit insurance
Alice's Software Company whose main business is designing and providing borders and frames on websites is sued for libel along with the website's host. Alice's Software Company has an unendorsed Commercial General Liability policy and submits this claim to its insurer. Which one of the following responses best describes the probable response the software company will receive from its insurer? Select one: A. There is coverage under Coverage B because the Commercial General Liability policy specifically covers the software company for injury resulting from oral or written publication, in any manner, of material that slanders or libels a person or organization B. There is no coverage under Coverage B because the exclusion relating to insureds in media and Internet-type businesses excludes coverage for insureds whose business is providing Internet searches, access, content, or services. C. There is no coverage under Coverage B because the exclusion relating to electronic chat rooms or bulletin boards excludes coverage for any injury arising out of an electronic chatroom or bulletin board the insured owns, hosts, or controls. D. There is coverage under Coverage B because the exclusion regarding insureds in media and Internet-type businesses specifically states that placing frames, borders, links, or advertising material for the named insured or others anywhere on the Internet is not considered the business of advertising, broadcasting, publishing, or telecasting.
D. There is coverage under Coverage B because the exclusion regarding insureds in media and Internet-type businesses specifically states that placing frames, borders, links, or advertising material for the named insured or others anywhere on the Internet is not considered the business of advertising, broadcasting, publishing, or telecasting.
What, if anything, is the primary difference between an excess liability policy and an umbrella liability policy? Select one: A. There is no difference; these are just two terms for the same type of policy. B. Usually an excess liability policy carries a higher premium than an umbrella policy. C. While both policies provide excess limits, an excess policy may also provide coverage not available in the underlying policies. D. While both policies provide excess limits, an umbrella policy may also provide coverage not available in the underlying policies.
D. While both policies provide excess limits, an umbrella policy may also provide coverage not available in the underlying policies.
International Toys (IT) manufactures toys in South Carolina and sells them to stores around the world. A customer in Europe is injured when one of the toys malfunctions and severs the customer's hand. The customer files suit in the United States. If IT is found liable, does its Commercial General Liability (CGL) Coverage Form cover the customer's claim? Select one: A. No, because Europe is not within the coverage territory B. No, because products and completed operations liability coverage is not included in the CGL Coverage Form C. Yes, because it is an expected injury D. Yes, because the toys were manufactured in the United States
D. Yes, because the toys were manufactured in the United States Worldwide coverage applies to products made by the named insured in the United States as long as the suit is brought in the basic coverage territory. (U.S., its territories or possessions, Puerto Rico, or Canada.)
