P&C Chapter 7 Commercial Package Policy

With coverage a bodily injury and property damage on a CGL... the insured must purchase an endorsement for the insurer to defend lawsuits in addition to limits. The insured needs the insured's consent to settle. Level, slander, and false arrest are not covered. Loss can occur anywhere in the world and still have coverage.

Level, slander, and false arrest are not covered

The commercial cause of loss form that covers theft of business personal property is the... Basic. broad .special. Worker's Compensation

Special

The commercial property policy may cover which of the following? Buildings. Business personal property. Property of others. All of the above

All the above

Policy limits on a CGL... are per occurrence on the declarations for medical. are per person on the declarations fire damage liability. Are listed as occurrence limits and also included aggregate limits. Have no limit on the declarations for a personal and advertising injury liability.

Are listed as occurrence limits and also include aggregate limits

Claims paid under a CGL reduce the aggregate limits of liability remaining to pay future claims during the policy period. However, the aggregate limits are reinstated in full... At the request of the insured. Automatically at the policy anniversary date. If an additional premium is paid. Never; wants reduce they cannot be reinstated

Automatically at the policy anniversary date

A farm insurance policy does not cover... Autos operated on the highway. Crops in storage. Livestock. Mobile agricultural equipment.

Autos operated on the highway

Mandatory coverage is under the commercial package policy are... Any two lines of insurance. Commercial liability and auto. Commercial property and crime. Commercial property and liability.

Commercial property and liability

On a claims made CGL, the supplemental extended reporting period... Costs extra and must be added by endorsement. Is automatically built into the contract at no extra premium charge. Is automatically built into the contract with an extra premium charge. Provides an extra 60 days for claims to be reported.

Costs extra and must be added by endorsement

Which type of crime coverage requires more than just an inventory computation in order to prove a loss has occurred? Employee theft. Mysterious disappearance. Robbery. Safe burglary.

Employee theft

All of the following are specialized commercial property forms except: condominium association form. Condominium unit owners form. Extortion. Legal liability form.

Extortion

An optional coverage on the commercial property policy to minimize the suspension of operations is known as... Business income coverage. Extra expense coverage. Suspension of operations income coverage. Net income replacement endorsement.

Extra expense coverage

Which crime form covers the Holiday Inn if a guest claims their property was damaged while in the hotel safe? Employee theft. Extortion commercial entities. Guest property. None of the above

Guests property

In order for coverage to apply within the products and completed operations hazard of a CGL, the injury or damage must not... Be related to something that was either manufactured, sold, or built during the policy period. Have occurred. Have occurred after the product was released from the control of the insured. Have occurred on the insurance premises

Have occurred on the insured's premises

An optional commercial property endorsement that automatically increases the limit of insurance by an annual percentage shown in the declarations is called_______coverage. agreed value co-insurance an extension of inflation guard

Inflation guard

Business income coverage is... Added to a CGL. Indirect consequential coverage. Not subject to coinsurance requirements. Written with a deductible

Indirect consequential coverage

Pollution liability is generally excluded on the commercial general liability policy except: Injury sustained inside a building caused by smoke, fumes, vapor, or set from equipment to used to heat, cool, or dehumidify the building. Only if cost to the insured's own property. Only one caused by a motor vehicle. Pollution is always excluded there are no exceptions.

Injury sustained inside a building caused by smoke, fumes, vapor, or such from equipment used to heat, cool, or dehumidify the building

The BI and PD coverage on a farm liability policy provides coverage for... Business activities other than farming. Injury to a farmer. Injury to the guest. Pollution.

Injury to the guest.

On a CGI., Coverage for premises and operations liability... Is automatically covered. Is usually excluded. Maybe added for an additional premium. Usually has a deductible.

Is automatically covered

In most situations, the coverage territory for general liability insurance means the territory described in the policy. Which is not included? Canada. Japan. Puerto Rico. US territories and possessions

Japan

An inland marine policy that covers the insurance merchandise help for sale, the insured's property off premises, customers property in the custody of the insured, and property being transported is a... Bailey's customers goods floater commercial articles floater. Commercial equipment floater. Jewelers block policy..

Jewelers block policy.

Which statement about coverage on a CGL is false? The initial premium Hayden is only a deposit. Liability for loading and unloading of autos is not covered. Liquor liability is covered. Pollution liability is excluded.

Liquor liability is covered

Valuable papers insurance does not provide coverage for... Books. Manuscripts. Maps. Money and securities.

Money and securities

On an equipment breakdown policy, expediting expenses does not cover the reasonable costs... Of permanent replacement. To expedite permanent repairs. To expedite permanent replacement. To make a temporary repairs.

Of permanent replacement

CGL provides medical expense payments for injuries if the expenses are incurred and reported to the insurer within____years. One. Two. Three. Four.

One

The taking of property by a visible sign of a forced entry or threat of bodily harm would be covered by which of the following crime forms? Premises burglary. Premises theft and robbery. Robbery and safe burglary. Theft, disappearance, and destruction.

Robbery and safe burglary

Doug allows a stockbroker to keep his securities and bonds at the brokerage office. Which of the following crime forms covers the brokerage in case of loss to Doug's securities? Extortion government entities. Guests property. Safe depository. Securities deposited with others.

Securities deposited with others

Which statement about the commercial building and personal property form deductible is false? A $100 deductable may be purchased for a higher premium. The deductible applies after calculating coinsurance penalties if any. The deductible applies per occurrence and per building, if more than one building is covered on the policy. The standard deductible is $500

The deductible applies per occurrence and per building, if more than one building is covered on the policy

Which statement regarding farm coverages is FALSE? Farm coverage may be written as a mono line policy, or as part of a package. Livestock may be insured. The principal residence may be covered by farm or homeowners insurance. Property and liability coverage is may be included

The principal residence may be covered by farm Or homeowners insurance

In order to avoid problems with under or over insurance, a business with a fluctuating inventory should write coverage on a_______basis. Actual cash value. Blanket. Replacement cost. Value reporting.

Value reporting

In the newest addition of the commercial property form which of the following is now considered part of the building? Detached signs. Outdoor property. Science permanently attached. Vegetated roofs.

Vegetated roofs

Which of the following would not be eligible under the nationwide marine definition? Domestic shipments. Imports. Pipelines, bridges, tunnels, and satellites. Warehouses.

Warehouses

The most significant difference between the claims made in the occurrence forms of a general liability policy is... The amount of coverage. The supplementary payments. What triggers the insurance coverage. Who is covered

What triggers the insurance coverage

Volunteer workers are covered under the commercial general liability policy but only under which of the following circumstances? Only when on the insured premises. Volunteer workers are not considered an insured under the sea GL policy. When volunteering over 20 hours per week. While performing the duties related to the business.

While performing duties related to the business.