RMI5225 Unit 5 ?'s

Which of the following types of theft-related losses would be covered under the named-peril Causes of Loss forms (check all that apply)? A. looting that occurs during a riot B. damage to the insured's building caused when burglars break into the building C. damage to the insured's personal property caused by burglars who have entered the building D. none, since theft is not a named peril

A. looting that occurs during a riot B. damage to the insured's building caused when burglars break into the building

Which of the following losses related to "sprinkler leakage" would be covered under the Causes of Loss - Basic Form (check all that apply)? A. damage done to covered property caused by the water that leaks from the sprinkler system B. the cost to repair the part of the sprinkler system causing the leakage if that part was damaged by freezing C. the cost to tear out and replace part of the building containing the sprinkler system in order to repair the damage to the sprinkler system (assuming the building is covered property) D. the cost to repair the damaged part of the sprinkler system causing the leakage

All correct

Which of the following losses related to "sinkhole collapse" would be covered under the Causes of Loss - Basic Form? A. the cost to fill the sinkhole B. a building is damaged by the collapse of land into an abandoned mine shaft C. a building is damaged by the collapse of the land on which it rests into a sinkhole D. a building is damaged by a sinkhole collapse that is not "sudden"

C. a building is damaged by the collapse of the land on which it rests into a sinkhole

Which of the following exclusions found in the various Causes of Loss forms is NOT one of the "general exclusions" (as categorized in the lecture notes): A. ordinance or law B. governmental action C. neglect D. nuclear hazards E. fungus, wet rot, dry rot & bacteria

C. neglect

Which of the following types of "theft" losses would be covered under the Causes of Loss -Special Form (check all that apply)? A. employee theft (i.e., theft of the insured's property by one of the insured's employees) B. the insured is "tricked" by a con man into handing over property C. a hacker successfully hacks into the insured's computer & transfers property to himself D. theft of building materials & supplies held for sale at Home Depot

D. theft of building materials & supplies held for sale at Home Depot

The Causes of Loss - Basic Form: A. Covers 11 named perils and includes one Additional Coverage B. covers 11 named perils and includes two Additional Coverages C. covers 14 named perils and includes one Additional Coverage D. covers 14 named perils and includes two Additional Coverages E. provides open-peril coverage

A. Covers 11 named perils and includes one Additional Coverage

Which of the following "fire" losses would be covered under the Causes of Loss - Basic Form (check all that apply)? Correct! A. an arsonist sets fire to the insured's property B. the insured accidentally drops a Rolex watch into a fireplace when stoking the fire C. the insured's property is damaged by a fire that is used in the insured's manufacturing process but escapes from its normal confines due to the negligence of one of the insured's employees D. the insured sets fire to his own property to collect the insurance money

A. an arsonist sets fire to the insured's property C. the insured's property is damaged by a fire that is used in the insured's manufacturing process but escapes from its normal confines due to the negligence of one of the insured's employees

Under the Causes of Loss - Special Form, losses to which of the following types of property are covered only if caused by one of the "specified causes of loss" as defined in the form (check all that apply)? A. animals B. fragile articles C. builders' machinery, tools & equipment owned by the named insured D. steam equipment (e.g., steam boilers, pipes, engines or turbines)

A. animals B. fragile articles C. builders' machinery, tools & equipment owned by the named insured

Under the Additional Coverage for Collapse found in the Causes of Loss - Broad Form: A. damage from collapse of a wooden fence caused by hidden insect damage is covered only if a direct result of the collapse of a covered building B. a standing building that is in danger of falling down is considered to be in a state of "collapse" C. there is coverage for collapse due to defective construction methods that occurs after construction is completed D. there is coverage for personal property which collapses inside a building where the only damage is marring or scratching

A. damage from collapse of a wooden fence caused by hidden insect damage is covered only if a direct result of the collapse of a covered building

With respect to damage caused by pollutants, the Causes of Loss - Special Form will cover (check all that apply): A. damage to glass caused by chemicals applied to the glass B. the escape of pollutants from a tank damaged in an earthquake C. the escape of pollutants through a crack in a defective tank D. damage from a fire caused by the release of gasoline from its container

A. damage to glass caused by chemicals applied to the glass D. damage from a fire caused by the release of gasoline from its container

Under the various provisions related to water damage found in the Causes of Loss - Basic Form, which of the following perils would be covered (check all that apply)? A. rupture or bursting of water pipes caused by a Covered Cause of Loss B. flood C. water that backs up or overflows from a sewer or drain D. leakage of water from an appliance damaged by a Covered Cause of Loss E. water under the surface of the ground that seeps through the foundation of the building

A. rupture or bursting of water pipes caused by a Covered Cause of Loss D. leakage of water from an appliance damaged by a Covered Cause of Loss

Under the Additional Coverage - Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria found in the Causes of Loss - Basic Form (check all that apply): A. the coverage is included within, rather than in addition to, the applicable limit of insurance B. coverage is limited to $10,000 for all occurrences during a 12-month policy period C. coverage applies when the fungus, etc. results from any cause of loss D. coverage for resulting loss of business income is limited to a period of 60 days E. coverage is provided for the cost of testing for the presence of fungus after its removal

A. the coverage is included within, rather than in addition to, the applicable limit of insurance E. coverage is provided for the cost of testing for the presence of fungus after its removal

Which of the following losses would NOT be covered under the Causes of Loss - Basic Form: A. damage caused by an explosion that results from an earthquake B. damage caused by a lack of power to the premises due to a failure that occurs off-premises C. damage caused by a fire that results from a volcanic eruption D. destruction of property ordered by a government authority to prevent the spread of a fire E. damage caused by wet or dry rot that results from fire or lightning

B. damage caused by a lack of power to the premises due to a failure that occurs off-premises

Which of the following would be covered under the Causes of Loss - Special Form but NOT under the Causes of Loss - Basic Form or Causes of Loss - Broad Form (check all that apply)? A. explosion of steam equipment B. damage caused by an elevator collision which results from a mechanical breakdown C. smoke damage that is not sudden & accidental D. damage resulting from continuous seepage of water over a period of 14 days or more E. building damage caused by the thawing of snow, sleet or ice

B. damage caused by an elevator collision which results from a mechanical breakdown C. smoke damage that is not sudden & accidental E. building damage caused by the thawing of snow, sleet or ice

Which of the following losses related to "volcanic action" would be covered under the Causes of Loss - Basic Form (check all that apply)? A. damage caused by the movement of the earth that typically precedes the eruption of a volcano B. damage caused by the airborne shock waves sent out when the volcano erupts C. the cost to clean up ash & dust, even if it has not otherwise caused any direct property damage D. damage caused by lava flow from the volcanic eruption

B. damage caused by the airborne shock waves sent out when the volcano erupts D. damage caused by lava flow from the volcanic eruption

Which of the following losses would be covered under the Additional Coverage Extension for Property In Transit found in the Causes of Loss - Special Form? A. damage to property in the care, custody or control of the insured's salesperson B. damage to property in or on a motor vehicle owned by the insured & in the coverage territory C. damage to property caused by smoke D. theft of property from an unlocked vehicle

B. damage to property in or on a motor vehicle owned by the insured & in the coverage territory

The major difference between the various Causes of Loss Forms is that: A. the Basic Form provides named-peril coverage while the Broad & Special Forms provide open-peril coverage B. the Basic & Broad Forms provide named-peril coverage while the Special Form provides open-peril coverage C. in the Basic & Broad Forms, the insurer has the burden of proving that the loss was not caused by a covered peril D. in the Special Form, the insured has the burden of proving that the loss was not caused by an excluded peril

B. the Basic & Broad Forms provide named-peril coverage while the Special Form provides open-peril coverage

In the Causes of Loss - Special Form, when two perils act at the same time to cause a loss, and one of those perils is excluded but the other is not, the courts generally rule that: A. the insurer does not have to pay the loss (since one of the perils is excluded) B. the insurer must pay the loss (since one of the perils is not excluded) C. the claim must be submitted to an arbitration process & decided based on the circumstances D. the insurer need not pay even for damage by a covered cause of loss which results from the excluded peril

B. the insurer must pay the loss (since one of the perils is not excluded)

Which of the following perils are added to the Causes of Loss - Broad Form, as compared to the Causes of Loss - Basic Form (check all that apply)? A. artificially generated electrical current B. weight of ice, snow or sleet C. water damage D. mechanical breakdown of equipment E. falling objects

B. weight of ice, snow or sleet C. water damage

Which of the following would be covered under the "windstorm or hail" peril of the Causes of Loss - Basic Form (check all that apply)? A. sleet driven into the property by a windstorm causes damage to the property B. wind passes through an open window and blows an expensive vase off a table, shattering the vase C. a severe windstorm blows rain sideways and forces it through the cracks around the doors of the insured's building, causing damage to the interior of the building D. a severe hailstorm breaks the windows of the insured's building, through which sand and dust enter and damage the interior of the building

B. wind passes through an open window and blows an expensive vase off a table, shattering the vase D. a severe hailstorm breaks the windows of the insured's building, through which sand and dust enter and damage the interior of the building

Which of the following would be considered an "explosion" that is covered under the Causes of Loss - Basic Form (check all that apply)? A. the bursting of a pressure relief device on a tank of compressed air B. the bursting of a grain silo that results when moisture causes the grain in the silo to expand C. explosion of gases or fuel within the furnace of a fired vessel D. damage caused by the "sonic boom" of a passing aircraft

C. explosion of gases or fuel within the furnace of a fired vessel D. damage caused by the "sonic boom" of a passing aircraft

Which of the following categories of property is NOT subject to a special theft limit of $2,500 in the Causes of Loss - Special Form? A. furs & fur garments B. jewelry, watches, & precious stones C. stamps, tickets & letters of credit D. patterns, dies, molds & forms

C. stamps, tickets & letters of credit

The Additional Coverage Extension for Glass found in the Causes of Loss - Special Form would cover (check all that apply): A. the cost to replace the damaged building glass B. the cost of removing or replacing window displays C. the expense to board up openings if replacement of damaged glass is delayed D. the cost of removing or replacing obstructions when repairing glass that is part of a building

C. the expense to board up openings if replacement of damaged glass is delayed D. the cost of removing or replacing obstructions when repairing glass that is part of a building

Which of the following losses would be covered under the Causes of Loss - Broad Form? A. a light fixture falls onto a table, damaging both the fixture and the table B. the weight of ice building up on outdoor furniture causes it to collapse C. water damage occurs when the pipes in the insured's building crack D. the cost to repair a defect in an appliance from which water is leaking

C. water damage occurs when the pipes in the insured's building crack

Which of the following is NOT excluded under the "limited exclusions" found in the Causes of Loss - Basic Form? A. damage to appliances caused by a surge of artificially-generated electrical current B. mechanical breakdown of equipment C. explosion of a steam boiler owned by the insured D. damage resulting from the condensation of humidity that occurs over a period of 3 days

D. damage resulting from the condensation of humidity that occurs over a period of 3 days