Unit 18: Miscellaneous Commercial Insurance

Which policy provides coverage for professional liability?

Errors and omissions policy

Which business is placed with a non-admitted insurer, all of the following are correct EXCEPT?

An agent can place business directly with a surplus lines company

A difference in conditions contract is?

A policy issued to cover what is normally excluded in other property insurance contracts

Insurance companies that are non- admitted insurers fall into 2 categories. They are either an authorized non-admitted carrier or an unauthorized non admitted insurer. What type of license would a person need to sell for an authorized non-admitted insurer?

A surplus lines license

All of the following statements about surplus lines insurance are true EXCEPT?

Agents can place directly with surplus lines companies

All property policies contain exclusions. An insured may be interested in covering these gaps. A difference in conditions policy bridges these gaps by covering events?

Commercial property policies otherwise exclude and excluding coverages normally found in a commercial property policy.

Which of the following entities could bring an errors and omissions claim against an insurance agent?

Companies an agent represents and clients they represent

Aviation insurance provides coverage for liability arising from the operation of an aircraft. All of the following statements are true EXCEPT?

Coverage is provided only for the owner

Aircraft hull insurance will provide coverage for which of the following?

Damage to or loss of the aircraft hull, engines, electronic navigation, and communication equipment

Of the following occupations, which would NOT use an errors and omissions policy to provide coverage for professional losses?

Doctor

An ex-employee files suit against her former employer. She believes she was dismissed for missing work to perform in jury duty. Which one of the following policies would cover damages paid to the employee if she proves her case?

Employment practices liability (EPL)

Which one of the following perils is normally excluded in a difference in conditions (DIC) policy?

Fire

Which one of the following would NOT be covered under an employment practices liability insurance policy?

Mass layoffs of employees

Which policy would provide coverage for a surgeon when his patient is injured because of the doctors failure to correctly perform a heart operation?

Medical malpractice

Henry is a pilot who just purchased his first Cessna Skyhawk single-engine airplane. He asks his insurance agent about aviation liability insurance and learns that this type of insurance is part of a special line of insurance business requiring a different agent. To which special line of insurance business is the agent referring?

Surplus lines

Certain transactions that may be legally conducted by non-admitted insurers without requiring a certificate of authority are known as?

Surplus lines coverage

If an agent is unable to place business with an admitted insurer or company licensed to do business in the state, where would he look to place this type of risk?

Surplus lines market

If an agent is unable to place business with an authorized insurer or a company licensed to do business in the state, where would he look to place this type of risk?

Surplus lines market

Which of the following statements about commercial umbrella liability insurance is NOT true?

They exclude catastrophic liability coverage for business risk

What type of coverage is typically found in a professional liability policy?

Wrongful acts, errors, or omissions that insured commits, and in some cases, bodily injury