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Property & Casualty Exam > C Review > Flashcards

C Review Flashcards

1
Q

Infringement is covered by:

Select one:

a.
Personal Injury and Advertising Liability

b.
Premises and Operations Liability

A

Personal injury and advertising liability

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2
Q

A Business Auto Policy may be used to cover each of the following EXCEPT:

Select one:

a.
a pickup or van.

b.
an earthmover.

c.
a tractor trailer.

d.
a truck.

A

An earthmover

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3
Q

The Inside the Premises –Theft of Money and Securities Form covers money:

Select one:

a.
stolen by a corporate official.

b.
stolen from a corporate board member.

A

Stolen from a corporate board member

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4
Q

Each of the following is a casualty coverage EXCEPT:

Select one:

a.
Auto

b.
Earthquake

c.
Employment Practices

d.
Commercial General Liability

A

Earthquake

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5
Q

Under a crime policy, the insured who suffers a loss is required to:

Select one:

a.
file criminal charges against any suspect

b.
file a proof of loss form

A

File a proof of loss form

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6
Q

After an accident involving a covered business auto, the insured must do each of the following EXCEPT:

Select one:

a.
notify the insurer and forward any summons to the insurer.

b.
protect the vehicle from further damage.

c.
authorize the insurer to settle within the policy limits.

d.
submit to examination under oath.

A

Authorize the insurer to settle within the policy limits

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7
Q

Work comp benefits are set by:

Select one:

a.
state law.

b.
the policy.

A

State law

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8
Q

Under an E&O policy, claims occurring during the policy period may be reported after the policy expires if the policy has:

Select one:

a.
an Extended Reporting Period

b.
a Retroactive Date

A

An extended reporting period

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9
Q

A consent to settle provision protects the reputation of the:

Select one:

a.
insured

b.
insurer

A

Insured

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10
Q

Persons covered under an auto policy are identified in which policy section?

Select one:

a.
Conditions

b.
Definitions

c.
Insuring agreement

d.
Exclusions

A

Definitions

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11
Q

A “claims made” policy will always pay a covered claim that occurs:

Select one:

a.
Before the retroactive date.

b.
During the policy term even if it is presented after the policy term.

c.
During the policy term if it is reported and presented during the policy term.

d.
Any time.

A

During the policy term, if it is reported and presented during the policy term

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12
Q

Which of the following policies contains a consent to settle provision?

Select one:

a.
Employment Practices Liability only

b.
Commercial Auto and Employment Practices Liability

c.
CGL and Employment Practices Liability

d.
E&O and Employment Practices Liability

A

E&O and employment practices liability

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13
Q

A single limit auto policy provides $200,000 coverage. The Insured causes an accident in which 4 persons suffer injuries totaling $250,000. The Insurer must pay:

Select one:

a.
$200,000

b.
$250,000

A

$200,000

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14
Q

Under a CGL’s “Other Insurance” clause, the two insurers will share the loss:

Select one:

a.
equally

b.
pro rata

A

Equally

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15
Q

Which type of insurance has a deductible?

Select one:

a.
Workers Compensation

b.
Professional Liability

c.
Property Damage Liability

d.
Property Insurance

A

Property insurance

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16
Q

The CGL’s Contractual Liability coverage does not apply to:

Select one:

a.
agreements to indemnify a municipality as required by ordinance

b.
lease agreements

c.
an agreement to indemnify an appraiser

d.
sidetrack agreements

A

An agreement to indemnify an appraiser

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17
Q

If the insured with an umbrella must pay the first $1,000 of a claim, the insured must have had:

Select one:

a.
a self-insured retention layer

b.
an inadequate attorney

A

A self-insured retention layer

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18
Q

Which of the following is considered to be a “custodian” under a commercial crime policy?

Select one:

a.
owner, partner, employee, or manager

b.
customer

c.
watchperson

d.
janitor

A

Owner, partner, employee, or manager

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19
Q

A Business Auto policy covers:

Select one:

a.
pollution damage caused by a vehicular accident

b.
injury to the driver of the business auto

c.
injury to a pedestrian struck by the insured business auto

d.
damage to goods of others being transported

A

Injury to a pedestrian struck by the insured business auto

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20
Q

Bodily injury caused by a hit-and-run driver is covered by:

Select one:

a.
underinsured motorist

b.
uninsured motorist

A

Uninsured motorist

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21
Q

Contractual Liability Coverage covers liability:

Select one:

a.
implied by contract.

b.
assumed by contract.

A

Assumed by contract

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22
Q

A CGL covers:

Select one:

a.
Liability assumed through a sidetrack agreement.

b.
Injuries to the Insured’s employees.

c.
Earthquake coverage.

d.
Auto accidents.

A

Liability assumed through a sidetrack agreement

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23
Q

If you are hit by someone with no insurance, you should have?

Select one:

a.
underinsured motorist

b.
uninsured motorist

A

Uninsured motorist

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24
Q

A driver’s personal auto policy has liability limits of $15,000, $20,000, $10,000. A passenger in the car suffered $17,000 bodily injury when the vehicle hit a building. The passenger’s bodily injuries are covered by:

Select one:

a.
physical damage

b.
collision

c.
liability

d.
comprehensive

A

Liability

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25
Q

The transportation expenses following a deer damaging the auto are covered under the Personal Auto Policy’s:

Select one:

a.
Collision coverage

b.
Comprehensive (Other Than Collision) coverage

c.
Medical Payments coverage

d.
Supplementary coverage

A

Comprehensive (other than collision) coverage

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26
Q

The work comp policy provision covering workers in other states is:

Select one:

a.
standard business liability

b.
other states coverage

A

Other state’s coverage

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27
Q

A commercial umbrella does NOT cover:

Select one:

a.
products and completed operations

b.
premises and operations

c.
auto liability

d.
home accidents

A

Home accidents

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28
Q

A plumber negligently repaired a store’s water pipe. Several days after the repairs were completed, the pipe burst damaging goods in the store. This would be covered under which section of the CGL?

Select one:

a.
Premises

b.
E&O

c.
Contractual

d.
Products and Completed Operations

A

Products and completed operations

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29
Q

The Inside the Premises - Robbery or Safe Burglary of Other Property form covers valuables stolen in which situation?

Select one:

a.
the safe’s combination was written on the back of the safe

b.
there is visible damage to the safe

c.
a burglar guesses the safe’s combination

d.
the safe is left open

A

There is visible damage to the safe

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30
Q

Products Liability covers:

Select one:

a.
repair of defective products.

b.
product recall.

c.
personal injury liability.

d.
injuries from defective products sold to the public.

A

Injuries from defective products sold to the public

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31
Q

Supplementary covers each of these EXCEPT:

Select one:

a.
defense costs

b.
bonds

c.
medical payments

d.
costs of the insured in assisting the defense efforts

A

Medical payments

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32
Q

The Inside the Premises - Robbery or Burglary of Other Property policy covers which of the following?

Select one:

a.
damage to the building caused by the burglary

b.
theft from a vehicle

c.
employee theft of goods from the business

d.
a burglary where a large amount of cash is stolen

A

Damage to the building caused by the burglary

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33
Q

If an accident occurs when an Insured is driving a vehicle owned and insured by another, which is generally correct?

Select one:

a.
the vehicle’s policy pays primary

b.
the driver’s policy pays primary

A

The vehicles policy pays primary

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34
Q

A CGL Insurer may use an audit to establish:

Select one:

a.
whether a claim is covered by the policy.

b.
whether the Insured was negligent.

c.
the Insured’s solvency.

d.
the appropriate premium.

A

The appropriate premium

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35
Q

A beautician inadvertently injures a customer when the beautician mistakenly applied a toxic chemical to the customer’s skin. This would be covered by the beautician’s:

Select one:

a.
bodily injury liability under the CGL

b.
products liability

c.
E&O

d.
premises liability

A

E&O

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36
Q

Which is a covered nonowned auto?

Select one:

a.
A motorcycle operated by the Insured but owned by another member of the family.

b.
A car left with the Insured by a friend who is abroad for 3 years.

c.
An auto operated by the Insured but owned by another member of the family.

d.
A company car furnished for the Insured.

A

An auto operated by the insured but owned by another member of the family

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37
Q

Employee embezzlement of money is covered by:

Select one:

a.
Theft, disappearance and destruction

b.
Employee Dishonesty Form

A

Employee dishonesty form

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38
Q

The surety will pay the bail bond’s penal sum to the obligee if the principal:

Select one:

a.
fails to show up for trial

b.
dies

A

Fails to show up for trial

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39
Q

A CGL covers each of the following EXCEPT:

Select one:

a.
bodily injury

b.
property damage

c.
personal injury

d.
employers liability

A

Employers liability

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40
Q

Personal and Advertising Injury Liability covers:

Select one:

a.
breach of contract

b.
illegal activities

c.
pollution

d.
wrongful eviction

A

Wrongful eviction

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41
Q

State law requires that commercial autos be covered for each of the following EXCEPT:

Select one:

a.
physical damage

b.
supplementary

c.
property damage liability

d.
bodily injury liability

A

Physical damage

42
Q

A CGL’s medical payments covers:

Select one:

a.
a contestant in an athletic event

b.
an employee

c.
the insured

d.
a customer

A

A customer

43
Q

An insured can get a lower premium by:

Select one:

a.
taking a per-loss deductible.

b.
waiving coverage for defense costs.

A

Taking a per-loss deductible

44
Q

M owns a business and is concerned about an employee lawsuit alleging wrongful termination. M should consider which of the following forms of liability coverage?

Select one:

a.
business owner policy

b.
employment practices liability

c.
workers compensation

d.
commercial general liability

A

Employment practices liability

45
Q

Hitting a parked car is covered by:

Select one:

a.
collision

b.
comprehensive

A

Collision

46
Q

Each of these is considered to be a Casualty Insurance coverage EXCEPT:

Select one:

a.
commercial crime

b.
liability

c.
commercial auto

d.
flood

A

Flood

47
Q

A truck driver injured in a trucking accident would be covered under:

Select one:

a.
work comp

b.
commercial auto policy

A

Work comp

48
Q

Which is a burglary?

Select one:

a.
The clerk is thrown to the ground and money is taken from the clerk’s wallet.

b.
The door on the building is forced open and property is taken after business hours.

A

The door on the building is forced open and property is taken after business hours

49
Q

A building insured under a Premises Burglary policy suffers a loss of $350 cash, $2,000 stock, and $10,000 lost profits due to a closure caused by the burglary. The Premises Burglary policy will pay:

Select one:

a.
$350

b.
$2,000

c.
$10,000

d.
$12,350

A

$2,000

50
Q

Taking property by force or threat of violence is:

Select one:

a.
burglary

b.
theft

c.
mysterious disappearance

d.
robbery

A

Robbery

51
Q

A Work Comp policy may cover each of these EXCEPT:

Select one:

a.
Employer’s Liability.

b.
Rehabilitation Benefit.

c.
Health Coverage for the worker’s family.

d.
Death Benefit.

A

Health coverage for the worker’s family

52
Q

A sexual harassment claim against a business would be covered by:

Select one:

a.
Personal Injury coverage under a CGL

b.
Homeowner Liability

c.
Employment Practices Liability

d.
Bodily Injury coverage under a CGL

A

Employment practices liability

53
Q

Personal and Advertising Injury Liability covers each of these EXCEPT:

Select one:

a.
Unfair competition

b.
Malicious prosecution

c.
Errors and Omissions

d.
False arrest

A

Errors and omissions

54
Q

A customer is accidentally injured by an appliance store employee. Under a commercial liability policy, the customer’s bodily injury is:

Select one:

a.
covered under Completed Operations

b.
covered under Directors and Officers Liability

c.
not covered

d.
covered under Premises and Operations

A

Covered under premises and operations

55
Q

Employment Practices Liability will cover which of the following claims?

Select one:

a.
discrimination claims

b.
the expense of a union strike

c.
workers compensation

d.
the cost of complying with the Americans With Disabilities Act

A

Discrimination claims

56
Q

A Theft, Disappearance and Destruction form covers:

Select one:

a.
A company’s stock plummets in value.

b.
A company’s money disappears.

A

A company’s money disappears

57
Q

A midi-tail extended reporting period (ERP) provides professional liability coverage:

Select one:

a.
for claims reported at any future date.

b.
where the insurer is notified of the occurrence within 60 days after the policy expires, although the actual claim may then be filed within 5 years.

A

where the insurer is notified of the occurrence within 60 days after the policy expires, although the actual claim may then be filed within 5 years.

58
Q

After an auto accident, the auto policy requires the Insured to notify the:

Select one:

a.
police

b.
Insurer

A

Insurer

59
Q

Molly’s state requires 25/50/10 auto liability insurance. Molly is involved in an accident with an at-fault driver who only has 15/30/5 coverage. Molly is protected by her:

Select one:

a.
underinsured motorist

b.
uninsured motorist

A

Uninsured motorist

60
Q

E&O covers claims arising from:

Select one:

a.
intentional acts

b.
felonious acts

c.
wrongful acts

d.
auto accidents

A

Wrongful acts

61
Q

Self-insurers must comply with work comp regulations by:

Select one:

a.
having at least $10,000,000 in cash to pay claims

b.
having a letter signed by the management team indicating solvency

c.
complying with state regulations

d.
requiring the workers to pay for their work comp

A

Complying with state regulations

62
Q

The term “retention” in an umbrella policy is similar to:

Select one:

a.
franchise

b.
deductible

c.
subrogation

d.
supplementary

A

Deductible

63
Q

A tenant agrees to keep the leased premises in a clean and tidy condition. A pedestrian was injured by junk and debris on the sidewalk. This injury to the pedestrian would be covered by which section of a commercial liability policy?

Select one:

a.
Contractual Liability

b.
Independent Contractors Liability

c.
Owner’s and Contractor’s Protective

d.
Premises and Operations

A

Premises and operations

64
Q

The parties to a bond include each of the following EXCEPT:

Select one:

a.
donee

b.
surety

c.
principal

d.
obligee

A

Donee

65
Q

A grocery store customer accidentally injures another customer while placing a large bag of dog food into a shopping cart. The store’s CGL will:

Select one:

a.
cover this under work comp.

b.
not cover this at all.

c.
cover this under the CGL’s liability section.

d.
cover this under the CGL’s med pay section.

A

Cover this under the CGL’s med pay section

66
Q

Which deepens coverage only?

Select one:

a.
excess liability

b.
umbrella

A

Excess liability

67
Q

An auto accident causing bodily injury and property damage results in:

Select one:

a.
liability

b.
policy cancellation

A

Liability

68
Q

A mini-tail extended reporting period (ERP) provides additional coverage for:

Select one:

a.
all future claims, no matter when filed.

b.
claims reported within 60 days after the policy expires.

A

Claims reported within 60 days after the policy expires

69
Q

If the insured desires to cancel a CGL:

Select one:

a.
the insured may cancel by telephone.

b.
delivery of written notice by email is acceptable.

A

Delivery of written notice by email is acceptable

70
Q

The party who agrees to pay the insured (obligee) for loss caused by employee embezzlement under a Fidelity bond is the:

Select one:

a.
obligee employer

b.
principal employee

c.
obligor

d.
surety

A

Surety

71
Q

The definition of “covered auto” in a personal auto policy does NOT include:

Select one:

a.
a rental vacation car

b.
a new van purchased last week

c.
the insured’s trailer

d.
a company car available for the insured’s regular use

A

A company car available for the insured’s regular use

72
Q

A manufacturer who is sued for a defective toy would be covered by:

Select one:

a.
errors and omissions

b.
products and completed operations

A

Products and completed operations

73
Q

Employee Dishonesty covers:

Select one:

a.
Disappearance of inventory which can be proven only by a profit and loss computation.

b.
Dishonest actions of the insured.

c.
Disappearance of inventory which can be proven only by an inventory.

d.
None of the above.

A

None of the above

74
Q

Which policy section contains information about the defense of lawsuits covered by the policy?

Select one:

a.
definitions

b.
obligations of the insured

c.
exclusions

d.
obligations of the insurer

A

Obligations of the insurer

75
Q

A business which uses its own fund sources to pay for injuries to workers is said to be covered by:

Select one:

a.
self insurance.

b.
private insurance.

A

Self insurance

76
Q

The indemnity agreement is designed to protect the:

Select one:

a.
surety

b.
obligee

A

Surety

77
Q

The Postal Service wants to guarantee that a contractor will be able to complete an addition to the post office according to the contract specifications. The contractor should purchase a:

Select one:

a.
completion bond

b.
performance bond

c.
contract bond

d.
bid bond

A

Performance bond

78
Q

The insured’s reasonable expenses incurred while assisting the insurer with defense efforts are covered by:

Select one:

a.
bodily injury liability

b.
property damage liability

c.
supplementary

d.
medical payments

A

Supplementary

79
Q

A business or personal auto policy may cover each of the following EXCEPT:

Select one:

a.
bail bonds

b.
loss of earnings

c.
fines

d.
judgment interest

A

Fines

80
Q

Professional liability insurance is available for:

Select one:

a.
dry cleaners

b.
plumbers

c.
pharmacists

d.
wholesalers

A

Pharmacists

81
Q

In a bid bond, the contractor is the:

Select one:

a.
obligee

b.
principal

A

Principal

82
Q

A real estate agent desiring coverage for accidents occurring on a developable commercial lot should purchase:

Select one:

a.
Personal Injury Liability

b.
Commercial General Liability

A

Commercial general liability

83
Q

A burglary policy covers the felonious removal of property:

Select one:

a.
from an unlocked building.

b.
from a locked building which is broken into.

A

From a locked building which is broken into

84
Q

Which is a burglary?

Select one:

a.
A thief breaks down a door after business hours and steals goods.

b.
A customer steals a watch from an open display counter.

A

A thief breaks down a door after business hours and steal goods

85
Q

A truck driver causes an accident which damages a car, injures the car’s driver, and causes the truck to leak chemicals into the ground. The truck’s business auto policy will NOT cover:

Select one:

a.
bodily injury to the car’s driver

b.
damage to the truck

c.
pollution caused by the leaking chemicals

d.
damage to the car

A

Pollution caused by the leaking chemicals

86
Q

Supplementary Payments:

Select one:

a.
provides for defense costs.

b.
has a deductible.

A

Provides for defense costs

87
Q

An employee waives worker’s comp coverage. The worker’s later work related injury would be:

Select one:

a.
not covered

b.
covered by Commercial General Liability Coverage Form

c.
covered by Errors and Omissions

d.
covered by the employer

A

Covered by the employer

88
Q

Vicarious liability refers to liability for:

Select one:

a.
pollution

b.
the acts of another

c.
future acts

d.
punitive damages

A

The acts of another

89
Q

Part 2 of the Worker Comp policy covers:

Select one:

a.
Employer Liability.

b.
Property Damage Liability.

A

Employer liability

90
Q

Which can be purchased alone?

Select one:

a.
comprehensive

b.
collision

A

Comprehensive

91
Q

Another name for the bond’s premium is:

Select one:

a.
the penal sum.

b.
the service fee.

A

The service fee

92
Q

Medical payments covers a tenant injured:

Select one:

a.
in the tenant’s unit.

b.
in the unit occupied by the landlord.

A

In the unit occupied by the landlord

93
Q

Which bond covers employee embezzlement?

Select one:

a.
fidelity

b.
bid

A

Fidelity

94
Q

If the insured desires to cancel a CGL:

Select one:

a.
the insured may only cancel on the anniversary date.

b.
the insured may do so by giving written notice to the insurer.

A

The insured may do so by giving written notice to the insurer

95
Q

In a state requiring 25/50/5 auto liability coverage, the required coverage for BI per person is:

Select one:

a.
$5,000

b.
$10,000

c.
$25,000

d.
$50,000

A

$25,000

96
Q

To protect against client claims for failure to recommend the appropriate insurance, an insurance agent should have:

Select one:

a.
Premises Liability

b.
Professional Liability

A

Professional liability

97
Q

Each of the following is automatically insured under a CGL EXCEPT:

Select one:

a.
corporate officer’s spouse

b.
employees, corporate officers, shareholders and directors

c.
the partner’s spouse

d.
executor or property manager

A

Corporate officers spouce

98
Q

Molly’s state requires 25/50/10 auto liability insurance. Molly is involved in an accident with an at-fault driver who only has 15/30/5 coverage. Molly is protected by her:

Select one:

a.
uninsured motorist

b.
underinsured motorist

A

Uninsured motorist

99
Q

Under the CGL, the insured is:

Select one:

a.
the person listed on the declarations sheet.

b.
the property.

A

The person listed on the declarations sheet

100
Q

An Excess Liability policy:

Select one:

a.
eliminates the need for the underlying policy.

b.
deepens but does not broaden coverage

A

Deepens but does not broaden coverage

Property & Casualty Exam (5 decks)

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