Miscellaneous Commercial insurance Flashcards
1
Q
- Which of the following is designed to provide coverage for catastrophic liability losses for business risks?
A. Medical malpractice insurance
B. Commercial umbrella liability insurance
C. Aviation liability insurance
D. Employee practices liability insurance
A
- B. Just as personal umbrella policies are available to cover the catastrophic liability exposures of personal risks, high-limit commercial umbrella policies are designed to provide catastrophic liability coverage for business risks.
2
Q
2. Who represents nonadmitted companies? A. Internet liability B. Umbrella liability C. Surplus lines producers D. Authorized companies
A
- C. Surplus lines producers represent nonadmitted companies.
3
Q
3. Aviation physical damage coverage covers all of the following EXCEPT A. airframe B. engines C. electronic navigation D. personal effects
A
- D. It covers the complete aircraft, including its airframe, engines, controls, and electronic navigation and communications equipment. It does not cover personal effects
4
Q
- Which of the following internet liability and network protection insuring agreements covers the insured’s liability if a person gains unauthorized access to the insured’s computer system and this unauthorized access results in
the publication of clients’ personal information?
A. Website publishing liability
B. Network security liability
C. Cyber extortion
D. Replacement or restoration of electronic data
A
- B. In addition, it covers the insured’s unintentional transmission of a computer virus to another party.
5
Q
- Which of the following internet liability and network protection insuring agreements covers the insured’s liability due to an unintentional error or misstatement posted on the insured’s website?
A. Network security liability
B. Cyber extortion
C. Replacement or restoration of electronic data
D. Website publishing liability
A
- D. Examples include copyright infringement, defamation, or privacy violations.
6
Q
- A business that wants coverage for its liability for employment-related acts can obtain it by purchasing
A. commercial general liability insurance
B. workers’ compensation and employers liability insurance
C. employment practices liability insurance
D. any of these
A
- C. Workers’ compensation and commercial general liability insurance exclude losses arising from employment-related practices.
7
Q
7. Commercial insureds who need higher liability limits than those provided by a certain policy or who want coverage for losses that are excluded by a certain policy should purchase A. a difference in conditions policy B. a commercial umbrella policy C. a surety bond D. a professional liability policy
A
- B. Commercial umbrella policies provide catastrophic liability coverage for business risks. Because the umbrella is not designed to handle usual or everyday exposures,
the insured must have underlying liability coverage before an umbrella will be issued. The umbrella may cover certain losses that are excluded by the underlying insurance.
8
Q
8. Unauthorized insurers are also known as A. nonadmitted insurers B. admitted insurers C. foreign insurers D. alien insurers
A
- A. In almost every state, the insurance law makes exemptions that apply to certain transactions that may be legally conducted by unauthorized or nonadmitted insurers.
9
Q
9. Which liability policy protects those who manage private pension and employee benefit plans? A. Medical malpractice B. Errors and omissions C. Fiduciary liability D. Directors and officers liability
A
- C. It protects them against liability for violation of ERISA which governs employer- sponsored retirement plans.
10
Q
- Aviation liability insurance includes coverage for all of the following EXCEPT
A. bodily injury liability to persons other than
passengers
B. bodily injury to passengers
C. medical payments
D. the aircraft
A
- D. The aircraft is covered by the physical damage coverage
