Other Coverages and Options

Question 1

What is sometimes called catastrophe insurance?

Answer 1

Umbrella Policy

Question 2

___ coverage provides extra protection against liability, and excess amount of insurance above the primary policy.

Answer 2

Umbrella Policy

Question 3

What is the minimum in additional coverage an umbrella policy is commonly written to provide?

Answer 3

$1,000,000

Question 4

___ crucial in providing comprehensive protection for individuals and business due to the escalating suits and judgements being handed down in courts.

Answer 4

Umbrella Policy

Question 5

___ usually has a broader coverage and may cover some circumstances not covered by the underlying policies.

Answer 5

Umbrella Policy

Question 6

What does personal umbrella policies provide excess coverage over?

Answer 6

Personal Liability

Auto Liability

Question 7

What does commercial umbrella policies provide excess coverage over?

Answer 7

General Liability
Business Auto Liability
Errors & Omissions
Professional Liability

Question 8

___ coverage protects insurances agents and brokers from financial losses they may suffer if an insured sues to recover their financial loss due to the agent giving incorrect advice or not informing them of important issues.

Answer 8

Errors & Omissions

Question 9

___ is needed by individuals who provide services to others for a fee.

Answer 9

Professional Liability Coverage

Question 10

___ covers individuals who administer pension or employee benefit plans, trusts, or estates.

Answer 10

Fiduciary Liability

Question 11

___ covers the risks that bars and restaurants have from selling or serving alcoholic beverages.

Answer 11

Liquor Liability

Question 12

___ bought by a company and are generally a guarantee that an employee or other particular person will not commit a dishonest or an act not in accordance with the expectations of his positions.

Answer 12

Fidelity Bonds

Question 13

___ guarantee specific duties or obligations will be fulfilled.

Answer 13

Surety bond

Question 14

___ person who promises to fulfill an obligation and purchase the bond.

Answer 14

Principle, Obligor

Question 15

___ person to whom the promise was made and to whom the bond is payable.

Answer 15

Insured, Obligee

Question 16

___ the company that provides the financial backing and will pay the penalty if the obligation is not fulfilled.

Answer 16

Surety, Grantor

Question 17

___ guarantee performance of a written contract and are primarily used in construction contracts.

Answer 17

Contract Bonds

Question 18

___ guarantee that the contractor that borrowed money to complete the construction project will finish it free and clear of any liens.

Answer 18

Completion Bonds

Question 19

___ guarantee that the job will be completed according to the contract dates and specifications.

Answer 19

Performance Bonds

Question 20

___ guarantee that if the contractors bid is the lowest bid and accepted, the contractor will sign a contract at that price.

Answer 20

Bid Bond

Question 21

___ guarantee any bills for labor and materials will be paid by the contractor when due.

Answer 21

Payment Bonds

Question 22

___ guarantee that the supplier will provide the agreed supplies or equipment at the agreed price and time.

Answer 22

Supply Bond

Question 23

___ guarantee that a principal will fulfill an obligation created by law (includes fiduciary and court bonds).

Answer 23

Judicial Bonds

Question 24

___ are asked from principals to protect obligee’s from loss if the principal was not legally entitled to receive the remedy they asked for such as a writ of seizure or a cease-and-desist order.

Answer 24

Court Bonds

Question 25

___ usually required by state and local governments to guarantee that the laws of a profession are followed by someone receiving a government license.

Answer 25

License & Permit Bonds

Question 26

___ required by law for some government offices to guarantee that public officials will handle their duties and public money honestly.

Answer 26

Public Official Bonds

Question 27

___ covers all parts of the aircraft itself except for personal effects of people.

Answer 27

Aircraft Hull

Question 28

What does Hull aircraft cover?

Answer 28

In the air and on the ground only; not in motion.

Question 29

In Ocean Marine Insurance, what is a voyage called?

Answer 29

An adventure

Question 30

In Ocean Marine Insurance, what is a loss occurrence called?

Answer 30

Misfortune

Question 31

___ throwing cargo overboard to prevent further loss of property or life.

Answer 31

Jettison

Question 32

___ conducting of illegal acts by the master or crew against the ship or the cargo including hijacking, embezzlement, or abandonment.

Answer 32

Barratry

Question 33

What is Jettison referred to as?

Answer 33

General Average Loss

Question 34

___ is a partial loss that only concerns the owners of the cargo that was lost.

Answer 34

Particular Average Loss

Question 35

___ for physical damage coverage for loss to the ship itself.

Answer 35

Hull insurance

Question 36

___ Covers what the ship is hauling.

Answer 36

Cargo insurance

Question 37

___ the ship is the container

Answer 37

Bulk commodities

Question 38

___ rolls of wire, steel, and other things that must be loaded individually.

Answer 38

Break-bulk cargo

Question 39

___ packed in 20 ft. or 40ft. containers that can also be moved by truck or rail.

Answer 39

Containerization

Question 40

___ used for motor vehicles to load from ship to shore by ramp.

Answer 40

Roll on/ roll off

Question 41

___ the cost to repair and/ or recover exceeds the policy limit.

Answer 41

Constructive loss

Question 42

___ defined as when property ceases to be a thing of the kind insured and is payable as a total loss.

Answer 42

Loss of Specie

Question 43

___ is written by federal government to cover damage to property due to flooding because the private insurance industry would not.

Answer 43

National Flood Insurance Program

Question 44

___ coverage applies to craft operated on an inland body of water and coastal water up to a limit of 10 to 25 miles.

Answer 44

Navigation & Territorial Definitions

Question 45

___ supplements a named perils property policy often written to cover the different conditions of flood or earthquake coverage.

Answer 45

A Difference in Conditions Policy

Question 46

___ was established to provide adequate fire, vandalism & homeowners insurance coverage necessary to the economic welfare of the state, including the coastal areas.

Answer 46

Coastal Plan & FAIR ( Fair Access to Insurance Requirements) Plan