Practice exams Flashcards
Chapter 7: Which of the following losses to equipment would be covered under the Equipment Breakdown Protection coverage?
D) Damage from an explosion caused by the centrifugal force of moving parts
Why: The object must be in use or connected and ready for use when the accident occurs. Sudden and accidental breakdown of an object resulting in damage.
(page 174)
Chapter 7: What is the primary difference between a claims-made and occurrence form of a CGL policy?
B) The claims made policy provides coverage for claims first made during the policy period.
Why: Occurrence pays for losses that occur during the policy period even if it wasn’t discovered or reported until years after the policy expired.
-Claims-made pays for liability losses reported during the policy period.
(Page 156)
Chapter 7: In which of the following instances would coverage be triggered under a claims made form?
A) When a claim is reported and filed.
Why: Based on the date the claim is 1st made in writing against an insured for injury or damage reported during the policy period.
(Page 157)
Chapter 7: The owner of a Laundromat who dry-cleans clothing belonging to others would purchase which of the following?
C) Bailee policy.
Why: Covers Property of others in the custody, care, control of insured. ( Covers cleaners for losses to customers clothes in their care)
(Page 171)
Chapter 8: Which of the following businesses is not an eligible risk for a Businessowners policy?
D) A truck dealer
Why: Excluded businesses that are engaged in high-risk products or services.
(Page 212)
Chapter 8: Don Johnson’s restaurant had to close for 15 days in January when the electric company had lines down from an ice storm. Which of the following endorsements would provide protections against the loss of income when this event happened?
C) Utility services - time element endorsement.
Why: Covers the loss of business income or extra expenses during a direct loss of a utility service
(Page 224)
Chapter 8: Which endorsement provides coverage for direct damage caused by interruption of utility services caused by a covered peril?
B) Utility services - direct damage endorsement.
Why: Provides coverage for direct damage caused by utility service disruption stemming from a covered peril . Can be for the loss of any named utility including H20, power, or communications
(Page 224)
Chapter 8: In a businessowners policy, the coverage extension for newly acquired buildings is limited to
B) $100k
Why: Up to 250k of the building coverage or new location and up to 100k of business personal property per location for 30 days after the new premises is acquired until the policy expires or the insured reports the new property to the insurance company
(Page 216)
Chapter 8: Which of the following coverages is available in the Businessowners policy as a coverage extension?
D) Newly acquired or constructed property
Why:
(Page 216)
Chapter 8: A Businessowners Policy is best described as:
D) A Self-contained Package
Chapter 8: Which of the following types of limits applies to medical expenses?
A) Per Person
Why: Will NOT pay for injuries to the insured, anyone who works for the insured, or a person injured on part of the premises he normally occupies, injury covered by workers Comp., or anyone getting injured playing sports.
(Page 221)
Chapter 9: The situation that determines if an employee will receive rehabilitation benefits is
D) If the injured worker is not earning the same amount they earned before the injury.
Why:
Chapter 9: An individual that has lost an arm, but can do some work activities, would be classified as
D) Permanent partial disability
Why: Refers to disabilities such as the loss of a limb, hearing, or sight
(Page 244)
Chapter 9: An employee that cannot do any work activities, but is expected to recover, would be classified as
B) Temporary total disability
Why: A person is totally unable to work for a temporary amount of time
(PAge 244)
Chapter 9: A plan that uses recent loss experience to adjust the premium for next year is called an
B) Experience rating plan
Why: The losses over the preceding 3 years are evaluated if losses are better than average premium will be reduced by an experience modification factor . if losses are worst then there will be a surcharge
(Page 245)
