Types Of Casualty Policies, Bonds And Related Terms

Question 1

What is the minimum amount of additional coverage provided by umbrella policies?

Answer 1

1 million dollars

Question 2

When does Uninsured Motorist coverage apply?

Answer 2

When the other party is legally liable but has no insurance

Question 3

What do numerical symbols represent in auto policies?

Answer 3

They define the type of vehicle insured for specific coverages.

Question 4

What are the 2 parts of the Garage Liability Coverage?

Answer 4

Garage Operations – Covered Autos, and Other than Covered Autos

Question 5

Who is considered insured under Part A: Liability of a personal auto policy?

Answer 5

The vehicle owner or his/her family member, or any person using the covered auto with permission

Question 6

Coverage for medical payments under a Personal Auto Policy applies to expenses following a covered accident that are incurred and services rendered within what time period?

Answer 6

3 years

Question 7

In a commercial crime policy, what does employee theft cover?

Answer 7

Losses resulting from theft by employees

Question 8

What is a second injury fund?

Answer 8

A workers compensation program designed to pay for any additional benefits when an employee with a previous injury suffers a second injury

Question 9

What is the limit of liability in Part D: Coverage for Damage to Your Auto?

Answer 9

The lesser of the actual cash value of the vehicle or the amount needed to repair or replace the vehicle

Question 10

If an auto policy has split limits of 30/50/25, what is the maximum amount the policy will pay for injuries to one person in a single accident?

Answer 10

$30,000

Question 11

What is a commercial floater?

Answer 11

An Inland Marine policy designed to cover movable commercial property, wherever it may be located

Question 12

What type of professional liability coverage will a medical doctor need?

Answer 12

Medical malpractice coverage

Question 13

What are the 4 categories of uninsured motor vehicles?

Answer 13

1) No insurance or liability bond
2) Insurance is less than what’s required by the financial responsibility laws
3) A hit-and-run accident where the driver cannot be identified
4) The insurer denies coverage or becomes insolvent.

Question 14

What are the parties to a surety bond?

Answer 14

The principal (or obligor), the obligee (or insured), and the guarantor (or surety)

Question 15

A person or business that requires coverage for all liability exposure should purchase what type of insurance?

Answer 15

Commercial General Liability (CGL) and Professional Liability

Question 16

What type of auto coverage will apply in a hit-and-run accident where the driver cannot be identified?

Answer 16

Uninsured Motorist

Question 17

In surety bonds, who purchases the bond and promises to fulfill the obligation?

Answer 17

Principal or obligor

Question 18

What is the exclusive remedy doctrine?

Answer 18

Injured employees cannot seek damages outside workers compensation.

Question 19

What Personal Auto coverage would pay for damages to a covered auto caused by a collision with a deer?

Answer 19

Other Than Collision (Comprehensive)

Question 20

Medical malpractice, agents and brokers errors and omissions, and directors and officers liability are examples of what type of liability insurance?

Answer 20

Professional Liability

Question 21

What is the purpose of a claims-made form?

Answer 21

To pay for bodily injuries or property damage reported during the policy period

Question 22

What does the term “you” refer to in a personal auto policy?

Answer 22

The named insured shown in the declarations, and the insured’s spouse (if resident of the same household)

Question 23

Underinsured Motorist (UIM) coverage will pay the difference between which 2 limits?

Answer 23

The insured’s UIM limits and the at-fault driver’s insurance bodily injury limits

Question 24

Professional Liability coverage protects the insured against legal liability resulting from what?

Answer 24

Errors and omissions

Question 25

What are the 2 coverage triggers in Commercial Crime policies?

Answer 25

Discovery Form and Loss Sustained Form

Question 26

If an auto policy has liability limits of 40/60/20, what would be the equivalent combined single limit?

Answer 26

$80,000 – combined total of coverage for bodily injury and property damage

Question 27

What is the date stipulated on the declaration page of a claims-made liability form as the earliest date on which an incident may occur and be covered by the policy?

Answer 27

Retroactive date

Question 28

What is the purpose of surety bonds?

Answer 28

To guarantee that specific duties and obligations of the principal will be fulfilled

Question 29

What is the name for the deductible in liability umbrella policies?

Answer 29

Self-insured retention (SIR)

Question 30

What Personal Auto Coverage would pay for the insured’s travel expenses and loss of earnings while the insured is involved in the settlement process of a covered loss?

Answer 30

Part A: Liability

Question 31

What is the primary purpose of Workers Compensation insurance?

Answer 31

To pay benefits to employees for injuries arising out of employment

Question 32

What type of coverage do umbrella policies provide?

Answer 32

Excess coverage over the primary policy

Question 33

What are the 4 types of benefits provided by Workers Compensation insurance?

Answer 33

Medical payments, disability income, rehabilitation expenses, and death benefits

Question 34

What types of expenses are covered by Coverage C – Medical Payments in Commercial General Liability policies?

Answer 34

Medical, surgical, hospital, or funeral expenses for third parties injured because of the insured’s business operations

Question 35

What would be considered a newly acquired auto?

Answer 35

A vehicle acquired by the insured during the policy period

Question 36

A vehicle rented from a commercial rental company is known as what type of auto?

Answer 36

Hired auto

Question 37

Who does the Garage Coverage form insure?

Answer 37

Auto dealers, service stations, auto repair shops

Question 38

What losses are excluded from coverage in the liability section of the Personal Auto Policy?

Answer 38

Intentional injury or damage, damage to property owned or transported by the insured, use of a vehicle as a public conveyance, or use of a vehicle without permission. (Please review the text for a complete list of exclusions.)

Question 39

What type of perils are covered by the Advertising Injury Form?

Answer 39

Libel, slander, defamation, violation of privacy, infringement of copyright or titles

Question 40

What is a covered auto?

Answer 40

A vehicle shown in the policy declarations

Question 41

Rental reimbursement endorsement is available only if an auto policy has what type of coverage?

Answer 41

Other than Collision Coverage

Question 42

What types of entities can be insured under a General Liability policy?

Answer 42

Sole proprietor, partnerships and corporations

Question 43

What does Coverage A of the Commercial General Liability (CGL) form provide coverage for?

Answer 43

Injury or death suffered by a third-party, or damage to the property of others

Question 44

When does the Underinsured Motorist coverage apply?

Answer 44

When the motorist is at fault in an accident, but the limits of his/her auto insurance are not sufficient to cover the bodily injury to another motorist

Question 45

What is a combined limit in an auto insurance policy

Answer 45

The maximum amount the insurer will pay on a covered loss

Question 46

What types of losses are indicated by the spirit limits in an insurance policy?

Answer 46

Bodily injury per person, bodily injury per accident, and property damage per accident

Question 47

What is the broadest coverage in the Commercial Crime Form

Answer 47

Theft coverage

Question 48

What is the occurrence form trigger based on?

Answer 48

The date of the injury or damage

Question 49

What are 3 liability coverages included in the Commercial General Liability (CGL) Coverage form?

Answer 49

Coverage A - Bodily Injury and Property Damage

Coverage B - Personal and Advertising Injury

Coverage C - Medical Payments