CH 15-23 QUIZ

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

physical damage

An Excess Liability policy:

deepens but does not broaden coverage.

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:

E&O

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:

uninsured motorist

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?

employment practices liability

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

E&O and Employment Practices Liability

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:

liability

Employee Dishonesty covers:

None of the above.

A CGL covers:

Liability assumed through a sidetrack agreement.

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

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

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

file a proof of loss form

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:

uninsured motorist

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

liability

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

other states coverage

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

uninsured motorist

Medical payments covers a tenant injured:

in the unit occupied by the landlord.

Each of the following is a casualty coverage EXCEPT:

Earthquake

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

owner, partner, employee, or manager

Supplementary Payments:

provides for defense costs.

A consent to settle provision protects the reputation of the:

insured

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

stolen from a corporate board member.

A burglary policy covers the felonious removal of property:

from a locked building which is broken into.

Which is a burglary?

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

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

the vehicle's policy pays primary

Personal and Advertising Injury Liability covers each of these EXCEPT:

Errors and Omissions

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

surety

Which bond covers employee embezzlement?

fidelity

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?

Premises and Operations

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

Definitions

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

fails to show up for trial

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

$25,000

A Theft, Disappearance and Destruction form covers:

A company's money disappears.

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

covered by the employer

E&O covers claims arising from:

wrongful acts

Taking property by force or threat of violence is:

robbery

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:

pollution caused by the leaking chemicals

Contractual Liability Coverage covers liability:

assumed by contract.

A CGL covers each of the following EXCEPT:

employers liability

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

damage to the building caused by the burglary

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

corporate officer's spouse

Under the CGL, the insured is:

the person listed on the declarations sheet.

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

obligations of the insurer

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

there is visible damage to the safe

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

an agreement to indemnify an appraiser

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

flood

In a bid bond, the contractor is the:

principal

Which can be purchased alone?

comprehensive

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

Commercial General Liability

Work comp benefits are set by:

state law.

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?

Products and Completed Operations

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

Professional Liability

An insured can get a lower premium by:

taking a per-loss deductible.

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

donee

Which type of insurance has a deductible?

Property Insurance

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

uninsured motorist

Infringement is covered by:

Personal Injury and Advertising Liability

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

work comp

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

Insurer

A CGL Insurer may use an audit to establish:

the appropriate premium.

The term "retention" in an umbrella policy is similar to:

deductible

A Business Auto policy covers:

injury to a pedestrian struck by the insured business auto

Professional liability insurance is available for:

pharmacists

Vicarious liability refers to liability for:

the acts of another

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:

cover this under the CGL's med pay section.

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

fines

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

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.

Self-insurers must comply with work comp regulations by:

complying with state regulations

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

authorize the insurer to settle within the policy limits.

Which is a burglary?

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

If the insured desires to cancel a CGL:

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

A commercial umbrella does NOT cover:

home accidents

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:

performance bond

A Work Comp policy may cover each of these EXCEPT:

Health Coverage for the worker's family.

Which is a covered nonowned auto?

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

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

products and completed operations

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

covered under Premises and Operations

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

Comprehensive (Other Than Collision) coverage

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

a self-insured retention layer

Personal and Advertising Injury Liability covers:

wrongful eviction

If the insured desires to cancel a CGL:

delivery of written notice by email is acceptable.

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

self insurance.

Employee embezzlement of money is covered by:

Employee Dishonesty Form

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:

$200,000

Under a CGL's "Other Insurance" clause, the two insurers will share the loss:

equally

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

Employment Practices Liability

Another name for the bond's premium is:

the service fee.

A CGL's medical payments covers:

a customer

The indemnity agreement is designed to protect the:

surety

Products Liability covers:

injuries from defective products sold to the public.

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

an earthmover.

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

a company car available for the insured's regular use

Employment Practices Liability will cover which of the following claims?

discrimination claims

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

claims reported within 60 days after the policy expires.

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

supplementary

Part 2 of the Worker Comp policy covers:

Employer Liability.

Hitting a parked car is covered by:

collision

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:

$2,000

Which deepens coverage only?

excess liability

Supplementary covers each of these EXCEPT:

medical payments

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

an Extended Reporting Period