commercial lines #1

all of the following are automatically included in the business owners policy, EXCEPT?

a. accounts receivable coverage

b. peak season coverage

c. loss of business income

d. money & securities

d

which of the following is NOT insured under a commercial general liability policy

a. partner of the business

b. employee of the business

c. independent contractor of the business

d. legal representative in the event of the death of the named insured

c

faking a signature of another person is:

a. forgery

b. robbery

c. burglary

d. extortion

a

if the insurer requests a proof of loss form on an equipment breakdown policy claim, the named insured must submit it within how many days?

a. 30

b. 45

c. 60

d. 90

c

on an unendorsed garage coverage form which coverage is automatically included?

a. garagekeepers

b. uninsured motorist

c. collision

d. liability

d

which of the following service businesses is NOT eligible for the business owners policy?

a. funeral homes

b. auto mechanics

c. barber shops

d. photographers

b

which of the following is eligible for the business owners policy

a. auto service station

b. retailer

c. amusement park

d. bar

b

under the business owners policy, what dollar amount of coverage is provided for business personal property of others?

a. $1,000

b. $2,500

c. $5,000

d. $10,000

b

under the CPP building and personal property coverage form, all of the following are covered as building property EXCEPT

a. installed machinery

b. concrete outdoor furniture

c. tile floor in the break room

d. raw materials within 100 feet of the building

d

zink owns a business that is insured under a CPP building and personal property coverage form with a $500 deductible. zink’s business is burglarized and $10,000 in inventory and $3,000 in cash are stolen. how much will the insurer pay?

a. $13k

b. $9,500

c. $10k

d. $12,500

b

how many days of vacancy trigger a change of coverage on a business owners policy

a. 10

b. 20

c. 30

d. 60

d

a business insured under a commercial general liability policy has a general aggregate limit of 2,000,000 and an occurrence limit of 1,000,000. what limit will remain available to the insured when an injured party is awarded 500,000

a. general aggregate of 1,500,000 - occurrence limits of 1,000,000

b. general aggregate of 1,000,000 - occurrence limit of 1,000,000

c. general aggregate of 2,000,000 - occurrence limit of 500,000

d. general aggregate of 1,000,000 - occurrence limit of 500,000

a

if a commercial package policy only has one line of insurance, what is it called?

a. single line

b. mono line

c. unilateral

d. sub line

b

which of the following information is NOT included on the commercial package policy common declarations page

a. policy number

b. description of business

c. coverage territory

d. policy premium

c

under the cpp building and personal property coverage form, which of the following items would not be included in the “building” coverage

a. fire extinguishing equipment

b. machinery used in the insured business operations

c. outdoor furniture permanently attached

d. permanently installed fixtures and equipment

b

in a business auto policy a symbol 1 means:

a. specified auto

b. non-owned auto

c. hired auto

d. any auto

d

other than collision coverage under the business auto policy would EXCLUDE which of the following

a. the keys are left in the insured auto and it is stolen

b. the insured auto is spray painted by juvenile delinquents

c. the insured auto is flooded

d. insured auto is overturned

d

if the insured non-renews a commercial general liability policy, what specified period of advance notice is required to be given to the named insured?

a. 10

b. 30

c. 45

d. 60

c

under the cpp commercial property coverage part business income coverage form, the term “business income” includes all of the following except:

a. profits which would have been earned

b. key person salaries

c. required lease payments on undamaged office equipment

d. profits in the form of cash destroyed by a covered peril

d

in an equipment breakdown policy the term breakdown would include all of the following EXCEPT

a. mechanical failure

b. electrical failure

c. boiler explosion

d. corrosion failure

d

all of the following could be insured on a commercial inland marine policy except

a. front loader

b. backhoe

c. bulldozer

d. cement truck

d

what type of insurance does an attorney need for faulty judgement

a. professional

b. personal injury

c. commercial liability

d. workers compensation

a

under the cpp building and personal property coverage form, the following types of property are not covered except?

a. petty cash in the amount of 125

b. german shepherd watchdog

c. the insured’s pickup truck

d. raw materials stored within 100 feet of the building

d

all of the following are common commercial inland marines policy exclusions, EXCEPT

a. dishonesty of the insured

b. wear and tear

c. vandalism

d. inherent vice

c

the term “time element” coverage in property & casualty insurance is used to describe business income and extra expense coverage because:

a. time element is a casualty term and never used in property insurance

b. the amount of loss depends on the time of day the loss occurs

c. the amount of the loss is determined by the length of time for which the coverage was purchased

d. the amount of loss depends on the time the insured business is not able to operate

d

ed has a business auto policy with policy limits of 250/500/100. what is the maximum amount the policy would pay to a single third party for bodily injury in auto accident?

a. $100,000

b. $150,000

c. $250,000

d. $500,000

c

what is an inherent vice?

a. a bad habit

b. a covered peril under an inland marine policy

c. a defect for property to self-destruct

d. a covered peril on an HO-5 comprehensive form

c

what type of commercial property coverage is written with a single limit of insurance for all unscheduled property coverages applicable at three different locations

a. specific coverage

b. blanket coverage

c. scheduled coverage

d. special coverage

b

under the commercial property business income coverage form, all of the following could be covered, EXCEPT

a. loss of business income

b. non-continuing operating expenses

c. continuing operating expenses

d. extra expenses

b

an excess liability insurance policy that is designed to supplement other insurance coverages is called a:

a. bailee policy

b. umbrella policy

c. all-risk coverage

d. blanket policy

b

all of the following are surety bonds, except

a. performance bond

b. fiduciary bond

c. position schedule bond

d. judicial bond

c

when a carpenter hangs a door at the customer’s house and the door falls off its hinges two weeks later, injuring the homeowner, what type of exposure is this?

a. premises

b. operations

c. products

d. completed operations `

d

which of the following is not true regarding bid bonds?

a. a bid bond guarantees the contractor can provide

b. a bid bond guarantees the contractor will accept the bid

c. a bid bond is a surety bond

d. a bid bond is required by the principal

d

which of the following statements regarding an equipment breakdown policy is FALSE?

a. older equipment will be endorsed from replacement cost to actual cash value

b. expediting expense would pay for extra expenses necessary to make temporary repairs

c. the standard method of valuation on insured property is agreed value

d. obsolete equipment would be excluded

c

all of the following statements regarding loss of business income coverage are true, except

a. loss of business income payments stop when the policy expires

b. loss of business income if often referred to as time element insurance

c. loss of business income pays continuing expenses including key person salaries

d. loss of business income continues to pay through the period of restoration

a

bill owns a plumbing business and has a commercial general liability insurance policy. while installing a customer’s new sink, bill accidentally drops the sink. all of the following damages are covered by the commercial general liability policy, EXCEPT?

a. property damage to the tile floor damaged by the falling sink

b. bodily injury to the customer’s foot hurt by the falling sink

c. property damage to the sink

d. attorney bills to defend the law suit against bill

c

which of the following would trigger coverage for loss of business income coverage?

a. flood loss

b. spinkler leakage

c. united parcel service (UPS) worker strike e

d. speculative risk

b

if the dishwasher repairman is working in a customer’s kitchen and drops his toolbox on the customer’s, what type of exposure is this?

a. premises

b. professional

c. products

d. operations

d

under a business owner policy, all of the following coverage are automatically included, EXCEPT?

a. peak season coverage

b. money and securities

c. loss of business income

d. accounts receivable

b

in crime insurance, which of the following terms is defined as “any act of stealing”

a. embezzlement

b. theft

c. burglary

d. robbery

b

larry smith has employee theft coverage on his business. if an employee unlawfully takes power drills by breaking and entering the premises on a holiday, the policy would:

a. not cover the loss because no visible signs of entry were found

b. not cover the loss because only loss of money and securities is covered

c. cover the loss

d. not cover the loss as acts by employees are excluded

c

merchandise stolen by forced entry through a glass window is a crime known as:

a. embezzlement

b. robbery

c. burglary

d. fraud

c

which of the following is not included in the definition of “burglary”

a. threat of bodily harm

b. unlawful entry

c. unlawful exit

d. property taken from inside the premises

a

which of the following is considered the obilgee on a fidelity bond?

a. employer

b. employee

c. creditor

d. insured

a

under an individual fidelity bond, the person covered for dishonest acts is the:

a. principal

b. guarantor

c. obilgee

d. insured

a

fidelity bonds are typically written to be effective for:

a. a continuous term without an expiration date

b. one year

c. two years

d. three years

a

under a commercial package policy, the insurer may audit the record of the insured for how long?

a. 30 days after the policy expires

b. 90 days after the policy expires

c. 1 year after the policy expires

d. 3 years after the policy expires

d

physical damages coverage on auto insurance is usually paid at:

a. replacement coverage

b. stated value

c. actual cash value

d. like kind and quality

c

in which of the following situation would commercial general liability (cgl) coverage provide “host” liquor liability

a. a trucking company which transports beer to retail stores

b. a textile manufacturer that serves beer at company picnic

c. a bed & breakfast that has wine on the menu

d. a catering business that provides food and liquor at wedding receptions

b

under the crime coverage forms, the definition of a custodian does NOT include?

a. insured

b. partner

c. employee

d. janitor

d