Types Of Casualty Policies, Bonds, And Related Terms

Front 1

professional liability coverage protects against legal liability resulting from

Back 1

errors and omissions

Front 2

Which would NOT be covered by the inside the premises - robbery or safe burglary of other property coverage?

Back 2

an employee is caught stealing cash from the register

Front 3

B&B Market was sued when an employee detained a person he believed to be a shoplifter, but the person turned out to be the meter reader. Which coverage would apply to this suit?

Back 3

personal and advertising injury liability

Front 4

a premium discount is when an insured owes a total standard premium greater than...

Back 4

$5,000

Front 5

When a replacement auto is acquired during the policy period, what coverage will apply to it automatically under a personal auto policy?

Back 5

whatever coverage applied to the vehicle being replaced

Front 6

The party to a surety or fidelity bond who promises to fulfill the obligation is the

Back 6

principal

Front 7

Which of the following statements is true regarding the commercial general liability policy's Coverage C – Medical Payments?

Back 7

the coverage is considered "good will" because payments are made without regard to fault

Front 8

An insurance agency could purchase an errors and omission insurance policy, which would provide protection in the event of any of the following events EXCEPT

Back 8

the agency losses commission income from policies that were not issued by the insurer

Front 9

Which of the following liability exposures is most likely for a small specialty clothing retail boutique?

Back 9

premises liability exposure

Front 10

In which of the following sections of a commercial auto policy will you find specific information about the policy period?

Back 10

conditions

Front 11

The primary purpose of a surety bond is to

Back 11

make sure obligations are fulfilled

Front 12

The designation symbols used in commercial auto policies can be found in which policy section?

Back 12

covered auto

Front 13

A professional who wants coverage for all liability exposures should purchase what form of liability insurance?

Back 13

commercial general and professional

Front 14

when does the uninsured motorists coverage apply

Back 14

when the other party is legally liable but has no insurance

Front 15

The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to

Back 15

90 days

Front 16

The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to

Back 16

deliberate law violation

Front 17

Under a Personal Auto Policy, in which of the following locations would a vehicle primarily garaged in California be covered?

Back 17

any other state

Front 18

Under the coverage of which of the following liability policies may an insured require the insurer to defend a claim?

Back 18

professional liability

Front 19

who are the parties to a bond

Back 19

principal-oblige-surety

Front 20

Rental Reimbursement is only available if the policy includes which coverage?

Back 20

other than collision coverage

Front 21

Which of the following statements would be an example of a product liability claim?

Back 21

faulty packaging of a cereal caused spoilage that resulted in someone getting sick

Front 22

Under the commercial crime coverage inside the premises - robbery or safe burglary of other property, what is the special per occurrence limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records?

Back 22

$5,000

Front 23

To perform work on a customer’s car, a mechanic in an auto shop had to put the vehicle on a service hoist. The hoist collapsed, damaging the vehicle and injuring the mechanic. In regard to the garage coverage form, which of the following statements is true?

Back 23

no coverage is applicable

Front 24

Which professional liability form provides form coverage for liability arising out of malpractice, error, or mistakes made in rendering professional services?

Back 24

physicians, surgeons, and dentists malpractice

Front 25

Which of the following statements is NOT true regarding a personal umbrella liability policy?

Back 25

it provides errors and omissions coverage for an agency

Front 26

Coverage A – Bodily Injury and Property Damage in the commercial general liability policy will cover

Back 26

Losses due to the insured’s negligence

Front 27

Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract?

Back 27

The obligee may engage another contractor and then seek reimbursement from the surety.

Correct!

Front 28

Supplementary payments on a CGL provide all the following EXCEPT

Back 28

Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds

Front 29

Transportation expenses are covered under a Personal Auto Policy for

Back 29

$20 per day, for a maximum of $600.

Front 30

In a personal umbrella, the amount paid by the insured for certain losses not covered under the primary coverage is called

Back 30

Self-insured retention.

Front 31

Most insurance policies exclude losses by

Back 31

mysterious disappearance

Front 32

Workers compensation rating is developed by applying a rating bureau job classification rate to each

Back 32

$100 of payroll

Front 33

In the event of a claim under a commercial general liability policy, the insured has all the following duties to the insurer EXCEPT

Back 33

submitting to a medical exam when requested

Front 34

While an insured's covered auto is in the repair shop following damage caused by a collision, the insured would have coverage for which of the following vehicles under a personal auto policy?

Back 34

Any vehicle not owned by the insured, but furnished for use while the covered auto is out of normal use because of repair

Front 35

In a participation plan, the insured may be eligible for which of the following?

Back 35

a partial premium refund

Front 36

While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured’s auto policy would pay for the damage to the store?

Back 36

Property Damage Liability

Front 37

All of the following situations would be covered under a professional liability policy, EXCEPT

Back 37

The failure of an attorney to properly defend a client due to his personal dislike of the client.

Front 38

When a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy?

Back 38

THEY DO NOT CHANGE

Front 39

A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured’s building, and $30,000 of expediting expenses, how much will the insured collect under the policy?

Back 39

$175,000

Front 40

Richard owns and operates a commercial business. He has included a business income coverage form with his commercial package policy. When Richard's business is severely damaged by fire, the business income coverage will pay for

Back 40

Net income plus continuing expenses of the business.

Front 41

Which of the following property coverages would provide protection to contents damaged by fire?

Back 41

COVERAGE C

Front 42

Which of the following kinds of property would be covered under a dwelling policy?

Back 42

rowboats

Front 43

The Business Pursuits endorsement under Section II of a homeowners policy will cover all of the following EXCEPT

Back 43

Business liability

Front 44

If an insured has an umbrella liability policy in addition to his personal auto policy, which would be considered the underlying policy?

Back 44

auto policy

Front 45

What is the primary objective of workers compensation?

Back 45

The payment of benefits to employees for injuries arising out of their employment

Front 46

Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?

Back 46

directors and officers liability

Front 47

If an insured needs protection on property other than money and securities inside the premises from losses caused by breaking and entering after business hours, which of the following Crime Coverage forms should be purchased?

Back 47

Inside Premises - Robbery or Burglary of Other Property

Front 48

CGL Coverage B (Personal Injury and Advertising Injury) will cover

Back 48

Inadvertent injury to others caused in the course of advertising the insured’s product.

Front 49

Which of the following would be covered under the crime coverage inside the premises - theft of money and securities?

Back 49

Loss or damage to a locked safe, vault, or cash register

Front 50

Which of the following symbols is available to an insured with vehicles subject to no-fault coverage?

Back 50

symbol 5- covers owned autos subject to no-fault coverage

Front 51

If an employer in a state with elective workers compensation laws chooses not be to subject to the state's workers compensation laws, what does the employer lose?

Back 51

Its common law defenses against liability suits

Front 52

In liability insurance policies, supplementary payments are made

Back 52

In addition to the limit of liability.

Front 53

A plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and hurts someone because he did not do the job correctly?

Back 53

Completed operations

Front 54

Which of the following losses would be covered under the property damage liability coverage of a Personal Auto Policy

Back 54

The insured damages a rented garage when he failed to stop in time.

Front 55

Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own. Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general liability policy cover the claim?

Back 55

No, because the claim results from copyright infringement and is not in an advertisement

Front 56

An insured owns and operates a ranch. The insured has several vehicles that are used in the ranching operation and for personal use. Which of the following could NOT be insured under a personal auto policy?

Back 56

A two-ton grain truck with a 6,500-pound capacity

Front 57

An insured was involved in an automobile accident for which the insured was at fault. Which of the following coverages would pay for damage to the insured's automobile

Back 57

Collision

Front 58

The Occurrence form trigger is based on which of the following?

Back 58

The Occurrence form trigger is based on which of the following?

Front 59

What method of premium computation relates an employer’s losses, payroll, and premiums to the rating bureau’s classifications of operations?

Back 59

Experience modification factor

Front 60

Under the coverage of which of the following liability policies may an insured require the insurer to defend a claim?

Back 60

Professional liability

Front 61

In a personal auto policy, the medical payments coverage is similar to

Back 61

Accident insurance, because it pays medical expenses regardless of fault.

Front 62

Surety bonds are written for a definite limit called

Back 62

The bond penalty.

Front 63

The insured with a claims-made CGL may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the information

Back 63

Within 45 days.

Front 64

A liability policy that provides coverage for a claim for injury or damage if the claim is first reported or filed against the insured during the policy period is called

Back 64

Claims-made form.

Front 65

What is the deductible of a personal liability umbrella policy called?

Back 65

SIR

Front 66

The at-fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all the damage done to the insured. This driver is

Back 66

Considered underinsured.

Front 67

All of the following are true statements regarding the supplementary payments of a Commercial General Liability policy EXCEPT

Back 67

They pay defense costs even after the aggregate limit has been reached.

Front 68

When ABC Appliance's marketing stated that its mowing machine was the only safe mower available for purchase in town, ABC was sued by XYZ Lawn and Garden. ABC's coverage would come from which part of its general liability coverage

Back 68

Personal and advertising injury liability

Front 69

With respect to auto insurance, the term owned autos includes all of the following EXCEPT

Back 69

A pickup or van titled to and used in the named insured's business.

Front 70

According to the standard workers compensation and employer liability policy form, a state should be listed in Part Three – other states’ insurance of the workers compensation and employers liability policy when

Back 70

The insured expects to extend operations to that state