AINS 23 Chapter 11 Specialty Coverages Questions with Correct Answers
Question 1:
What is a specific policy that Ace should consider purchasing to address clean-up costs in excess
of what it might estimate?
Answer:
A remediation stop-loss policy
Question 2:
Which one of the following statements concerning site-specific environmental impairment
liability insurance policies is most accurate?
Answer:
Site-specific environmental liability policies typically cover only losses that arise from pollution
conditions beyond the policy site listed in the declarations, but may be endorsed to cover
on-site cleanup.
Question 3:
Drop-down coverage in an umbrella liability policy is provided for claims that are which one of
the following?
Answer:
Not covered by an underlying policy, including claims not covered due to the depletion of the
underlying policy's aggregate limits.
Question 4:
Insurance agreements that are commonly found in cyber risk insurance policies include many
categories, one of which is coverage for electreonic data protection. Which one of the following
losses would be covered by an electronic data protection insuring agreement?
Answer:
A computer virus attack that damages an insured's software and corrupt its associated data
requiring the insured to purchase and install replacement software and restore corrupted data.
Question 5:
To meet the needs of firms with foreign loss exposures, some insurers offer a variety of
specialized coverages, including all of the following, EXCEPT:
Answer:
Foreigh pollution liability
, Question 6:
Although sometimes included in the definition of professional liability insurance, coverages
such as directors and officers liability, employment practices liability, employee benefits
liability, and fiduciary liability are now commonly referred to as
Answer:
Management liability insurance.
Question 7:
The two most common aircraft hull coverages are all risks-ground and flight and
Answer:
All risks-not in motion.
Question 8:
Insurers in a particular nation selling insurance in that same nation are known as admitted
insurers. These admitted insurers provide which one of the following
Answer:
Admitted coverage
Question 9:
A multinational enterprise may purchase coverages and combine them with a difference in
conditions (DIC) policy written to wrap around the admitted coverages, thereby accomplishing
which one of the following?
Answer:
Maintaining uniform coverage for all the insured's locations.
Question 10:
ISO has developed standard endorsements to help insurers comply with the provisions of the
Terrorism Risk Insurance Act (TRIA). When a policyholder accepts certified acts of terrorism
coverage, the ISOCommercial Lines Manual requires the insurer to attach a cap endorsement
for the applicable coverages. The purpose of the cap endorsement is to
Answer:
Identify the $100 billion cap on annual aggregate insured losses that can be paid by the federal
government and to outline the limitations of the insurer's obligations under the law.
Question 1:
What is a specific policy that Ace should consider purchasing to address clean-up costs in excess
of what it might estimate?
Answer:
A remediation stop-loss policy
Question 2:
Which one of the following statements concerning site-specific environmental impairment
liability insurance policies is most accurate?
Answer:
Site-specific environmental liability policies typically cover only losses that arise from pollution
conditions beyond the policy site listed in the declarations, but may be endorsed to cover
on-site cleanup.
Question 3:
Drop-down coverage in an umbrella liability policy is provided for claims that are which one of
the following?
Answer:
Not covered by an underlying policy, including claims not covered due to the depletion of the
underlying policy's aggregate limits.
Question 4:
Insurance agreements that are commonly found in cyber risk insurance policies include many
categories, one of which is coverage for electreonic data protection. Which one of the following
losses would be covered by an electronic data protection insuring agreement?
Answer:
A computer virus attack that damages an insured's software and corrupt its associated data
requiring the insured to purchase and install replacement software and restore corrupted data.
Question 5:
To meet the needs of firms with foreign loss exposures, some insurers offer a variety of
specialized coverages, including all of the following, EXCEPT:
Answer:
Foreigh pollution liability
, Question 6:
Although sometimes included in the definition of professional liability insurance, coverages
such as directors and officers liability, employment practices liability, employee benefits
liability, and fiduciary liability are now commonly referred to as
Answer:
Management liability insurance.
Question 7:
The two most common aircraft hull coverages are all risks-ground and flight and
Answer:
All risks-not in motion.
Question 8:
Insurers in a particular nation selling insurance in that same nation are known as admitted
insurers. These admitted insurers provide which one of the following
Answer:
Admitted coverage
Question 9:
A multinational enterprise may purchase coverages and combine them with a difference in
conditions (DIC) policy written to wrap around the admitted coverages, thereby accomplishing
which one of the following?
Answer:
Maintaining uniform coverage for all the insured's locations.
Question 10:
ISO has developed standard endorsements to help insurers comply with the provisions of the
Terrorism Risk Insurance Act (TRIA). When a policyholder accepts certified acts of terrorism
coverage, the ISOCommercial Lines Manual requires the insurer to attach a cap endorsement
for the applicable coverages. The purpose of the cap endorsement is to
Answer:
Identify the $100 billion cap on annual aggregate insured losses that can be paid by the federal
government and to outline the limitations of the insurer's obligations under the law.
