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CPCU 552, CP&L FINAL EXAM ACTUAL EXAM QUESTIONS WITH
COMPLETE SOLUTION GUIDE (A+ GRADED 100% VERIFIED)
LATEST VERSION 2026!!
Railroad owners commonly require contractors to purchase a Railroad
Protective Liability Coverage Form. Which one of the following
statements about this form is true? ......ANSWER......One of the
coverage limits applies to physical damage to property owned by or
leased or entrusted to the railroad
Which one of the following statements about the general aggregate
limit under a Commercial General Liability (CGL) Coverage Form is true?
......ANSWER......It is reduced by an claims paid for medical payments
under Coverage C.
Tom often runs errands for his boss at XYZ Company, using the boss' car.
On one of these errands, Tom is involved in a serious auto accident. He
spends a couple of weeks in the hospital; misses four weeks of work;
and must undergo physical therapy. Does XYZ's Workers Compensation
and Employers Liability Insurance (WC&EL) Policy cover Tom's injuries,
lost income, and rehabilitation expenses? ......ANSWER......Yes, the
workers compensation policy would pay all of Tom's expenses, because
his injuries arose out of his employment at XYZ Company.
Aircraft have a significant exposure to catastrophe losses. Of the many
reasons for the catastrophic loss potential of aircraft, the most
significant is ......ANSWER......The physical properties of aircraft.
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A security guard is employed at a pier where shipping containers are
loaded and unloaded from barges. There is also a small marina for
pleasure craft at the pier. The security guard trips over equipment left
on a dock alongside a pleasure craft and is injured. The pier only has
insurance coverage that provides benefits under the Longshore and
Harbor Workers Compensation Act (LHWCA). Is the guard's injury
covered under LHWCA? ......ANSWER......The injury is covered by LHWCA
because the guard is not covered under a state's workers compensation
law.
ABC Plumbing entered into a contract with Bill to install a commercial
grade septic system on his property. The installation of the septic septic
was time sensitive because the rest of Bill's construction project could
not go forward until the septic system was in place. The contract
required that the work be done within 30 days of contract signing, or
ABC would have to pay a penalty of $1,000 per day. Which one of the
following categories of damages does the $1,000 per day penalty
specified in the contract fall into? ......ANSWER......Liquidated damages
Many states have funds from which employers may purchase workers
compensation insurance. Such funds may be either
......ANSWER......Competitive or monopolistic
Section II—Who Is an Insured identifies the persons and organizations
that qualify as insureds under the Commercial General Liability (CGL)
Coverage Form. Which one of the following statements regarding who is
considered an insured is most accurate? ......ANSWER......When a CGL
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policy covers one or more individuals as named insureds, any person or
organization having proper temporary custody of the named insured's
property following the named insured's death is an insured.
What is the name given to a claim by an employee who says that he or
she was fired because of the filing of a workers compensation claim?
......ANSWER......Retaliation claim
Javier's business auto policy contains a personal injury protection (PIP)
endorsement. He is involved in an auto accident in the covered auto,
resulting in $30,000 in property damage, $5,000 in third-party bodily
injury, and $10,000 in personal medical expenses. If Javier's business
auto policy has a general aggregate limit of $100,000 and a PIP limit of
$15,000 and he is at fault for the accident, how much will his insurer
pay under the PIP coverage ......ANSWER......PIP provides first-party
benefits for medical expenses, loss of income, loss of services, and
funeral expenses resulting from bodily injury to occupants of a covered
auto because of an auto accident. It pays regardless of which party was
at fault in the accident. Therefore, Javier's insurer will pay him $10,000
in medical expenses from the PIP coverage. The other damages will be
payable under different coverages available on his policy.
Which one of the following statements about coverage triggers in cyber
risk insurance policies is most accurate? ......ANSWER......Both claims-
made coverage triggers and occurrence coverage triggers are available,
but occurrence coverage triggers are more appropriate for some
insuring agreements than for others
, 4|Page
According to the Terrorism Risk Insurance Act (TRIA), one of the two
required conditions that an insurer must meet at the time of an initial
offer, purchase, and renewal of insurance is the disclosure of the
premium for terrorism coverage. What is the other condition
......ANSWER......A make-available provision
Acme Insurance cannot agree with insured Jill Jenkins on the amount of
a covered physical damage loss under Jill's Business Auto Coverage
Form. Jill requested an appraisal. Acme and Jill each appoint an
appraiser, and the appraisers appoint an umpire. An award in writing
signed by any two of the three binds both Acme and Jill. One appraiser
and the umpire ruled for Jill and against Acme. Which one of the
following statements is true regarding this scenario? ......ANSWER......Jill
and Acme will share the cost of the umpire.
Matthew Jones, the named insured under an unendorsed Business Auto
Coverage Form (BACF), requires his employees to use their own cars for
business purposes. One of Matthew's employees, Paul, causes an
accident while driving his own truck for the business. Matthew's BACF
shows symbol 1 for liability coverage. Which one of the following
correctly indicates whether Paul is an insured under the policy for the
accident? ......ANSWER......Paul is not covered because employees are
not insured while using their own autos in the named insured's
business.
ABC Corporation is insured under a standard unendorsed workers
compensation policy for only the state of Florida. Three months before
the present policy began, ABC opened a sales office in Georgia due to
CPCU 552, CP&L FINAL EXAM ACTUAL EXAM QUESTIONS WITH
COMPLETE SOLUTION GUIDE (A+ GRADED 100% VERIFIED)
LATEST VERSION 2026!!
Railroad owners commonly require contractors to purchase a Railroad
Protective Liability Coverage Form. Which one of the following
statements about this form is true? ......ANSWER......One of the
coverage limits applies to physical damage to property owned by or
leased or entrusted to the railroad
Which one of the following statements about the general aggregate
limit under a Commercial General Liability (CGL) Coverage Form is true?
......ANSWER......It is reduced by an claims paid for medical payments
under Coverage C.
Tom often runs errands for his boss at XYZ Company, using the boss' car.
On one of these errands, Tom is involved in a serious auto accident. He
spends a couple of weeks in the hospital; misses four weeks of work;
and must undergo physical therapy. Does XYZ's Workers Compensation
and Employers Liability Insurance (WC&EL) Policy cover Tom's injuries,
lost income, and rehabilitation expenses? ......ANSWER......Yes, the
workers compensation policy would pay all of Tom's expenses, because
his injuries arose out of his employment at XYZ Company.
Aircraft have a significant exposure to catastrophe losses. Of the many
reasons for the catastrophic loss potential of aircraft, the most
significant is ......ANSWER......The physical properties of aircraft.
,2|Page
A security guard is employed at a pier where shipping containers are
loaded and unloaded from barges. There is also a small marina for
pleasure craft at the pier. The security guard trips over equipment left
on a dock alongside a pleasure craft and is injured. The pier only has
insurance coverage that provides benefits under the Longshore and
Harbor Workers Compensation Act (LHWCA). Is the guard's injury
covered under LHWCA? ......ANSWER......The injury is covered by LHWCA
because the guard is not covered under a state's workers compensation
law.
ABC Plumbing entered into a contract with Bill to install a commercial
grade septic system on his property. The installation of the septic septic
was time sensitive because the rest of Bill's construction project could
not go forward until the septic system was in place. The contract
required that the work be done within 30 days of contract signing, or
ABC would have to pay a penalty of $1,000 per day. Which one of the
following categories of damages does the $1,000 per day penalty
specified in the contract fall into? ......ANSWER......Liquidated damages
Many states have funds from which employers may purchase workers
compensation insurance. Such funds may be either
......ANSWER......Competitive or monopolistic
Section II—Who Is an Insured identifies the persons and organizations
that qualify as insureds under the Commercial General Liability (CGL)
Coverage Form. Which one of the following statements regarding who is
considered an insured is most accurate? ......ANSWER......When a CGL
,3|Page
policy covers one or more individuals as named insureds, any person or
organization having proper temporary custody of the named insured's
property following the named insured's death is an insured.
What is the name given to a claim by an employee who says that he or
she was fired because of the filing of a workers compensation claim?
......ANSWER......Retaliation claim
Javier's business auto policy contains a personal injury protection (PIP)
endorsement. He is involved in an auto accident in the covered auto,
resulting in $30,000 in property damage, $5,000 in third-party bodily
injury, and $10,000 in personal medical expenses. If Javier's business
auto policy has a general aggregate limit of $100,000 and a PIP limit of
$15,000 and he is at fault for the accident, how much will his insurer
pay under the PIP coverage ......ANSWER......PIP provides first-party
benefits for medical expenses, loss of income, loss of services, and
funeral expenses resulting from bodily injury to occupants of a covered
auto because of an auto accident. It pays regardless of which party was
at fault in the accident. Therefore, Javier's insurer will pay him $10,000
in medical expenses from the PIP coverage. The other damages will be
payable under different coverages available on his policy.
Which one of the following statements about coverage triggers in cyber
risk insurance policies is most accurate? ......ANSWER......Both claims-
made coverage triggers and occurrence coverage triggers are available,
but occurrence coverage triggers are more appropriate for some
insuring agreements than for others
, 4|Page
According to the Terrorism Risk Insurance Act (TRIA), one of the two
required conditions that an insurer must meet at the time of an initial
offer, purchase, and renewal of insurance is the disclosure of the
premium for terrorism coverage. What is the other condition
......ANSWER......A make-available provision
Acme Insurance cannot agree with insured Jill Jenkins on the amount of
a covered physical damage loss under Jill's Business Auto Coverage
Form. Jill requested an appraisal. Acme and Jill each appoint an
appraiser, and the appraisers appoint an umpire. An award in writing
signed by any two of the three binds both Acme and Jill. One appraiser
and the umpire ruled for Jill and against Acme. Which one of the
following statements is true regarding this scenario? ......ANSWER......Jill
and Acme will share the cost of the umpire.
Matthew Jones, the named insured under an unendorsed Business Auto
Coverage Form (BACF), requires his employees to use their own cars for
business purposes. One of Matthew's employees, Paul, causes an
accident while driving his own truck for the business. Matthew's BACF
shows symbol 1 for liability coverage. Which one of the following
correctly indicates whether Paul is an insured under the policy for the
accident? ......ANSWER......Paul is not covered because employees are
not insured while using their own autos in the named insured's
business.
ABC Corporation is insured under a standard unendorsed workers
compensation policy for only the state of Florida. Three months before
the present policy began, ABC opened a sales office in Georgia due to
