Property & Casualty Exam: Commercial Lines with all
Correct & 100% Verified Answers |Actual Complete
Update |Already Graded A+
Who is responsible for damage to improvements in a leased building?
A) Tenant
B) Building owner
C) Improvements to a leased building are not covered
D) Both the tenant and the building owner ✔Correct Answer-B
Equipment Breakdown insurance covers all of the following, EXCEPT:
A) Equipment powered by internal pressure
B) Mechanical equipment used to produce energy
C) Tools subject to regular replacement
D) Communications equipment ✔Correct Answer-C
Hull coverage in an ocean marine policy covers which of the following?
A) the freight charged for the transportation of the cargo
B) the ship owners liability
c) cargo being transported on the ship
d) the vessel itself, including engines and fuel ✔Correct Answer-D
all of the following are differences between surety bonds and insurance EXCEPT
a) reserves are not established
b) the principle is responsible to the guarantor in the case of loss
c) 3 party contract
d) the surety should not suffer a loss ✔Correct Answer-A
if a bartender allows a patron to leave the bar, and the patron is involved in a drunk driving
accident, what would the bar owner need to cover their liability?
A) professional liability
B) Host
C) commercial general liability
D) liquor liability ✔Correct Answer-D
A commercial general liability (CGL) policy is quite broad in scope. However, there are
substantial number of exclusions. Three of the four following loss exposures are excluded.
Identify the loss exposure that is covered an unendorsed CGL- property damage of liability
arising out of:
A) The ownership of an airplane
B) An employee being insured while working on the insured's premises
,C) An employee accidentally injures a customer while working at the customers home
D) An accident while driving an owned automobile on a public highway ✔Correct Answer-C
What causes of loss are covered under the business income coverage form?
A) Broad from perils only
B) Those included in business income form
C) All Perils
D) Those shown on the declarations ✔Correct Answer-D
When an employer has a choice to purchase Workers compensation insurance from a state fund
or private carrier, the state fund would be called:
A) A competitive state fund
B) A residual fund
C) A private fund
D) A Monopolistic fund ✔Correct Answer-A
If an insured discovers an occurrence 75 days after the expiration of a claims-made commercial
general liability policy, what must the insured have in order for the loss to be covered?
A) Nothing; as long as the loss occurred during the policy period
B) The loss will not be covered because it was not reported during the policy period
C) Umbrella Policy
D) Basic extended reporting period endorsement ✔Correct Answer-D
What is the purpose of the inspections and surveys condition of the commercial package policy?
A) To determine the rate to be charged
B) To determine if the premises comply with ADA requirements
C) To ascertain if the premises has maintained the required building codes
D) To specify if the premises comply with OSHA requirements ✔Correct Answer-A
Why is the examination of books and records condition important in a commercial policy?
A) To ensure that the insurance business is profitable
B) To ensure that the proper amount of premium is charged
C) To ensure that the insured is using generally accepted accounting principles
D) To ensure that the insurance business is solvent ✔Correct Answer-B
Under the commercial building and personal property coverage extensions, property off-
premises is covered while the property is located:
A) At the trade show or a fair
B) In a building the named insured has leased for five years
C) In a delivery truck
D) At a salespersons home ✔Correct Answer-A
All of the following are covered by protection and indemnity insurance, EXCEPT:
A) Injury to persons on other ships
,B) Damages to piers
C) Injured passengers on the ship
D) The cost of reasonable measures that insured must take to prevent damage at the time of
loss ✔Correct Answer-D
The inspections and surveys condition of a Commercial Package Policy is important to the
insurer for all of the following reasons, EXCEPT:
A) To determine the insurability of the insureds operations
B) To set proper insurance rates
C) Guarantee that the insured is in compliance with safety regulations
D) Make loss control recommendations ✔Correct Answer-C
All of the following are typical exclusions in an Inland Marine Policy, EXCEPT:
A) Wear and tear
B) Electrical breakdown
C) Earth movement
D) Insects or vermin ✔Correct Answer-C
If the vacancy permit endorsement is added to a building and personal property coverage form,
the vacancy conditions under the basic policy is:
A) Waived after the policy period
B) Waived only for designated perils during the policy period
C) Waived only for the designated perils during the permit period
D) Waived during the permit period ✔Correct Answer-C
Under the business Income coverage form, extra expenses are:
A) Covered without limit during the period of restoration
B) Covered up to the amount they reduce the business income loss
c) Covered up to the monthly limit specific in the declarations
D) Excluded ✔Correct Answer-D
All of the following statements concerning business owners policies are true, EXCEPT:
A) Insureds have the convenience of one policy that meets most of their needs at a reduced
premium
B) Insureds have the benefit of additional coverages that might otherwise be overlooked
C) It contains simpler reading which lower handling costs for insurers
D) It allows insurers to individually underwrite the smaller, low-premium policies ✔Correct
Answer-C
If a named insured is not the owner of the building, improvements and betterments are covered
under the:
A) Newly constructed property
B) Agreed value
C) Building
, D) Business personal property ✔Correct Answer-D
Which of the following is eligible for business owners policy?
A) A sports bar
B) a Credit union
C) a furniture store
D) An auto repair shop ✔Correct Answer-C
All of the following are mandatory coverages of a business owners policy, EXCEPT:
A) Business income coverage
B) Professional liability coverage
C) Building coverage
D) Extra expense coverage ✔Correct Answer-B
All of the following are listed on Commercial General Liability declarations page, EXCEPT:
A) Pollution liability limit
B) Products & completed operations limit
C) Medical expense limit
D) Personal advertising injury limit ✔Correct Answer-A
Insurance which covers ship owners against vicarious liability claims, due to operations of the
insured vessel, is:
A) A voyage policy
B) The sue and labor laws
C) Protection and Indemnity insurance
D) Hull insurance ✔Correct Answer-C
The commercial property policy part "Causes of loss-broad form", includes an exclusion for
"Concurrent causation." The effect of this exclusion is:
A) If two or more perils happen at the same time to cause a loss, then only the damage caused
by one of the perils is covered,
B) If a loss occurs concurrently with the expiration date of the policy, it is not covered.
C) If two or more perils happen at the same time to cause a loss, there is coverage for all of the
damage if any of the perils are not excluded
D) If two or more perils happen at the same time to cause a loss, there is no coverage if any of
the perils are excluded ✔Correct Answer-D
Which of the following is a common policy condition for a commercial package policy?
A) Pro-rata clause
B) Inspections and surveys
C) Duty to defend
D) Causes of loss ✔Correct Answer-B
Correct & 100% Verified Answers |Actual Complete
Update |Already Graded A+
Who is responsible for damage to improvements in a leased building?
A) Tenant
B) Building owner
C) Improvements to a leased building are not covered
D) Both the tenant and the building owner ✔Correct Answer-B
Equipment Breakdown insurance covers all of the following, EXCEPT:
A) Equipment powered by internal pressure
B) Mechanical equipment used to produce energy
C) Tools subject to regular replacement
D) Communications equipment ✔Correct Answer-C
Hull coverage in an ocean marine policy covers which of the following?
A) the freight charged for the transportation of the cargo
B) the ship owners liability
c) cargo being transported on the ship
d) the vessel itself, including engines and fuel ✔Correct Answer-D
all of the following are differences between surety bonds and insurance EXCEPT
a) reserves are not established
b) the principle is responsible to the guarantor in the case of loss
c) 3 party contract
d) the surety should not suffer a loss ✔Correct Answer-A
if a bartender allows a patron to leave the bar, and the patron is involved in a drunk driving
accident, what would the bar owner need to cover their liability?
A) professional liability
B) Host
C) commercial general liability
D) liquor liability ✔Correct Answer-D
A commercial general liability (CGL) policy is quite broad in scope. However, there are
substantial number of exclusions. Three of the four following loss exposures are excluded.
Identify the loss exposure that is covered an unendorsed CGL- property damage of liability
arising out of:
A) The ownership of an airplane
B) An employee being insured while working on the insured's premises
,C) An employee accidentally injures a customer while working at the customers home
D) An accident while driving an owned automobile on a public highway ✔Correct Answer-C
What causes of loss are covered under the business income coverage form?
A) Broad from perils only
B) Those included in business income form
C) All Perils
D) Those shown on the declarations ✔Correct Answer-D
When an employer has a choice to purchase Workers compensation insurance from a state fund
or private carrier, the state fund would be called:
A) A competitive state fund
B) A residual fund
C) A private fund
D) A Monopolistic fund ✔Correct Answer-A
If an insured discovers an occurrence 75 days after the expiration of a claims-made commercial
general liability policy, what must the insured have in order for the loss to be covered?
A) Nothing; as long as the loss occurred during the policy period
B) The loss will not be covered because it was not reported during the policy period
C) Umbrella Policy
D) Basic extended reporting period endorsement ✔Correct Answer-D
What is the purpose of the inspections and surveys condition of the commercial package policy?
A) To determine the rate to be charged
B) To determine if the premises comply with ADA requirements
C) To ascertain if the premises has maintained the required building codes
D) To specify if the premises comply with OSHA requirements ✔Correct Answer-A
Why is the examination of books and records condition important in a commercial policy?
A) To ensure that the insurance business is profitable
B) To ensure that the proper amount of premium is charged
C) To ensure that the insured is using generally accepted accounting principles
D) To ensure that the insurance business is solvent ✔Correct Answer-B
Under the commercial building and personal property coverage extensions, property off-
premises is covered while the property is located:
A) At the trade show or a fair
B) In a building the named insured has leased for five years
C) In a delivery truck
D) At a salespersons home ✔Correct Answer-A
All of the following are covered by protection and indemnity insurance, EXCEPT:
A) Injury to persons on other ships
,B) Damages to piers
C) Injured passengers on the ship
D) The cost of reasonable measures that insured must take to prevent damage at the time of
loss ✔Correct Answer-D
The inspections and surveys condition of a Commercial Package Policy is important to the
insurer for all of the following reasons, EXCEPT:
A) To determine the insurability of the insureds operations
B) To set proper insurance rates
C) Guarantee that the insured is in compliance with safety regulations
D) Make loss control recommendations ✔Correct Answer-C
All of the following are typical exclusions in an Inland Marine Policy, EXCEPT:
A) Wear and tear
B) Electrical breakdown
C) Earth movement
D) Insects or vermin ✔Correct Answer-C
If the vacancy permit endorsement is added to a building and personal property coverage form,
the vacancy conditions under the basic policy is:
A) Waived after the policy period
B) Waived only for designated perils during the policy period
C) Waived only for the designated perils during the permit period
D) Waived during the permit period ✔Correct Answer-C
Under the business Income coverage form, extra expenses are:
A) Covered without limit during the period of restoration
B) Covered up to the amount they reduce the business income loss
c) Covered up to the monthly limit specific in the declarations
D) Excluded ✔Correct Answer-D
All of the following statements concerning business owners policies are true, EXCEPT:
A) Insureds have the convenience of one policy that meets most of their needs at a reduced
premium
B) Insureds have the benefit of additional coverages that might otherwise be overlooked
C) It contains simpler reading which lower handling costs for insurers
D) It allows insurers to individually underwrite the smaller, low-premium policies ✔Correct
Answer-C
If a named insured is not the owner of the building, improvements and betterments are covered
under the:
A) Newly constructed property
B) Agreed value
C) Building
, D) Business personal property ✔Correct Answer-D
Which of the following is eligible for business owners policy?
A) A sports bar
B) a Credit union
C) a furniture store
D) An auto repair shop ✔Correct Answer-C
All of the following are mandatory coverages of a business owners policy, EXCEPT:
A) Business income coverage
B) Professional liability coverage
C) Building coverage
D) Extra expense coverage ✔Correct Answer-B
All of the following are listed on Commercial General Liability declarations page, EXCEPT:
A) Pollution liability limit
B) Products & completed operations limit
C) Medical expense limit
D) Personal advertising injury limit ✔Correct Answer-A
Insurance which covers ship owners against vicarious liability claims, due to operations of the
insured vessel, is:
A) A voyage policy
B) The sue and labor laws
C) Protection and Indemnity insurance
D) Hull insurance ✔Correct Answer-C
The commercial property policy part "Causes of loss-broad form", includes an exclusion for
"Concurrent causation." The effect of this exclusion is:
A) If two or more perils happen at the same time to cause a loss, then only the damage caused
by one of the perils is covered,
B) If a loss occurs concurrently with the expiration date of the policy, it is not covered.
C) If two or more perils happen at the same time to cause a loss, there is coverage for all of the
damage if any of the perils are not excluded
D) If two or more perils happen at the same time to cause a loss, there is no coverage if any of
the perils are excluded ✔Correct Answer-D
Which of the following is a common policy condition for a commercial package policy?
A) Pro-rata clause
B) Inspections and surveys
C) Duty to defend
D) Causes of loss ✔Correct Answer-B
