AINS 23 Specialty Insurance
Which one of the following elements would you find in the Conditions of an umbrella liability insurance
policy?
Select one:
A. Restrictions on coverages beyond what may appear on underlying policies condition
B. Self-insured retention condition
C. Maintenance of underlying insurance condition
D. Coverage triggers condition - Answer-Maintenance of underlying insurance condition
An excess policy that applies to a loss that exceeds the underlying policy limits only if the loss is
specifically covered under the terms of the excess policy is known as a
Select one:
A. Combination policy.
B. Following-form policy.
C. Drop-down policy.
D. Self-contained policy. - Answer-Self-contained policy.
The coverage that an umbrella liability policy provides for claims not covered at all by the underlying
policies is called
,Select one:
A. Restrictive coverage.
B. Retained coverage.
C. Drop-down coverage.
D. Aggregate coverage. - Answer-Drop-down coverage.
Fiduciary liability insurance provides coverage for negligence involved in which one of the following?
Select one:
A. Management of the corporation.
B. Investment decisions in retirement plans.
C. Termination of employees.
D. Violations of licensee duties. - Answer-Investment decisions in retirement plans.
Insurers that offer professional liability and management liability policies usually have a claims-made
trigger. The reason for this is which one of the following?
Select one:
A. Claims are not settled until after the statute of limitations date has been reached.
B. Claims are sometimes not settled under arbitration but require long term litigation.
C. Claims are settled on an extended coverage basis.
D. Claims are sometimes not settled until long after the policy has expired. - Answer-Claims are
sometimes not settled until long after the policy has expired.
CGL policies differ from professional liability and management liability policies in how deductibles are
applied. Most professional liability and management liability policies have which one of the following?
Select one:
A. No deductibles.
B. Mandatory minimum deductibles.
, C. State mandated deductibles based on policy premium.
D. Disappearing deductibles. - Answer-Mandatory minimum deductibles.
Which one of the following statements is true of a contractors pollution liability (CPL) policy?
Select one:
A. It provides coverage for radioactive matter, claims arising out of the insured's products, and damage
to sites owned by the insured.
B. It covers property damage, cleanup costs and defense costs, but does not cover bodily injury.
C. It is available with a claims-made coverage trigger only, and not an occurrence trigger.
D. It addresses the environmental insurance needs of contractors performing environmental
remediation services on contaminated sites. - Answer-It addresses the environmental insurance needs
of contractors performing environmental remediation services on contaminated sites.
Which one of the following statements best describes the purpose of a remediation stop-loss policy?
Select one:
A. The purpose of remediation stop-loss insurance is to provide limited pollution coverage in connection
with products liability policies for hazardous products.
B. The purpose of remediation stop-loss insurance is to facilitate real estate sales where there is known
pollution contamination on the property, but the total cleanup costs are unknown.
C. The purpose of remediation stop-loss insurance is to protect motor carriers involved in interstate
transportation from claims resulting from spills of hazardous cargoes.
D. The purpose of remediation stop-loss insurance is to protect third party sites located near the insured
property from the consequences of an accidental release of chemicals. - Answer-The purpose of
remediation stop-loss insurance is to facilitate real estate sales where there is known pollution
contamination on the property, but the total cleanup costs are unknown.
Which one of the following statements concerning site-specific environmental impairment liability
insurance policies is most accurate?
Select one:
Which one of the following elements would you find in the Conditions of an umbrella liability insurance
policy?
Select one:
A. Restrictions on coverages beyond what may appear on underlying policies condition
B. Self-insured retention condition
C. Maintenance of underlying insurance condition
D. Coverage triggers condition - Answer-Maintenance of underlying insurance condition
An excess policy that applies to a loss that exceeds the underlying policy limits only if the loss is
specifically covered under the terms of the excess policy is known as a
Select one:
A. Combination policy.
B. Following-form policy.
C. Drop-down policy.
D. Self-contained policy. - Answer-Self-contained policy.
The coverage that an umbrella liability policy provides for claims not covered at all by the underlying
policies is called
,Select one:
A. Restrictive coverage.
B. Retained coverage.
C. Drop-down coverage.
D. Aggregate coverage. - Answer-Drop-down coverage.
Fiduciary liability insurance provides coverage for negligence involved in which one of the following?
Select one:
A. Management of the corporation.
B. Investment decisions in retirement plans.
C. Termination of employees.
D. Violations of licensee duties. - Answer-Investment decisions in retirement plans.
Insurers that offer professional liability and management liability policies usually have a claims-made
trigger. The reason for this is which one of the following?
Select one:
A. Claims are not settled until after the statute of limitations date has been reached.
B. Claims are sometimes not settled under arbitration but require long term litigation.
C. Claims are settled on an extended coverage basis.
D. Claims are sometimes not settled until long after the policy has expired. - Answer-Claims are
sometimes not settled until long after the policy has expired.
CGL policies differ from professional liability and management liability policies in how deductibles are
applied. Most professional liability and management liability policies have which one of the following?
Select one:
A. No deductibles.
B. Mandatory minimum deductibles.
, C. State mandated deductibles based on policy premium.
D. Disappearing deductibles. - Answer-Mandatory minimum deductibles.
Which one of the following statements is true of a contractors pollution liability (CPL) policy?
Select one:
A. It provides coverage for radioactive matter, claims arising out of the insured's products, and damage
to sites owned by the insured.
B. It covers property damage, cleanup costs and defense costs, but does not cover bodily injury.
C. It is available with a claims-made coverage trigger only, and not an occurrence trigger.
D. It addresses the environmental insurance needs of contractors performing environmental
remediation services on contaminated sites. - Answer-It addresses the environmental insurance needs
of contractors performing environmental remediation services on contaminated sites.
Which one of the following statements best describes the purpose of a remediation stop-loss policy?
Select one:
A. The purpose of remediation stop-loss insurance is to provide limited pollution coverage in connection
with products liability policies for hazardous products.
B. The purpose of remediation stop-loss insurance is to facilitate real estate sales where there is known
pollution contamination on the property, but the total cleanup costs are unknown.
C. The purpose of remediation stop-loss insurance is to protect motor carriers involved in interstate
transportation from claims resulting from spills of hazardous cargoes.
D. The purpose of remediation stop-loss insurance is to protect third party sites located near the insured
property from the consequences of an accidental release of chemicals. - Answer-The purpose of
remediation stop-loss insurance is to facilitate real estate sales where there is known pollution
contamination on the property, but the total cleanup costs are unknown.
Which one of the following statements concerning site-specific environmental impairment liability
insurance policies is most accurate?
Select one:
