CISR Commercial Casualty 2 Exam
100% Solved.
Which of the following states is not a workers' compensation monopolistic state?
a. Wyoming
b. Texas
c. North Dakota
d. Ohio - ANSWERb. Texas
The Business Auto Coverage Form defines "auto" and "mobile equipment." All of the
following are considered autos rather than mobile equipment as defined in the
Business Auto Coverage Form except:
a. road scraping equipment built on crawler treads
b. a self-propelled vehicle equipped with well servicing equipment
c. a cherry picker mounted on a truck chassis
d. a self-propelled vehicle designed primarily for snow removal - ANSWERa. road
scraping equipment built on crawler treads
Which of the following is not a reason liability coverage will automatically be
extended for a non-owned auto being used as a temporary substitute for a covered
"auto" the named insured owns but cannot be used?
a. "Loss" or destruction
b. Breakdown
c. Service or repair
d. Insufficient towing capacity - ANSWERd. Insufficient towing capacity
Your insured has an unendorsed Business Auto Coverage Form in which Liability is
written using Symbol 1 (Any "Auto"). An employee who is using his personal vehicle
on behalf of the business has an at-fault accident. Who is an insured under your
insured's policy
a. Both the named insured and the employee
b. Only the named insured
c. Neither the named insured nor the employee
d. Only the employee - ANSWERb. Only the named insured
Which of the following is not covered under Comprehensive coverage provided by a
Business Auto Coverage Form?
a. Vandalism to the service truck
b. Hail damage to the three sales vehicles parked in the parking lot over the
weekend
c. Damage to the business-owned pickup truck when the vehicle overturns
d. The damage caused by a tree branch that falls on the roof of the delivery van -
ANSWERc. Damage to the business-owned pickup truck when the vehicle overturns
George drove the scheduled delivery truck to the client's home to deliver a new
refrigerator. While moving the appliance with the dolly (hand truck) into the home, it
,fell and damaged the flooring. Which coverage form, if any, would provide coverage
for customer's floor?
a. Commercial General Liability Form
b. Business Auto Coverage Form
c. Both the Commercial General Liability and the Business Auto Coverage, equally
d. Neither policy since the damage was caused by the dolly (hand truck) -
ANSWERb. Business Auto Coverage Form
Which of the following statements is not true about workers' compensation statutes?
a. Death benefits can include weekly income benefits for the employee's eligible
dependents.
b. Most states impose a dollar limit on medical expenses.
c. Most states have rehabilitation benefits written into their law.
d. Lost wage benefits are paid to replace the loss of income suffered by an injured or
sick employee. - ANSWERb. Most states impose a dollar limit on medical expenses.
Most workers' compensation statutes provide four types of benefits. Which of the
following is not one of those benefits?
a. Payments made to an employee to replace the loss of income suffered as a result
of a work-related injury
b. Medical expenses incurred for injuries sustained by an employee
c. Payments made toward physical rehabilitation following an injury
d. Medical expenses paid to family members following an employee's sickness -
ANSWERd. Medical expenses paid to family members following an employee's
sickness
Which of the following coverages is not provided by monopolistic state funds?
a. Lost wages due to work-related sickness or injury
b. Employers' liability insurance
c. Rehabilitation benefits
d. Medical expenses for work-related injuries - ANSWERb. Employers' liability
insurance
The Information Page in the Workers' Compensation and Employers' Liability Policy
uses Item 3.A. to do which of the following?
a. Trigger workers' compensation coverage in monopolistic states only
b. Trigger Other States' Insurance coverage
c. Trigger workers' compensation coverage in listed states
d. Trigger employers' liability coverage in all states - ANSWERc. Trigger workers'
compensation coverage in listed states
When working with your client to select the coverages needed for his Workers'
Compensation and Employers' Liability Insurance Policy, you come to Item 3.B. of
the Information Page. Which statement best explains what this section triggers and
how?
a. It triggers employers' liability coverage for only those states listed in 3.B.
b. It triggers workers' compensation and employers' liability coverage for all states
listed in 3.B.
,c. It triggers employers' liability coverage for those states listed in 3.A. for the limits
that are shown for bodily injury by accident for each accident, bodily injury by
disease with a policy limit, and bodily injury by disease for each employee.
d. It triggers workers' compensation benefits in the states listed in 3.A. and sets the
limits for medical expenses, rehabilitation expenses, and death/funeral expenses. -
ANSWERc. It triggers employers' liability coverage for those states listed in 3.A. for
the limits that are shown for bodily injury by accident for each accident, bodily injury
by disease with a policy limit, and bodily injury by disease for each employee.
Your insured buys a Workers' Compensation Policy for coverage in New York with
NY listed in Item 3.A. Three months after the policy effective date, your insured also
begins work in New Jersey. New Jersey is listed in Item 3.C. Which statement below
is true about your insured's workers' compensation coverage?
a. Your insured has coverage in New Jersey only after they notify the insurer.
b. Your insured has no coverage in New Jersey since the state is not listed in item
3.A. of the Information Page.
c. Your insured has automatic coverage in New Jersey for 90 days.
d. Your insured has automatic coverage in New Jersey as long as the insurer is
notified "at once" that work has begun there - ANSWERd. Your insured has
automatic coverage in New Jersey as long as the insurer is notified "at once" that
work has begun there
As you review his insurance needs, your client asks you about the primary functions
of an Umbrella Liability Policy. Which of the following would not be used to answer
his question?
a. It provides excess limits over underlying insurance.
b. It provides broader insurance protection than that provided by underlying policies.
c. It replaces underlying insurance when aggregate limits have been exhausted.
d. It replaces claims expenses incurred by the insured. - ANSWERd. It replaces
claims expenses incurred by the insured.
A self-insured retention can be explained to your client using which of the following
statements?
a. It applies only if coverage is provided by the Umbrella Liability Policy but not by
underlying policies, and it does not apply when coverage is in excess of the
underlying policy.
b. It applies only if defense is provided by the Umbrella Liability Policy, but no
payment for settlement will be made.
c. It applies every time a payment will be made by the Umbrella Liability Policy,
whether for settlement or for defense.
d. It applies for bodily injury claims only and does not apply to property damage
claims. - ANSWERa. It applies only if coverage is provided by the Umbrella Liability
Policy but not by underlying policies, and it does not apply when coverage is in
excess of the underlying policy.
This course describes different types of excess policies. The description, "A follow
form Excess Liability Policy that covers more than one underlying policy such as
CGL, BAP, and Employers' Liability," is known as which of the following?
a. Multiple Umbrella Policy
b. Buffer Layer Excess Policy
, c. Broader Excess Policy
d. Multiline Excess Policy - ANSWERd. Multiline Excess Policy
Most Umbrella or Excess Liability policies contain a defined term, "retained limit."
When asked by your client, which of the following statements would you use to
provide a description of this term?
a. The amount that the umbrella carrier must receive as premium payment before
any claim will be considered
b. The maximum amount to be paid by the excess or umbrella carrier in payment of
a loss plus expenses
c. An amount that must be paid as a self-insured retention on every umbrella or
excess loss
d. An amount that must be met either through an underlying policy limit payment or
out-of-pocket amount (SIR) paid by the insured - ANSWERd. An amount that must
be met either through an underlying policy limit payment or out-of-pocket amount
(SIR) paid by the insured
In Excess/Umbrella Liability policies, there are two situations where an affirmative
duty to defend should apply. One is when no underlying insurer is obligated to
defend because the damages are not covered by the underlying insurer but are
covered by the excess/umbrella liability policy. Which of the following is the other?
a. When no underlying insurer has been identified
b. When the underlying insurer is obligated to defend but chooses not to
c. When the underlying insurer has no council on staff for the state where the claim
is made
d. When no underlying insurer is obligated to defend because the underlying
insurance has been exhausted in accordance with its terms and conditions -
ANSWERd. When no underlying insurer is obligated to defend because the
underlying insurance has been exhausted in accordance with its terms and
conditions
Your client, Tom's Imports and Exports, has a Multiline Excess Policy that requires a
$1,000,000 limit on his Commercial General Liability Policy, a $1,000,000 limit on his
Business Auto Policy, and a $500,000 limit on his Employers' Liability Policy. The
Excess Policy has a self-insured retention of $25,000. During the policy term, Tom
asks you to decrease the limits on the BAP to $500,000. Explain how the Excess
Policy would respond to a covered auto loss of $1,250,000.
a. The Excess Policy would not respond to any auto claims since Tom failed to meet
the underlying insurance condition. x
b. The Excess Policy will pay $750,000. The underlying policy will pay $500,000.
c. The Excess Policy will pay $725,000. Since the underlying BAP will cover only
$500,000 of the loss, Tom will be responsible for paying the $25,000 SIR. x
d. The Excess Policy will pay $250,000. The underlying BAP will pay $500,000. Tom
will be resp - ANSWERd. The Excess Policy will pay $250,000. The underlying BAP
will pay $500,000. Tom will be responsible for the remaining $500,000.
Members of LLCs are the same as the LLC themselves.
True
False - ANSWERFalse
100% Solved.
Which of the following states is not a workers' compensation monopolistic state?
a. Wyoming
b. Texas
c. North Dakota
d. Ohio - ANSWERb. Texas
The Business Auto Coverage Form defines "auto" and "mobile equipment." All of the
following are considered autos rather than mobile equipment as defined in the
Business Auto Coverage Form except:
a. road scraping equipment built on crawler treads
b. a self-propelled vehicle equipped with well servicing equipment
c. a cherry picker mounted on a truck chassis
d. a self-propelled vehicle designed primarily for snow removal - ANSWERa. road
scraping equipment built on crawler treads
Which of the following is not a reason liability coverage will automatically be
extended for a non-owned auto being used as a temporary substitute for a covered
"auto" the named insured owns but cannot be used?
a. "Loss" or destruction
b. Breakdown
c. Service or repair
d. Insufficient towing capacity - ANSWERd. Insufficient towing capacity
Your insured has an unendorsed Business Auto Coverage Form in which Liability is
written using Symbol 1 (Any "Auto"). An employee who is using his personal vehicle
on behalf of the business has an at-fault accident. Who is an insured under your
insured's policy
a. Both the named insured and the employee
b. Only the named insured
c. Neither the named insured nor the employee
d. Only the employee - ANSWERb. Only the named insured
Which of the following is not covered under Comprehensive coverage provided by a
Business Auto Coverage Form?
a. Vandalism to the service truck
b. Hail damage to the three sales vehicles parked in the parking lot over the
weekend
c. Damage to the business-owned pickup truck when the vehicle overturns
d. The damage caused by a tree branch that falls on the roof of the delivery van -
ANSWERc. Damage to the business-owned pickup truck when the vehicle overturns
George drove the scheduled delivery truck to the client's home to deliver a new
refrigerator. While moving the appliance with the dolly (hand truck) into the home, it
,fell and damaged the flooring. Which coverage form, if any, would provide coverage
for customer's floor?
a. Commercial General Liability Form
b. Business Auto Coverage Form
c. Both the Commercial General Liability and the Business Auto Coverage, equally
d. Neither policy since the damage was caused by the dolly (hand truck) -
ANSWERb. Business Auto Coverage Form
Which of the following statements is not true about workers' compensation statutes?
a. Death benefits can include weekly income benefits for the employee's eligible
dependents.
b. Most states impose a dollar limit on medical expenses.
c. Most states have rehabilitation benefits written into their law.
d. Lost wage benefits are paid to replace the loss of income suffered by an injured or
sick employee. - ANSWERb. Most states impose a dollar limit on medical expenses.
Most workers' compensation statutes provide four types of benefits. Which of the
following is not one of those benefits?
a. Payments made to an employee to replace the loss of income suffered as a result
of a work-related injury
b. Medical expenses incurred for injuries sustained by an employee
c. Payments made toward physical rehabilitation following an injury
d. Medical expenses paid to family members following an employee's sickness -
ANSWERd. Medical expenses paid to family members following an employee's
sickness
Which of the following coverages is not provided by monopolistic state funds?
a. Lost wages due to work-related sickness or injury
b. Employers' liability insurance
c. Rehabilitation benefits
d. Medical expenses for work-related injuries - ANSWERb. Employers' liability
insurance
The Information Page in the Workers' Compensation and Employers' Liability Policy
uses Item 3.A. to do which of the following?
a. Trigger workers' compensation coverage in monopolistic states only
b. Trigger Other States' Insurance coverage
c. Trigger workers' compensation coverage in listed states
d. Trigger employers' liability coverage in all states - ANSWERc. Trigger workers'
compensation coverage in listed states
When working with your client to select the coverages needed for his Workers'
Compensation and Employers' Liability Insurance Policy, you come to Item 3.B. of
the Information Page. Which statement best explains what this section triggers and
how?
a. It triggers employers' liability coverage for only those states listed in 3.B.
b. It triggers workers' compensation and employers' liability coverage for all states
listed in 3.B.
,c. It triggers employers' liability coverage for those states listed in 3.A. for the limits
that are shown for bodily injury by accident for each accident, bodily injury by
disease with a policy limit, and bodily injury by disease for each employee.
d. It triggers workers' compensation benefits in the states listed in 3.A. and sets the
limits for medical expenses, rehabilitation expenses, and death/funeral expenses. -
ANSWERc. It triggers employers' liability coverage for those states listed in 3.A. for
the limits that are shown for bodily injury by accident for each accident, bodily injury
by disease with a policy limit, and bodily injury by disease for each employee.
Your insured buys a Workers' Compensation Policy for coverage in New York with
NY listed in Item 3.A. Three months after the policy effective date, your insured also
begins work in New Jersey. New Jersey is listed in Item 3.C. Which statement below
is true about your insured's workers' compensation coverage?
a. Your insured has coverage in New Jersey only after they notify the insurer.
b. Your insured has no coverage in New Jersey since the state is not listed in item
3.A. of the Information Page.
c. Your insured has automatic coverage in New Jersey for 90 days.
d. Your insured has automatic coverage in New Jersey as long as the insurer is
notified "at once" that work has begun there - ANSWERd. Your insured has
automatic coverage in New Jersey as long as the insurer is notified "at once" that
work has begun there
As you review his insurance needs, your client asks you about the primary functions
of an Umbrella Liability Policy. Which of the following would not be used to answer
his question?
a. It provides excess limits over underlying insurance.
b. It provides broader insurance protection than that provided by underlying policies.
c. It replaces underlying insurance when aggregate limits have been exhausted.
d. It replaces claims expenses incurred by the insured. - ANSWERd. It replaces
claims expenses incurred by the insured.
A self-insured retention can be explained to your client using which of the following
statements?
a. It applies only if coverage is provided by the Umbrella Liability Policy but not by
underlying policies, and it does not apply when coverage is in excess of the
underlying policy.
b. It applies only if defense is provided by the Umbrella Liability Policy, but no
payment for settlement will be made.
c. It applies every time a payment will be made by the Umbrella Liability Policy,
whether for settlement or for defense.
d. It applies for bodily injury claims only and does not apply to property damage
claims. - ANSWERa. It applies only if coverage is provided by the Umbrella Liability
Policy but not by underlying policies, and it does not apply when coverage is in
excess of the underlying policy.
This course describes different types of excess policies. The description, "A follow
form Excess Liability Policy that covers more than one underlying policy such as
CGL, BAP, and Employers' Liability," is known as which of the following?
a. Multiple Umbrella Policy
b. Buffer Layer Excess Policy
, c. Broader Excess Policy
d. Multiline Excess Policy - ANSWERd. Multiline Excess Policy
Most Umbrella or Excess Liability policies contain a defined term, "retained limit."
When asked by your client, which of the following statements would you use to
provide a description of this term?
a. The amount that the umbrella carrier must receive as premium payment before
any claim will be considered
b. The maximum amount to be paid by the excess or umbrella carrier in payment of
a loss plus expenses
c. An amount that must be paid as a self-insured retention on every umbrella or
excess loss
d. An amount that must be met either through an underlying policy limit payment or
out-of-pocket amount (SIR) paid by the insured - ANSWERd. An amount that must
be met either through an underlying policy limit payment or out-of-pocket amount
(SIR) paid by the insured
In Excess/Umbrella Liability policies, there are two situations where an affirmative
duty to defend should apply. One is when no underlying insurer is obligated to
defend because the damages are not covered by the underlying insurer but are
covered by the excess/umbrella liability policy. Which of the following is the other?
a. When no underlying insurer has been identified
b. When the underlying insurer is obligated to defend but chooses not to
c. When the underlying insurer has no council on staff for the state where the claim
is made
d. When no underlying insurer is obligated to defend because the underlying
insurance has been exhausted in accordance with its terms and conditions -
ANSWERd. When no underlying insurer is obligated to defend because the
underlying insurance has been exhausted in accordance with its terms and
conditions
Your client, Tom's Imports and Exports, has a Multiline Excess Policy that requires a
$1,000,000 limit on his Commercial General Liability Policy, a $1,000,000 limit on his
Business Auto Policy, and a $500,000 limit on his Employers' Liability Policy. The
Excess Policy has a self-insured retention of $25,000. During the policy term, Tom
asks you to decrease the limits on the BAP to $500,000. Explain how the Excess
Policy would respond to a covered auto loss of $1,250,000.
a. The Excess Policy would not respond to any auto claims since Tom failed to meet
the underlying insurance condition. x
b. The Excess Policy will pay $750,000. The underlying policy will pay $500,000.
c. The Excess Policy will pay $725,000. Since the underlying BAP will cover only
$500,000 of the loss, Tom will be responsible for paying the $25,000 SIR. x
d. The Excess Policy will pay $250,000. The underlying BAP will pay $500,000. Tom
will be resp - ANSWERd. The Excess Policy will pay $250,000. The underlying BAP
will pay $500,000. Tom will be responsible for the remaining $500,000.
Members of LLCs are the same as the LLC themselves.
True
False - ANSWERFalse
