PROPERTY AND CASUALTY EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
Under the Protective Safeguards endorsement, your burglar alarm can be out of service
for up to _____ without notifying the company before you lose coverage. - Answer-48
hours (two days)
The Commercial Property module of the Commercial Package Policy excludes
coverage for losses due to boiler ____ or _____ breakdown. - Answer-Explosion or
Mechanical
The Boiler and Machinery (B and M) module is the way to _____ these Exclusions. -
Answer-Buy back
B and M policies are written on an ____ basis, not on an occurrence basis. - Answer-
Accident
The Boiler coverage is best described as ____ against _____. - Answer-objects against
accidents
The Machinery coverage of the B and M module is for the ____ and ____ breakdown of
mechanical or electrical equipment. - Answer-sudden and accidental
______ that can be insured under a B and M policy include boilers, air conditioning
units, engines, pumps, electrical panels, turbines, and compressors. - Answer-Objects
The B and M policy covers not only your own property, but also other people's property
that is in your ___,____, and ____. - Answer-Care, Custody and Control.
In order to get damaged equipment repaired as soon as possible, the B and M policy
pays up to $25,000 in ______. - Answer-Expediting Expenses
Under the ______ an insurance company boiler inspector may immediately suspend
coverage by giving the Insured written notice of the boiler defect. - Answer-Suspension
Provision
Business Income and ______ coverage's can be added to the B and M policy. -
Answer-Extra Expense
Unfortunately the biggest risk that an employer has regarding Crime insurance is his/her
own ___. - Answer-Employees
,As an employer you can protect yourself against employee theft by purchasing _____. -
Answer-Fidelity Bonds
In a Fidelity Bond it is the employee that owes the obligation to the employee, so the
employee is the _____. The employer is owed the obligation, so the employer is the
_____. The insurance company agrees to pay, so it is the _____. - Answer-Principal,
Obligee, Surety or Guarantor.
Coverage on a bonded employee automatically terminates as soon as the employer
becomes aware of a _____ act of that employee that could be the basis of a claim. No
second chances! - Answer-Dishonest
A Fidelity Bond that covers multiple employees that are listed by job title and may have
different amounts of coverage for different positions is called a ____. - Answer-Position
Schedule Bond
The taking of property by violence or threat of violence from a person is called _____. -
Answer-Robbery
The taking of property from a premises that is closed and locked tight and leaving marks
of forced entry or exit is called _____. - Answer-Burglary
In Crime insurance, what you know as kidnapping is called _____. - Answer-Extortion
Any person who is authorized to have possession of insured property on the premises,
but who is not a janitor or watch person, is called a _____. - Answer-Custodian
A Messenger is any person authorized to have custody of insured property ______. -
Answer-Away from the premises.
Any person the Insured retains to protect insured property on the premises who has no
other duties is called a _____. - Answer-Watch person
Crime coverage Form A Employee Dishonesty are actually _____ on the employees. -
Answer-Fidelity Bonds
Crime coverage Form C Theft, Disappearance and Destruction is essentially All Risk
coverage for ____ and ____ both on and off premises. - Answer-Cash and Securities
Crime coverage Form D Robbery and Safe Burglary covers property other than _____,
such as precious metal, precious stones, furs, manuscripts or drawings. - Answer-Cash
The second major coverage of the Commercial Package Policy is the CGL or _____
Liability policy. - Answer-Commercial General
, Just like a baseball team, the CGL has ___ ''players,'' including Premises coverage,
Operations coverage, _____ coverage, ____ coverage, Contractual and Advertising
Injury coverage. - Answer-Nine, Products, and Fire Legal
While the CGL comes with nine coverage's, some can be eliminated by _____
coverage's to save premium for the Insured. - Answer-endorsement
If a customer trips and falls in your store, you would be covered by the _____ Liability
section of your CGL. - Answer-Premises
If you sold a defective product to a customer, you would be protected by the _____
section of your CGL. - Answer-Products Liability
If you hire a contractor to come into your store to do some repairs and that contractor
injures one of your customers, you would be covered by the ______ section of your
CGL. - Answer-Independent Contractors Liability
If you accidentally set your leased store on fire, you would be covered by the _____
section of your CGL. - Answer-Fire Legal Liability
If you are sued for unintentionally using another business's logo, you would be covered
by the ______ section of your CGL. - Answer-Advertising Injury Liability
The first module of the Commercial Package Policy (CPP), which covers your building
and business personal property, is called the _____. - Answer-Commercial Property
Policy
The Commercial Property Policy is comprised of thirteen possible sub-parts to cover
about any kind of property you could own, including ______, Business Income, _____,
Glass, Builder's Risk and Tobacco Sales Warehouse. - Answer-Building and Business
Personal Property, Extra Expense
The Commercial Property Policy, just like the Homeowners policy, offers three levels of
peril power, which are Basic, ____ and ____. - Answer-Broad and special
The eleven Basic perils include Windstorm, ___, _____, ____, ____, _____, Volcano
and Vehicles or Aircraft. - Answer-Riot, Explosion, Lightning, Fire, Smoke
Broad Form peril power adds ____ more perils for a total of ____. - Answer-Three, 14
_____ perils cover all perils not specifically excluded. - Answer-Special Form
The peril of _____ can be added to any of the three peril power forms and also covers
Volcanic Eruption. - Answer-Earthquake
QUESTIONS WITH COMPLETE
SOLUTIONS
Under the Protective Safeguards endorsement, your burglar alarm can be out of service
for up to _____ without notifying the company before you lose coverage. - Answer-48
hours (two days)
The Commercial Property module of the Commercial Package Policy excludes
coverage for losses due to boiler ____ or _____ breakdown. - Answer-Explosion or
Mechanical
The Boiler and Machinery (B and M) module is the way to _____ these Exclusions. -
Answer-Buy back
B and M policies are written on an ____ basis, not on an occurrence basis. - Answer-
Accident
The Boiler coverage is best described as ____ against _____. - Answer-objects against
accidents
The Machinery coverage of the B and M module is for the ____ and ____ breakdown of
mechanical or electrical equipment. - Answer-sudden and accidental
______ that can be insured under a B and M policy include boilers, air conditioning
units, engines, pumps, electrical panels, turbines, and compressors. - Answer-Objects
The B and M policy covers not only your own property, but also other people's property
that is in your ___,____, and ____. - Answer-Care, Custody and Control.
In order to get damaged equipment repaired as soon as possible, the B and M policy
pays up to $25,000 in ______. - Answer-Expediting Expenses
Under the ______ an insurance company boiler inspector may immediately suspend
coverage by giving the Insured written notice of the boiler defect. - Answer-Suspension
Provision
Business Income and ______ coverage's can be added to the B and M policy. -
Answer-Extra Expense
Unfortunately the biggest risk that an employer has regarding Crime insurance is his/her
own ___. - Answer-Employees
,As an employer you can protect yourself against employee theft by purchasing _____. -
Answer-Fidelity Bonds
In a Fidelity Bond it is the employee that owes the obligation to the employee, so the
employee is the _____. The employer is owed the obligation, so the employer is the
_____. The insurance company agrees to pay, so it is the _____. - Answer-Principal,
Obligee, Surety or Guarantor.
Coverage on a bonded employee automatically terminates as soon as the employer
becomes aware of a _____ act of that employee that could be the basis of a claim. No
second chances! - Answer-Dishonest
A Fidelity Bond that covers multiple employees that are listed by job title and may have
different amounts of coverage for different positions is called a ____. - Answer-Position
Schedule Bond
The taking of property by violence or threat of violence from a person is called _____. -
Answer-Robbery
The taking of property from a premises that is closed and locked tight and leaving marks
of forced entry or exit is called _____. - Answer-Burglary
In Crime insurance, what you know as kidnapping is called _____. - Answer-Extortion
Any person who is authorized to have possession of insured property on the premises,
but who is not a janitor or watch person, is called a _____. - Answer-Custodian
A Messenger is any person authorized to have custody of insured property ______. -
Answer-Away from the premises.
Any person the Insured retains to protect insured property on the premises who has no
other duties is called a _____. - Answer-Watch person
Crime coverage Form A Employee Dishonesty are actually _____ on the employees. -
Answer-Fidelity Bonds
Crime coverage Form C Theft, Disappearance and Destruction is essentially All Risk
coverage for ____ and ____ both on and off premises. - Answer-Cash and Securities
Crime coverage Form D Robbery and Safe Burglary covers property other than _____,
such as precious metal, precious stones, furs, manuscripts or drawings. - Answer-Cash
The second major coverage of the Commercial Package Policy is the CGL or _____
Liability policy. - Answer-Commercial General
, Just like a baseball team, the CGL has ___ ''players,'' including Premises coverage,
Operations coverage, _____ coverage, ____ coverage, Contractual and Advertising
Injury coverage. - Answer-Nine, Products, and Fire Legal
While the CGL comes with nine coverage's, some can be eliminated by _____
coverage's to save premium for the Insured. - Answer-endorsement
If a customer trips and falls in your store, you would be covered by the _____ Liability
section of your CGL. - Answer-Premises
If you sold a defective product to a customer, you would be protected by the _____
section of your CGL. - Answer-Products Liability
If you hire a contractor to come into your store to do some repairs and that contractor
injures one of your customers, you would be covered by the ______ section of your
CGL. - Answer-Independent Contractors Liability
If you accidentally set your leased store on fire, you would be covered by the _____
section of your CGL. - Answer-Fire Legal Liability
If you are sued for unintentionally using another business's logo, you would be covered
by the ______ section of your CGL. - Answer-Advertising Injury Liability
The first module of the Commercial Package Policy (CPP), which covers your building
and business personal property, is called the _____. - Answer-Commercial Property
Policy
The Commercial Property Policy is comprised of thirteen possible sub-parts to cover
about any kind of property you could own, including ______, Business Income, _____,
Glass, Builder's Risk and Tobacco Sales Warehouse. - Answer-Building and Business
Personal Property, Extra Expense
The Commercial Property Policy, just like the Homeowners policy, offers three levels of
peril power, which are Basic, ____ and ____. - Answer-Broad and special
The eleven Basic perils include Windstorm, ___, _____, ____, ____, _____, Volcano
and Vehicles or Aircraft. - Answer-Riot, Explosion, Lightning, Fire, Smoke
Broad Form peril power adds ____ more perils for a total of ____. - Answer-Three, 14
_____ perils cover all perils not specifically excluded. - Answer-Special Form
The peril of _____ can be added to any of the three peril power forms and also covers
Volcanic Eruption. - Answer-Earthquake
