CPCU 552 Exam Questions And Answers
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Terms in this set (50)
If an employee rents a car in his or B. Employee Hired Autos endorsement
her own name and uses the auto to
conduct his or her employer's
business, which one of the following
endorsements of the Business
Auto Coverage Form would ensure
that there is coverage if the
employee is in an accident?
Select one:
A. Rental Reimbursement
Coverage endorsement
B. Employee Hired Autos endorsement
C. Broadened Coverage for
Named Individuals
endorsement
D. Drive Other Car endorsement
The purpose-of-use category that is B. Special use.
used to classify and rate exposures
such as low-altitude photography,
banner-towing, and firefighting is
Select one:
A. Business and pleasure.
,B. Special use.
C. Industrial aid.
D. Airline.
,Black and White Bakery (BWB) owns A. $0
a private passenger vehicle and two
vans, which are insured under an
unendorsed Business Auto Coverage
Form (BACF) with a $500,000 limit
of insurance for liability coverage.
James, a BWB employee, was driving
his own vehicle to meet with a
customer to discuss a large wedding
that BWB was catering. His vehicle
is insured under a Personal Auto
Policy (PAP) with a $100,000 limit of
insurance for liability coverage. On
his way to the meeting James went
through a stop sign and struck
another vehicle, seriously injuring
the driver. The other driver made a
claim against James and BWB for
$60,000 in bodily injury to himself
and damage to his vehicle. The
investigation determined that James
was responsible for the accident.
BWB was also liable because James
was driving his vehicle in the course
of employment for BWB at the time
of the accident. How much, if any,
will BWB's auto insurer pay for this
accident?
Select one:
A. $0
B. $30,000
C. $50,000
D. $60,000
Under the Terrorism Risk Insurance C. $100 billion.
Program Reauthorization Act
(TRIPRA), the total annual
aggregate for
government and insurer liability is
capped at
Select one:
A. $50 billion.
, B. $500 billion.
C. $100 billion.
John Smith owns a bookstore that is D. Cover the lost earnings up to $250.
covered under an unendorsed
Commercial General Liability (CGL)
Coverage Form. A customer falls in
the store resulting in a covered
lawsuit against Smith. Smith is asked to
testify in
court by the defense attorney, and
incurs
$500 in lost earnings for the one day
trial. The supplementary payments
section of Smith's CGL policy will
Select one:
A. Not cover the lost earnings.
B. Cover the lost earnings of $500.
C. Cover the lost earnings only if
Smith is found liable.
D. Cover the lost earnings up to $250.
The insured has a business auto C. The insurance company is liable for the damage by the vandals but not
policy. Vandals break a window in the the damage from the rain.
insured's pickup truck. The insured
makes an
appointment for the claim
representative to see the damage
five days after the occurrence. While
the insured is waiting for the
insurance company to appraise the
claim, there are two days of heavy
rain. Rain enters through the broken
window and causes additional
damage. What is the insurance
company's liability for the loss?
A. The insurance company is liable for
the damage from the rain but not the
damage by the vandals.
Latest Uploaded Quiz's
Terms in this set (50)
If an employee rents a car in his or B. Employee Hired Autos endorsement
her own name and uses the auto to
conduct his or her employer's
business, which one of the following
endorsements of the Business
Auto Coverage Form would ensure
that there is coverage if the
employee is in an accident?
Select one:
A. Rental Reimbursement
Coverage endorsement
B. Employee Hired Autos endorsement
C. Broadened Coverage for
Named Individuals
endorsement
D. Drive Other Car endorsement
The purpose-of-use category that is B. Special use.
used to classify and rate exposures
such as low-altitude photography,
banner-towing, and firefighting is
Select one:
A. Business and pleasure.
,B. Special use.
C. Industrial aid.
D. Airline.
,Black and White Bakery (BWB) owns A. $0
a private passenger vehicle and two
vans, which are insured under an
unendorsed Business Auto Coverage
Form (BACF) with a $500,000 limit
of insurance for liability coverage.
James, a BWB employee, was driving
his own vehicle to meet with a
customer to discuss a large wedding
that BWB was catering. His vehicle
is insured under a Personal Auto
Policy (PAP) with a $100,000 limit of
insurance for liability coverage. On
his way to the meeting James went
through a stop sign and struck
another vehicle, seriously injuring
the driver. The other driver made a
claim against James and BWB for
$60,000 in bodily injury to himself
and damage to his vehicle. The
investigation determined that James
was responsible for the accident.
BWB was also liable because James
was driving his vehicle in the course
of employment for BWB at the time
of the accident. How much, if any,
will BWB's auto insurer pay for this
accident?
Select one:
A. $0
B. $30,000
C. $50,000
D. $60,000
Under the Terrorism Risk Insurance C. $100 billion.
Program Reauthorization Act
(TRIPRA), the total annual
aggregate for
government and insurer liability is
capped at
Select one:
A. $50 billion.
, B. $500 billion.
C. $100 billion.
John Smith owns a bookstore that is D. Cover the lost earnings up to $250.
covered under an unendorsed
Commercial General Liability (CGL)
Coverage Form. A customer falls in
the store resulting in a covered
lawsuit against Smith. Smith is asked to
testify in
court by the defense attorney, and
incurs
$500 in lost earnings for the one day
trial. The supplementary payments
section of Smith's CGL policy will
Select one:
A. Not cover the lost earnings.
B. Cover the lost earnings of $500.
C. Cover the lost earnings only if
Smith is found liable.
D. Cover the lost earnings up to $250.
The insured has a business auto C. The insurance company is liable for the damage by the vandals but not
policy. Vandals break a window in the the damage from the rain.
insured's pickup truck. The insured
makes an
appointment for the claim
representative to see the damage
five days after the occurrence. While
the insured is waiting for the
insurance company to appraise the
claim, there are two days of heavy
rain. Rain enters through the broken
window and causes additional
damage. What is the insurance
company's liability for the loss?
A. The insurance company is liable for
the damage from the rain but not the
damage by the vandals.
