CM 4211 FINAL EXAM 2026 COMPREHENSIVE
QUESTIONS AND FULL SOLUTION
◉ The termination of a construction insurance policy is always at
substantial completion of the project? Answer: false
◉ An umbrella policy can be used to increase coverage or add
coverage to another policy? Answer: true
◉ An occurrence policy covers accidents (occurrences) that happen
during the existence of the policy, even if the claim is not made until
after the policy is terminated? Answer: true
◉ Equipment is generally insured on a job-by-job basis so as not to
waste premium when tools are idle? Answer: true
◉ Workers' compensation laws provide that an employee injured or
killed on the job could not sue the employer in exchange for
compensation being paid without the need of proving fault? Answer:
true
◉ A project involving a navigable stream might require a different
workers' compensation policy than normally purchased? Answer:
true
,◉ A workers' compensation insurance policy also covers a
contractor that has indemnified the owner? Answer: false
◉ The workers' compensation policy premiums are the same in all
states? Answer: false
◉ The premiums to purchase a workers' compensation insurance
policy are usually based on the contract amount? Answer: false
◉ The premium structure of a builder's risk policy may be a level
premium based on the average amount of work for the entire
project? Answer: true
◉ Large construction companies may self-insure? Answer: true
◉ Most states impose a statutory liability on employers if employees
are injured or killed performing employment duties? Answer: true
◉ Each additional named insured will increase the premium of an
insurance policy? Answer: true
◉ A comprehensive general liability policy covers injury or death to
the owner of the project? Answer: false
,◉ Insurance to cover the cost of injury or death to a third-person is
usually called a comprehensive general liability policy? Answer: true
◉ A comprehensive general liability policy covers accidents
involving vehicles on a work-related mission even if not on the
jobsite itself? Answer: true
◉ Loss due to strikes are excluded from the builder's risk policies?
Answer: true
◉ The AIA A201 General Conditions provides for intermediate
indemnification? Answer: true
◉ The AIA A201 General Conditions provides that the contractor
will purchase the builder's risk insurance coverage? Answer: false
◉ A named-peril builder's risk policy covers only the risks named in
the policy? Answer: true
◉ A builder's risk policy is coverage of the work itself? Answer: true
, ◉ A builder's risk policy also covers consequential damages such as
lost time or increased cost of performance the contractor may
suffer? Answer: false
◉ Temporary structures, such as a jobsite office, are excluded from
builder's risk policies? Answer: false
◉ Replacement value equipment insurance is the least expensive
type of an equipment floater policy? Answer: false
◉ With an insurance policy, the higher the deductible, the higher the
premium? Answer: false
◉ Construction contracts never require a contractor to be insured;
rather, it is the contractor's choice? Answer: false
◉ Construction involves more risks than just the construction work
itself? Answer: true
◉ The XCU exclusions in a comprehensive general liability policy
stands for explosion, collapse, and umbrella? Answer: false
◉ lecture 16 Answer: lecture 16
QUESTIONS AND FULL SOLUTION
◉ The termination of a construction insurance policy is always at
substantial completion of the project? Answer: false
◉ An umbrella policy can be used to increase coverage or add
coverage to another policy? Answer: true
◉ An occurrence policy covers accidents (occurrences) that happen
during the existence of the policy, even if the claim is not made until
after the policy is terminated? Answer: true
◉ Equipment is generally insured on a job-by-job basis so as not to
waste premium when tools are idle? Answer: true
◉ Workers' compensation laws provide that an employee injured or
killed on the job could not sue the employer in exchange for
compensation being paid without the need of proving fault? Answer:
true
◉ A project involving a navigable stream might require a different
workers' compensation policy than normally purchased? Answer:
true
,◉ A workers' compensation insurance policy also covers a
contractor that has indemnified the owner? Answer: false
◉ The workers' compensation policy premiums are the same in all
states? Answer: false
◉ The premiums to purchase a workers' compensation insurance
policy are usually based on the contract amount? Answer: false
◉ The premium structure of a builder's risk policy may be a level
premium based on the average amount of work for the entire
project? Answer: true
◉ Large construction companies may self-insure? Answer: true
◉ Most states impose a statutory liability on employers if employees
are injured or killed performing employment duties? Answer: true
◉ Each additional named insured will increase the premium of an
insurance policy? Answer: true
◉ A comprehensive general liability policy covers injury or death to
the owner of the project? Answer: false
,◉ Insurance to cover the cost of injury or death to a third-person is
usually called a comprehensive general liability policy? Answer: true
◉ A comprehensive general liability policy covers accidents
involving vehicles on a work-related mission even if not on the
jobsite itself? Answer: true
◉ Loss due to strikes are excluded from the builder's risk policies?
Answer: true
◉ The AIA A201 General Conditions provides for intermediate
indemnification? Answer: true
◉ The AIA A201 General Conditions provides that the contractor
will purchase the builder's risk insurance coverage? Answer: false
◉ A named-peril builder's risk policy covers only the risks named in
the policy? Answer: true
◉ A builder's risk policy is coverage of the work itself? Answer: true
, ◉ A builder's risk policy also covers consequential damages such as
lost time or increased cost of performance the contractor may
suffer? Answer: false
◉ Temporary structures, such as a jobsite office, are excluded from
builder's risk policies? Answer: false
◉ Replacement value equipment insurance is the least expensive
type of an equipment floater policy? Answer: false
◉ With an insurance policy, the higher the deductible, the higher the
premium? Answer: false
◉ Construction contracts never require a contractor to be insured;
rather, it is the contractor's choice? Answer: false
◉ Construction involves more risks than just the construction work
itself? Answer: true
◉ The XCU exclusions in a comprehensive general liability policy
stands for explosion, collapse, and umbrella? Answer: false
◉ lecture 16 Answer: lecture 16
