CIC COMMERCIAL MULTILINE CORRECT FINAL
EXAMS QUESTIONS AND ANSWERS SURE A+
✔✔Possible first part losses (not all covered by insurance) - ✔✔- a security breach
typically results in costs/expenses to investigate the source
- virus can result in loss of or damage to electronic data
- ransomware infection
- unauthorized user could make an extortion demand (cyber extortion)
- malware then you have to clean the website
- unauthorized person can cause vandalism
- if personal or confidential files are breached, cost to notify affected parties
- security breaches that result in loss of income, expenses tot minimize a business
interruption, loss to income due to reputation
- theft of intellectual property
- computer fraud
- losses as a result of social engineering (voluntary party using a computer system)
- DOS or DDOS to a website or social media that results in loss of income
- costs due to mechanical breakdown and physical cause
✔✔Identify and apply the common exclusion or limitation in the ISO BOP policy. -
✔✔Electronic data is not covered property, except as provided under additional
coverage.
✔✔Identify and Describe the type of cyber insurance coverage that are available for first
party losses (LO4) - ✔✔1. Security Breach Expense
A. Typically includes the costs to notify affected parties and may also include the cost
to investigate the cause of a security break.
B. May also provide for other reasonable expenses sud as identify theft protections or
credit monitoring.
2. Business Income and Extra Expense
A. Pays for loss due to an interruption to the named insureds computer system
resulting from a cyber-related event.
,3. Security Breach Liability (ONLY THIRD PART INSURING AGREEMENT
COVERAGE)
a. pays loss for legal obligations and defense expense as a result of a claim for a wrong
act or series of them and in the even of a regulatory proceeding
4. Extortion Threat, Ransom or Reward Payment
A. Pays for loss due to an extortion threat
5. Public Relations Expense (Crisis Management Expense)
A. Pays for the cost of retaining a public relations firm to protect or restore the named
insured reputation due to negative publicity resulting directly from a cyber-related event
or security breach.
6. Replacement or Restoration of Electronic Data
A. Typically pays for cost to replace or restore the named insured's electronic data.
✔✔Identify who is an insured under the ISO commercial Cyber Insurance Policy (LO5) -
✔✔Named Insured
Named Insured former, current, and future employees
Subsidiary employees but only while acting with the scope of their duties
Some may include independent contractors or per written contract.
✔✔Identify and apply the insuring agreements under the ISO commercial cyber
insurance policy to a loss (LO6) - ✔✔Six Insuring Agreements:
Security Breach Expense
Extortion Threats
Replacement or Restoration of Electronic Data
Business Income and Extra Expense
Public Relations Expense
Security Breach Liability (Third Party)
✔✔Extortion Threat (LO6) - ✔✔a threat to
-perpetrate a cyber incident
- disseminate, divulge info or weakness
- destroy, corrupt, or prevent access
- inflict ransomware
- publish personal information
✔✔Extra Expense does not include (LO6) - ✔✔1.Upgrading, maintaining, repairing, re
mediating or improving a computer system as a result of a cyber incidents or extortion
threat
2. Expenses covered un insurance agreement agreement 2 - extortion threat.
, ✔✔Security Breach - ✔✔- does not include confidential corporation information in the
CCC of the insured
- person not authorized has access to personal information
- authorized person uses personal information in an unauthorized way
✔✔Identify and apply the limits of insurance provision under the ISP commercial cyber
insurance policy to a loss. (LO7) - ✔✔Policy Aggregate Limit of Insurance
The most paid is the limit shown on deceleration page.
The insurer's obligation or liability of any kind ends when the policy aggregate limit of
insurance has been exhausted
Aggregate Sublimit(s) of Insurance
Subject to policy add grease limit of insurance
Sublimit(s) shown in the dec page are not in addition to the policy aggregate limit of
insurance
The insurer's obligation of liability of any kind ends when the aggregate Sublimit has
been exhausted
✔✔Identify and apply the deductibles of insurance provision under the ISP commercial
cyber insurance policy to a loss. (LO7) - ✔✔Insurance Agreement 1, 2, 3, and 5 pays
only the amount of loss in excess of the policy deductible amount shown in the
declarations
Under insuring agreement 4 business income and extra expense pays only the amount
of loss that exceeds the greater of the deductible show or the amount of loss incurred
the time deductible
Underinsuring agreement 5 security breach liability pays only the amount of loss and
defense expense in excess of policy deductible amount shown in the declarations
Only the highest deductible amount applies in the even a loss is covered under more
than one insuring agreement.
✔✔Identify and apply the defense and settlement provision under the ISO commercial
cyber insurance policy (LO8) - ✔✔Only applies to insuring agreement 6 Security Breach
Liability
Insurer has the right and duty to defend
No coverage no defense
Defense expenses are payable within and not in addition to the limits
✔✔Identify and apply the exclusions under the ISO commercial cyber insurance policy.
- ✔✔Exclusions are numerous and vary by insurer
Lighting earthquake, hail, volcanic action or other acts of nature,
War warlike action or insurrection
Patogenic biological or chemical materials nuclear radiation
Bodily injury or physical damage to or destruction of tangible property including loss of
use
EXAMS QUESTIONS AND ANSWERS SURE A+
✔✔Possible first part losses (not all covered by insurance) - ✔✔- a security breach
typically results in costs/expenses to investigate the source
- virus can result in loss of or damage to electronic data
- ransomware infection
- unauthorized user could make an extortion demand (cyber extortion)
- malware then you have to clean the website
- unauthorized person can cause vandalism
- if personal or confidential files are breached, cost to notify affected parties
- security breaches that result in loss of income, expenses tot minimize a business
interruption, loss to income due to reputation
- theft of intellectual property
- computer fraud
- losses as a result of social engineering (voluntary party using a computer system)
- DOS or DDOS to a website or social media that results in loss of income
- costs due to mechanical breakdown and physical cause
✔✔Identify and apply the common exclusion or limitation in the ISO BOP policy. -
✔✔Electronic data is not covered property, except as provided under additional
coverage.
✔✔Identify and Describe the type of cyber insurance coverage that are available for first
party losses (LO4) - ✔✔1. Security Breach Expense
A. Typically includes the costs to notify affected parties and may also include the cost
to investigate the cause of a security break.
B. May also provide for other reasonable expenses sud as identify theft protections or
credit monitoring.
2. Business Income and Extra Expense
A. Pays for loss due to an interruption to the named insureds computer system
resulting from a cyber-related event.
,3. Security Breach Liability (ONLY THIRD PART INSURING AGREEMENT
COVERAGE)
a. pays loss for legal obligations and defense expense as a result of a claim for a wrong
act or series of them and in the even of a regulatory proceeding
4. Extortion Threat, Ransom or Reward Payment
A. Pays for loss due to an extortion threat
5. Public Relations Expense (Crisis Management Expense)
A. Pays for the cost of retaining a public relations firm to protect or restore the named
insured reputation due to negative publicity resulting directly from a cyber-related event
or security breach.
6. Replacement or Restoration of Electronic Data
A. Typically pays for cost to replace or restore the named insured's electronic data.
✔✔Identify who is an insured under the ISO commercial Cyber Insurance Policy (LO5) -
✔✔Named Insured
Named Insured former, current, and future employees
Subsidiary employees but only while acting with the scope of their duties
Some may include independent contractors or per written contract.
✔✔Identify and apply the insuring agreements under the ISO commercial cyber
insurance policy to a loss (LO6) - ✔✔Six Insuring Agreements:
Security Breach Expense
Extortion Threats
Replacement or Restoration of Electronic Data
Business Income and Extra Expense
Public Relations Expense
Security Breach Liability (Third Party)
✔✔Extortion Threat (LO6) - ✔✔a threat to
-perpetrate a cyber incident
- disseminate, divulge info or weakness
- destroy, corrupt, or prevent access
- inflict ransomware
- publish personal information
✔✔Extra Expense does not include (LO6) - ✔✔1.Upgrading, maintaining, repairing, re
mediating or improving a computer system as a result of a cyber incidents or extortion
threat
2. Expenses covered un insurance agreement agreement 2 - extortion threat.
, ✔✔Security Breach - ✔✔- does not include confidential corporation information in the
CCC of the insured
- person not authorized has access to personal information
- authorized person uses personal information in an unauthorized way
✔✔Identify and apply the limits of insurance provision under the ISP commercial cyber
insurance policy to a loss. (LO7) - ✔✔Policy Aggregate Limit of Insurance
The most paid is the limit shown on deceleration page.
The insurer's obligation or liability of any kind ends when the policy aggregate limit of
insurance has been exhausted
Aggregate Sublimit(s) of Insurance
Subject to policy add grease limit of insurance
Sublimit(s) shown in the dec page are not in addition to the policy aggregate limit of
insurance
The insurer's obligation of liability of any kind ends when the aggregate Sublimit has
been exhausted
✔✔Identify and apply the deductibles of insurance provision under the ISP commercial
cyber insurance policy to a loss. (LO7) - ✔✔Insurance Agreement 1, 2, 3, and 5 pays
only the amount of loss in excess of the policy deductible amount shown in the
declarations
Under insuring agreement 4 business income and extra expense pays only the amount
of loss that exceeds the greater of the deductible show or the amount of loss incurred
the time deductible
Underinsuring agreement 5 security breach liability pays only the amount of loss and
defense expense in excess of policy deductible amount shown in the declarations
Only the highest deductible amount applies in the even a loss is covered under more
than one insuring agreement.
✔✔Identify and apply the defense and settlement provision under the ISO commercial
cyber insurance policy (LO8) - ✔✔Only applies to insuring agreement 6 Security Breach
Liability
Insurer has the right and duty to defend
No coverage no defense
Defense expenses are payable within and not in addition to the limits
✔✔Identify and apply the exclusions under the ISO commercial cyber insurance policy.
- ✔✔Exclusions are numerous and vary by insurer
Lighting earthquake, hail, volcanic action or other acts of nature,
War warlike action or insurrection
Patogenic biological or chemical materials nuclear radiation
Bodily injury or physical damage to or destruction of tangible property including loss of
use
