CPCU 551 EXAM | NEWEST ACTUAL
EXAM COMPREHENSIVE QUESTIONS
AND VERIFIED ANSWERS GRADED A+ |
100% PASS | 2025 UPDATE!
The county fairgrounds committee is seeking contractors to build a new
stable for the annual farm show. Contractors are required to guarantee
that they will enter into a contract upon acceptance of the bid. In
addition, the contractor must guarantee that the project, once
completed, will be free of liens. To satisfy the committee's
requirements, contractors who want to participate in the project will
need to provide which pair of bonds? - ✔✔✔ Correct Answer > Bid
bond and a payment bond
What's another name for a warranty (open cargo policy, all-risk
coverage) and what are the 3 warranties? - ✔✔✔ Correct Answer >
exclusion. Strikes, riots, civil commotion; free of capture/seizure; the
delay clause.
A shipping company contracted with Cruise Ship Art Galleries for
delivery of artwork to be sold on the ship. The shipping company
delivered the artwork directly to each port of call. Coverage for the
artwork was under an inland marine policy. The valuation provision that
would best be applied to a loss to the artwork prior to delivery would
,be the - ✔✔✔ Correct Answer > Agreed value is appropriate for
items that are difficult to value such as works of art.
What are the differences between CP Builders Risk Coverage and IM
Builders Risk Coverage - ✔✔✔ Correct Answer > CP is named perils,
IM is all risk and covers property in transit and away from the job site,
includes property of others. CP covers collapse, boiler explosion, theft,
flood and earthquake, and sets value at RC... IM doesn't.
what are the 8 ISO commercial crime coverage forms? - ✔✔✔ Correct
Answer > employee theft, forgery/alteration, inside the premises-theft
of money/securities, inside the premises-safe/other property, outside
the premises, computer fraud, fund transfer, counterfeit/money
orders.
What's the inchmaree clause? - ✔✔✔ Correct Answer > a clause of
open cargo-named perils coverage which adds coverage for damage
from propulsion machinery, boilers, latent defect of vessel, and
negligence of master and mariners.
What is covered under named perils coverage that isn't covered under
all risk coverage (open cargo policy) - ✔✔✔ Correct Answer >
jettison, pirates
Which prevents an insured from waiving rights of recovery against
contractors and subcontractors, IM or CP Builders Risk Insurance? -
,✔✔✔ Correct Answer > CP prevents an insured from waiving rights of
recovery against contractors or subcontractors.
From what do soft costs derive? - ✔✔✔ Correct Answer > covered
physical losses causing delay in completion necessitating rewritten
contracts, additional interest, readvertising, and additional brokerage
commissions.
What is a necessary characteristic of a sign to be covered under a sign
coverage form? - ✔✔✔ Correct Answer > either a neon tube or
mechanical feature
Which one of the following describes the difference between a filed
and a nonfiled policy form? - ✔✔✔ Correct Answer > Nonfiled
policies do not file forms or rates with state insurance departments but
for filed polices both are filed.
Luke is a commercial underwriter assessing the accounts receivable
coverage for a prospective customer. He wishes to make changes to
various policy provisions before accepting the risk. What is true
regarding these changes? - ✔✔✔ Correct Answer > It is a filed class
of inland marine coverage, and insurers are allowed to substitute
provision in the standard policies.
, is employee theft covered in mexico? - ✔✔✔ Correct Answer > No,
the coverage territory is limited to the US/territories, Puerto Rico, and
Canada.
if an employee has was terminated 30 days ago and stole something, is
the loss covered under employee theft insuring agreement? - ✔✔✔
Correct Answer > Yes - employees terminated in the last 30 days still
count as employees if we were to take the title of this coverage literally
if an independent contractor steals something from an employer, is the
loss covered under employee theft insuring agreement? - ✔✔✔
Correct Answer > No
If an employee steals something, but they are not convicted of theft, is
the loss covered under employee theft insuring agreement? - ✔✔✔
Correct Answer > yes
What are the coverage limits of employee theft insuring agreement?
(not a number, instead on what basis is it covered and how is the limit
measured) - ✔✔✔ Correct Answer > coverage is blanket and limited
to a stated amount per occurrence
what is the courage territory for forgery and alteration insuring
agreement? - ✔✔✔ Correct Answer > worldwide
EXAM COMPREHENSIVE QUESTIONS
AND VERIFIED ANSWERS GRADED A+ |
100% PASS | 2025 UPDATE!
The county fairgrounds committee is seeking contractors to build a new
stable for the annual farm show. Contractors are required to guarantee
that they will enter into a contract upon acceptance of the bid. In
addition, the contractor must guarantee that the project, once
completed, will be free of liens. To satisfy the committee's
requirements, contractors who want to participate in the project will
need to provide which pair of bonds? - ✔✔✔ Correct Answer > Bid
bond and a payment bond
What's another name for a warranty (open cargo policy, all-risk
coverage) and what are the 3 warranties? - ✔✔✔ Correct Answer >
exclusion. Strikes, riots, civil commotion; free of capture/seizure; the
delay clause.
A shipping company contracted with Cruise Ship Art Galleries for
delivery of artwork to be sold on the ship. The shipping company
delivered the artwork directly to each port of call. Coverage for the
artwork was under an inland marine policy. The valuation provision that
would best be applied to a loss to the artwork prior to delivery would
,be the - ✔✔✔ Correct Answer > Agreed value is appropriate for
items that are difficult to value such as works of art.
What are the differences between CP Builders Risk Coverage and IM
Builders Risk Coverage - ✔✔✔ Correct Answer > CP is named perils,
IM is all risk and covers property in transit and away from the job site,
includes property of others. CP covers collapse, boiler explosion, theft,
flood and earthquake, and sets value at RC... IM doesn't.
what are the 8 ISO commercial crime coverage forms? - ✔✔✔ Correct
Answer > employee theft, forgery/alteration, inside the premises-theft
of money/securities, inside the premises-safe/other property, outside
the premises, computer fraud, fund transfer, counterfeit/money
orders.
What's the inchmaree clause? - ✔✔✔ Correct Answer > a clause of
open cargo-named perils coverage which adds coverage for damage
from propulsion machinery, boilers, latent defect of vessel, and
negligence of master and mariners.
What is covered under named perils coverage that isn't covered under
all risk coverage (open cargo policy) - ✔✔✔ Correct Answer >
jettison, pirates
Which prevents an insured from waiving rights of recovery against
contractors and subcontractors, IM or CP Builders Risk Insurance? -
,✔✔✔ Correct Answer > CP prevents an insured from waiving rights of
recovery against contractors or subcontractors.
From what do soft costs derive? - ✔✔✔ Correct Answer > covered
physical losses causing delay in completion necessitating rewritten
contracts, additional interest, readvertising, and additional brokerage
commissions.
What is a necessary characteristic of a sign to be covered under a sign
coverage form? - ✔✔✔ Correct Answer > either a neon tube or
mechanical feature
Which one of the following describes the difference between a filed
and a nonfiled policy form? - ✔✔✔ Correct Answer > Nonfiled
policies do not file forms or rates with state insurance departments but
for filed polices both are filed.
Luke is a commercial underwriter assessing the accounts receivable
coverage for a prospective customer. He wishes to make changes to
various policy provisions before accepting the risk. What is true
regarding these changes? - ✔✔✔ Correct Answer > It is a filed class
of inland marine coverage, and insurers are allowed to substitute
provision in the standard policies.
, is employee theft covered in mexico? - ✔✔✔ Correct Answer > No,
the coverage territory is limited to the US/territories, Puerto Rico, and
Canada.
if an employee has was terminated 30 days ago and stole something, is
the loss covered under employee theft insuring agreement? - ✔✔✔
Correct Answer > Yes - employees terminated in the last 30 days still
count as employees if we were to take the title of this coverage literally
if an independent contractor steals something from an employer, is the
loss covered under employee theft insuring agreement? - ✔✔✔
Correct Answer > No
If an employee steals something, but they are not convicted of theft, is
the loss covered under employee theft insuring agreement? - ✔✔✔
Correct Answer > yes
What are the coverage limits of employee theft insuring agreement?
(not a number, instead on what basis is it covered and how is the limit
measured) - ✔✔✔ Correct Answer > coverage is blanket and limited
to a stated amount per occurrence
what is the courage territory for forgery and alteration insuring
agreement? - ✔✔✔ Correct Answer > worldwide
