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CPCU 552, CP&L FINAL EXAM NEWEST 2025 ACTUAL
EXAM COMPLETE 140 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+||BRAND NEW VERSION!!
Which one of the following statements is true about an excess
policy? - ANSWER-It provides coverage no broader than is
provided by underlying polices.
Although professional liability policies for financial and legal
professionals contain many of the same provisions of those for
other professionals, there are important differences. Which one
of the following would be covered under the professional
liability policies for financial and legal professionals that contain
the broadest definition of professional services? - ANSWER-
Claims arising from any professional service performed for
others for a fee
An excess liability insurance policy that covers a claim in excess
of the underlying limits only if the loss is covered by the
underlying policy is called - ANSWER-A following-form excess
policy
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A dealership keeps a customer's auto overnight. The auto, while
on premises, is damaged by hail. The dealership has
garagekeepers coverage on a legal liability basis on an Auto
Dealers Coverage Form. The customer has a Liability-only
policy. The customer asks the dealership to pay for the hail
damage, but the claim is denied by the insurer. The only way the
dealership's policy would have paid the claim is if the dealership
had purchased - ANSWER-One of the garagekeepers direct
coverage options.
The Broad Form Products Coverage endorsement can be used -
ANSWER-To delete the Auto Dealers Coverage Form (ADCF)
exclusion for defective products.
Cox Corporation recently had a covered personal liability
judgment against it for $5 million. It has an underlying
commercial general liability policy with a $1 million limit,
which is the amount required by the umbrella insurer. The
umbrella policy has a $10 million limit with a $10,000 SIR.
How much is the ultimate net loss to the umbrella insurer? -
ANSWER-The ultimate net loss to the umbrella insurer is
$4,000,000.
The Supplementary Payments section of the Commercial
General Liability (CGL) Coverage Form contains provisions
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concerning the insurer's duty to defend indemnitees of the
insured, but only if specific conditions are met. Which one of
the following is one of these conditions? - ANSWER-The
indemnitee and the insured must ask the insurer to conduct and
control the defense.
Which one of the following statements about the Liquor
Liability Coverage Form is true? - ANSWER-It contains an each
common cause limit as well as an aggregate limit.
Under the Business Auto Coverage Form (BACF), collision is
generally understood to mean - ANSWER-A striking together
with violent impact.
A common endorsement to the Business Auto Coverage Form
(BACF) is the Employee Hired Auto endorsement. This
endorsement states that an employee of the named insured is an
insured - ANSWER-The employee is an insured while operating
an auto rented in the employee's name with the named insured's
permission.
The legislated liability imposed by the Comprehensive
Environmental Response, Compensation, and Liability Act
(CERCLA or Superfund) altered traditional common law
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concerning responsibilities for environmental pollution by -
ANSWER-Superfund imposes strict liability without regard to
fault, even on a retroactive basis.
Before the enactment of Workers Compensation statutes,
employers were protected against employee suits by common-
law defenses. Under which one of the following common-law
defenses were employees unsuccessful in recovering damages
from occupational injuries resulting in part from the employee's
own negligence? - ANSWER-Contributory negligence
An organization may incur losses from legal liabilities in a
number of different ways. Which one of the following actions
would best be described as an intentional tort? - ANSWER-A
newspaper mistakenly identifies the driver in an alcohol-related
hit and run accident as John Doe, a prominent local attorney.
An employee, while working for the Brown Corporation, was
negligent when lighting a cigarette and started a small fire that
caused a fellow employee's clothes to catch fire. The injured
employee suffered burns as well as the loss of clothes. To what
extent, if any, does the corporation's Commercial General
Liability Coverage Form provide coverage for the negligent
employee if he is sued by the injured employee? - ANSWER-
There is no coverage for the negligent employee because he is
CPCU 552, CP&L FINAL EXAM NEWEST 2025 ACTUAL
EXAM COMPLETE 140 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+||BRAND NEW VERSION!!
Which one of the following statements is true about an excess
policy? - ANSWER-It provides coverage no broader than is
provided by underlying polices.
Although professional liability policies for financial and legal
professionals contain many of the same provisions of those for
other professionals, there are important differences. Which one
of the following would be covered under the professional
liability policies for financial and legal professionals that contain
the broadest definition of professional services? - ANSWER-
Claims arising from any professional service performed for
others for a fee
An excess liability insurance policy that covers a claim in excess
of the underlying limits only if the loss is covered by the
underlying policy is called - ANSWER-A following-form excess
policy
,2|Page
A dealership keeps a customer's auto overnight. The auto, while
on premises, is damaged by hail. The dealership has
garagekeepers coverage on a legal liability basis on an Auto
Dealers Coverage Form. The customer has a Liability-only
policy. The customer asks the dealership to pay for the hail
damage, but the claim is denied by the insurer. The only way the
dealership's policy would have paid the claim is if the dealership
had purchased - ANSWER-One of the garagekeepers direct
coverage options.
The Broad Form Products Coverage endorsement can be used -
ANSWER-To delete the Auto Dealers Coverage Form (ADCF)
exclusion for defective products.
Cox Corporation recently had a covered personal liability
judgment against it for $5 million. It has an underlying
commercial general liability policy with a $1 million limit,
which is the amount required by the umbrella insurer. The
umbrella policy has a $10 million limit with a $10,000 SIR.
How much is the ultimate net loss to the umbrella insurer? -
ANSWER-The ultimate net loss to the umbrella insurer is
$4,000,000.
The Supplementary Payments section of the Commercial
General Liability (CGL) Coverage Form contains provisions
,3|Page
concerning the insurer's duty to defend indemnitees of the
insured, but only if specific conditions are met. Which one of
the following is one of these conditions? - ANSWER-The
indemnitee and the insured must ask the insurer to conduct and
control the defense.
Which one of the following statements about the Liquor
Liability Coverage Form is true? - ANSWER-It contains an each
common cause limit as well as an aggregate limit.
Under the Business Auto Coverage Form (BACF), collision is
generally understood to mean - ANSWER-A striking together
with violent impact.
A common endorsement to the Business Auto Coverage Form
(BACF) is the Employee Hired Auto endorsement. This
endorsement states that an employee of the named insured is an
insured - ANSWER-The employee is an insured while operating
an auto rented in the employee's name with the named insured's
permission.
The legislated liability imposed by the Comprehensive
Environmental Response, Compensation, and Liability Act
(CERCLA or Superfund) altered traditional common law
, 4|Page
concerning responsibilities for environmental pollution by -
ANSWER-Superfund imposes strict liability without regard to
fault, even on a retroactive basis.
Before the enactment of Workers Compensation statutes,
employers were protected against employee suits by common-
law defenses. Under which one of the following common-law
defenses were employees unsuccessful in recovering damages
from occupational injuries resulting in part from the employee's
own negligence? - ANSWER-Contributory negligence
An organization may incur losses from legal liabilities in a
number of different ways. Which one of the following actions
would best be described as an intentional tort? - ANSWER-A
newspaper mistakenly identifies the driver in an alcohol-related
hit and run accident as John Doe, a prominent local attorney.
An employee, while working for the Brown Corporation, was
negligent when lighting a cigarette and started a small fire that
caused a fellow employee's clothes to catch fire. The injured
employee suffered burns as well as the loss of clothes. To what
extent, if any, does the corporation's Commercial General
Liability Coverage Form provide coverage for the negligent
employee if he is sued by the injured employee? - ANSWER-
There is no coverage for the negligent employee because he is
