CPCU 551 EXAM | NEWEST ACTUAL % % % % %
EXAM COMPREHENSIVE QUESTIONS A % % %
ND VERIFIED ANSWERS GRADED A+ | 10
% % % % % %
0% 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 additi
% % % % % % % % % % % % %
on, the contractor must guarantee that the project, once completed, wi
% % % % % % % % % %
ll be free of liens. To satisfy the committee's requirements, contractors
% % % % % % % % % % %
who want to participate in the project will need to provide which pair o
% % % % % % % % % % % % %
f 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; fre
% % % % % % % % %
e of capture/seizure; the delay clause.
% % % % %
A shipping company contracted with Cruise Ship Art Galleries for deliver
% % % % % % % % % %
y 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 und
% % % % % % % % % % % % %
er an inland marine policy. The valuation provision that would best be a
% % % % % % % % % % % %
pplied to a loss to the artwork prior to delivery would
% % % % % % % % % %
,be the -% %
%✔✔✔ Correct Answer > Agreed value is appropriate for items that a
% % % % % % % % % % %
re difficult to value such as works of art.
% % % % % % % %
What are the differences between CP Builders Risk Coverage and IM Bui
% % % % % % % % % % %
lders Risk Coverage -
% % %
%✔✔✔ Correct Answer > CP is named perils, IM is all risk and covers p
% % % % % % % % % % % % % %
roperty in transit and away from the job site, includes property of other
% % % % % % % % % % % %
s. 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 th
% % % % % % % %
e premises-theft of money/securities, inside the premises-
% % % % % %
safe/other property, outside the premises, computer fraud, fund transf
% % % % % % % %
er, counterfeit/money orders.
% %
What's the inchmaree clause? - % % % %
%✔✔✔ Correct Answer > a clause of open cargo-
% % % % % % % %
named perils coverage which adds coverage for damage from propulsio
% % % % % % % % %
n machinery, boilers, latent defect of vessel, and negligence of master a
% % % % % % % % % % %
nd mariners.
%
What is covered under named perils coverage that isn't covered under a
% % % % % % % % % % %
ll risk coverage (open cargo policy) -
% % % % % %
%✔✔✔ Correct Answer > jettison, pirates
% % % % %
Which prevents an insured from waiving rights of recovery against cont
% % % % % % % % % %
ractors 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 com
% % % % % % % % % %
pletion necessitating rewritten contracts, additional interest, readvertisi
% % % % % %
ng, and additional brokerage commissions.
% % % %
What is a necessary characteristic of a sign to be covered under a sign c
% % % % % % % % % % % % % %
overage form? - % %
%✔✔✔ Correct Answer > either a neon tube or mechanical feature
% % % % % % % % % %
Which one of the following describes the difference between a filed an
% % % % % % % % % % %
d 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 co
% % % % % % % % %
verage for a prospective customer. He wishes to make changes to vario
% % % % % % % % % % %
us policy provisions before accepting the risk. What is true regarding th
% % % % % % % % % % %
ese changes? -
% %
%✔✔✔ Correct Answer > It is a filed class of inland marine coverage,
% % % % % % % % % % % % %
and insurers are allowed to substitute provision in the standard policie
% % % % % % % % % %
s.
, 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 t
% % % % % % % % % % % % %
he loss covered under employee theft insuring agreement? -
% % % % % % % %
%✔✔✔ Correct Answer > yes % % % %
What are the coverage limits of employee theft insuring agreement? (n
% % % % % % % % % %
ot a number, instead on what basis is it covered and how is the limit me
% % % % % % % % % % % % % % %
asured) - %
%✔✔✔ Correct Answer > coverage is blanket and limited to a stated a
% % % % % % % % % % % %
mount per occurrence % %
what is the courage territory for forgery and alteration insuring agreem
% % % % % % % % % %
ent? - ✔✔✔ Correct Answer > worldwide
% % % % % %
EXAM COMPREHENSIVE QUESTIONS A % % %
ND VERIFIED ANSWERS GRADED A+ | 10
% % % % % %
0% 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 additi
% % % % % % % % % % % % %
on, the contractor must guarantee that the project, once completed, wi
% % % % % % % % % %
ll be free of liens. To satisfy the committee's requirements, contractors
% % % % % % % % % % %
who want to participate in the project will need to provide which pair o
% % % % % % % % % % % % %
f 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; fre
% % % % % % % % %
e of capture/seizure; the delay clause.
% % % % %
A shipping company contracted with Cruise Ship Art Galleries for deliver
% % % % % % % % % %
y 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 und
% % % % % % % % % % % % %
er an inland marine policy. The valuation provision that would best be a
% % % % % % % % % % % %
pplied to a loss to the artwork prior to delivery would
% % % % % % % % % %
,be the -% %
%✔✔✔ Correct Answer > Agreed value is appropriate for items that a
% % % % % % % % % % %
re difficult to value such as works of art.
% % % % % % % %
What are the differences between CP Builders Risk Coverage and IM Bui
% % % % % % % % % % %
lders Risk Coverage -
% % %
%✔✔✔ Correct Answer > CP is named perils, IM is all risk and covers p
% % % % % % % % % % % % % %
roperty in transit and away from the job site, includes property of other
% % % % % % % % % % % %
s. 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 th
% % % % % % % %
e premises-theft of money/securities, inside the premises-
% % % % % %
safe/other property, outside the premises, computer fraud, fund transf
% % % % % % % %
er, counterfeit/money orders.
% %
What's the inchmaree clause? - % % % %
%✔✔✔ Correct Answer > a clause of open cargo-
% % % % % % % %
named perils coverage which adds coverage for damage from propulsio
% % % % % % % % %
n machinery, boilers, latent defect of vessel, and negligence of master a
% % % % % % % % % % %
nd mariners.
%
What is covered under named perils coverage that isn't covered under a
% % % % % % % % % % %
ll risk coverage (open cargo policy) -
% % % % % %
%✔✔✔ Correct Answer > jettison, pirates
% % % % %
Which prevents an insured from waiving rights of recovery against cont
% % % % % % % % % %
ractors 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 com
% % % % % % % % % %
pletion necessitating rewritten contracts, additional interest, readvertisi
% % % % % %
ng, and additional brokerage commissions.
% % % %
What is a necessary characteristic of a sign to be covered under a sign c
% % % % % % % % % % % % % %
overage form? - % %
%✔✔✔ Correct Answer > either a neon tube or mechanical feature
% % % % % % % % % %
Which one of the following describes the difference between a filed an
% % % % % % % % % % %
d 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 co
% % % % % % % % %
verage for a prospective customer. He wishes to make changes to vario
% % % % % % % % % % %
us policy provisions before accepting the risk. What is true regarding th
% % % % % % % % % % %
ese changes? -
% %
%✔✔✔ Correct Answer > It is a filed class of inland marine coverage,
% % % % % % % % % % % % %
and insurers are allowed to substitute provision in the standard policie
% % % % % % % % % %
s.
, 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 t
% % % % % % % % % % % % %
he loss covered under employee theft insuring agreement? -
% % % % % % % %
%✔✔✔ Correct Answer > yes % % % %
What are the coverage limits of employee theft insuring agreement? (n
% % % % % % % % % %
ot a number, instead on what basis is it covered and how is the limit me
% % % % % % % % % % % % % % %
asured) - %
%✔✔✔ Correct Answer > coverage is blanket and limited to a stated a
% % % % % % % % % % % %
mount per occurrence % %
what is the courage territory for forgery and alteration insuring agreem
% % % % % % % % % %
ent? - ✔✔✔ Correct Answer > worldwide
% % % % % %
