CP&L FINAL EXAM AND PRACTICE EXAM QUESTIONS 2025/2026 NEWEST ACTUAL EXAM
COMPLETE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) ALREADY GRADED A+
An insuring agreement for architects and engineers insurance policies responds for damages
because of liability arising out of rendering or failing to render professional services. The term
"professional services" is usually Limited to services the insured is qualified to perform.
Insurers that write professional liability for financial and legal professionals develop their own
forms, and there are similarities and differences from policy to policy. Which one of the
following policy features are most likely to exhibit material differences from one policy form to
the next? The exclusions section
Damages recoverable for breach of contract can be grouped into various categories. Recovery
of the monetary loss actually sustained by a party, due to a breach of contract, would be
considered which one of the following type damages? Compensatory damages
It is important to ascertain who is covered under the policy because coverage provisions may
differ from insurer to insurer. Although the breadth of coverage may differ from one
professional liability policy to the next, they all provide coverage for The individual
professional named in the policy.
Consequential damages Reimbursement for losses realized
,Liquidated damages The amount in the contract to be recovered in the event of a breach of
contract
Nominal damages a small amount awarded when a breach occurs, but doesn't represent the
financial loss. Could be a $1
Changes in social norms, new research linking a substance to harming human health, and
changes in manufacturing processes are examples of which one of the following unique
challenges of controlling environmental loss exposures? Dynamic nature of losses
Biacchi Properties wishes to sell some property that it owns. The property was most recently
occupied by a small fuel oil dealer. Biacchi has removed all of the storage tanks that were on
the property. Initial interest in the property has been not been promising, with most
prospective buyers expressing concern about the possibility of being required to clean up the
property if a government agency were to discover some type of contamination on the property.
In addition, there is some concern about claims from neighboring property owners in the future
alleging damages or injury from pollution emanating from the property. Biacchi is frustrated
because at this point, there is no indication that the property is even contaminated. Which one
of the following is a policy Biacchi could purchase that may help it to sell this property? A
property transfer policy
The legislated liability imposed by the Comprehensive Environmental Response, Compensation,
and Liability Act (CERCLA or Superfund) altered traditional common law concerning
responsibilities for environmental pollution by Imposing strict liability without regard to
fault, even on a retroactive basis, on responsible parties.
,Tom is the risk manager for ABC Trucking. ABC transports hazardous material all over the
country, but none of the company's trucks has ever been involved in an accident. Tom requests
addition of the MCS 90 Endorsement to ABC's commercial auto policy.When explaining the
MCS 90 Endorsement to the company officers, Tom tells them that when this endorsement is
attached to a commercial auto policy, the insurer promises to pay for any judgments - including
environmental restoration costs - made against ABC as the result of an accident involving one of
the company's vehicles.Which one of the following stat4ements is true about the MCS-90
Endorsement? The MCS-90 Endorsement requires the insured (ABC Trucking) to reimburse
its insurer for any payments made under the MCS-90 that are otherwise excluded by the
commercial auto policy
ABC, a pesticide manufacturer, had a leak at its main plant and released a cloud of toxic
chemicals into the air. The leak was caused when a private plane experienced engine trouble
and crashed into the facility, which covers ten square miles of ground in a rural area of the
county. ABC took immediate steps to contain the cloud, using state of the art pollution control
equipment. Given these facts, which one of the following statements about ABC's potential
environmental liability exposure is most accurate? ABC could be held liable under a strict
liability standard, which would negate the normal common law defenses available to
defendants.
ABC, Inc., is trying to raise cash by selling some of its real estate holdings that are no longer
used in its operations. One of its properties is a former petroleum storage site. Although ABC
has assured several prospective buyers that there are no known environmental impairment
liability issues with the property, none of the prospective buyers has offered a price anywhere
close to what ABC is asking, citing the potential for future pollution claims. XYZ has offered to
purchase the property if it can be indemnified against any existing environmental impairment
losses. Which one of the following insurance policies would best protect both ABC and XYZ from
environmental impairment losses associated with this property? Property transfer policy
, The three types of aircraft hull coverage are "All Risks" - ground and flight coverage, "All Risks" -
not in motion coverage, and All Risks" - not in flight coverage.
The Collision Liability clause in a hull policy is also known as The running down clause.
XYZ repairs personal pleasure boats at its service facility on Lake Sinclair. XYZ often has to keep
the boats in its shop for a few days, and thus XYZ has a bailee liability exposure while the boats
are in its care, custody and control. Which one of the following marine insurance policies would
best protect XYZ from its bailee liability exposure Marina operators liability insurance policy
The law that gives the members of a ship's crew the right to sue their employers for damages
for injuries that arise out of the employer's negligence is The Merchant Marine Act of 1920.
John is a crew member on the Ann Marie, a cargo ship that operates all over the world out of
Miami, Florida. On a recent voyage to West Africa, John became very ill and had to be flown
back to Miami to receive proper medical treatment.The Ann Marie's Protection and Indemnity
(P&I) policy covered the costs of John's trip back to Miami. The P&I refers to such costs as
Repatriation expenses.
In the event of a covered loss under a marine hull insurance policy, the insurer may also pay sue
and labor costs. Which one of the following statements best describes the sue and labor clause
of a hull insurance policy? The insured must take reasonable measures to protect the vessel
from further harm or damage following a loss.
COMPLETE EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) ALREADY GRADED A+
An insuring agreement for architects and engineers insurance policies responds for damages
because of liability arising out of rendering or failing to render professional services. The term
"professional services" is usually Limited to services the insured is qualified to perform.
Insurers that write professional liability for financial and legal professionals develop their own
forms, and there are similarities and differences from policy to policy. Which one of the
following policy features are most likely to exhibit material differences from one policy form to
the next? The exclusions section
Damages recoverable for breach of contract can be grouped into various categories. Recovery
of the monetary loss actually sustained by a party, due to a breach of contract, would be
considered which one of the following type damages? Compensatory damages
It is important to ascertain who is covered under the policy because coverage provisions may
differ from insurer to insurer. Although the breadth of coverage may differ from one
professional liability policy to the next, they all provide coverage for The individual
professional named in the policy.
Consequential damages Reimbursement for losses realized
,Liquidated damages The amount in the contract to be recovered in the event of a breach of
contract
Nominal damages a small amount awarded when a breach occurs, but doesn't represent the
financial loss. Could be a $1
Changes in social norms, new research linking a substance to harming human health, and
changes in manufacturing processes are examples of which one of the following unique
challenges of controlling environmental loss exposures? Dynamic nature of losses
Biacchi Properties wishes to sell some property that it owns. The property was most recently
occupied by a small fuel oil dealer. Biacchi has removed all of the storage tanks that were on
the property. Initial interest in the property has been not been promising, with most
prospective buyers expressing concern about the possibility of being required to clean up the
property if a government agency were to discover some type of contamination on the property.
In addition, there is some concern about claims from neighboring property owners in the future
alleging damages or injury from pollution emanating from the property. Biacchi is frustrated
because at this point, there is no indication that the property is even contaminated. Which one
of the following is a policy Biacchi could purchase that may help it to sell this property? A
property transfer policy
The legislated liability imposed by the Comprehensive Environmental Response, Compensation,
and Liability Act (CERCLA or Superfund) altered traditional common law concerning
responsibilities for environmental pollution by Imposing strict liability without regard to
fault, even on a retroactive basis, on responsible parties.
,Tom is the risk manager for ABC Trucking. ABC transports hazardous material all over the
country, but none of the company's trucks has ever been involved in an accident. Tom requests
addition of the MCS 90 Endorsement to ABC's commercial auto policy.When explaining the
MCS 90 Endorsement to the company officers, Tom tells them that when this endorsement is
attached to a commercial auto policy, the insurer promises to pay for any judgments - including
environmental restoration costs - made against ABC as the result of an accident involving one of
the company's vehicles.Which one of the following stat4ements is true about the MCS-90
Endorsement? The MCS-90 Endorsement requires the insured (ABC Trucking) to reimburse
its insurer for any payments made under the MCS-90 that are otherwise excluded by the
commercial auto policy
ABC, a pesticide manufacturer, had a leak at its main plant and released a cloud of toxic
chemicals into the air. The leak was caused when a private plane experienced engine trouble
and crashed into the facility, which covers ten square miles of ground in a rural area of the
county. ABC took immediate steps to contain the cloud, using state of the art pollution control
equipment. Given these facts, which one of the following statements about ABC's potential
environmental liability exposure is most accurate? ABC could be held liable under a strict
liability standard, which would negate the normal common law defenses available to
defendants.
ABC, Inc., is trying to raise cash by selling some of its real estate holdings that are no longer
used in its operations. One of its properties is a former petroleum storage site. Although ABC
has assured several prospective buyers that there are no known environmental impairment
liability issues with the property, none of the prospective buyers has offered a price anywhere
close to what ABC is asking, citing the potential for future pollution claims. XYZ has offered to
purchase the property if it can be indemnified against any existing environmental impairment
losses. Which one of the following insurance policies would best protect both ABC and XYZ from
environmental impairment losses associated with this property? Property transfer policy
, The three types of aircraft hull coverage are "All Risks" - ground and flight coverage, "All Risks" -
not in motion coverage, and All Risks" - not in flight coverage.
The Collision Liability clause in a hull policy is also known as The running down clause.
XYZ repairs personal pleasure boats at its service facility on Lake Sinclair. XYZ often has to keep
the boats in its shop for a few days, and thus XYZ has a bailee liability exposure while the boats
are in its care, custody and control. Which one of the following marine insurance policies would
best protect XYZ from its bailee liability exposure Marina operators liability insurance policy
The law that gives the members of a ship's crew the right to sue their employers for damages
for injuries that arise out of the employer's negligence is The Merchant Marine Act of 1920.
John is a crew member on the Ann Marie, a cargo ship that operates all over the world out of
Miami, Florida. On a recent voyage to West Africa, John became very ill and had to be flown
back to Miami to receive proper medical treatment.The Ann Marie's Protection and Indemnity
(P&I) policy covered the costs of John's trip back to Miami. The P&I refers to such costs as
Repatriation expenses.
In the event of a covered loss under a marine hull insurance policy, the insurer may also pay sue
and labor costs. Which one of the following statements best describes the sue and labor clause
of a hull insurance policy? The insured must take reasonable measures to protect the vessel
from further harm or damage following a loss.
