CCIFP2 – Questions With Reliable Solutions
What is character and integrity in surety factors Correct Answer - The
number once consideration "The foundation of trust"
What are the surety underwriting factors Correct Answer - 1) Character
and integrity
2) Management: Org structure, succession and advisory staff
3. Financial Management (could be under management)
4. Business acumen (could be under management)
5. Construction capacity
6. Financial Capacity
What is financial guarantee bond Correct Answer - Used for many
different financial contracts. Payments of wages and benefits. Release of
guarantee. Guarantee of released retention.
What are the 3 types of surety bonds Correct Answer - 1. Bid bond
2. Performance
3. Labor and Material Payment Bonds
4. Maintenance or Warranty Bonds
5. License Bonds
6 . Financial Guarantee Bonds
What is a wrap up policy Correct Answer - One party buys all the
insurance for a project (OCIP or CCIP)
What is self insurance? Correct Answer - A formal decision to retain risk
rather than insure it, used monthly by large contractors.
What are captive insurance companies Correct Answer - Can be foreign
or domestic. An insurance subsidiary owned by an individual organization or
group of organizations that is primarily established to insure the less
exposures of its owners
What are the different Guaranteed Cost Rating Plans Correct Answer -
Premium at beginning of period not adjusted.
Premium discounts - volume - graduated percentage reduction based on
contractor's premium level.
, Deductibles - general and automotive liability may be purchased on a
deductible basis.
Dividend Plans - produced for potential returns of premium to contact after.
Policy expiration - varies with premium and loss experience.
What are "group pools and risk pools" under self insurance Correct Answer
- A pool is a not for profit unincorporated association that combines and
assumes the covered loss exposures of its members.
What are types of risk financing? Correct Answer - Guaranteed cost
rating plans: Premium is computed at the beginning of the policy period and
not subject to adjust in accordance with actual loss experience during the
period.
Retrospective Rating Plans: Determine a contractors premium at expiration of
a rating period on the basis of the contract actual loss during period.
Cash Flow and Self Insurance: Retain risk instead of insurance
What are "safety groups" under cash flow plans and self insurance? Correct
Answer - Safety groups involve combining the exposures of a group of
small to medium contractors under a common rating plan.
What are types of construction insurance? Correct Answer - 1. Umbrella
2. Professional Liability
3. Workers compensation
4. Builders risk
5. Auto
6. Equipment floater
7. General Liability
Auto Liability Insurance Correct Answer - Bodily injury or property
damage
Describe what is in General Liability Insurance (GLI) Correct Answer -
Coverage triggers: Occurrences - policy at time loss occurs has coverage (most
common)
Claims made - policy in effect at time claim is made has coverage
Limits of Liability: Occurrence - limit per incident
Aggregate - collective amounts of occurrences/incident
What is character and integrity in surety factors Correct Answer - The
number once consideration "The foundation of trust"
What are the surety underwriting factors Correct Answer - 1) Character
and integrity
2) Management: Org structure, succession and advisory staff
3. Financial Management (could be under management)
4. Business acumen (could be under management)
5. Construction capacity
6. Financial Capacity
What is financial guarantee bond Correct Answer - Used for many
different financial contracts. Payments of wages and benefits. Release of
guarantee. Guarantee of released retention.
What are the 3 types of surety bonds Correct Answer - 1. Bid bond
2. Performance
3. Labor and Material Payment Bonds
4. Maintenance or Warranty Bonds
5. License Bonds
6 . Financial Guarantee Bonds
What is a wrap up policy Correct Answer - One party buys all the
insurance for a project (OCIP or CCIP)
What is self insurance? Correct Answer - A formal decision to retain risk
rather than insure it, used monthly by large contractors.
What are captive insurance companies Correct Answer - Can be foreign
or domestic. An insurance subsidiary owned by an individual organization or
group of organizations that is primarily established to insure the less
exposures of its owners
What are the different Guaranteed Cost Rating Plans Correct Answer -
Premium at beginning of period not adjusted.
Premium discounts - volume - graduated percentage reduction based on
contractor's premium level.
, Deductibles - general and automotive liability may be purchased on a
deductible basis.
Dividend Plans - produced for potential returns of premium to contact after.
Policy expiration - varies with premium and loss experience.
What are "group pools and risk pools" under self insurance Correct Answer
- A pool is a not for profit unincorporated association that combines and
assumes the covered loss exposures of its members.
What are types of risk financing? Correct Answer - Guaranteed cost
rating plans: Premium is computed at the beginning of the policy period and
not subject to adjust in accordance with actual loss experience during the
period.
Retrospective Rating Plans: Determine a contractors premium at expiration of
a rating period on the basis of the contract actual loss during period.
Cash Flow and Self Insurance: Retain risk instead of insurance
What are "safety groups" under cash flow plans and self insurance? Correct
Answer - Safety groups involve combining the exposures of a group of
small to medium contractors under a common rating plan.
What are types of construction insurance? Correct Answer - 1. Umbrella
2. Professional Liability
3. Workers compensation
4. Builders risk
5. Auto
6. Equipment floater
7. General Liability
Auto Liability Insurance Correct Answer - Bodily injury or property
damage
Describe what is in General Liability Insurance (GLI) Correct Answer -
Coverage triggers: Occurrences - policy at time loss occurs has coverage (most
common)
Claims made - policy in effect at time claim is made has coverage
Limits of Liability: Occurrence - limit per incident
Aggregate - collective amounts of occurrences/incident
