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cpcu 552 Questions and Correct Answers
The unauthorized intrusion into a company's computer network
resulting in damage to intellectual property is best classified as
which one of the following types of cyber liability exposures? Ans:
Intangible property
Regarding the valuation and settlement of liability claims, which
one of the following statements is true? Ans: With liability claims,
both the claimant and the insurer have an incentive to reach an
out-of-court settlement because of the uncertainty, time, and
expense involved in a formal trial.
Smith Construction Company is covered under an unendorsed
Commercial General Liability (CGL) Coverage Form. While working
at a job site, Smith ruptured a natural gas line causing a small fire
to a neighboring retail store. The following claims have been made
against Smith due to this occurrence.
Fire damage to the neighboring store
Pain and suffering claimed by the store owner
Loss of income by the store owner until repairs are made to the
store
Fire damage to the backhoe owned by Smith
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Which one of the following statements is correct? Ans: The
backhoe is property owned and is excluded.
Shelton Industries is considering switching to a self-insured plan
for its workers compensation exposure. Which one of the
following requirements must be met before an employer may
operate a "qualified" self-insurance workers compensation plan?
Ans: Posting a surety bond
Which one of the following is true of the supplementary payments
in the Commercial General Liability (CGL) Coverage Form? Ans:
The obligation to pay these supplementary payments ends when
the limit of insurance is exhausted.
Which one of the following statements about uninsured motorists
insurance coverage in most states is true? Ans: It is applicable
only to bodily injury.
Under the ISO Commercial Lines Manual, the Nuclear Energy
Liability Exclusion Endorsement must be added to which one the
following types of policies? Ans: Any policy containing a
commercial liability coverage part
Which one of the following explains why the same "Workers
Compensation and Employers Liability Insurance Policy" is able to
be used in all states even though the provisions of the various
state laws and the employee benefits have many differences? Ans:
© 2025 All rights reserved
cpcu 552 Questions and Correct Answers
The unauthorized intrusion into a company's computer network
resulting in damage to intellectual property is best classified as
which one of the following types of cyber liability exposures? Ans:
Intangible property
Regarding the valuation and settlement of liability claims, which
one of the following statements is true? Ans: With liability claims,
both the claimant and the insurer have an incentive to reach an
out-of-court settlement because of the uncertainty, time, and
expense involved in a formal trial.
Smith Construction Company is covered under an unendorsed
Commercial General Liability (CGL) Coverage Form. While working
at a job site, Smith ruptured a natural gas line causing a small fire
to a neighboring retail store. The following claims have been made
against Smith due to this occurrence.
Fire damage to the neighboring store
Pain and suffering claimed by the store owner
Loss of income by the store owner until repairs are made to the
store
Fire damage to the backhoe owned by Smith
© 2025 All rights reserved
, 2 | Page
Which one of the following statements is correct? Ans: The
backhoe is property owned and is excluded.
Shelton Industries is considering switching to a self-insured plan
for its workers compensation exposure. Which one of the
following requirements must be met before an employer may
operate a "qualified" self-insurance workers compensation plan?
Ans: Posting a surety bond
Which one of the following is true of the supplementary payments
in the Commercial General Liability (CGL) Coverage Form? Ans:
The obligation to pay these supplementary payments ends when
the limit of insurance is exhausted.
Which one of the following statements about uninsured motorists
insurance coverage in most states is true? Ans: It is applicable
only to bodily injury.
Under the ISO Commercial Lines Manual, the Nuclear Energy
Liability Exclusion Endorsement must be added to which one the
following types of policies? Ans: Any policy containing a
commercial liability coverage part
Which one of the following explains why the same "Workers
Compensation and Employers Liability Insurance Policy" is able to
be used in all states even though the provisions of the various
state laws and the employee benefits have many differences? Ans:
© 2025 All rights reserved
