CPCU 500 UPDATED 2026 EXAMINERS
QUESTIONS AND ANSWERS SURE A+
✔✔What additional coverage is needed for equipment breakdown perils? -
✔✔Coverage for mechanical and electrical breakdowns and steam explosions.
✔✔What types of businesses typically need 'Personal Property of Others' coverage? -
✔✔Businesses like laundries, dry cleaners, or computer repair shops that temporarily
possess customers' property.
✔✔What is the difference between the two Business Income coverage forms? - ✔✔One
covers both income and extra expenses, while the other covers income loss only and
extra expenses to the extent they reduce income loss.
✔✔What does the term 'floating property' refer to in Inland Marine Insurance? -
✔✔Property that moves from job site to job site, such as contractors' equipment.
✔✔Calculating a Business Income Loss - ✔✔Business Income Loss = Lost Profit +
Expenses
✔✔Business Income Loss Example
, Expected:
- Revenue $300m
- Expenses $240m
- Net Profit (or loss) $60m
Actual:
- Revenue $0
- Expenses $120m
- Net profit (or loss) ($120m) - ✔✔$60m (lost profit) + $120m (expenses) = $180m
business income loss
✔✔Commercial general liability insurance - ✔✔Encompasses three main coverages:
bodily injury and property damage liability, personal and advertising injury liability, and
medical payments.
✔✔Commercial auto insurance - ✔✔Can be used to cover liability loss exposures,
property loss exposures, and personal loss exposures arising out of the ownership,
maintenance, or use of autos.
✔✔Workers Compensation Liability - ✔✔Covers an employer's obligation to pay
benefits required by workers compensation statutes, with payments limited by
applicable workers compensation law.
✔✔Insurer's duty - ✔✔The insurer has a duty to defend the insured against claims,
proceedings, or suits seeking benefits payable by the policy.
✔✔Reimbursement requirement - ✔✔The insured is required to reimburse the insurer
for any penalties applied under a workers compensation law due to the employer's
willful misconduct or other violations.
✔✔Right of recovery transfer - ✔✔When the insurer pays workers compensation
benefits, any right of recovery the insured or the injured employee may have against a
third party is transferred to the insurer.
✔✔Claim for care and loss of services - ✔✔The spouse or family member of an injured
employee sues the employer for loss of companionship or services resulting from the
injury.
✔✔Personal loss exposure - ✔✔Any condition or situation that presents the possibility
of a financial loss to an individual or a family by such causes as death, sickness, injury,
or unemployment.
✔✔Third-party-over action - ✔✔A separate legal action, brought by a defendant in a
lawsuit, against a third party that might be liable to the defendant for all or part of the
plaintiff's claim.
QUESTIONS AND ANSWERS SURE A+
✔✔What additional coverage is needed for equipment breakdown perils? -
✔✔Coverage for mechanical and electrical breakdowns and steam explosions.
✔✔What types of businesses typically need 'Personal Property of Others' coverage? -
✔✔Businesses like laundries, dry cleaners, or computer repair shops that temporarily
possess customers' property.
✔✔What is the difference between the two Business Income coverage forms? - ✔✔One
covers both income and extra expenses, while the other covers income loss only and
extra expenses to the extent they reduce income loss.
✔✔What does the term 'floating property' refer to in Inland Marine Insurance? -
✔✔Property that moves from job site to job site, such as contractors' equipment.
✔✔Calculating a Business Income Loss - ✔✔Business Income Loss = Lost Profit +
Expenses
✔✔Business Income Loss Example
, Expected:
- Revenue $300m
- Expenses $240m
- Net Profit (or loss) $60m
Actual:
- Revenue $0
- Expenses $120m
- Net profit (or loss) ($120m) - ✔✔$60m (lost profit) + $120m (expenses) = $180m
business income loss
✔✔Commercial general liability insurance - ✔✔Encompasses three main coverages:
bodily injury and property damage liability, personal and advertising injury liability, and
medical payments.
✔✔Commercial auto insurance - ✔✔Can be used to cover liability loss exposures,
property loss exposures, and personal loss exposures arising out of the ownership,
maintenance, or use of autos.
✔✔Workers Compensation Liability - ✔✔Covers an employer's obligation to pay
benefits required by workers compensation statutes, with payments limited by
applicable workers compensation law.
✔✔Insurer's duty - ✔✔The insurer has a duty to defend the insured against claims,
proceedings, or suits seeking benefits payable by the policy.
✔✔Reimbursement requirement - ✔✔The insured is required to reimburse the insurer
for any penalties applied under a workers compensation law due to the employer's
willful misconduct or other violations.
✔✔Right of recovery transfer - ✔✔When the insurer pays workers compensation
benefits, any right of recovery the insured or the injured employee may have against a
third party is transferred to the insurer.
✔✔Claim for care and loss of services - ✔✔The spouse or family member of an injured
employee sues the employer for loss of companionship or services resulting from the
injury.
✔✔Personal loss exposure - ✔✔Any condition or situation that presents the possibility
of a financial loss to an individual or a family by such causes as death, sickness, injury,
or unemployment.
✔✔Third-party-over action - ✔✔A separate legal action, brought by a defendant in a
lawsuit, against a third party that might be liable to the defendant for all or part of the
plaintiff's claim.
