2025 CP&L Quizlet
-Railroad owners commonly require contractors to purchase a Railroad Protective Liability
Coverage Form. Which one of the following statements about this form is true?
One of the coverage limits applies to physical damage to property owned by or leased
or entrusted to the railroad
-Which one of the following statements about the general aggregate limit under a
Commercial General Liability (CGL) Coverage Form is true?
It is reduced by an claims paid for medical payments under Coverage C.
-Tom often runs errands for his boss at XYZ Company, using the boss' car. On one of these
errands, Tom is involved in a serious auto accident. He spends a couple of weeks in the
hospital; misses four weeks of work; and must undergo physical therapy. Does XYZ's
Workers Compensation and Employers Liability Insurance (WC&EL) Policy cover Tom's
injuries, lost income, and rehabilitation expenses?
Yes, the workers compensation policy would pay all of Tom's expenses, because his
injuries arose out of his employment at XYZ Company.
-Aircraft have a significant exposure to catastrophe losses. Of the many reasons for the
catastrophic loss potential of aircraft, the most significant is The physical properties of
aircraft.
A security guard is employed at a pier where shipping containers are loaded and unloaded
from barges. There is also a small marina for pleasure craft at the pier. The security guard
trips over equipment left on a dock alongside a pleasure craft and is injured. The pier only has
insurance coverage that provides benefits under the Longshore and Harbor Workers
Compensation Act (LHWCA). Is the guard's injury covered under LHWCA?
The injury is covered by LHWCA because the guard is not covered under a state's
workers compensation law.
-ABC Plumbing entered into a contract with Bill to install a commercial grade septic system
on his property. The installation of the septic septic was time sensitive because the rest of
Bill's construction project could not go forward until the septic system was in place. The
contract required that the work be done within 30 days of contract signing, or ABC would
have to pay a penalty of $1,000 per day. Which one of the following categories of damages
does the $1,000 per day penalty specified in the contract fall into?
Liquidated damages
-Many states have funds from which employers may purchase workers compensation
insurance. Such funds may be either Competitive or monopolistic
Section II—Who Is an Insured identifies the persons and organizations that qualify as
insureds under the Commercial General Liability (CGL) Coverage Form. Which one of the
following statements regarding who is considered an insured is most accurate?
When a CGL policy covers one or more individuals as named insureds, any person or
organization having proper temporary custody of the named insured's property following the
named insured's death is an insured.
-
,-What is the name given to a claim by an employee who says that he or she was fired because
of the filing of a workers compensation claim?
Retaliation claim
-Javier's business auto policy contains a personal injury protection (PIP) endorsement. He is
involved in an auto accident in the covered auto, resulting in $30,000 in property damage,
$5,000 in third-party bodily injury, and $10,000 in personal medical expenses. If Javier's
business auto policy has a general aggregate limit of $100,000 and a PIP limit of $15,000 and
he is at fault for the accident, how much will his insurer pay under the PIP coverage
PIP provides first-party benefits for medical expenses, loss of income, loss of
services, and funeral expenses resulting from bodily injury to occupants of a covered auto
because of an auto accident. It pays regardless of which party was at fault in the accident.
Therefore, Javier's insurer will pay him $10,000 in medical expenses from the PIP coverage.
- The other damages will be payable under different coverages available on his policy.
Which one of the following statements about coverage triggers in cyber risk insurance
policies is most accurate?
Both claims-made coverage triggers and occurrence coverage triggers are available,
but occurrence coverage triggers are more appropriate for some insuring agreements than for
others
-According to the Terrorism Risk Insurance Act (TRIA), one of the two required conditions
that an insurer must meet at the time of an initial offer, purchase, and renewal of insurance is
the disclosure of the premium for terrorism coverage. What is the other condition
A make-available provision
-Acme Insurance cannot agree with insured Jill Jenkins on the amount of a covered physical
damage loss under Jill's Business Auto Coverage Form. Jill requested an appraisal. Acme and
Jill each appoint an appraiser, and the appraisers appoint an umpire. An award in writing
signed by any two of the three binds both Acme and Jill. One appraiser and the umpire ruled
for Jill and against Acme. Which one of the following statements is true regarding this
scenario?
Jill and Acme will share the cost of the umpire.
-Matthew Jones, the named insured under an unendorsed Business Auto Coverage Form
(BACF), requires his employees to use their own cars for business purposes. One of
Matthew's employees, Paul, causes an accident while driving his own truck for the business.
Matthew's BACF shows symbol 1 for liability coverage. Which one of the following
correctly indicates whether Paul is an insured under the policy for the accident?
Paul is not covered because employees are not insured while using their own autos in
the named insured's business.
-ABC Corporation is insured under a standard unendorsed workers compensation policy for
only the state of Florida. Three months before the present policy began, ABC opened a sales
office in Georgia due to business volume growing in that state. ABC failed to report the new
location and new state at policy inception. The manager of the Georgia office fell and was
injured and missed work for three weeks after the inception of the ABC policy. The manager
made claim for Georgia benefits. Which one of the following is true regarding ABC's
coverage for Georgia benefits?
Coverage for this claim would not be covered by ABC's insurance.
,-The claims-made trigger in a site specific environmental impairment liability policy differs
in three ways from the trigger in other claims-made liability policies. Which one of the
following best describes one of those three ways?
A site-specific environmental impairment liability policy typically does not have a
retroactive date.
-The Grey Corporation has a Commercial General Liability Coverage Form with the
following limits:
Each Occurrence $1,000,000
Damage to rented premises $100,000 each occurrence
Medical expense $5,000 any one person
Personal and advertising injury $1,000,000 any one person or organization
General aggregate limit $2,000,000
Product/completed operations aggregate limit $2,000,000
Assuming the policy is written on an occurrence basis, how much of the general aggregate
limit, if any, remains if the following claims have been paid under the policy?
a premises/operations liability claim of $600,000
a products liability claim of $1,200,000
$3,000 of medical expenses to a customer injured on the premises.
a personal and advertising injury liability claim of $300,000
The general aggregate is reduced by any amounts paid under Coverages A, B, and C,
except for those that arise out of products/completed operations. Therefore, the general
aggregate limit is reduced by $600,000 + $3,000 + $300,000 = $903,000. This leaves
$1,097,000 of the general aggregate limit remaining.
-An example of liability imposed by statute is
Workers compensation.
n July of 2010 the Dodd-Frank Act was passed in response to the public's demand for
improvements in financial systems and to curb abusive Wall Street practices. A significant
provision of the Dodd-Frank Act was the
Abolishment of the Troubled Asset Relief Program (TARP).
-The supplemental payments section of the Commercial General Liability coverage form is
most correctly defined as
The supplemental payments section of the Commercial General Liability coverage
form is most correctly defined as specified costs the insurer will pay as part of any claim the
insurer investigates or defends under Coverage A or B
-Excess liability policies
Do not provide coverage for exposures not covered in primary policies.
Part Two of the Workers Compensation and Employers Liability Policy (WC&EL) is the
employers liability portion of the policy. Under this portion of the policy the insurer would
pay for Common law liability for occupational injury to employees,
-Some state no-fault laws preserve the tort system but require insurers to offer personal injury
protection (PIP) insurance that provides specified first-party benefits. This is referred to as
An add-on no-fault law.
-Loss reduction techniques are intended to reduce the
Severity of losses.
, -Tom and Jerry own a General Motors vehicle dealership, and they have purchased an Auto
Dealers Coverage Form (ADCF) with the False Pretense Coverage endorsement. In January,
Chuck (one of their salespeople) makes a deal with Max for a new car. Chuck gives Max
$30,000 for his two trade-in vehicles and Max drives away with a new car worth $40,000.
Later that week, the dealership business office discovers that Max did not have proper title to
either of the trade-in vehicles, and now the dealership cannot sell them.How much, if
anything, will Tom and Jerry's ADCF pay towards the loss suffered by the taking of these
two cars?
Tom and Jerry's ADCF will pay $25,000 for this loss - the maximum amount payable
under the False Pretense endorsement for losses caused by any one person in a year.
-Larry is an employee of XYZ Company and works solely in State A which is the only state
listed on XYZ's workers compensation policy. XYZ obtained a small job in neighboring State
B and while Larry is working in State B he injured himself. Which one of the following
would be the response from XYZ's workers compensation insurer to Larry's claim for
benefits?
It would provide State A workers compensation benefits to Larry
-QRS, LLC has been a small town's largest employer for a long time. When the owner of
QRS, LLC died, the company was forced to lay off 25 percent of its workforce, because the
proper life insurance was not in force for the owner. These mass lay-offs resulted in bad
publicity in the town paper and much negativity directed at the company in various town
meetings. The employment practices liability (EPL) policy in force for QRS, LLC provided
money to cover QRS's costs to retain a PR firm.Such costs are called
Reputation management costs.
-Mitchell is a highway contractor whose company is covered with a workers compensation
policy and an unendorsed Business Auto Coverage Form (BACF). Which one of the
following losses would be covered by his business auto policy?
An employee runs over a subcontractor's equipment with an owned auto.
-Which one of the following statements is true about an excess policy?
It provides coverage no broader than is provided by underlying polices.
-Although professional liability policies for financial and legal professionals contain many of
the same provisions of those for other professionals, there are important differences. Which
one of the following would be covered under the professional liability policies for financial
and legal professionals that contain the broadest definition of professional services?
Claims arising from any professional service performed for others for a fee
An excess liability insurance policy that covers a claim in excess of the underlying limits
only if the loss is covered by the underlying policy is called A following-form excess policy
-A dealership keeps a customer's auto overnight. The auto, while on premises, is damaged by
hail. The dealership has garagekeepers coverage on a legal liability basis on an Auto Dealers
Coverage Form. The customer has a Liability-only policy. The customer asks the dealership
to pay for the hail damage, but the claim is denied by the insurer. The only way the
dealership's policy would have paid the claim is if the dealership had purchased
One of the garagekeepers direct coverage options.
-The Broad Form Products Coverage endorsement can be used
-Railroad owners commonly require contractors to purchase a Railroad Protective Liability
Coverage Form. Which one of the following statements about this form is true?
One of the coverage limits applies to physical damage to property owned by or leased
or entrusted to the railroad
-Which one of the following statements about the general aggregate limit under a
Commercial General Liability (CGL) Coverage Form is true?
It is reduced by an claims paid for medical payments under Coverage C.
-Tom often runs errands for his boss at XYZ Company, using the boss' car. On one of these
errands, Tom is involved in a serious auto accident. He spends a couple of weeks in the
hospital; misses four weeks of work; and must undergo physical therapy. Does XYZ's
Workers Compensation and Employers Liability Insurance (WC&EL) Policy cover Tom's
injuries, lost income, and rehabilitation expenses?
Yes, the workers compensation policy would pay all of Tom's expenses, because his
injuries arose out of his employment at XYZ Company.
-Aircraft have a significant exposure to catastrophe losses. Of the many reasons for the
catastrophic loss potential of aircraft, the most significant is The physical properties of
aircraft.
A security guard is employed at a pier where shipping containers are loaded and unloaded
from barges. There is also a small marina for pleasure craft at the pier. The security guard
trips over equipment left on a dock alongside a pleasure craft and is injured. The pier only has
insurance coverage that provides benefits under the Longshore and Harbor Workers
Compensation Act (LHWCA). Is the guard's injury covered under LHWCA?
The injury is covered by LHWCA because the guard is not covered under a state's
workers compensation law.
-ABC Plumbing entered into a contract with Bill to install a commercial grade septic system
on his property. The installation of the septic septic was time sensitive because the rest of
Bill's construction project could not go forward until the septic system was in place. The
contract required that the work be done within 30 days of contract signing, or ABC would
have to pay a penalty of $1,000 per day. Which one of the following categories of damages
does the $1,000 per day penalty specified in the contract fall into?
Liquidated damages
-Many states have funds from which employers may purchase workers compensation
insurance. Such funds may be either Competitive or monopolistic
Section II—Who Is an Insured identifies the persons and organizations that qualify as
insureds under the Commercial General Liability (CGL) Coverage Form. Which one of the
following statements regarding who is considered an insured is most accurate?
When a CGL policy covers one or more individuals as named insureds, any person or
organization having proper temporary custody of the named insured's property following the
named insured's death is an insured.
-
,-What is the name given to a claim by an employee who says that he or she was fired because
of the filing of a workers compensation claim?
Retaliation claim
-Javier's business auto policy contains a personal injury protection (PIP) endorsement. He is
involved in an auto accident in the covered auto, resulting in $30,000 in property damage,
$5,000 in third-party bodily injury, and $10,000 in personal medical expenses. If Javier's
business auto policy has a general aggregate limit of $100,000 and a PIP limit of $15,000 and
he is at fault for the accident, how much will his insurer pay under the PIP coverage
PIP provides first-party benefits for medical expenses, loss of income, loss of
services, and funeral expenses resulting from bodily injury to occupants of a covered auto
because of an auto accident. It pays regardless of which party was at fault in the accident.
Therefore, Javier's insurer will pay him $10,000 in medical expenses from the PIP coverage.
- The other damages will be payable under different coverages available on his policy.
Which one of the following statements about coverage triggers in cyber risk insurance
policies is most accurate?
Both claims-made coverage triggers and occurrence coverage triggers are available,
but occurrence coverage triggers are more appropriate for some insuring agreements than for
others
-According to the Terrorism Risk Insurance Act (TRIA), one of the two required conditions
that an insurer must meet at the time of an initial offer, purchase, and renewal of insurance is
the disclosure of the premium for terrorism coverage. What is the other condition
A make-available provision
-Acme Insurance cannot agree with insured Jill Jenkins on the amount of a covered physical
damage loss under Jill's Business Auto Coverage Form. Jill requested an appraisal. Acme and
Jill each appoint an appraiser, and the appraisers appoint an umpire. An award in writing
signed by any two of the three binds both Acme and Jill. One appraiser and the umpire ruled
for Jill and against Acme. Which one of the following statements is true regarding this
scenario?
Jill and Acme will share the cost of the umpire.
-Matthew Jones, the named insured under an unendorsed Business Auto Coverage Form
(BACF), requires his employees to use their own cars for business purposes. One of
Matthew's employees, Paul, causes an accident while driving his own truck for the business.
Matthew's BACF shows symbol 1 for liability coverage. Which one of the following
correctly indicates whether Paul is an insured under the policy for the accident?
Paul is not covered because employees are not insured while using their own autos in
the named insured's business.
-ABC Corporation is insured under a standard unendorsed workers compensation policy for
only the state of Florida. Three months before the present policy began, ABC opened a sales
office in Georgia due to business volume growing in that state. ABC failed to report the new
location and new state at policy inception. The manager of the Georgia office fell and was
injured and missed work for three weeks after the inception of the ABC policy. The manager
made claim for Georgia benefits. Which one of the following is true regarding ABC's
coverage for Georgia benefits?
Coverage for this claim would not be covered by ABC's insurance.
,-The claims-made trigger in a site specific environmental impairment liability policy differs
in three ways from the trigger in other claims-made liability policies. Which one of the
following best describes one of those three ways?
A site-specific environmental impairment liability policy typically does not have a
retroactive date.
-The Grey Corporation has a Commercial General Liability Coverage Form with the
following limits:
Each Occurrence $1,000,000
Damage to rented premises $100,000 each occurrence
Medical expense $5,000 any one person
Personal and advertising injury $1,000,000 any one person or organization
General aggregate limit $2,000,000
Product/completed operations aggregate limit $2,000,000
Assuming the policy is written on an occurrence basis, how much of the general aggregate
limit, if any, remains if the following claims have been paid under the policy?
a premises/operations liability claim of $600,000
a products liability claim of $1,200,000
$3,000 of medical expenses to a customer injured on the premises.
a personal and advertising injury liability claim of $300,000
The general aggregate is reduced by any amounts paid under Coverages A, B, and C,
except for those that arise out of products/completed operations. Therefore, the general
aggregate limit is reduced by $600,000 + $3,000 + $300,000 = $903,000. This leaves
$1,097,000 of the general aggregate limit remaining.
-An example of liability imposed by statute is
Workers compensation.
n July of 2010 the Dodd-Frank Act was passed in response to the public's demand for
improvements in financial systems and to curb abusive Wall Street practices. A significant
provision of the Dodd-Frank Act was the
Abolishment of the Troubled Asset Relief Program (TARP).
-The supplemental payments section of the Commercial General Liability coverage form is
most correctly defined as
The supplemental payments section of the Commercial General Liability coverage
form is most correctly defined as specified costs the insurer will pay as part of any claim the
insurer investigates or defends under Coverage A or B
-Excess liability policies
Do not provide coverage for exposures not covered in primary policies.
Part Two of the Workers Compensation and Employers Liability Policy (WC&EL) is the
employers liability portion of the policy. Under this portion of the policy the insurer would
pay for Common law liability for occupational injury to employees,
-Some state no-fault laws preserve the tort system but require insurers to offer personal injury
protection (PIP) insurance that provides specified first-party benefits. This is referred to as
An add-on no-fault law.
-Loss reduction techniques are intended to reduce the
Severity of losses.
, -Tom and Jerry own a General Motors vehicle dealership, and they have purchased an Auto
Dealers Coverage Form (ADCF) with the False Pretense Coverage endorsement. In January,
Chuck (one of their salespeople) makes a deal with Max for a new car. Chuck gives Max
$30,000 for his two trade-in vehicles and Max drives away with a new car worth $40,000.
Later that week, the dealership business office discovers that Max did not have proper title to
either of the trade-in vehicles, and now the dealership cannot sell them.How much, if
anything, will Tom and Jerry's ADCF pay towards the loss suffered by the taking of these
two cars?
Tom and Jerry's ADCF will pay $25,000 for this loss - the maximum amount payable
under the False Pretense endorsement for losses caused by any one person in a year.
-Larry is an employee of XYZ Company and works solely in State A which is the only state
listed on XYZ's workers compensation policy. XYZ obtained a small job in neighboring State
B and while Larry is working in State B he injured himself. Which one of the following
would be the response from XYZ's workers compensation insurer to Larry's claim for
benefits?
It would provide State A workers compensation benefits to Larry
-QRS, LLC has been a small town's largest employer for a long time. When the owner of
QRS, LLC died, the company was forced to lay off 25 percent of its workforce, because the
proper life insurance was not in force for the owner. These mass lay-offs resulted in bad
publicity in the town paper and much negativity directed at the company in various town
meetings. The employment practices liability (EPL) policy in force for QRS, LLC provided
money to cover QRS's costs to retain a PR firm.Such costs are called
Reputation management costs.
-Mitchell is a highway contractor whose company is covered with a workers compensation
policy and an unendorsed Business Auto Coverage Form (BACF). Which one of the
following losses would be covered by his business auto policy?
An employee runs over a subcontractor's equipment with an owned auto.
-Which one of the following statements is true about an excess policy?
It provides coverage no broader than is provided by underlying polices.
-Although professional liability policies for financial and legal professionals contain many of
the same provisions of those for other professionals, there are important differences. Which
one of the following would be covered under the professional liability policies for financial
and legal professionals that contain the broadest definition of professional services?
Claims arising from any professional service performed for others for a fee
An excess liability insurance policy that covers a claim in excess of the underlying limits
only if the loss is covered by the underlying policy is called A following-form excess policy
-A dealership keeps a customer's auto overnight. The auto, while on premises, is damaged by
hail. The dealership has garagekeepers coverage on a legal liability basis on an Auto Dealers
Coverage Form. The customer has a Liability-only policy. The customer asks the dealership
to pay for the hail damage, but the claim is denied by the insurer. The only way the
dealership's policy would have paid the claim is if the dealership had purchased
One of the garagekeepers direct coverage options.
-The Broad Form Products Coverage endorsement can be used
