CPCU 552, CP&L FINAL EXAM QUESTIONS &
VERIFIED CORRECT ANSWERS NEWEST
UPLOADED 150 QUIZ A+ PASSED
Which one of the following statements about coverage triggers in cyber risk
insurance policies is most accurate? - ans -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 - ans -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? - ans -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? - ans -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? - ans -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? - ans -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
- ans -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 - ans -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 - ans -Abolishment of the
Troubled Asset Relief Program (TARP).
, The supplemental payments section of the Commercial General Liability coverage
form is most correctly defined as - ans -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 - ans -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 - ans -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 - ans -An add-on no-fault law.
Loss reduction techniques are intended to reduce the - ans -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? - ans -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
VERIFIED CORRECT ANSWERS NEWEST
UPLOADED 150 QUIZ A+ PASSED
Which one of the following statements about coverage triggers in cyber risk
insurance policies is most accurate? - ans -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 - ans -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? - ans -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? - ans -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? - ans -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? - ans -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
- ans -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 - ans -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 - ans -Abolishment of the
Troubled Asset Relief Program (TARP).
, The supplemental payments section of the Commercial General Liability coverage
form is most correctly defined as - ans -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 - ans -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 - ans -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 - ans -An add-on no-fault law.
Loss reduction techniques are intended to reduce the - ans -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? - ans -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
