CPCU 551 EXAM 2025 QUESTIONS AND
VERIFIED ANSWERS GRADED A+
, After touring the manufacturing facility of a prospective policyholder, Vincent noted
some property exposures that would not be adequately covered under the standard ISO
Building and Personal Property Coverage Form (BPP). Which one of the following
should Vincent use to tailor the BPP coverage to meet the specific needs of the
prospective policyholder?
A. Endorsement
B. Coverage Extension
C. Reinsurance
D. Coinsurance - ANSWERA. Endorsement
Huntington Grill suffered a kitchen fire and was forced to close while repairs were being
done. The restaurant owners wanted to reopen as quickly as possible to avoid losing
customers to another restaurant. They decided to pay for express shipping for cooking
equipment and other key supplies in order to expedite the reopening process. The
express shipping costs would be considered which one of the following type of
expenses?
A. Non-continuing expense.
B. Continuing expense.
C. Extra expense. - ANSWERC. Extra expense.
Easttown Manufacturing (Easttown) makes automobile hubcaps and sells them to auto
manufacturers. Easttown has a fire that destroys their building and stops production for
12 months. In the year before the fire, Easttown earned a net profit of $500,000. In
order to maintain the operation so that they could resume after the factory is restored,
Easttown incurred expenses of $200,000. What is the amount of Easttown's business
income loss? Enter the figure without dollar signs or commas. - ANSWER700000
Which one of the following policies would respond to a pressure fired boiler explosion?
A. Commercial property policy.
B. Equipment breakdown policy.
C. Business owners policy. - ANSWERB. Equipment breakdown policy
Which one of the following best describes an advantage to insurers of nonfiled classes
compared with filed classes of inland marine insurance?
A. Nonfiled classes are the same in all states.
B. Nonfiled classes are characterized by relatively homogeneous loss exposures.
C. Nonfiled classes are characterized by a relatively large number of potential insureds
VERIFIED ANSWERS GRADED A+
, After touring the manufacturing facility of a prospective policyholder, Vincent noted
some property exposures that would not be adequately covered under the standard ISO
Building and Personal Property Coverage Form (BPP). Which one of the following
should Vincent use to tailor the BPP coverage to meet the specific needs of the
prospective policyholder?
A. Endorsement
B. Coverage Extension
C. Reinsurance
D. Coinsurance - ANSWERA. Endorsement
Huntington Grill suffered a kitchen fire and was forced to close while repairs were being
done. The restaurant owners wanted to reopen as quickly as possible to avoid losing
customers to another restaurant. They decided to pay for express shipping for cooking
equipment and other key supplies in order to expedite the reopening process. The
express shipping costs would be considered which one of the following type of
expenses?
A. Non-continuing expense.
B. Continuing expense.
C. Extra expense. - ANSWERC. Extra expense.
Easttown Manufacturing (Easttown) makes automobile hubcaps and sells them to auto
manufacturers. Easttown has a fire that destroys their building and stops production for
12 months. In the year before the fire, Easttown earned a net profit of $500,000. In
order to maintain the operation so that they could resume after the factory is restored,
Easttown incurred expenses of $200,000. What is the amount of Easttown's business
income loss? Enter the figure without dollar signs or commas. - ANSWER700000
Which one of the following policies would respond to a pressure fired boiler explosion?
A. Commercial property policy.
B. Equipment breakdown policy.
C. Business owners policy. - ANSWERB. Equipment breakdown policy
Which one of the following best describes an advantage to insurers of nonfiled classes
compared with filed classes of inland marine insurance?
A. Nonfiled classes are the same in all states.
B. Nonfiled classes are characterized by relatively homogeneous loss exposures.
C. Nonfiled classes are characterized by a relatively large number of potential insureds
