CPCU 552, CP&L FINAL EXAM QUESTION BANK
2025 COMPLETE ACTUAL EXAM QUESTIONS
WITH DETAILED VERIFIED ANSWERS |
ALREADY GRADED A+ | GUARANTEED PASS
HW decides to use a new jingle in their television advertisements. A local band
files suit claiming
that the jingle was substantially similar to a song on their recent album. HW
believes that it was
original material. - ✔✔✔ Correct Answer > Yes. Coverage B
Two forklifts ALMOST collide, but don't. After a discussion between the
concerned drivers and their manager, the group determined the root cause of this
problem was that the area of the warehouse was poorly marked for their mobile
equipment use. This process is categorized under which Risk Control term:
A. Risk Avoidance
B. Claims Management
C. Loss Reduction
D. Loss Prevention - ✔✔✔ Correct Answer > B
The supplemental payments section of the Commercial General Liability coverage
form is most correctly defined as - ✔✔✔ Correct Answer > 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
,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? - ✔✔✔ Correct
Answer > Retaliation claim
Alejandro was recently appointed to the Board of a medium-sized clothing
manufacturing company. As he grew more acquainted with his company and after
doing some digging, Alejandro was struck by a few red-flags concerning
malpractice and exploitation potentially having been committed by upper-level
management as well as certain board members. Alejandro is disgusted and hopes
to soon discontinue his relationship with the firm. Meanwhile, however,
Alejandro wants to protect himself legally in the event that employees or others
sue the board members. Which coverage should Alejandro acquire?
A. Employment-Related Practices Liability Insurance
B. Business Enhanced Expansion Endorsement
C. Directors and Officers Liability Insurance
D. Worker's Compensation Insurance - ✔✔✔ Correct Answer > C. ) Directors and
Officers Liability insurance is provided specifically for such a scenario for Board
members of a firm. This coverage is intended to protect individuals from
personal losses if they are sued as a result of serving as a director or an officer
of a given organization or business.
Aircraft have a significant exposure to catastrophe losses. Of the many reasons for
the catastrophic loss potential of aircraft, the most significant is - ✔✔✔ Correct
Answer > 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? - ✔✔✔ Correct Answer > 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? - ✔✔✔ Correct Answer > Liquidated damages
Many states have funds from which employers may purchase workers
compensation insurance. Such funds may be either - ✔✔✔ Correct Answer >
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? - ✔✔✔ Correct Answer > 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.
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 - ✔✔✔ Correct Answer > 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? - ✔✔✔ Correct Answer > 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 - ✔✔✔ Correct Answer > 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? - ✔✔✔ Correct Answer >
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
2025 COMPLETE ACTUAL EXAM QUESTIONS
WITH DETAILED VERIFIED ANSWERS |
ALREADY GRADED A+ | GUARANTEED PASS
HW decides to use a new jingle in their television advertisements. A local band
files suit claiming
that the jingle was substantially similar to a song on their recent album. HW
believes that it was
original material. - ✔✔✔ Correct Answer > Yes. Coverage B
Two forklifts ALMOST collide, but don't. After a discussion between the
concerned drivers and their manager, the group determined the root cause of this
problem was that the area of the warehouse was poorly marked for their mobile
equipment use. This process is categorized under which Risk Control term:
A. Risk Avoidance
B. Claims Management
C. Loss Reduction
D. Loss Prevention - ✔✔✔ Correct Answer > B
The supplemental payments section of the Commercial General Liability coverage
form is most correctly defined as - ✔✔✔ Correct Answer > 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
,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? - ✔✔✔ Correct
Answer > Retaliation claim
Alejandro was recently appointed to the Board of a medium-sized clothing
manufacturing company. As he grew more acquainted with his company and after
doing some digging, Alejandro was struck by a few red-flags concerning
malpractice and exploitation potentially having been committed by upper-level
management as well as certain board members. Alejandro is disgusted and hopes
to soon discontinue his relationship with the firm. Meanwhile, however,
Alejandro wants to protect himself legally in the event that employees or others
sue the board members. Which coverage should Alejandro acquire?
A. Employment-Related Practices Liability Insurance
B. Business Enhanced Expansion Endorsement
C. Directors and Officers Liability Insurance
D. Worker's Compensation Insurance - ✔✔✔ Correct Answer > C. ) Directors and
Officers Liability insurance is provided specifically for such a scenario for Board
members of a firm. This coverage is intended to protect individuals from
personal losses if they are sued as a result of serving as a director or an officer
of a given organization or business.
Aircraft have a significant exposure to catastrophe losses. Of the many reasons for
the catastrophic loss potential of aircraft, the most significant is - ✔✔✔ Correct
Answer > 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? - ✔✔✔ Correct Answer > 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? - ✔✔✔ Correct Answer > Liquidated damages
Many states have funds from which employers may purchase workers
compensation insurance. Such funds may be either - ✔✔✔ Correct Answer >
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? - ✔✔✔ Correct Answer > 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.
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 - ✔✔✔ Correct Answer > 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? - ✔✔✔ Correct Answer > 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 - ✔✔✔ Correct Answer > 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? - ✔✔✔ Correct Answer >
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
