CISR Commercial Casualty 2 - Questions And Accurate
Answers
Which of the following states is not a workers' compensation monopolistic
state?
a. Wyoming
b. Texas
c. North Dakota
d. Ohio Right Ans - b. Texas
The Business Auto Coverage Form defines "auto" and "mobile equipment." All
of the following are considered autos rather than mobile equipment as
defined in the Business Auto Coverage Form except:
a. road scraping equipment built on crawler treads
b. a self-propelled vehicle equipped with well servicing equipment
c. a cherry picker mounted on a truck chassis
d. a self-propelled vehicle designed primarily for snow removal Right Ans -
a. road scraping equipment built on crawler treads
Which of the following is not a reason liability coverage will automatically be
extended for a non-owned auto being used as a temporary substitute for a
covered "auto" the named insured owns but cannot be used?
a. "Loss" or destruction
b. Breakdown
c. Service or repair
d. Insufficient towing capacity Right Ans - d. Insufficient towing capacity
Your insured has an unendorsed Business Auto Coverage Form in which
Liability is written using Symbol 1 (Any "Auto"). An employee who is using his
personal vehicle on behalf of the business has an at-fault accident. Who is an
insured under your insured's policy
a. Both the named insured and the employee
b. Only the named insured
c. Neither the named insured nor the employee
d. Only the employee Right Ans - b. Only the named insured
Which of the following is not covered under Comprehensive coverage
provided by a Business Auto Coverage Form?
,a. Vandalism to the service truck
b. Hail damage to the three sales vehicles parked in the parking lot over the
weekend
c. Damage to the business-owned pickup truck when the vehicle overturns
d. The damage caused by a tree branch that falls on the roof of the delivery
van Right Ans - c. Damage to the business-owned pickup truck when the
vehicle overturns
George drove the scheduled delivery truck to the client's home to deliver a
new refrigerator. While moving the appliance with the dolly (hand truck) into
the home, it fell and damaged the flooring. Which coverage form, if any, would
provide coverage for customer's floor?
a. Commercial General Liability Form
b. Business Auto Coverage Form
c. Both the Commercial General Liability and the Business Auto Coverage,
equally
d. Neither policy since the damage was caused by the dolly (hand truck)
Right Ans - b. Business Auto Coverage Form
Which of the following statements is not true about workers' compensation
statutes?
a. Death benefits can include weekly income benefits for the employee's
eligible dependents.
b. Most states impose a dollar limit on medical expenses.
c. Most states have rehabilitation benefits written into their law.
d. Lost wage benefits are paid to replace the loss of income suffered by an
injured or sick employee. Right Ans - b. Most states impose a dollar limit on
medical expenses.
Most workers' compensation statutes provide four types of benefits. Which of
the following is not one of those benefits?
a. Payments made to an employee to replace the loss of income suffered as a
result of a work-related injury
b. Medical expenses incurred for injuries sustained by an employee
c. Payments made toward physical rehabilitation following an injury
d. Medical expenses paid to family members following an employee's sickness
Right Ans - d. Medical expenses paid to family members following an
employee's sickness
,Which of the following coverages is not provided by monopolistic state funds?
a. Lost wages due to work-related sickness or injury
b. Employers' liability insurance
c. Rehabilitation benefits
d. Medical expenses for work-related injuries Right Ans - b. Employers'
liability insurance
The Information Page in the Workers' Compensation and Employers' Liability
Policy uses Item 3.A. to do which of the following?
a. Trigger workers' compensation coverage in monopolistic states only
b. Trigger Other States' Insurance coverage
c. Trigger workers' compensation coverage in listed states
d. Trigger employers' liability coverage in all states Right Ans - c. Trigger
workers' compensation coverage in listed states
When working with your client to select the coverages needed for his
Workers' Compensation and Employers' Liability Insurance Policy, you come
to Item 3.B. of the Information Page. Which statement best explains what this
section triggers and how?
a. It triggers employers' liability coverage for only those states listed in 3.B.
b. It triggers workers' compensation and employers' liability coverage for all
states listed in 3.B.
c. It triggers employers' liability coverage for those states listed in 3.A. for the
limits that are shown for bodily injury by accident for each accident, bodily
injury by disease with a policy limit, and bodily injury by disease for each
employee.
d. It triggers workers' compensation benefits in the states listed in 3.A. and
sets the limits for medical expenses, rehabilitation expenses, and
death/funeral expenses. Right Ans - c. It triggers employers' liability
coverage for those states listed in 3.A. for the limits that are shown for bodily
injury by accident for each accident, bodily injury by disease with a policy
limit, and bodily injury by disease for each employee.
Your insured buys a Workers' Compensation Policy for coverage in New York
with NY listed in Item 3.A. Three months after the policy effective date, your
insured also begins work in New Jersey. New Jersey is listed in Item 3.C.
Which statement below is true about your insured's workers' compensation
coverage?
a. Your insured has coverage in New Jersey only after they notify the insurer.
, b. Your insured has no coverage in New Jersey since the state is not listed in
item 3.A. of the Information Page.
c. Your insured has automatic coverage in New Jersey for 90 days.
d. Your insured has automatic coverage in New Jersey as long as the insurer is
notified "at once" that work has begun there Right Ans - d. Your insured
has automatic coverage in New Jersey as long as the insurer is notified "at
once" that work has begun there
As you review his insurance needs, your client asks you about the primary
functions of an Umbrella Liability Policy. Which of the following would not be
used to answer his question?
a. It provides excess limits over underlying insurance.
b. It provides broader insurance protection than that provided by underlying
policies.
c. It replaces underlying insurance when aggregate limits have been
exhausted.
d. It replaces claims expenses incurred by the insured. Right Ans - d. It
replaces claims expenses incurred by the insured.
A self-insured retention can be explained to your client using which of the
following statements?
a. It applies only if coverage is provided by the Umbrella Liability Policy but
not by underlying policies, and it does not apply when coverage is in excess of
the underlying policy.
b. It applies only if defense is provided by the Umbrella Liability Policy, but no
payment for settlement will be made.
c. It applies every time a payment will be made by the Umbrella Liability
Policy, whether for settlement or for defense.
d. It applies for bodily injury claims only and does not apply to property
damage claims. Right Ans - a. It applies only if coverage is provided by the
Umbrella Liability Policy but not by underlying policies, and it does not apply
when coverage is in excess of the underlying policy.
This course describes different types of excess policies. The description, "A
follow form Excess Liability Policy that covers more than one underlying
policy such as CGL, BAP, and Employers' Liability," is known as which of the
following?
a. Multiple Umbrella Policy
b. Buffer Layer Excess Policy
Answers
Which of the following states is not a workers' compensation monopolistic
state?
a. Wyoming
b. Texas
c. North Dakota
d. Ohio Right Ans - b. Texas
The Business Auto Coverage Form defines "auto" and "mobile equipment." All
of the following are considered autos rather than mobile equipment as
defined in the Business Auto Coverage Form except:
a. road scraping equipment built on crawler treads
b. a self-propelled vehicle equipped with well servicing equipment
c. a cherry picker mounted on a truck chassis
d. a self-propelled vehicle designed primarily for snow removal Right Ans -
a. road scraping equipment built on crawler treads
Which of the following is not a reason liability coverage will automatically be
extended for a non-owned auto being used as a temporary substitute for a
covered "auto" the named insured owns but cannot be used?
a. "Loss" or destruction
b. Breakdown
c. Service or repair
d. Insufficient towing capacity Right Ans - d. Insufficient towing capacity
Your insured has an unendorsed Business Auto Coverage Form in which
Liability is written using Symbol 1 (Any "Auto"). An employee who is using his
personal vehicle on behalf of the business has an at-fault accident. Who is an
insured under your insured's policy
a. Both the named insured and the employee
b. Only the named insured
c. Neither the named insured nor the employee
d. Only the employee Right Ans - b. Only the named insured
Which of the following is not covered under Comprehensive coverage
provided by a Business Auto Coverage Form?
,a. Vandalism to the service truck
b. Hail damage to the three sales vehicles parked in the parking lot over the
weekend
c. Damage to the business-owned pickup truck when the vehicle overturns
d. The damage caused by a tree branch that falls on the roof of the delivery
van Right Ans - c. Damage to the business-owned pickup truck when the
vehicle overturns
George drove the scheduled delivery truck to the client's home to deliver a
new refrigerator. While moving the appliance with the dolly (hand truck) into
the home, it fell and damaged the flooring. Which coverage form, if any, would
provide coverage for customer's floor?
a. Commercial General Liability Form
b. Business Auto Coverage Form
c. Both the Commercial General Liability and the Business Auto Coverage,
equally
d. Neither policy since the damage was caused by the dolly (hand truck)
Right Ans - b. Business Auto Coverage Form
Which of the following statements is not true about workers' compensation
statutes?
a. Death benefits can include weekly income benefits for the employee's
eligible dependents.
b. Most states impose a dollar limit on medical expenses.
c. Most states have rehabilitation benefits written into their law.
d. Lost wage benefits are paid to replace the loss of income suffered by an
injured or sick employee. Right Ans - b. Most states impose a dollar limit on
medical expenses.
Most workers' compensation statutes provide four types of benefits. Which of
the following is not one of those benefits?
a. Payments made to an employee to replace the loss of income suffered as a
result of a work-related injury
b. Medical expenses incurred for injuries sustained by an employee
c. Payments made toward physical rehabilitation following an injury
d. Medical expenses paid to family members following an employee's sickness
Right Ans - d. Medical expenses paid to family members following an
employee's sickness
,Which of the following coverages is not provided by monopolistic state funds?
a. Lost wages due to work-related sickness or injury
b. Employers' liability insurance
c. Rehabilitation benefits
d. Medical expenses for work-related injuries Right Ans - b. Employers'
liability insurance
The Information Page in the Workers' Compensation and Employers' Liability
Policy uses Item 3.A. to do which of the following?
a. Trigger workers' compensation coverage in monopolistic states only
b. Trigger Other States' Insurance coverage
c. Trigger workers' compensation coverage in listed states
d. Trigger employers' liability coverage in all states Right Ans - c. Trigger
workers' compensation coverage in listed states
When working with your client to select the coverages needed for his
Workers' Compensation and Employers' Liability Insurance Policy, you come
to Item 3.B. of the Information Page. Which statement best explains what this
section triggers and how?
a. It triggers employers' liability coverage for only those states listed in 3.B.
b. It triggers workers' compensation and employers' liability coverage for all
states listed in 3.B.
c. It triggers employers' liability coverage for those states listed in 3.A. for the
limits that are shown for bodily injury by accident for each accident, bodily
injury by disease with a policy limit, and bodily injury by disease for each
employee.
d. It triggers workers' compensation benefits in the states listed in 3.A. and
sets the limits for medical expenses, rehabilitation expenses, and
death/funeral expenses. Right Ans - c. It triggers employers' liability
coverage for those states listed in 3.A. for the limits that are shown for bodily
injury by accident for each accident, bodily injury by disease with a policy
limit, and bodily injury by disease for each employee.
Your insured buys a Workers' Compensation Policy for coverage in New York
with NY listed in Item 3.A. Three months after the policy effective date, your
insured also begins work in New Jersey. New Jersey is listed in Item 3.C.
Which statement below is true about your insured's workers' compensation
coverage?
a. Your insured has coverage in New Jersey only after they notify the insurer.
, b. Your insured has no coverage in New Jersey since the state is not listed in
item 3.A. of the Information Page.
c. Your insured has automatic coverage in New Jersey for 90 days.
d. Your insured has automatic coverage in New Jersey as long as the insurer is
notified "at once" that work has begun there Right Ans - d. Your insured
has automatic coverage in New Jersey as long as the insurer is notified "at
once" that work has begun there
As you review his insurance needs, your client asks you about the primary
functions of an Umbrella Liability Policy. Which of the following would not be
used to answer his question?
a. It provides excess limits over underlying insurance.
b. It provides broader insurance protection than that provided by underlying
policies.
c. It replaces underlying insurance when aggregate limits have been
exhausted.
d. It replaces claims expenses incurred by the insured. Right Ans - d. It
replaces claims expenses incurred by the insured.
A self-insured retention can be explained to your client using which of the
following statements?
a. It applies only if coverage is provided by the Umbrella Liability Policy but
not by underlying policies, and it does not apply when coverage is in excess of
the underlying policy.
b. It applies only if defense is provided by the Umbrella Liability Policy, but no
payment for settlement will be made.
c. It applies every time a payment will be made by the Umbrella Liability
Policy, whether for settlement or for defense.
d. It applies for bodily injury claims only and does not apply to property
damage claims. Right Ans - a. It applies only if coverage is provided by the
Umbrella Liability Policy but not by underlying policies, and it does not apply
when coverage is in excess of the underlying policy.
This course describes different types of excess policies. The description, "A
follow form Excess Liability Policy that covers more than one underlying
policy such as CGL, BAP, and Employers' Liability," is known as which of the
following?
a. Multiple Umbrella Policy
b. Buffer Layer Excess Policy
