CPCU 552, CP&L FINAL EXAM NEWEST 2025 ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!
Railroad owners commonly require contractors to purchase a Railroad Protective Liability Coverage
Form. Which one of the following statements about this form is true? - (ANSWER)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? - (ANSWER)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? - (ANSWER)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 - (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? - (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
,CPCU 552, CP&L FINAL EXAM NEWEST 2025 ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!
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? - (ANSWER)Liquidated damages
Many states have funds from which employers may purchase workers compensation insurance. Such
funds may be either - (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? - (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.
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? - (ANSWER)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 - (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? - (ANSWER)Both claims-made coverage triggers and occurrence coverage triggers are
,CPCU 552, CP&L FINAL EXAM NEWEST 2025 ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!
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 - (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? - (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 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? - (ANSWER)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? - (ANSWER)Coverage for this
claim would not be covered by ABC's insurance.
, CPCU 552, CP&L FINAL EXAM NEWEST 2025 ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!
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? - (ANSWER)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 - (ANSWER)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 - (ANSWER)Workers compensation.
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!
Railroad owners commonly require contractors to purchase a Railroad Protective Liability Coverage
Form. Which one of the following statements about this form is true? - (ANSWER)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? - (ANSWER)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? - (ANSWER)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 - (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? - (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
,CPCU 552, CP&L FINAL EXAM NEWEST 2025 ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!
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? - (ANSWER)Liquidated damages
Many states have funds from which employers may purchase workers compensation insurance. Such
funds may be either - (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? - (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.
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? - (ANSWER)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 - (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? - (ANSWER)Both claims-made coverage triggers and occurrence coverage triggers are
,CPCU 552, CP&L FINAL EXAM NEWEST 2025 ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!
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 - (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? - (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 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? - (ANSWER)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? - (ANSWER)Coverage for this
claim would not be covered by ABC's insurance.
, CPCU 552, CP&L FINAL EXAM NEWEST 2025 ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!
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? - (ANSWER)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 - (ANSWER)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 - (ANSWER)Workers compensation.
