CPCU 552, CP&L FINAL EXAM | ALL QUESTIONS
AND CORRECT ANSWERS | NEWEST EXAM |
ALREADY GRADED A+ | VERIFIED ANSWERS
(JUST RELEASED)
Which of the following is not considered a compensatory damage?
A Medical Expenses
B Punitive Damage
C Pain and Suffering
D Lost of earnings ---------CORRECT ANSWER-----------------Answer: B
Punitive Damages. A and D fall under special damages and C falls under
general damages which both fall under compensatory damages.
Which of the following options applies to the policy limit that states,
"$15,000 Damages to Premises You Rent"?
i. Coverage A
ii. Coverage B
iii. Coverage C
a. Options i and ii
b. Options i, ii, and iii
c. Just option i
d. Just option iii ---------CORRECT ANSWER-----------------The correct
answer is C, or just option i, which is Coverage A. Damages to premises
you rent falls under Coverage A as related to Fire Legal Liability. The
$15,000 limit to these damages is the maximum amount the insurance
company will pay for any single hostile fire resulting in liability.
Which business would not be recommended to have an endorsement
concerning liquor liability to their CGL policy?
A liquor store in Athens, GA that "checks" ID's
A local restaurant where customers can bring their own beer to drink with
their meal
,An upscale restaurant that sells wine during dinner
An accounting firm that provides a happy hour with an open bar for its
employees after busy tax seasons
A business that delivers margarita pitchers to homes of 21+ year-old
customers ---------CORRECT ANSWER-----------------D
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
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.
,Ashley is a weekly volunteer at her city's history museum. The museum is
covered by an unendorsed commercial general liability policy. While at
work, a visitor suffers an injury and Ashley is named in the lawsuit. Which
of the following best describes Ashley's status under the policy?
A. Ashley would qualify as an insured
B. Ashley would be a named insured
C. Ashley would be an insured partner
D. Ashley would not be covered ---------CORRECT ANSWER-----------------
Answer: (A) Ashley would qualify as an insured
Salmonella Co. is a distribution plant that supplies local restaurants with
chicken and other products. After finishing his routine deliveries around
town, Salmonella Co.'s best truck driver notices that one shipment is still at
the warehouse that never made it onto the truck. He calls his boss to ask if
he should deliver the shipment since he is still on the clock for the next few
hours. His boss gives him the go ahead. The truck driver arrives safely at
the restaurant and unloads the cargo. While wheeling the hand truck into
the back of the kitchen, however, the truck driver loses control of the dolly
and the entire shipment is destroyed. The truck driver injures his back, and
the accident has punctured a massive hole in the wall of the kitchen. Is this
incident covered under the CGL policy? Will the restaurant's CGL policy
pay for the truck driver's injuries? Under which section is this covered? Is it
under the CG ---------CORRECT ANSWER-----------------c. Since the truck
driver was given permission by his boss to deliver the shipment,
Salmonella Co. is liable for the property damage to the restaurant and
would subsequently be covered under Coverage A. The driver's injuries
would be covered under the Worker's Comp policy for Salmonella Co.
What is the deductible in a CGL policy?
A. $500
B. $1,000
C. $250
D. $0, CGL policies don't have deductibles. ---------CORRECT ANSWER----
-------------Correct Answer: D. $0
.
, In a standard, non-endorsed CGL policy which scenario(s) are included in
Coverage A?
Marty used an advertising campaign to bash a competitor's company
Rick visits Marty's company and gets injured while walking around the
facility
Rick visits Marty's company and has his phone broken in a machine by
accident
I only
I and III
I, II, III
II, III ---------CORRECT ANSWER-----------------Answer d
Because "I" is apart of Coverage B this would not be covered in coverage
A. II and III are BI and PD, so they would be covered under coverage A.
When considering risk control measures to protect against loss exposure,
legal duties imposed on organizations are continuously changing, and they
are an important factor that risk management professionals need to
consider. Which laws develop out of court decisions in particular cases that
establish precedent for future cases, helping determine legal duties?
A) Tort Law
B) Statutory Law
C) Common Law
D) Plaintiff Liability Law
E) Tenent Law ---------CORRECT ANSWER-----------------Correct Answer
C) Common Law
Which of the following is the distinguishing element of workers
compensation and employers liability compared to commercial general
liability?
A) Injured person involved (employee)
B) Statutory Workers Compensation
AND CORRECT ANSWERS | NEWEST EXAM |
ALREADY GRADED A+ | VERIFIED ANSWERS
(JUST RELEASED)
Which of the following is not considered a compensatory damage?
A Medical Expenses
B Punitive Damage
C Pain and Suffering
D Lost of earnings ---------CORRECT ANSWER-----------------Answer: B
Punitive Damages. A and D fall under special damages and C falls under
general damages which both fall under compensatory damages.
Which of the following options applies to the policy limit that states,
"$15,000 Damages to Premises You Rent"?
i. Coverage A
ii. Coverage B
iii. Coverage C
a. Options i and ii
b. Options i, ii, and iii
c. Just option i
d. Just option iii ---------CORRECT ANSWER-----------------The correct
answer is C, or just option i, which is Coverage A. Damages to premises
you rent falls under Coverage A as related to Fire Legal Liability. The
$15,000 limit to these damages is the maximum amount the insurance
company will pay for any single hostile fire resulting in liability.
Which business would not be recommended to have an endorsement
concerning liquor liability to their CGL policy?
A liquor store in Athens, GA that "checks" ID's
A local restaurant where customers can bring their own beer to drink with
their meal
,An upscale restaurant that sells wine during dinner
An accounting firm that provides a happy hour with an open bar for its
employees after busy tax seasons
A business that delivers margarita pitchers to homes of 21+ year-old
customers ---------CORRECT ANSWER-----------------D
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
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.
,Ashley is a weekly volunteer at her city's history museum. The museum is
covered by an unendorsed commercial general liability policy. While at
work, a visitor suffers an injury and Ashley is named in the lawsuit. Which
of the following best describes Ashley's status under the policy?
A. Ashley would qualify as an insured
B. Ashley would be a named insured
C. Ashley would be an insured partner
D. Ashley would not be covered ---------CORRECT ANSWER-----------------
Answer: (A) Ashley would qualify as an insured
Salmonella Co. is a distribution plant that supplies local restaurants with
chicken and other products. After finishing his routine deliveries around
town, Salmonella Co.'s best truck driver notices that one shipment is still at
the warehouse that never made it onto the truck. He calls his boss to ask if
he should deliver the shipment since he is still on the clock for the next few
hours. His boss gives him the go ahead. The truck driver arrives safely at
the restaurant and unloads the cargo. While wheeling the hand truck into
the back of the kitchen, however, the truck driver loses control of the dolly
and the entire shipment is destroyed. The truck driver injures his back, and
the accident has punctured a massive hole in the wall of the kitchen. Is this
incident covered under the CGL policy? Will the restaurant's CGL policy
pay for the truck driver's injuries? Under which section is this covered? Is it
under the CG ---------CORRECT ANSWER-----------------c. Since the truck
driver was given permission by his boss to deliver the shipment,
Salmonella Co. is liable for the property damage to the restaurant and
would subsequently be covered under Coverage A. The driver's injuries
would be covered under the Worker's Comp policy for Salmonella Co.
What is the deductible in a CGL policy?
A. $500
B. $1,000
C. $250
D. $0, CGL policies don't have deductibles. ---------CORRECT ANSWER----
-------------Correct Answer: D. $0
.
, In a standard, non-endorsed CGL policy which scenario(s) are included in
Coverage A?
Marty used an advertising campaign to bash a competitor's company
Rick visits Marty's company and gets injured while walking around the
facility
Rick visits Marty's company and has his phone broken in a machine by
accident
I only
I and III
I, II, III
II, III ---------CORRECT ANSWER-----------------Answer d
Because "I" is apart of Coverage B this would not be covered in coverage
A. II and III are BI and PD, so they would be covered under coverage A.
When considering risk control measures to protect against loss exposure,
legal duties imposed on organizations are continuously changing, and they
are an important factor that risk management professionals need to
consider. Which laws develop out of court decisions in particular cases that
establish precedent for future cases, helping determine legal duties?
A) Tort Law
B) Statutory Law
C) Common Law
D) Plaintiff Liability Law
E) Tenent Law ---------CORRECT ANSWER-----------------Correct Answer
C) Common Law
Which of the following is the distinguishing element of workers
compensation and employers liability compared to commercial general
liability?
A) Injured person involved (employee)
B) Statutory Workers Compensation
