CRIS TESTBANK QUESTIONS WITH
100% CORRECT ANSWERS
Which of the following does not represent covered "advertising injury" under Coverage
B of the CGL? - Answer-King Contractors copies and uses Queen Building Company's
copyrighted design documents without permission to do so.
What event triggers coverage under the CGL Coverage B insuring agreement? -
Answer-an "offense"
Peter Piper Plumbing is sued for water damage to a luxury home and furnishings arising
out of his installation of pipe fittings. Peter Piper has a $1 million CGL policy. His insurer
ultimately settles the claim for $700,000 after spending $350,000 in investigation and
defense costs. Which of the following statements accurately reflects Peter Piper's
coverage for this claim? - Answer-The claim will be covered in full, because defense
costs are supplementary payments payable outside the policy limit.
Parker Brothers Construction Company is in the middle of a boardwalk reconstruction
project when a bulldozer spins out of control, injuring several pedestrians. The bulldozer
operator was cited and arrested for reckless endangerment. Which of the following
accurately describes Parker Brothers' CGL insurer's obligation regarding the employee's
release from jail? - Answer-The insurer must issue a bail bond in the amount of up to
$50,000 and provide a defense for the employee against the criminal allegations.
For which of the following would the injured party be entitled to recover under Coverage
C of Genesee Contractor's CGL policy? - Answer-A store owner's customer is injured
when he slips on an unsecured tile in a building Genesee remodeled 6 months ago.
Ned Smith is the sole proprietor of Smith Custom Commercial Kitchen Builders. Ned is
the named insured under a CGL policy he purchased to cover his business. Which of
the following also has insured status under Ned's CGL policy? - Answer-Ned's wife
Ursula Underwood is the human resources director for a small company. Ursula
handles all the employee benefits plans for her company, including their 401(k) plan,
major medical and dental plans, and disability insurance plans, so she must be bonded.
The employee dishonesty policy procured by the company should include each of the
plans as a named insured in order to satisfy this - Answer-ERISA requirement.
Nearly all contractors need crime coverage for: - Answer-Employee dishonesty.
,Kenny Contractors have an equipment breakdown policy. Properly arranged, this policy
can provide coverage for all the following items Kenny owns, EXCEPT: - Answer-
Subterranean steam pipes.
A provision in the equipment breakdown policy provides that, if the insurer determines
that a covered boiler system is dangerous to operate, the insurer may immediately
discontinue coverage until the problem has been corrected, at which time an
endorsement can reinstate coverage. This provision is commonly known as a: - Answer-
Suspension clause.
What event in American history led to the development of workers compensation law? -
Answer-Industrial revolution
Under workers compensation laws, in exchange for the automatic "no-fault"
compensation, an injured employee: - Answer-forfeited his or her common-law right to
sue the employer for compensatory damages.
Although Sandy's artificial leg had been fitted after she lost her leg, which was crushed
in a construction site accident, she was not able to walk on it without training and
exercises to restore and enhance the necessary flexibility and tone to her remaining leg
muscles. Workers compensation insurance will pay the expenses of these activities in
the form of: - Answer-Rehabilitation benefits.
Marvelous Mansions, a luxury home builder, is insured under a commercial general
liability policy. As a result, Marvelous has coverage for: - Answer-Damages awarded to
a 3rd party because of injury or damage for which Marvelous Mansions is legally
responsible, as well as defense costs associated with the suit
Gerry's General Contracting has been hired to construct a minor league baseball
stadium. Gerry intends to use various trade subcontractors to perform some of the work.
The construction contract requires Gerry's General Contracting to "indemnify and hold
harmless" the stadium owner. This means that: - Answer-Gerry will bear responsibility
for the owner's liability for injury or damage to third parties in connection with the work
performed under the contract.
Section I of Ollie's commercial general liability policy includes three coverage parts.
Which one of the following is not one of these three parts? - Answer-comprehensive
and collision
(GL contains:BI, PD, Med payments, Personal and advertising injury)
Bogle Construction Company, which employs fewer than 100 people, has a general
liability policy in which only Bogle Construction Company is listed as the named insured.
Bogle's foreman asks the firm's insurance broker whether this policy provides any
coverage for his employees. The broker correctly tells him that the employees: -
, Answer-Are insureds only to the extent their liability arises out of their work for Bogle
Construction.
The general aggregate limit of a CGL policy is: - Answer-The most the insurer will pay
for all claims, other than losses that fall under the "products-completed operations
hazard," for the entire policy period.
Pillar Construction Inc. is building a manufacturing facility for Atlas Corp. Atlas has
arranged an owner controlled insurance program (OCIP) for the construction project.
Which of the following actions is appropriate for Pillar to take to eliminate duplication in
coverage between the OCIP and its own CGL insurance? - Answer-Pillar can endorse
its own policies to be excess over the coverage provided by the OCIP
Bill is about to begin construction on a hotel and casino for Highroller Industries. As the
general contractor, Bill has persuaded Highroller to allow him to implement a contractor
controlled insurance program (CCIP) for the project. Which of the following coverages is
appropriate for inclusion in the CCIP? - Answer-Workers compensation insurance
In order to bid on a construction project larger than either of them could handle alone,
Ben and Jack formed a joint venture and were awarded the bid. The best way for Ben
and Jack to cover the joint venture while preserving the integrity of their individual
insurance programs is - Answer-Buy a separate policy listing the joint venture as the
named insured, and endorse each participant's policy to apply as excess.
Jetson Industries is soliciting construction bids for a new office park and manufacturing
facility. Jetson wants to provide some of the basic insurance coverages for all project
participants, rather than have each contractor provide its own insurance. This type of
arrangement is commonly known as: - Answer-A consolidated insurance program.
Monolith Construction forms a joint venture with Stein Stadium Design Company to
construct a new major league baseball park. Monolith will perform all of the construction
work and Stein will perform all of the design work. Monolith's legal responsibility for
liabilities arising out of Stein's design work on this project is: - Answer-Unlimited
Bali High Construction has a commercial umbrella policy that, like most commercial
umbrella liability policies, provides excess coverage over all Bali's underlying policies,
EXCEPT for its: - Answer-National Flood Insurance Policy.
If an underlying policy does not apply or its limits have been exhausted, a typical
commercial umbrella policy issued to Carly Contractor would cover all the following
claims, EXCEPT: - Answer-While working on a riverside project, Carly's crane falls into
the river and is destroyed, and Carly's contractors equipment insurance covers only half
the crane's value.
100% CORRECT ANSWERS
Which of the following does not represent covered "advertising injury" under Coverage
B of the CGL? - Answer-King Contractors copies and uses Queen Building Company's
copyrighted design documents without permission to do so.
What event triggers coverage under the CGL Coverage B insuring agreement? -
Answer-an "offense"
Peter Piper Plumbing is sued for water damage to a luxury home and furnishings arising
out of his installation of pipe fittings. Peter Piper has a $1 million CGL policy. His insurer
ultimately settles the claim for $700,000 after spending $350,000 in investigation and
defense costs. Which of the following statements accurately reflects Peter Piper's
coverage for this claim? - Answer-The claim will be covered in full, because defense
costs are supplementary payments payable outside the policy limit.
Parker Brothers Construction Company is in the middle of a boardwalk reconstruction
project when a bulldozer spins out of control, injuring several pedestrians. The bulldozer
operator was cited and arrested for reckless endangerment. Which of the following
accurately describes Parker Brothers' CGL insurer's obligation regarding the employee's
release from jail? - Answer-The insurer must issue a bail bond in the amount of up to
$50,000 and provide a defense for the employee against the criminal allegations.
For which of the following would the injured party be entitled to recover under Coverage
C of Genesee Contractor's CGL policy? - Answer-A store owner's customer is injured
when he slips on an unsecured tile in a building Genesee remodeled 6 months ago.
Ned Smith is the sole proprietor of Smith Custom Commercial Kitchen Builders. Ned is
the named insured under a CGL policy he purchased to cover his business. Which of
the following also has insured status under Ned's CGL policy? - Answer-Ned's wife
Ursula Underwood is the human resources director for a small company. Ursula
handles all the employee benefits plans for her company, including their 401(k) plan,
major medical and dental plans, and disability insurance plans, so she must be bonded.
The employee dishonesty policy procured by the company should include each of the
plans as a named insured in order to satisfy this - Answer-ERISA requirement.
Nearly all contractors need crime coverage for: - Answer-Employee dishonesty.
,Kenny Contractors have an equipment breakdown policy. Properly arranged, this policy
can provide coverage for all the following items Kenny owns, EXCEPT: - Answer-
Subterranean steam pipes.
A provision in the equipment breakdown policy provides that, if the insurer determines
that a covered boiler system is dangerous to operate, the insurer may immediately
discontinue coverage until the problem has been corrected, at which time an
endorsement can reinstate coverage. This provision is commonly known as a: - Answer-
Suspension clause.
What event in American history led to the development of workers compensation law? -
Answer-Industrial revolution
Under workers compensation laws, in exchange for the automatic "no-fault"
compensation, an injured employee: - Answer-forfeited his or her common-law right to
sue the employer for compensatory damages.
Although Sandy's artificial leg had been fitted after she lost her leg, which was crushed
in a construction site accident, she was not able to walk on it without training and
exercises to restore and enhance the necessary flexibility and tone to her remaining leg
muscles. Workers compensation insurance will pay the expenses of these activities in
the form of: - Answer-Rehabilitation benefits.
Marvelous Mansions, a luxury home builder, is insured under a commercial general
liability policy. As a result, Marvelous has coverage for: - Answer-Damages awarded to
a 3rd party because of injury or damage for which Marvelous Mansions is legally
responsible, as well as defense costs associated with the suit
Gerry's General Contracting has been hired to construct a minor league baseball
stadium. Gerry intends to use various trade subcontractors to perform some of the work.
The construction contract requires Gerry's General Contracting to "indemnify and hold
harmless" the stadium owner. This means that: - Answer-Gerry will bear responsibility
for the owner's liability for injury or damage to third parties in connection with the work
performed under the contract.
Section I of Ollie's commercial general liability policy includes three coverage parts.
Which one of the following is not one of these three parts? - Answer-comprehensive
and collision
(GL contains:BI, PD, Med payments, Personal and advertising injury)
Bogle Construction Company, which employs fewer than 100 people, has a general
liability policy in which only Bogle Construction Company is listed as the named insured.
Bogle's foreman asks the firm's insurance broker whether this policy provides any
coverage for his employees. The broker correctly tells him that the employees: -
, Answer-Are insureds only to the extent their liability arises out of their work for Bogle
Construction.
The general aggregate limit of a CGL policy is: - Answer-The most the insurer will pay
for all claims, other than losses that fall under the "products-completed operations
hazard," for the entire policy period.
Pillar Construction Inc. is building a manufacturing facility for Atlas Corp. Atlas has
arranged an owner controlled insurance program (OCIP) for the construction project.
Which of the following actions is appropriate for Pillar to take to eliminate duplication in
coverage between the OCIP and its own CGL insurance? - Answer-Pillar can endorse
its own policies to be excess over the coverage provided by the OCIP
Bill is about to begin construction on a hotel and casino for Highroller Industries. As the
general contractor, Bill has persuaded Highroller to allow him to implement a contractor
controlled insurance program (CCIP) for the project. Which of the following coverages is
appropriate for inclusion in the CCIP? - Answer-Workers compensation insurance
In order to bid on a construction project larger than either of them could handle alone,
Ben and Jack formed a joint venture and were awarded the bid. The best way for Ben
and Jack to cover the joint venture while preserving the integrity of their individual
insurance programs is - Answer-Buy a separate policy listing the joint venture as the
named insured, and endorse each participant's policy to apply as excess.
Jetson Industries is soliciting construction bids for a new office park and manufacturing
facility. Jetson wants to provide some of the basic insurance coverages for all project
participants, rather than have each contractor provide its own insurance. This type of
arrangement is commonly known as: - Answer-A consolidated insurance program.
Monolith Construction forms a joint venture with Stein Stadium Design Company to
construct a new major league baseball park. Monolith will perform all of the construction
work and Stein will perform all of the design work. Monolith's legal responsibility for
liabilities arising out of Stein's design work on this project is: - Answer-Unlimited
Bali High Construction has a commercial umbrella policy that, like most commercial
umbrella liability policies, provides excess coverage over all Bali's underlying policies,
EXCEPT for its: - Answer-National Flood Insurance Policy.
If an underlying policy does not apply or its limits have been exhausted, a typical
commercial umbrella policy issued to Carly Contractor would cover all the following
claims, EXCEPT: - Answer-While working on a riverside project, Carly's crane falls into
the river and is destroyed, and Carly's contractors equipment insurance covers only half
the crane's value.
