AD BANKER AL P&C CH 12 Misc. Commercial Policies Test Questions Answered Correctly Latest Version

AD BANKER AL P&C CH 12 Misc. Commercial Policies Test Questions Answered Correctly Latest Version The Nationwide Marine Definition includes all of the following classes of property, except: A. Imports B. Personal Property Floaters C. Instrumentalities of Transportation D. Umbrella - Answers D. The other three classes are exports, domestic shipments and property in transit, and commercial property floater. The Controlled Inland Marine Coverage forms provide insurance for which of the following? A. Builders risk B. Transportation floater C. Signs D. Installation floater - Answers C. Signs, accounts receivable, commercial articles floater, jewelers block coverage, valuable paper and records, and equipment dealers coverage are controlled, or filed, forms; the other choices are uncontrolled, or unfiled forms and also include contractors equipment, electronic data processing, and installation floaters. Which of the following is covered under the Electronic Data Processing Floater? A. Laptops B. Printers C. Accounts and records D. Notebooks - Answers B. Also covered are computers and their components and systems used exclusively in the insured's computer operation, such as air conditioning or electrical equipment; the other choices are exclusions. Under Ocean Marine Coverage, breach of each of the following implied warranties will void the contract, except: A. Express B. Legality C. Seaworthiness D. No deviation in voyage - Answers A. Express warranties are those that are written into the policy contract. Protection and Indemnity (P&I) Insurance is similar to which of the following coverages? A. Physical damage B. Liability C. Uninsured motorist D. Medical payments - Answers B. Protection and Indemnity, or P&I, is purchased by the ship owner to protect against cargo lost due to the insured's negligence, damage to other property when not caused by collision, damage to property on board caused by collision, and injuries to seamen resulting in unworthiness of the vessel. All of the following underlying coverages must be purchased in order to qualify for the Umbrella and Excess Liability policy, EXCEPT: A. CGL B. Employer's Liability C. Liquor Liability D. Workers' Compensation - Answers D. Commercial Auto Liability is also a required underlying coverage to qualify for the Umbrella policy. Which of the following perils is not insured under a professional liability insurance policy? A. Government investigation B. Cyber risks C. Discrimination D. Fraud - Answers C. Other covered perils include conflict of interest, malpractice, neglect, errors and omissions, and breach of contract. Bonds are contracts that involve all of the following parties, EXCEPT: A. Obligee B. Director C. Surety D. Principal - Answers B. The insurance company issuing the bond is the surety or guarantor, the party owing the duty is the principal or obligor, and the party who is paid by the surety if the principal fails to perform is the obligee. Which of the following bonds is not a type of Fidelity Bond? A. Individual B. Name Schedule C. Blanket D. Labor - Answers D. A Court Bond is a Surety Bond required by the court to enforce certain behavior. The Equipment Breakdown Protection Coverage Form does not provide which of the following types of coverage? A. Earth movement damage B. Property damage C. Spoilage damage D. Errors and omissions - Answers A. The types of coverage also include expediting expenses, business income and extra expense, newly acquired premises, ordinance or law, errors and omissions, and brands and labels. Under the Equipment Breakdown Protection Coverage Form, the __________________ condition will apply if the covered equipment is subject to a dangerous exposure. A. Cancellation B. Period of restoration C. Suspension D. Covered property - Answers C.