CPCU 551 EXAM NEWEST ACTUAL EXAM
COMPREHENSIVE QUESTIONS AND
VERIFIED ANSWERS GRADED A+
The county fairgrounds committee is seeking contractors to build a new
| | | | | | | | | |
stable for the annual farm show. Contractors are required to guarantee
| | | | | | | | | | |
that they will enter into a contract upon acceptance of the bid. In
| | | | | | | | | | | | |
addition, the contractor must guarantee that the project, once
| | | | | | | | |
completed, will be free of liens. To satisfy the committee's
| | | | | | | | | |
requirements, contractors who want to participate in the project will
| | | | | | | | | |
need to provide which pair of bonds? - ✔✔✔ Correct Answer > Bid
| | | | | | | | | | | | |
bond and a payment bond
| | | | |
What's another name for a warranty (open cargo policy, all-risk
| | | | | | | | |
coverage) and what are the 3 warranties? - ✔✔✔ Correct Answer >
| | | | | | | | | | | |
exclusion. Strikes, riots, civil commotion; free of capture/seizure; the
| | | | | | | | |
delay clause.
| |
A shipping company contracted with Cruise Ship Art Galleries for
| | | | | | | | |
delivery of artwork to be sold on the ship. The shipping company
| | | | | | | | | | | |
delivered the artwork directly to each port of call. Coverage for the
| | | | | | | | | | | |
artwork was under an inland marine policy. The valuation provision that
| | | | | | | | | | |
would best be applied to a loss to the artwork prior to delivery would
| | | | | | | | | | | | | |
,be the - ✔✔✔ Correct Answer > Agreed value is appropriate for
| | | | | | | | | | |
items that are difficult to value such as works of art.
| | | | | | | | | | |
What are the differences between CP Builders Risk Coverage and IM
| | | | | | | | | |
Builders Risk Coverage - ✔✔✔ Correct Answer > CP is named perils,
| | | | | | | | | | | |
IM is all risk and covers property in transit and away from the job site,
| | | | | | | | | | | | | | |
includes property of others. CP covers collapse, boiler explosion, theft,
| | | | | | | | | |
flood and earthquake, and sets value at RC... IM doesn't.
| | | | | | | | | |
what are the 8 ISO commercial crime coverage forms? - ✔✔✔ Correct
| | | | | | | | | | |
Answer > employee theft, forgery/alteration, inside the premises-
| | | | | | | |
theft of money/securities, inside the premises-safe/other property,
| | | | | |
outside the premises, computer fraud, fund transfer,
| | | | | | |
counterfeit/money orders.
| |
What's the inchmaree clause? - ✔✔✔ Correct Answer > a clause of
| | | | | | | | | | |
open cargo-named perils coverage which adds coverage for damage
| | | | | | | | |
from propulsion machinery, boilers, latent defect of vessel, and
| | | | | | | | |
negligence of master and mariners.
| | | | |
What is covered under named perils coverage that isn't covered under
| | | | | | | | | |
all risk coverage (open cargo policy) - ✔✔✔ Correct Answer >
| | | | | | | | | | |
jettison, pirates
| |
Which prevents an insured from waiving rights of recovery against
| | | | | | | | |
contractors and subcontractors, IM or CP Builders Risk Insurance? -
| | | | | | | | | |
,✔✔✔ Correct Answer > CP prevents an insured from waiving rights of
| | | | | | | | | | |
recovery against contractors or subcontractors.
| | | | |
From what do soft costs derive? - ✔✔✔ Correct Answer > covered
| | | | | | | | | | |
physical losses causing delay in completion necessitating rewritten
| | | | | | | |
contracts, additional interest, readvertising, and additional brokerage
| | | | | | |
commissions.
|
What is a necessary characteristic of a sign to be covered under a sign
| | | | | | | | | | | | |
coverage form? - ✔✔✔ Correct Answer > either a neon tube or
| | | | | | | | | | | |
mechanical feature
| |
Which one of the following describes the difference between a filed
| | | | | | | | | |
and a nonfiled policy form? - ✔✔✔ Correct Answer > Nonfiled
| | | | | | | | | | |
policies do not file forms or rates with state insurance departments but
| | | | | | | | | | | |
for filed polices both are filed.
| | | | | |
Luke is a commercial underwriter assessing the accounts receivable
| | | | | | | |
coverage for a prospective customer. He wishes to make changes to
| | | | | | | | | | |
various policy provisions before accepting the risk. What is true
| | | | | | | | | |
regarding these changes? - ✔✔✔ Correct Answer > It is a filed class
| | | | | | | | | | | | |
of inland marine coverage, and insurers are allowed to substitute
| | | | | | | | | |
provision in the standard policies.
| | | | |
, is employee theft covered in mexico? - ✔✔✔ Correct Answer > No,
| | | | | | | | | | |
|the coverage territory is limited to the US/territories, Puerto Rico, and
| | | | | | | | | |
|Canada.
if an employee has was terminated 30 days ago and stole something, is
| | | | | | | | | | | |
|the loss covered under employee theft insuring agreement? - ✔✔✔
| | | | | | | | |
Correct Answer > Yes - employees terminated in the last 30 days still
| | | | | | | | | | | | |
|count as employees if we were to take the title of this coverage literally
| | | | | | | | | | | | |
if an independent contractor steals something from an employer, is the
| | | | | | | | | |
|loss covered under employee theft insuring agreement? - ✔✔✔
| | | | | | | |
Correct Answer > No
| | | |
If an employee steals something, but they are not convicted of theft, is
| | | | | | | | | | | |
|the loss covered under employee theft insuring agreement? - ✔✔✔
| | | | | | | | |
Correct Answer > yes
| | | |
What are the coverage limits of employee theft insuring agreement?
| | | | | | | | |
(not a number, instead on what basis is it covered and how is the limit
| | | | | | | | | | | | | | |
measured) - ✔✔✔ Correct Answer > coverage is blanket and limited
| | | | | | | | | | |
to a stated amount per occurrence
| | | | | |
what is the courage territory for forgery and alteration insuring
| | | | | | | | |
agreement? - ✔✔✔ Correct Answer > worldwide
| | | | | | |
COMPREHENSIVE QUESTIONS AND
VERIFIED ANSWERS GRADED A+
The county fairgrounds committee is seeking contractors to build a new
| | | | | | | | | |
stable for the annual farm show. Contractors are required to guarantee
| | | | | | | | | | |
that they will enter into a contract upon acceptance of the bid. In
| | | | | | | | | | | | |
addition, the contractor must guarantee that the project, once
| | | | | | | | |
completed, will be free of liens. To satisfy the committee's
| | | | | | | | | |
requirements, contractors who want to participate in the project will
| | | | | | | | | |
need to provide which pair of bonds? - ✔✔✔ Correct Answer > Bid
| | | | | | | | | | | | |
bond and a payment bond
| | | | |
What's another name for a warranty (open cargo policy, all-risk
| | | | | | | | |
coverage) and what are the 3 warranties? - ✔✔✔ Correct Answer >
| | | | | | | | | | | |
exclusion. Strikes, riots, civil commotion; free of capture/seizure; the
| | | | | | | | |
delay clause.
| |
A shipping company contracted with Cruise Ship Art Galleries for
| | | | | | | | |
delivery of artwork to be sold on the ship. The shipping company
| | | | | | | | | | | |
delivered the artwork directly to each port of call. Coverage for the
| | | | | | | | | | | |
artwork was under an inland marine policy. The valuation provision that
| | | | | | | | | | |
would best be applied to a loss to the artwork prior to delivery would
| | | | | | | | | | | | | |
,be the - ✔✔✔ Correct Answer > Agreed value is appropriate for
| | | | | | | | | | |
items that are difficult to value such as works of art.
| | | | | | | | | | |
What are the differences between CP Builders Risk Coverage and IM
| | | | | | | | | |
Builders Risk Coverage - ✔✔✔ Correct Answer > CP is named perils,
| | | | | | | | | | | |
IM is all risk and covers property in transit and away from the job site,
| | | | | | | | | | | | | | |
includes property of others. CP covers collapse, boiler explosion, theft,
| | | | | | | | | |
flood and earthquake, and sets value at RC... IM doesn't.
| | | | | | | | | |
what are the 8 ISO commercial crime coverage forms? - ✔✔✔ Correct
| | | | | | | | | | |
Answer > employee theft, forgery/alteration, inside the premises-
| | | | | | | |
theft of money/securities, inside the premises-safe/other property,
| | | | | |
outside the premises, computer fraud, fund transfer,
| | | | | | |
counterfeit/money orders.
| |
What's the inchmaree clause? - ✔✔✔ Correct Answer > a clause of
| | | | | | | | | | |
open cargo-named perils coverage which adds coverage for damage
| | | | | | | | |
from propulsion machinery, boilers, latent defect of vessel, and
| | | | | | | | |
negligence of master and mariners.
| | | | |
What is covered under named perils coverage that isn't covered under
| | | | | | | | | |
all risk coverage (open cargo policy) - ✔✔✔ Correct Answer >
| | | | | | | | | | |
jettison, pirates
| |
Which prevents an insured from waiving rights of recovery against
| | | | | | | | |
contractors and subcontractors, IM or CP Builders Risk Insurance? -
| | | | | | | | | |
,✔✔✔ Correct Answer > CP prevents an insured from waiving rights of
| | | | | | | | | | |
recovery against contractors or subcontractors.
| | | | |
From what do soft costs derive? - ✔✔✔ Correct Answer > covered
| | | | | | | | | | |
physical losses causing delay in completion necessitating rewritten
| | | | | | | |
contracts, additional interest, readvertising, and additional brokerage
| | | | | | |
commissions.
|
What is a necessary characteristic of a sign to be covered under a sign
| | | | | | | | | | | | |
coverage form? - ✔✔✔ Correct Answer > either a neon tube or
| | | | | | | | | | | |
mechanical feature
| |
Which one of the following describes the difference between a filed
| | | | | | | | | |
and a nonfiled policy form? - ✔✔✔ Correct Answer > Nonfiled
| | | | | | | | | | |
policies do not file forms or rates with state insurance departments but
| | | | | | | | | | | |
for filed polices both are filed.
| | | | | |
Luke is a commercial underwriter assessing the accounts receivable
| | | | | | | |
coverage for a prospective customer. He wishes to make changes to
| | | | | | | | | | |
various policy provisions before accepting the risk. What is true
| | | | | | | | | |
regarding these changes? - ✔✔✔ Correct Answer > It is a filed class
| | | | | | | | | | | | |
of inland marine coverage, and insurers are allowed to substitute
| | | | | | | | | |
provision in the standard policies.
| | | | |
, is employee theft covered in mexico? - ✔✔✔ Correct Answer > No,
| | | | | | | | | | |
|the coverage territory is limited to the US/territories, Puerto Rico, and
| | | | | | | | | |
|Canada.
if an employee has was terminated 30 days ago and stole something, is
| | | | | | | | | | | |
|the loss covered under employee theft insuring agreement? - ✔✔✔
| | | | | | | | |
Correct Answer > Yes - employees terminated in the last 30 days still
| | | | | | | | | | | | |
|count as employees if we were to take the title of this coverage literally
| | | | | | | | | | | | |
if an independent contractor steals something from an employer, is the
| | | | | | | | | |
|loss covered under employee theft insuring agreement? - ✔✔✔
| | | | | | | |
Correct Answer > No
| | | |
If an employee steals something, but they are not convicted of theft, is
| | | | | | | | | | | |
|the loss covered under employee theft insuring agreement? - ✔✔✔
| | | | | | | | |
Correct Answer > yes
| | | |
What are the coverage limits of employee theft insuring agreement?
| | | | | | | | |
(not a number, instead on what basis is it covered and how is the limit
| | | | | | | | | | | | | | |
measured) - ✔✔✔ Correct Answer > coverage is blanket and limited
| | | | | | | | | | |
to a stated amount per occurrence
| | | | | |
what is the courage territory for forgery and alteration insuring
| | | | | | | | |
agreement? - ✔✔✔ Correct Answer > worldwide
| | | | | | |
