CPCU 552, CP&L FINAL EXAM ACTUAL EXAM
QUESTIONS WITH COMPLETE SOLUTION GUIDE (A+
GRADED 100% VERIFIED) LATEST VERSION 2025!!
Railroad owners commonly require contractors to purchase a Railroad Protective Liability
!@#$$$$$$$$$$%
Coverage Form. Which one of the following statements about this form is true? -
(ANSWERS)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? - (ANSWERS)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? - (ANSWERS)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 - (ANSWERS)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? - (ANSWERS)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 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? - (ANSWERS)Liquidated damages
Many states have funds from which employers may purchase workers compensation
insurance. Such funds may be either - (ANSWERS)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? - (ANSWERS)When a CGL
,CPCU 552, CP&L FINAL EXAM ACTUAL EXAM
QUESTIONS WITH COMPLETE SOLUTION GUIDE (A+
GRADED 100% VERIFIED) LATEST VERSION 2025!!
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? - (ANSWERS)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 -
(ANSWERS)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? - (ANSWERS)Both claims-made coverage triggers and occurrence coverage
triggers are 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 - (ANSWERS)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? -
(ANSWERS)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? - (ANSWERS)Paul is not covered
, CPCU 552, CP&L FINAL EXAM ACTUAL EXAM
QUESTIONS WITH COMPLETE SOLUTION GUIDE (A+
GRADED 100% VERIFIED) LATEST VERSION 2025!!
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? - (ANSWERS)Coverage for this claim would not be covered by ABC's insurance.
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? - (ANSWERS)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 - (ANSWERS)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 - (ANSWERS)Workers compensation.
N July of 2010 the Dodd-Frank Act was passed in response to the public's demand for
improvements in financial systems and to curb abusive Wall Street practices. A significant
provision of the Dodd-Frank Act was the - (ANSWERS)Abolishment of the Troubled Asset Relief
Program (TARP).
QUESTIONS WITH COMPLETE SOLUTION GUIDE (A+
GRADED 100% VERIFIED) LATEST VERSION 2025!!
Railroad owners commonly require contractors to purchase a Railroad Protective Liability
!@#$$$$$$$$$$%
Coverage Form. Which one of the following statements about this form is true? -
(ANSWERS)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? - (ANSWERS)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? - (ANSWERS)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 - (ANSWERS)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? - (ANSWERS)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 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? - (ANSWERS)Liquidated damages
Many states have funds from which employers may purchase workers compensation
insurance. Such funds may be either - (ANSWERS)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? - (ANSWERS)When a CGL
,CPCU 552, CP&L FINAL EXAM ACTUAL EXAM
QUESTIONS WITH COMPLETE SOLUTION GUIDE (A+
GRADED 100% VERIFIED) LATEST VERSION 2025!!
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? - (ANSWERS)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 -
(ANSWERS)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? - (ANSWERS)Both claims-made coverage triggers and occurrence coverage
triggers are 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 - (ANSWERS)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? -
(ANSWERS)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? - (ANSWERS)Paul is not covered
, CPCU 552, CP&L FINAL EXAM ACTUAL EXAM
QUESTIONS WITH COMPLETE SOLUTION GUIDE (A+
GRADED 100% VERIFIED) LATEST VERSION 2025!!
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? - (ANSWERS)Coverage for this claim would not be covered by ABC's insurance.
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? - (ANSWERS)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 - (ANSWERS)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 - (ANSWERS)Workers compensation.
N July of 2010 the Dodd-Frank Act was passed in response to the public's demand for
improvements in financial systems and to curb abusive Wall Street practices. A significant
provision of the Dodd-Frank Act was the - (ANSWERS)Abolishment of the Troubled Asset Relief
Program (TARP).
