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71 Cards in this Set
- Front
- Back
professional liability coverage protects against legal liability resulting from
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errors and omissions |
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Which would NOT be covered by the inside the premises - robbery or safe burglary of other property coverage? |
an employee is caught stealing cash from the register
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B&B Market was sued when an employee detained a person he believed to be a shoplifter, but the person turned out to be the meter reader. Which coverage would apply to this suit? |
personal and advertising injury liability
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a premium discount is when an insured owes a total standard premium greater than...
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$5,000 |
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When a replacement auto is acquired during the policy period, what coverage will apply to it automatically under a personal auto policy? |
whatever coverage applied to the vehicle being replaced |
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The party to a surety or fidelity bond who promises to fulfill the obligation is the |
principal |
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Which of the following statements is true regarding the commercial general liability policy's Coverage C – Medical Payments? |
the coverage is considered "good will" because payments are made without regard to fault |
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An insurance agency could purchase an errors and omission insurance policy, which would provide protection in the event of any of the following events EXCEPT |
the agency losses commission income from policies that were not issued by the insurer
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Which of the following liability exposures is most likely for a small specialty clothing retail boutique? |
premises liability exposure |
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In which of the following sections of a commercial auto policy will you find specific information about the policy period? |
conditions |
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The primary purpose of a surety bond is to |
make sure obligations are fulfilled
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The designation symbols used in commercial auto policies can be found in which policy section? |
covered auto
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A professional who wants coverage for all liability exposures should purchase what form of liability insurance? |
commercial general and professional |
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when does the uninsured motorists coverage apply
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when the other party is legally liable but has no insurance
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The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to |
90 days |
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The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to |
deliberate law violation
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Under a Personal Auto Policy, in which of the following locations would a vehicle primarily garaged in California be covered? |
any other state |
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Under the coverage of which of the following liability policies may an insured require the insurer to defend a claim? |
professional liability
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who are the parties to a bond
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principal-oblige-surety |
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Rental Reimbursement is only available if the policy includes which coverage? |
other than collision coverage |
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Which of the following statements would be an example of a product liability claim? |
faulty packaging of a cereal caused spoilage that resulted in someone getting sick |
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Under the commercial crime coverage inside the premises - robbery or safe burglary of other property, what is the special per occurrence limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records? |
$5,000 |
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To perform work on a customer’s car, a mechanic in an auto shop had to put the vehicle on a service hoist. The hoist collapsed, damaging the vehicle and injuring the mechanic. In regard to the garage coverage form, which of the following statements is true? |
no coverage is applicable |
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Which professional liability form provides form coverage for liability arising out of malpractice, error, or mistakes made in rendering professional services? |
physicians, surgeons, and dentists malpractice |
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Which of the following statements is NOT true regarding a personal umbrella liability policy? |
it provides errors and omissions coverage for an agency |
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Coverage A – Bodily Injury and Property Damage in the commercial general liability policy will cover |
Losses due to the insured’s negligence |
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Which of the following statements is true concerning a bonded contractor who defaults on a construction performance contract? |
The obligee may engage another contractor and then seek reimbursement from the surety.
Correct! |
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Supplementary payments on a CGL provide all the following EXCEPT |
Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds
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Transportation expenses are covered under a Personal Auto Policy for
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$20 per day, for a maximum of $600.
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In a personal umbrella, the amount paid by the insured for certain losses not covered under the primary coverage is called
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Self-insured retention.
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Most insurance policies exclude losses by |
mysterious disappearance |
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Workers compensation rating is developed by applying a rating bureau job classification rate to each |
$100 of payroll |
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In the event of a claim under a commercial general liability policy, the insured has all the following duties to the insurer EXCEPT |
submitting to a medical exam when requested |
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While an insured's covered auto is in the repair shop following damage caused by a collision, the insured would have coverage for which of the following vehicles under a personal auto policy? |
Any vehicle not owned by the insured, but furnished for use while the covered auto is out of normal use because of repair |
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In a participation plan, the insured may be eligible for which of the following? |
a partial premium refund |
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While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured’s auto policy would pay for the damage to the store? |
Property Damage Liability |
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All of the following situations would be covered under a professional liability policy, EXCEPT |
The failure of an attorney to properly defend a client due to his personal dislike of the client. |
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When a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy? |
THEY DO NOT CHANGE |
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A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured’s building, and $30,000 of expediting expenses, how much will the insured collect under the policy? |
$175,000 |
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Richard owns and operates a commercial business. He has included a business income coverage form with his commercial package policy. When Richard's business is severely damaged by fire, the business income coverage will pay for
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Net income plus continuing expenses of the business.
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Which of the following property coverages would provide protection to contents damaged by fire? |
COVERAGE C
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Which of the following kinds of property would be covered under a dwelling policy? |
rowboats |
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The Business Pursuits endorsement under Section II of a homeowners policy will cover all of the following EXCEPT |
Business liability |
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If an insured has an umbrella liability policy in addition to his personal auto policy, which would be considered the underlying policy? |
auto policy |
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What is the primary objective of workers compensation?
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The payment of benefits to employees for injuries arising out of their employment
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Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity? |
directors and officers liability
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If an insured needs protection on property other than money and securities inside the premises from losses caused by breaking and entering after business hours, which of the following Crime Coverage forms should be purchased? |
Inside Premises - Robbery or Burglary of Other Property
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CGL Coverage B (Personal Injury and Advertising Injury) will cover |
Inadvertent injury to others caused in the course of advertising the insured’s product.
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Which of the following would be covered under the crime coverage inside the premises - theft of money and securities? |
Loss or damage to a locked safe, vault, or cash register
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Which of the following symbols is available to an insured with vehicles subject to no-fault coverage? |
symbol 5- covers owned autos subject to no-fault coverage |
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If an employer in a state with elective workers compensation laws chooses not be to subject to the state's workers compensation laws, what does the employer lose? |
Its common law defenses against liability suits |
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In liability insurance policies, supplementary payments are made
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In addition to the limit of liability.
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A plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and hurts someone because he did not do the job correctly?
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Completed operations
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Which of the following losses would be covered under the property damage liability coverage of a Personal Auto Policy
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The insured damages a rented garage when he failed to stop in time.
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Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own. Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general liability policy cover the claim?
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No, because the claim results from copyright infringement and is not in an advertisement
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An insured owns and operates a ranch. The insured has several vehicles that are used in the ranching operation and for personal use. Which of the following could NOT be insured under a personal auto policy?
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A two-ton grain truck with a 6,500-pound capacity
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An insured was involved in an automobile accident for which the insured was at fault. Which of the following coverages would pay for damage to the insured's automobile
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Collision
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The Occurrence form trigger is based on which of the following?
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The Occurrence form trigger is based on which of the following?
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What method of premium computation relates an employer’s losses, payroll, and premiums to the rating bureau’s classifications of operations?
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Experience modification factor
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Under the coverage of which of the following liability policies may an insured require the insurer to defend a claim?
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Professional liability
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In a personal auto policy, the medical payments coverage is similar to
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Accident insurance, because it pays medical expenses regardless of fault.
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Surety bonds are written for a definite limit called
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The bond penalty.
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The insured with a claims-made CGL may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the information
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Within 45 days.
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A liability policy that provides coverage for a claim for injury or damage if the claim is first reported or filed against the insured during the policy period is called
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Claims-made form.
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What is the deductible of a personal liability umbrella policy called?
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SIR |
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The at-fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all the damage done to the insured. This driver is |
Considered underinsured.
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All of the following are true statements regarding the supplementary payments of a Commercial General Liability policy EXCEPT
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They pay defense costs even after the aggregate limit has been reached.
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When ABC Appliance's marketing stated that its mowing machine was the only safe mower available for purchase in town, ABC was sued by XYZ Lawn and Garden. ABC's coverage would come from which part of its general liability coverage
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Personal and advertising injury liability
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With respect to auto insurance, the term owned autos includes all of the following EXCEPT
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A pickup or van titled to and used in the named insured's business.
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According to the standard workers compensation and employer liability policy form, a state should be listed in Part Three – other states’ insurance of the workers compensation and employers liability policy when
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The insured expects to extend operations to that state
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