Property and Casualty

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  1. Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy?

    A. The insured would have to pay the self-insured retention limit

    B. The insured would be responsible for the limits in the event of a claim

    C. It would have no effect on the umbrella 

    D. None of the above
  2. They type of insurance used to cover goods for one specific trip is called

    A. Bailee policy

    B. Motor truck cargo policy

    C. Trip transit

    D. Commercial property
  3. The American institute warehouse-to-warehouse clause states

    A. That the coverage is in effect until 60 days after discharge at the destination port

    B. That coverage expires 90 days after discharge at destinations port

    C. That coverage expires 15 days after discharge at destination port

    D. That coverage is in effect until the cargo reaches its destination
  4. The inland marine coverage form for outdoor signs provides "open peril" coverage and excludes coverage for breakage only during

    A. Transportation

    B. Repairing

    C. Installation or dismantling

    D. Any of the above
  5. In a marine policy, which of the following is referred to a s the "amount insured hereunder"?

    A. The duration of risk

    B. The limit of insurance

    C. The deductible

    D. The agreed value
  6. Which of the following exposures is insured under Coverage I - Personal and Advertising Injury Liability?

    A. Statements made by an insured during their farm radio show

    B. Breach of a written contract

    C. Unintentional acts arising from the operation of a farming business

    D. Failure of goods to perform
  7. According to the principles of ocean marine insurance, an actual total loss may occur in all of the following situations EXCEPT

    A. When all property has been destroyed 

    B. With loss of specie

    C. When insured is irretrievable deprived of all property, even through not destroyed 

    D. When cargo is misplaced
  8. What is the purpose of increased value and excess liability (IVEL) clauses?

    A. To protect the insurer from inflation

    B. To protect the master and crew of a vessel from being sued

    C. To provide extra coverage for the same losses covered by an underlining policy

    D. To protect an assured from the error and omissions of his or her insurance agent
  9. In order for a Protection and Indemnity policy to cover a loss which of the following must be TRUE?

    A. The insurer must conduct an investigation into the loss

    B. The loss must total

    C. The insured must be legally liable for the loss

    D. The insured must have bee the person operating the vessel
  10. Under Coverage C of a farm policy, what is the limit payable on business property located away from the premises?

    A. $500

    B. $1,000

    C. $100

    D. $250
  11. In which of the following situations would the jewelers block extension cover a loss?

    A. Julie, an employee of Antique Jewelers, is wearing a cameo brooch and ring set to display to customers. During the day she discovered the brooch has fallen off, and she can't find it

    B. Maurice's Jeweler's fixes a necklace and sends it by registered mail to the owner. When the necklace arrives, it has been damaged

    C. Jeana's Jewelry Concepts is robbed while displaying bracelets and necklaces at a public exhibition

    D. Diamond Fire Jewelry store agrees to exhibit a necklace and earring set in a showcase away from the premises. the case is broken into, and the set is stolen.
  12. Which of the following is NOT a P&I exclusion?

    A. Detention of vessel

    B. Excess coverage

    C. Damage to hull machinery

    D. Commercial towing of other vessels
  13. When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays

    A. A percentage of the loss as described on the declarations

    B. The excess over the self-insured retention

    C. The amount specified in the policy under the additional coverage provisions

    D. The amount in excess of the underlying policy deductible
  14. All of the following property is insured under Coverage A of a farm policy EXCEPT

    A. A snowblower owned by the insured used to service the primises

    B. The dwelling described in the declarations page

    C. Personal lawnmower of a tenant used to service the described location

    D. Material on promises to be used for repair or alter the insured structure
  15. Bulk carriers are used to transport 

    A. Break-bulk cargo

    B. Motor vehicles

    C. Containerized cargo

    D. Loose cargo
  16. Which of the following is NOT covered under Coverage E- Scheduled Farm Personal Property?

    A. Fish

    B. Turkeys

    C. Portable structures

    D. Livestock
  17. Which of the following is NOT covered under accounts receivable coverage form?

    A. Expenses to reestablish the records, if possible, and collection expenses that are in excess of normal costs

    B. Any loans required to offset uncollectible amounts

    C. Interest on loans required to offset uncollectible amount pending payment of the insurance proceeds

    D. Sums due the insured are uncollectible due to cover loss
  18. Who has the rights to veto the repair facility for a vessel?

    A. The captain

    B. The owner

    C. The assured

    D. The underwriter
  19. Ro/ro ships are used to transport

    A. Coal, grain, phosphates, and other "loose" cargo

    B. Break-bulk cargo

    C. Motor vehicles

    D. Containerized cargo
  20. An installation floater is used to insure

    A. All types of for-sale merchandise

    B. Dams, power plants, water plants, and other such installations

    C. Appliances intended to become a permanent part of the building

    D. Buildings under construction

    The installation floater covers the interest of the owner, seller, or contractor of refrigeration systems, elevators or other pieces of large equipment intended to be a permanent party of the building on location awaiting or in the process of being installed or tested
  21. Which clause provides coverage for the cargo while transported to or from a vessel in another craft, raft, or lighter?

    A. The transportation clause

    B. The transit clause

    C. The craft clause

    D. The voyage clause
  22. All of the following are classes of inland marine risks EXCEPT

    A. Common Carrier Cargo Liability

    B. Commercial property floater risks

    C. Domestic shipments and transportation risks

    D. Bridges, tunnels, and other instrumentalities of transportation and communication.
  23. Institute Cargo Clause A covers all losses except those that are excluded. Which of the following excluded perils can be endorsed back into the policy to provide coverage?

    A. The ship captain was caught stealing cargo

    B. The cargo was not packed to withstand extremes of weather and temperature

    C. The ship is infested with spiders

    D. War, strikes, riots, and civil commotion
  24. If a pilotage and towing firm is responsible for damage done to a vessel while the vessel is under its control, who is liable for the damage?

    A. The vessel's owners or managers

    B. The insurer of the pilotage and towing firm

    C. The vessel's assured

    D. The insurer of the vessel
  25. Which of the following statements is NOT true regarding a personal umbrella liability policy?

    A. It may cover certain exposures not provided under the primary layer

    B. It may require the payment of a self insured retention

    C. It provides excess liability coverage over underlying personal liability 

    D. It provides errors and omissions coverage for an agency
  26. Which inland marine coverage condition says that an insurer will settle with the actual owners of property involved in a loss?

    A. Transfer of rights recovery

    B. Reinstatement of limit

    C. Legal action against the insurer

    D. Privilege to adjust with the owner
  27. In farm insurance, Coverage I - Personal and Advertising Injury Liability for suits alleging personal injury is most similar to the coverage found in which coverage form/

    A. Umbrella liability

    B. General liability

    C. Personal auto

    D. Dwelling
  28. A large antenna is damaged when a tree branch hits an insured farm dwelling during a storm. Coverage A of a farm property coverage form would insure damages for this occurrence up to

    A. $1,000

    B. $2,000

    C. $3,000

    D. $4,000
  29. A business using it own trucks to move its own cargo would insure the cargo using

    A. Motor truck cargo - owners form

    B. Motor truck cargo - truckers form

    C. Motor carrier form

    D. Trip transit coverage
Card Set:
Property and Casualty
2014-02-03 21:12:24
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