2024 CPCU 552, CP&L FINAL EXAM 2024-
2025 WITH 200 QUESTIONS AND
CORRECT ANSWERS (100% CORRECT)
Railroad owners commonly require contractors to purchase a Railroad Protective Liability Coverage Form. Which one of the following statements about this form is true? - ANSWER-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? - ANSWER-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? - ANSWER-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 - ANSWER-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 1 / 4
injury covered under LHWCA? - ANSWER-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? - ANSWER-Liquidated damages
Many states have funds from which employers may purchase workers compensation insurance. Such funds may be either - ANSWER-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? - ANSWER-When a CGL 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? - ANSWER- 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 - ANSWER-PIP provides first- 2 / 4
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? - ANSWER-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 - ANSWER-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? - ANSWER-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? - ANSWER-Paul is not covered because employees are not insured while using their own autos in the named insured's business.
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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? - ANSWER-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? - ANSWER-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.
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