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CPCU 552, CP&L FINAL EXAM NEWEST 2025 ACTUAL
EXAM COMPLETE 140 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
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Which one of the following statements is true about an excess policy? - ANSWER-It provides coverage no broader than is provided by underlying polices.
Although professional liability policies for financial and legal professionals contain many of the same provisions of those for other professionals, there are important differences. Which one of the following would be covered under the professional liability policies for financial and legal professionals that contain the broadest definition of professional services? - ANSWER- Claims arising from any professional service performed for others for a fee
An excess liability insurance policy that covers a claim in excess of the underlying limits only if the loss is covered by the underlying policy is called - ANSWER-A following-form excess policy
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A dealership keeps a customer's auto overnight. The auto, while on premises, is damaged by hail. The dealership has garagekeepers coverage on a legal liability basis on an Auto Dealers Coverage Form. The customer has a Liability-only policy. The customer asks the dealership to pay for the hail damage, but the claim is denied by the insurer. The only way the dealership's policy would have paid the claim is if the dealership had purchased - ANSWER-One of the garagekeepers direct coverage options.
The Broad Form Products Coverage endorsement can be used - ANSWER-To delete the Auto Dealers Coverage Form (ADCF) exclusion for defective products.
Cox Corporation recently had a covered personal liability judgment against it for $5 million. It has an underlying commercial general liability policy with a $1 million limit, which is the amount required by the umbrella insurer. The umbrella policy has a $10 million limit with a $10,000 SIR.How much is the ultimate net loss to the umbrella insurer? - ANSWER-The ultimate net loss to the umbrella insurer is
$4,000,000.
The Supplementary Payments section of the Commercial General Liability (CGL) Coverage Form contains provisions 2 / 4
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concerning the insurer's duty to defend indemnitees of the insured, but only if specific conditions are met. Which one of the following is one of these conditions? - ANSWER-The indemnitee and the insured must ask the insurer to conduct and control the defense.
Which one of the following statements about the Liquor Liability Coverage Form is true? - ANSWER-It contains an each common cause limit as well as an aggregate limit.
Under the Business Auto Coverage Form (BACF), collision is generally understood to mean - ANSWER-A striking together with violent impact.
A common endorsement to the Business Auto Coverage Form (BACF) is the Employee Hired Auto endorsement. This endorsement states that an employee of the named insured is an insured - ANSWER-The employee is an insured while operating an auto rented in the employee's name with the named insured's permission.
The legislated liability imposed by the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or Superfund) altered traditional common law 3 / 4
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concerning responsibilities for environmental pollution by - ANSWER-Superfund imposes strict liability without regard to fault, even on a retroactive basis.
Before the enactment of Workers Compensation statutes, employers were protected against employee suits by common- law defenses. Under which one of the following common-law defenses were employees unsuccessful in recovering damages from occupational injuries resulting in part from the employee's own negligence? - ANSWER-Contributory negligence
An organization may incur losses from legal liabilities in a number of different ways. Which one of the following actions would best be described as an intentional tort? - ANSWER-A newspaper mistakenly identifies the driver in an alcohol-related hit and run accident as John Doe, a prominent local attorney.
An employee, while working for the Brown Corporation, was negligent when lighting a cigarette and started a small fire that caused a fellow employee's clothes to catch fire. The injured employee suffered burns as well as the loss of clothes. To what extent, if any, does the corporation's Commercial General Liability Coverage Form provide coverage for the negligent employee if he is sued by the injured employee? - ANSWER- There is no coverage for the negligent employee because he is
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