Question 1

A firm wishing to insure a single shipment of merchandise sent by a common carrier would purchase a(n)

Accepted Answer

A) annual transit policy. 
B) trip transit policy. 
C) bailee's liability policy. 
D) equipment floater. 
A) annual transit policy. 
B) trip transit policy. 
C) bailee's liability policy. 
D) equipment floater.

Question 2

All of the following statements about the businessowners policy are true EXCEPT

Accepted Answer

A) Coverage for business personal property includes coverage for leased personal property which the named insured has a contractual responsibility to insure. 
B) The amount of insurance on the buildings increases by a stated percentage each year. 
C) Additional coverages include pollutant cleanup and removal. 
D) The policy must be written with a deductible of at least $2,000 for property losses. 
A) Coverage for business personal property includes coverage for leased personal property which the named insured has a contractual responsibility to insure. 
B) The amount of insurance on the buildings increases by a stated percentage each year. 
C) Additional coverages include pollutant cleanup and removal. 
D) The policy must be written with a deductible of at least $2,000 for property losses.

Question 3

One of the additional coverages under the building and personal property coverage form is "increased cost of construction." The coverage is payable if

Accepted Answer

A) a skilled artisan is needed to duplicate the construction of the damaged property. 
B) a labor strike or materials shortage increases construction costs. 
C) an ordinance or building code increases the cost of construction. 
D) the materials necessary to rebuild the damaged structure are more expensive than ordinary building materials. 
A) a skilled artisan is needed to duplicate the construction of the damaged property. 
B) a labor strike or materials shortage increases construction costs. 
C) an ordinance or building code increases the cost of construction. 
D) the materials necessary to rebuild the damaged structure are more expensive than ordinary building materials.

Question 4

Frank's property insurance requires periodic reporting of inventory values.Frank believes he can save money by under-reporting the inventory.Last period,Frank reported $200,000 when the value was really $400,000.Shortly after filing the report,when the value was $500,000,the inventory was destroyed.How much will Frank's insurer pay,assuming no deductible?

Accepted Answer

A) nothing,as underreporting voids coverage 
B) $200,000 
C) $250,000 
D) $400,000 
A) nothing,as underreporting voids coverage 
B) $200,000 
C) $250,000 
D) $400,000

Question 5

All of the following statements about business income insurance are true EXCEPT

Accepted Answer

A) Business income is defined as total sales that would have been made if the loss had not occurred. 
B) Payroll is considered a continuing normal operating expense. 
C) Business income insurance does not cover the physical damage caused by a peril which created the interruption in business. 
D) The business income coverage form can be purchased with a coinsurance requirement. 
A) Business income is defined as total sales that would have been made if the loss had not occurred. 
B) Payroll is considered a continuing normal operating expense. 
C) Business income insurance does not cover the physical damage caused by a peril which created the interruption in business. 
D) The business income coverage form can be purchased with a coinsurance requirement.

A firm wishing to insure a single shipment of merchandise sent by a common carrier would purchase a(n)

All of the following statements about the businessowners policy are true EXCEPT

One of the additional coverages under the building and personal property coverage form is "increased cost of construction." The coverage is payable if

All of the following statements about business income insurance are true EXCEPT

Risk and Its Treatment

Insurance and Risk

Introduction to Risk Management

Advanced Topics in Risk Management

Types of Insurers and Marketing Systems

Insurance Company Operations

Financial Operations of Insurers

Government Regulation of Insurance

Fundamental Legal Principles

Analysis of Insurance Contracts

Life Insurance

Life Insurance Contractual Provisions

Buying Life Insurance

Annuities and Individual Retirement Accounts

Health-Care Reform; Individual Health Insurance Coverages

Employee Benefits: Group Life and Health Insurance

Employee Benefits: Retirement Plans

Social Insurance

The Liability Risk

Homeowners Insurance,section I

Homeowners Insurance,section II

Auto Insurance

Auto Insurance and Society

Other Property and Liability Insurance Coverages

Commercial Liability Insurance

Crime Insurance and Surety Bonds

Filters

Exam 25: Commercial Property Insurance

A firm wishing to insure a single shipment of merchandise sent by a common carrier would purchase a(n)

All of the following statements about the businessowners policy are true EXCEPT

One of the additional coverages under the building and personal property coverage form is "increased cost of construction." The coverage is payable if

All of the following statements about business income insurance are true EXCEPT

Risk and Its Treatment

Insurance and Risk

Introduction to Risk Management

Advanced Topics in Risk Management

Types of Insurers and Marketing Systems

Insurance Company Operations

Financial Operations of Insurers

Government Regulation of Insurance

Fundamental Legal Principles

Analysis of Insurance Contracts

Life Insurance

Life Insurance Contractual Provisions

Buying Life Insurance

Annuities and Individual Retirement Accounts

Health-Care Reform; Individual Health Insurance Coverages

Employee Benefits: Group Life and Health Insurance

Employee Benefits: Retirement Plans

Social Insurance

The Liability Risk

Homeowners Insurance,section I

Homeowners Insurance,section II

Auto Insurance

Auto Insurance and Society

Other Property and Liability Insurance Coverages

Commercial Liability Insurance

Crime Insurance and Surety Bonds

Filters