Question 1

"Cargo" and "freight" losses are the same thing in ocean marine insurance.

Accepted Answer

A) True 
 B)False

Question 2

What is the difference between a general average and a particular average in ocean marine insurance?

Accepted Answer

A particular average (loss)is damage don

Question 3

Identify the exposure that is not shared by aircraft and marine insurance policies.

Accepted Answer

A) cargo loss exposure 
B) legal liability exposure 
C) freight loss exposure 
D) all of the above are similar in aircraft and marine coverage 
A) cargo loss exposure 
B) legal liability exposure 
C) freight loss exposure 
D) all of the above are similar in aircraft and marine coverage

Question 4

All the following are true about schedule rating except:

Accepted Answer

A) used in rating some commercial buildings 
B) analyzes each property individually 
C) starts with a rate for a standard building in the same city as the building being rated 
D) the rate is looked up based upon a few rating factors such as construction type and territory 
A) used in rating some commercial buildings 
B) analyzes each property individually 
C) starts with a rate for a standard building in the same city as the building being rated 
D) the rate is looked up based upon a few rating factors such as construction type and territory

Question 5

Amanda Miranda owns a soft drink manufacturing company that makes Fizzy Dizzy soda. She asks you to determine if she has any intangible property. Which of the following items would you tell her are intangibles?

Accepted Answer

A) secret formula for Fizzy Dizzy 
B) patented design of the Fizzy Dizzy bottle 
C) patented name of the product (Fizzy Dizzy) 
D) all of the above 
A) secret formula for Fizzy Dizzy 
B) patented design of the Fizzy Dizzy bottle 
C) patented name of the product (Fizzy Dizzy) 
D) all of the above

Question 6

An aircraft owner would need all of the following coverages except:

Accepted Answer

A) hull insurance 
B) freight insurance 
C) fire insurance 
D) liability insurance 
A) hull insurance 
B) freight insurance 
C) fire insurance 
D) liability insurance

Question 7

What are the categories of business income losses? Briefly explain each.

Accepted Answer

There are generally three categories of

Question 8

Which of the following statements is false?

Accepted Answer

A) Trucking companies spend about 3% of their operating expenses on insurance premiums 
B) Federal law requires trucks traveling across state lines to have at least $1.5 million in liability insurance 
C) The peril causing the largest amount of inland marine losses is theft 
D) Inland marine insurance developed because commerce in the U.S. moved inland 
A) Trucking companies spend about 3% of their operating expenses on insurance premiums 
B) Federal law requires trucks traveling across state lines to have at least $1.5 million in liability insurance 
C) The peril causing the largest amount of inland marine losses is theft 
D) Inland marine insurance developed because commerce in the U.S. moved inland

Question 9

The Broad Cause of Loss form adds perils to the Basic Cause of Loss form but does not increase the dollar amount of coverage.

Accepted Answer

A) True 
 B)False

Question 10

Class rating and schedule rating use the same approach in arriving at a final fire insurance rate;both use a system of debits and credits and charges for particular property as compared to a standard.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following factors would not be considered in setting an ocean marine insurance rate?

Accepted Answer

A) route of the ship 
B) type of cargo being transported 
C) experience of the captain and crew 
D) ISO's standard base rate for marine exposures 
A) route of the ship 
B) type of cargo being transported 
C) experience of the captain and crew 
D) ISO's standard base rate for marine exposures

Question 12

"Fire" means rapid combustion accompanied by heat,light or glow,when used in insurance terminology.

Accepted Answer

A) True 
 B)False

Question 13

Ocean marine policies are typically "specified perils" contracts.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a factor in the cost of aircraft insurance?

Accepted Answer

A) perils covered 
B) experience and training of the pilot 
C) type of cargo carried 
D) landing and hangar fees charged by local airports 
A) perils covered 
B) experience and training of the pilot 
C) type of cargo carried 
D) landing and hangar fees charged by local airports

Question 15

Which of the following factors would generally not be considered in a class rating scheme?

Accepted Answer

A) community fire fighting capability 
B) use of the structure 
C) external surrounding exposures 
D) the existence of sidewalks around the building 
A) community fire fighting capability 
B) use of the structure 
C) external surrounding exposures 
D) the existence of sidewalks around the building

Question 16

Which of the following is not an indirect loss?

Accepted Answer

A) loss of rental income after a flood 
B) continuing expenses during a shutdown after a loss 
C) extra expenses after a loss to keep the business going 
D) loss of inventory in a flood 
A) loss of rental income after a flood 
B) continuing expenses during a shutdown after a loss 
C) extra expenses after a loss to keep the business going 
D) loss of inventory in a flood

Question 17

List and explain the major types of ocean marine loss exposures

Accepted Answer

Hull,Cargo,freight,and liability. Hull i

Question 18

Reporting forms for inventory insurance require the insured to ____________________ .

Accepted Answer

A) purchase insurance equal to 100% of the inventory's value 
B) purchase insurance equal to 80% of the inventory's value 
C) report inventory values with scrupulous honesty 
D) have very stable inventory levels 
A) purchase insurance equal to 100% of the inventory's value 
B) purchase insurance equal to 80% of the inventory's value 
C) report inventory values with scrupulous honesty 
D) have very stable inventory levels

Question 19

Commercial insurance contracts covering the fire peril never explicitly define the term "fire."

Accepted Answer

A) True 
 B)False

Question 20

An office building is an example of:

Accepted Answer

A) personal property 
B) intangible property 
C) intellectual property 
D) real property 
A) personal property 
B) intangible property 
C) intellectual property 
D) real property

Exam 18: Commercial Property Insurance

"Cargo" and "freight" losses are the same thing in ocean marine insurance.

What is the difference between a general average and a particular average in ocean marine insurance?

Identify the exposure that is not shared by aircraft and marine insurance policies.

All the following are true about schedule rating except:

Amanda Miranda owns a soft drink manufacturing company that makes Fizzy Dizzy soda. She asks you to determine if she has any intangible property. Which of the following items would you tell her are intangibles?

An aircraft owner would need all of the following coverages except:

What are the categories of business income losses? Briefly explain each.

Which of the following statements is false?

The Broad Cause of Loss form adds perils to the Basic Cause of Loss form but does not increase the dollar amount of coverage.

Class rating and schedule rating use the same approach in arriving at a final fire insurance rate;both use a system of debits and credits and charges for particular property as compared to a standard.

Which of the following factors would not be considered in setting an ocean marine insurance rate?

"Fire" means rapid combustion accompanied by heat,light or glow,when used in insurance terminology.

Ocean marine policies are typically "specified perils" contracts.

Which of the following is not a factor in the cost of aircraft insurance?

Which of the following factors would generally not be considered in a class rating scheme?

Which of the following is not an indirect loss?

List and explain the major types of ocean marine loss exposures

Reporting forms for inventory insurance require the insured to ____________________ .

Commercial insurance contracts covering the fire peril never explicitly define the term "fire."

An office building is an example of:

Fundamentals and Terminology

Defining the Insurable Event

Risk Management

Financial Services Companies

Insurance Occupations

the Insurance Market: the Economic Problem

Insurance Regulation

Insurance Contracts

Basic Property and Liability Insurance Contracts

Homeowners Insurance

the Personal Auto Policy

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions And Options

Annuities

Medical Expense and Disability Insurance

Advanced Topics in Risk Management

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Bonding,Crime Insurance and Reinsurance

Employee Benefits

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