Question 1

Floater policies are used to insure:

Accepted Answer

A) property that is not waterproof 
B) property that is easily and frequently moved 
C) property that can't be covered by any other type of insurance 
D) small boats, canoes, rafts, etc 
A) property that is not waterproof 
B) property that is easily and frequently moved 
C) property that can't be covered by any other type of insurance 
D) small boats, canoes, rafts, etc

Question 2

All the following are coverages available in an ocean marine policy except:

Accepted Answer

A) freight 
B) cargo 
C) liability 
D) wharf physical damage coverage 
A) freight 
B) cargo 
C) liability 
D) wharf physical damage coverage

Question 3

What purpose do reporting forms serve in commercial property insurance contracts?

Accepted Answer

Reporting forms handle the problem of ov

Question 4

Which of the following is not a rating factor in ocean marine insurance?

Accepted Answer

A) seaworthiness of the ship 
B) experience of the captain and crew 
C) route to be traveled 
D) experience of the cargo shippers 
A) seaworthiness of the ship 
B) experience of the captain and crew 
C) route to be traveled 
D) experience of the cargo shippers

Question 5

Which of the following statements about schedule rating is false?

Accepted Answer

A) analyzes each property individually 
B) is used primarily in rating commercial buildings 
C) starts with a rate for a standard building in the same city as the building being rated 
D) uses the same rate for all buildings that have a particular construction type 
A) analyzes each property individually 
B) is used primarily in rating commercial buildings 
C) starts with a rate for a standard building in the same city as the building being rated 
D) uses the same rate for all buildings that have a particular construction type

Question 6

Aviation insurers have some difficulty complying with the law of large numbers.

Accepted Answer

A) True 
 B)False

Question 7

Loss of income after a fire loss is an indirect loss.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a type of property covered by the CPPs Building and Personal Property form?

Accepted Answer

A) automobiles 
B) business personal property 
C) personal property of others 
D) building 
A) automobiles 
B) business personal property 
C) personal property of others 
D) building

Question 9

Which of the following is an example of intangible property?

Accepted Answer

A) custom-designed accounting software 
B) leased shopping center space that your business occupies 
C) custom-made cabinetry in a retail space 
D) a limited edition automobile 
A) custom-designed accounting software 
B) leased shopping center space that your business occupies 
C) custom-made cabinetry in a retail space 
D) a limited edition automobile

Question 10

Which of the following factors would not be considered in a class rating scheme for property insurance?

Accepted Answer

A) community fire fighting capability 
B) use of the structure 
C) external surrounding exposures 
D) age of the named insured 
A) community fire fighting capability 
B) use of the structure 
C) external surrounding exposures 
D) age of the named insured

Question 11

Inland marine policies typically cover all of the following classes of property except:

Accepted Answer

A) valuable personal property 
B) bridges 
C) factory buildings 
D) property designated for import 
A) valuable personal property 
B) bridges 
C) factory buildings 
D) property designated for import

Question 12

Historically,fire marks were symbols mounted on buildings to identify the building's fire insurer.

Accepted Answer

A) True 
 B)False

Question 13

Indirect loss coverage (business income insurance)will cover all the following except:

Accepted Answer

A) lost profits 
B) continuing expenses 
C) income taxes on lost profits 
D) extra expenses incurred to maintain operations after a loss 
A) lost profits 
B) continuing expenses 
C) income taxes on lost profits 
D) extra expenses incurred to maintain operations after a loss

Question 14

The amount an insurer charges per $100 of exposed property value is called the

Accepted Answer

A) rate 
B) premium 
C) expense ratio 
D) funding ratio 
A) rate 
B) premium 
C) expense ratio 
D) funding ratio

Question 15

Damage from both friendly and hostile fires is covered by insurance contracts covering the peril of fire.

Accepted Answer

A) True 
 B)False

Question 16

What is the difference between class rating and schedule rating?

Accepted Answer

Class rating operates by combining compa

Question 17

Which of the following is not an example of a hostile fire?

Accepted Answer

A) house burns down 
B) automobile is destroyed by arson 
C) fire in the fireplace destroys a valuable paper accidentally used to start the fire 
D) fire starts on a couch when a cigarette falls on it 
A) house burns down 
B) automobile is destroyed by arson 
C) fire in the fireplace destroys a valuable paper accidentally used to start the fire 
D) fire starts on a couch when a cigarette falls on it

Question 18

All of the following are true concerning marine insurance except:

Accepted Answer

A) bottomry was an early form of insurance that covered the outstanding balance on a loan for a ship 
B) respondentia was an early form of insurance that covered outstanding loans on cargo 
C)  the earliest ocean marine contracts only covered losses caused by pirates and ship owner's fraud 
D) originally coverage did not specify (list)the individual perils causing loss 
A) bottomry was an early form of insurance that covered the outstanding balance on a loan for a ship 
B) respondentia was an early form of insurance that covered outstanding loans on cargo 
C)  the earliest ocean marine contracts only covered losses caused by pirates and ship owner's fraud 
D) originally coverage did not specify (list)the individual perils causing loss

Question 19

All the following statements are true concerning a general average loss under an ocean marine contract except:

Accepted Answer

A) property is jettisoned voluntarily 
B) property is thrown overboard to try to save life and minimize loss of property 
C) anyone having a direct property interest in the voyage contributes toward the loss 
D) the ship owner does not have to contribute toward any loss since only cargo is destroyed 
A) property is jettisoned voluntarily 
B) property is thrown overboard to try to save life and minimize loss of property 
C) anyone having a direct property interest in the voyage contributes toward the loss 
D) the ship owner does not have to contribute toward any loss since only cargo is destroyed

Question 20

The personal articles floater is a type of inland marine coverage

Accepted Answer

A) True 
 B)False

Exam 18: Commercial Property Insurance

Floater policies are used to insure:

All the following are coverages available in an ocean marine policy except:

What purpose do reporting forms serve in commercial property insurance contracts?

Which of the following is not a rating factor in ocean marine insurance?

Which of the following statements about schedule rating is false?

Aviation insurers have some difficulty complying with the law of large numbers.

Loss of income after a fire loss is an indirect loss.

Which of the following is not a type of property covered by the CPPs Building and Personal Property form?

Which of the following is an example of intangible property?

Which of the following factors would not be considered in a class rating scheme for property insurance?

Inland marine policies typically cover all of the following classes of property except:

Historically,fire marks were symbols mounted on buildings to identify the building's fire insurer.

Indirect loss coverage (business income insurance)will cover all the following except:

The amount an insurer charges per $100 of exposed property value is called the

Damage from both friendly and hostile fires is covered by insurance contracts covering the peril of fire.

What is the difference between class rating and schedule rating?

Which of the following is not an example of a hostile fire?

All of the following are true concerning marine insurance except:

All the following statements are true concerning a general average loss under an ocean marine contract except:

The personal articles floater is a type of inland marine coverage

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