Question 1

Ocean marine policies are typically "specified perils" contracts.

Accepted Answer

A) True 
 B)False

Question 2

The dependent property business income form pays for loss of income when the insured's owned property is damaged by an insured peril.

Accepted Answer

A) True 
 B)False

Question 3

Ocean marine insurance typically covers all the following categories of loss except:

Accepted Answer

A)  losses caused by ship owner's fraud 
B)  loss of ship by pirates 
C)  loss of cargo in a tidal wave 
D)  loss of freight 
A)  losses caused by ship owner's fraud 
B)  loss of ship by pirates 
C)  loss of cargo in a tidal wave 
D)  loss of freight

Question 4

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

Accepted Answer

There are generally three categories of

Question 5

Which of the following is not a type of property covered by the CPP's 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 6

A commercial package policy:

Accepted Answer

A)  covers packages in transit 
B)  is one in which two or more coverages are combined 
C)  both A and B above 
D)  none of the above 
A)  covers packages in transit 
B)  is one in which two or more coverages are combined 
C)  both A and B above 
D)  none of the above

Question 7

A bailees' customer policy is a type of ocean marine insurance.

Accepted Answer

A) True 
 B)False

Question 8

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 9

"Loss of use" coverage will not provide payment for:

Accepted Answer

A)  extra expenses incurred to stay in operation after an insured loss occurs 
B)  payment for a direct loss caused by fire at a described premises 
C)  lost profits after an insured loss due to the interruption of business 
D)  coverage for any continuing fixed expenses due to the loss of cash flow 
A)  extra expenses incurred to stay in operation after an insured loss occurs 
B)  payment for a direct loss caused by fire at a described premises 
C)  lost profits after an insured loss due to the interruption of business 
D)  coverage for any continuing fixed expenses due to the loss of cash flow

Question 10

Which of the following is not a "bailment"?

Accepted Answer

A)  Leaving your car at an auto dealer for repair 
B)  Loaning your car to your neighbor 
C)  Eating at a restaurant 
D)  Shipping goods on a truck 
A)  Leaving your car at an auto dealer for repair 
B)  Loaning your car to your neighbor 
C)  Eating at a restaurant 
D)  Shipping goods on a truck

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

The CPP's building and personal property insurance form is designed to cover residential property for individuals.

Accepted Answer

A) True 
 B)False

Question 13

What is the difference between class rating and schedule rating?

Accepted Answer

Class rating operates by combining compa

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

The personal articles floater is a type of inland marine coverage.

Accepted Answer

A) True 
 B)False

Question 18

"Bailment" is an ocean marine term applying to sinking ships.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

Accepted Answer

A)  Community firefighting capability 
B)  Use of the structure 
C)  External surrounding exposures 
D)  The existence of sidewalks around the building 
A)  Community firefighting capability 
B)  Use of the structure 
C)  External surrounding exposures 
D)  The existence of sidewalks around the building

Exam 22: Commercial Property Insurance

Ocean marine policies are typically "specified perils" contracts.

The dependent property business income form pays for loss of income when the insured's owned property is damaged by an insured peril.

Ocean marine insurance typically covers all the following categories of loss except:

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

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

A commercial package policy:

A bailees' customer policy is a type of ocean marine insurance.

All of the following are true concerning marine insurance except:

"Loss of use" coverage will not provide payment for:

Which of the following is not a "bailment"?

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

The CPP's building and personal property insurance form is designed to cover residential property for individuals.

What is the difference between class rating and schedule rating?

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

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

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.

The personal articles floater is a type of inland marine coverage.

"Bailment" is an ocean marine term applying to sinking ships.

Which of the following statements about schedule rating is false?

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

Introduction to Enterprise Risk Management and Insurance

Risk Identification

Risk Assessment and Pooling

Risk-Handling Techniques: Loss Control, Risk Transfer, and Loss Financing

Risk-Handling Techniques: Diversification and Hedging

Fundamentals of Insurance

Insurable Perils and Insuring Organizations

Insurance Functions

Insurance Markets: Economics and Issues

Insurance Regulation

Insurance Contracts

The Personal Auto Policy

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions and Options

Annuities

Health Insurance and Disability Income

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Commercial Liability Insurance

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