Question 1

If the Bartow Publishing House sends a shipment of textbooks to the university bookstore via a common carrier, it needs:

Accepted Answer

A)  no inland marine insurance because the trucking company already has this coverage 
B)  inland marine insurance because a shipper cannot recover from a common carrier 
C)  liability insurance to sue the common carrier for the carrier's legal liability 
D)  inland marine insurance, even though it can collect a liability claim from the carrier, because such collection could be slow and potentially expensive 
A)  no inland marine insurance because the trucking company already has this coverage 
B)  inland marine insurance because a shipper cannot recover from a common carrier 
C)  liability insurance to sue the common carrier for the carrier's legal liability 
D)  inland marine insurance, even though it can collect a liability claim from the carrier, because such collection could be slow and potentially expensive

Question 2

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

Accepted Answer

A)  Community firefighting capability 
B)  Use of the structure 
C)  External surrounding exposures 
D)  Age of the named insured 
A)  Community firefighting capability 
B)  Use of the structure 
C)  External surrounding exposures 
D)  Age of the named insured

Question 3

The term "aircraft" is restricted to "fixed-wing aircraft" capable of speeds in excess of 150 mph.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Which of the following perils is not found in the Basic Cause of Loss form?

Accepted Answer

A)  Windstorm or hail 
B)  Volcanic action 
C)  Flood 
D)  Explosion 
A)  Windstorm or hail 
B)  Volcanic action 
C)  Flood 
D)  Explosion

Question 6

Which of the following types of business income coverage would pay for losses due to the destruction of your supplier of raw goods or a buyer of your products?

Accepted Answer

A)  Dependent properties business income form 
B)  Additional insured interruption 
C)  Consequential business interruption 
D)  Suppliers' protection and interruption 
A)  Dependent properties business income form 
B)  Additional insured interruption 
C)  Consequential business interruption 
D)  Suppliers' protection and interruption

Question 7

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

Question 8

Mobile property is:

Accepted Answer

A)  covered by transportation insurance 
B)  covered by marine insurance 
C)  both A and B above 
D)  none of the above 
A)  covered by transportation insurance 
B)  covered by marine insurance 
C)  both A and B above 
D)  none of the above

Question 9

Jana loans a leather jacket to Brenda. Brenda must return the jacket to Jana in one week. This arrangement is called a/an:

Accepted Answer

A)  mortgage 
B)  agency rent 
C)  assignment 
D)  bailment 
A)  mortgage 
B)  agency rent 
C)  assignment 
D)  bailment

Question 10

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 11

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

Accepted Answer

A particular average (loss) is damage do

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

List and explain the major types of ocean marine loss exposures.

Accepted Answer

Hull, Cargo, freight, and liability. Hul

Question 15

Neither explosion nor smoke damage is covered by a commercial property contract.

Accepted Answer

A) True 
 B)False

Question 16

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

If the Bartow Publishing House sends a shipment of textbooks to the university bookstore via a common carrier, it needs:

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

The term "aircraft" is restricted to "fixed-wing aircraft" capable of speeds in excess of 150 mph.

Floater policies are used to insure:

Which of the following perils is not found in the Basic Cause of Loss form?

Which of the following types of business income coverage would pay for losses due to the destruction of your supplier of raw goods or a buyer of your products?

An office building is an example of:

Mobile property is:

Jana loans a leather jacket to Brenda. Brenda must return the jacket to Jana in one week. This arrangement is called a/an:

Which of the following is not an indirect loss?

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

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

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

List and explain the major types of ocean marine loss exposures.

Neither explosion nor smoke damage is covered by a commercial property contract.

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

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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Exam 22: Commercial Property Insurance

If the Bartow Publishing House sends a shipment of textbooks to the university bookstore via a common carrier, it needs:

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

The term "aircraft" is restricted to "fixed-wing aircraft" capable of speeds in excess of 150 mph.

Floater policies are used to insure:

Which of the following perils is not found in the Basic Cause of Loss form?

Which of the following types of business income coverage would pay for losses due to the destruction of your supplier of raw goods or a buyer of your products?

An office building is an example of:

Mobile property is:

Jana loans a leather jacket to Brenda. Brenda must return the jacket to Jana in one week. This arrangement is called a/an:

Which of the following is not an indirect loss?

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

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

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

List and explain the major types of ocean marine loss exposures.

Neither explosion nor smoke damage is covered by a commercial property contract.

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

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

Filters