Question 1

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 A

Question 2

Which of the following is not an indirect loss?

Accepted Answer

A) loss of income subsequent to a direct property loss 
B) continuing expenses incurred during a shutdown after a direct property loss 
C) extra expenses to keep a business operating after a direct property loss 
D) production machine is destroyed due to fire 
A) loss of income subsequent to a direct property loss 
B) continuing expenses incurred during a shutdown after a direct property loss 
C) extra expenses to keep a business operating after a direct property loss 
D) production machine is destroyed due to fire D

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

"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 5

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) contingent business interruption 
B) additional insured interruption 
C) consequential business interruption 
D) suppliers' protection and interruption 
A) contingent business interruption 
B) additional insured interruption 
C) consequential business interruption 
D) suppliers' protection and interruption

Question 6

A friendly fire is:

Accepted Answer

A) deliberately ignited 
B) within its desired boundaries 
C) both a & b above 
D) none of the above 
A) deliberately ignited 
B) within its desired boundaries 
C) both a & b above 
D) none of the above

Question 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a benefit of standard policies?

Accepted Answer

A) smaller insurers can offer cheaper insurance than larger companies for the same exposures 
B) litigation should be reduced as policy meaning becomes understood 
C) consumers are more likely to learn and understand the meaning of standard policies 
D) data collection and rate computation is easier and more accurate 
A) smaller insurers can offer cheaper insurance than larger companies for the same exposures 
B) litigation should be reduced as policy meaning becomes understood 
C) consumers are more likely to learn and understand the meaning of standard policies 
D) data collection and rate computation is easier and more accurate

Question 11

The CPPs building and personal property insurance form is designed to cover residential property for individuals.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a function of the Insurance Services Office (ISO)?

Accepted Answer

A) collecting loss data 
B) developing standard insurance policies 
C) coordinating prices between insurance companies 
D) providing public information about insurance 
A) collecting loss data 
B) developing standard insurance policies 
C) coordinating prices between insurance companies 
D) providing public information about insurance

Question 13

A hostile fire is:

Accepted Answer

A) deliberately ignited 
B) unconfined and beyond its desired boundaries 
C) both a & b above 
D) none of the above 
A) deliberately ignited 
B) unconfined and beyond its desired boundaries 
C) both a & b above 
D) none of the above

Question 14

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 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

Early fire departments in the U.S.would extinguish a fire only if the building _______________ .

Accepted Answer

A) was near a dynamite factory or otherwise threatened neighboring properties 
B) had that fire department's fire mark attached 
C) had any fire mark attached 
D) none of the above 
A) was near a dynamite factory or otherwise threatened neighboring properties 
B) had that fire department's fire mark attached 
C) had any fire mark attached 
D) none of the above

Question 18

More inland than ocean marine insurance has been sold in recent years.

Accepted Answer

A) True 
 B)False

Question 19

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 20

What is a fire? What is the difference between a friendly and a hostile fire?

Accepted Answer

The term "fire" is not defined in insura

Exam 18: Commercial Property Insurance

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

Which of the following is not an indirect loss?

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

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

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?

A friendly fire is:

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

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

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

Which of the following is not a benefit of standard policies?

The CPPs building and personal property insurance form is designed to cover residential property for individuals.

Which of the following is not a function of the Insurance Services Office (ISO)?

A hostile fire is:

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

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

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

Early fire departments in the U.S.would extinguish a fire only if the building _______________ .

More inland than ocean marine insurance has been sold in recent years.

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

What is a fire? What is the difference between a friendly and a hostile fire?

Fundamentals and Terminology

Defining the Insurable Event

Risk Management

Financial Services Companies

Insurance Occupations

the Insurance Market: the Economic Problem

Insurance Regulation

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Basic Property and Liability Insurance Contracts

Homeowners Insurance

the Personal Auto Policy

Professional Financial Planning

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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

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