Question 1

Match the descriptions with their terms:
-The _________________ is the primary commercial insurance policy.

Accepted Answer

A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement 
A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement I

Question 2

Match the descriptions with their terms:
-The _________________ policy is one that permits the commercial insureds to combine many types of liability coverage into one contract.

Accepted Answer

A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement 
A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement C

Question 3

The 60-days' coverage after the policy period in the claims-made policy is called the

Accepted Answer

A)  extended period of indemnity, 
B)  basic extended reporting period, 
C)  supplemental tail. 
A)  extended period of indemnity, 
B)  basic extended reporting period, 
C)  supplemental tail. B

Question 4

In order for an agent to collect under an errors-and-omissions contract, the agent must show that the mistake occurred during the policy year.

Accepted Answer

A) True 
 B)False

Question 5

Match the descriptions with their terms:
-The cost of product recall is excluded by the _________________ in the CGL.

Accepted Answer

A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement 
A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement

Question 6

Match the descriptions with their terms:
-"_________________" suggests a sudden, unexpected, abnormal event.

Accepted Answer

A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement 
A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement

Question 7

The five-year coverage after the policy period ends in the claims-made policy is called the

Accepted Answer

A)  SCLP, 
B)  supplemental tail, 
C)  extended period of indemnity. 
A)  SCLP, 
B)  supplemental tail, 
C)  extended period of indemnity.

Question 8

In almost all liability contracts, the act causing injury must be accidental.

Accepted Answer

A) True 
 B)False

Question 9

Under products liability, if a customer is injured by a faulty product on the premises, the products liability coverage applies.

Accepted Answer

A) True 
 B)False

Question 10

Match the descriptions with their terms:
-Liability insurance has sometimes been termed _________________ because the majority of liability suits are settled out of court by negotiation between attorneys.

Accepted Answer

A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement 
A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement

Question 11

It is generally not possible to insure more than one person in a typical liability contract.

Accepted Answer

A) True 
 B)False

Question 12

Match the descriptions with their terms:
-The _________________ will probably become the major type of policy for "long-tail" liability.

Accepted Answer

A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement 
A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement

Question 13

Match the descriptions with their terms:
-Under the _________________ a liability policy provides coverage when a claimant's disease is discovered.

Accepted Answer

A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement 
A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement

Question 14

Most liability insurance contracts have an insuring clause, supplementary benefits, and a definition of the insured.

Accepted Answer

A) True 
 B)False

Question 15

Under a medical professional liability policy, libel and slander are covered.

Accepted Answer

A) True 
 B)False

Question 16

Under the liability contract the insurer will pay claims for which the insured is legally liable, plus those paid voluntarily as a moral obligation.

Accepted Answer

A) True 
 B)False

Question 17

Commercial umbrellas are used to

Accepted Answer

A)  provide high limits of coverage, 
B)  give insureds high limits and load coverage, 
C)  reduce primary coverage. 
A)  provide high limits of coverage, 
B)  give insureds high limits and load coverage, 
C)  reduce primary coverage.

Question 18

All but one of the following classes of liability are insurable under the commercial general liability policy:

Accepted Answer

A)  premises liability, 
B)  elevator liability, 
C)  independent contractor liability, 
D)  comprehensive personal liability, 
E)  products liability. 
A)  premises liability, 
B)  elevator liability, 
C)  independent contractor liability, 
D)  comprehensive personal liability, 
E)  products liability.

Question 19

Match the descriptions with their terms:
-Retailers may ask for a/an _________________ to be added to a manufacturer's product liability policy for the retailer's benefit.

Accepted Answer

A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement 
A)  accident 
B)  claims-made policy 
C)  commercial general liability 
D)  defense insurance 
E)  dram shop exclusion
F) exposure doctrine
G) manifestation doctrine
H) Occurrence
I) SCLP
J) sistership exclusion
K) vendor's endorsement

Question 20

In the CGL program, employee injuries should be covered under a workers' compensation policy.

Accepted Answer

A) True 
 B)False

Exam 11: Risk Management and Commercial Liability Risk

Match the descriptions with their terms: -The _________________ is the primary commercial insurance policy.

Match the descriptions with their terms: -The _________________ policy is one that permits the commercial insureds to combine many types of liability coverage into one contract.

The 60-days' coverage after the policy period in the claims-made policy is called the

In order for an agent to collect under an errors-and-omissions contract, the agent must show that the mistake occurred during the policy year.

Match the descriptions with their terms: -The cost of product recall is excluded by the _________________ in the CGL.

Match the descriptions with their terms: -"_________________" suggests a sudden, unexpected, abnormal event.

The five-year coverage after the policy period ends in the claims-made policy is called the

In almost all liability contracts, the act causing injury must be accidental.

Under products liability, if a customer is injured by a faulty product on the premises, the products liability coverage applies.

Match the descriptions with their terms: -Liability insurance has sometimes been termed _________________ because the majority of liability suits are settled out of court by negotiation between attorneys.

It is generally not possible to insure more than one person in a typical liability contract.

Match the descriptions with their terms: -The _________________ will probably become the major type of policy for "long-tail" liability.

Match the descriptions with their terms: -Under the _________________ a liability policy provides coverage when a claimant's disease is discovered.

Most liability insurance contracts have an insuring clause, supplementary benefits, and a definition of the insured.

Under a medical professional liability policy, libel and slander are covered.

Under the liability contract the insurer will pay claims for which the insured is legally liable, plus those paid voluntarily as a moral obligation.

Commercial umbrellas are used to

All but one of the following classes of liability are insurable under the commercial general liability policy:

Match the descriptions with their terms: -Retailers may ask for a/an _________________ to be added to a manufacturer's product liability policy for the retailer's benefit.

In the CGL program, employee injuries should be covered under a workers' compensation policy.

Introduction to Risk

Risk Identification and Evaluation

Property and Liability Loss Exposures

Life, Health, and Loss of Income Exposures

Risk Management Techniques: Noninsurance Methods

Insurance As a Risk Management Technique: Principles

Insurance As a Risk Management Technique: Policy Provisions

Selecting and Implementing Risk Management Techniques

Risk Management and Commercial Propertypart I

Risk Management and Commercial Propertypart II

Workers Compensation and Alternative Risk Financing

Risk Management for Auto Ownerspart I

Risk Management for Auto Ownerspart II

Risk Management for Homeowners

Loss of Life

Loss of Health

Retirement Planning and Annuities

Employee Benefits: Life and Health Benefits

Employee Benefits: Retirement Plans

Financial and Estate Planning

Risk Management and the Insurance Industry

Functions and Organization of Insurers

Government Regulation of Risk Management and Insurance

Filters