ABC Corporation is insured under a Business and Personal Property Coverage Form that
specifies a $4 million limit of insurance on the building and a $500,000 limit on business
personal property at the building’s address. The policy has a $10,000 deductible. A $4.4
million loss to the building and a $400,000 loss to business personal property result from
a covered cause of loss. Two trees also are destroyed, resulting in a $1,000 loss fully
covered by BPP Coverage Form’s Outdoor Property coverage extension. Assuming no
coinsurance penalty applies, what is the amount payable after consideration of the
deductible and policy limits?
Detailed Answer
C
2
Which of the following is true regarding the “No Benefit to Bailee†condition used in
commercial property forms?
Detailed Answer
B
3
Which of the following statements concerning the Agreed Value optional coverage
available for purchasers of the Business and Personal Property Coverage Form is NOT
true?
Detailed Answer
D
4
Which of the following factors does NOT result in higher premiums on commercial
property insurance?
Detailed Answer
D
5
The most widely used general liability insurance form is the Insurance Services Office,
Inc. (ISO) Commercial General Liability (CGL) policy. Which of the following
statements about the CGL are true?
I. It can be written to cover the insured’s legal liability arising from premises
and operations.
II. It can be written to cover the insured’s legal liability arising from products
and completed operations.
III. It can be included in a Commercial Package Policy that provides coverage
for both property and liability losses.
Detailed Answer
D
6
The most widely used general liability insurance form is the Insurance Services Office,
Inc. (ISO) Commercial General Liability (CGL) policy. Which of the following is NOT
covered by the CGL with respect to the insured’s legal liability?
Detailed Answer
D
7
Which of the following are paid by the Commercial General Liability form’s Coverage C
– Medical Payments?
I. Only medical expenses for which the insured is legally liable.
II. Medical expenses arising from injuries resulting from an accident
occurring on the insured’s premises.
III. Medical expenses from injuries arising out of the insured’s completed
operations.
Detailed Answer
B
8
Which of the following statements regarding certain supplementary payments under
Coverages A and B of the Commercial General Liability policy are true?
I. Such payments are in addition to the policy limits.
II. Such payments are used to pay for court costs.
III. Such payments are used to pay for prejudgment interest on amounts
awarded to the plaintiff.
Detailed Answer
C
9
Chip is a volunteer worker at his church’s mid-week adult day care facility. He
accidentally spilled hot coffee on one of the elderly participants, Mary. After being
treated for third-degree burns, Mary sued both the church and Chip for damages resulting
from her injury. The church is insured under the Commercial General Liability (CGL)
policy. Which one of the following statements is true?
Detailed Answer
A
10
The owner, who also is the landlord, of an office building has Premises and Operations
coverage under a Commercial General Liability (CGL) policy with a general aggregate
limit of $5 million. The policy does not contain a Products and Completed Operations
aggregate limit. Which of the following is true regarding any damages caused by
products and completed operations for which the insured is liable?