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CPCU 552, CP&L FINAL EXAM NEWEST
ACTUAL EXAM COMPLETE 140 QUESTIONS
AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED
A+||BRAND NEW VERSION!!
- Railroad owners commonly require contractors to purchase a
Railroad Protective Liability Coverage Form. Which one of the following statements about this form is true?
Correct: One of the coverage limits applies to physical damage
to property owned by or leased or entrusted to the railroad*
Explanation: This form protects railroads from contractor-
caused damage, with a specific limit for physical property damage.
- Which one of the following statements about the general
aggregate limit under a Commercial General Liability (CGL) Coverage Form is true?
Correct: It is not reduced by claims paid for medical payments
under Coverage C (the statement "It is reduced by claims paid for medical payments under Coverage C" is false)*
Explanation: The general aggregate limit applies to Coverages
A (bodily injury/property damage) and B (personal/advertising
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injury), but medical payments under Coverage C have a separate per-person limit and do not reduce the general aggregate.
- Tom often runs errands for his boss at XYZ Company, using
the boss' car. On one of these errands, Tom is involved in a serious auto accident. Does XYZ's Workers Compensation and Employers Liability Insurance (WC&EL) Policy cover Tom's injuries, lost income, and rehabilitation expenses?
Correct: Yes, the workers compensation policy would pay all
of Tom's expenses, because his injuries arose out of his employment at XYZ Company*
Explanation: Workers compensation covers injuries sustained
in the course of employment, including driving a company vehicle for work purposes.
- Aircraft have a significant exposure to catastrophe losses. Of
the many reasons for the catastrophic loss potential of aircraft,
the most significant is:
Correct: The physical properties of aircraft*
Explanation: High speed, altitude, and density of aircraft
increase the severity of potential accidents, making physical properties the primary risk factor.
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- A security guard is employed at a pier and trips over
equipment near a pleasure craft, getting injured. The pier only has coverage under the Longshore and Harbor Workers Compensation Act (LHWCA). Is the guard's injury covered under LHWCA?
Correct: The injury is covered by LHWCA because the guard
is not covered under a state's workers compensation law*
Explanation: LHWCA applies to maritime workers on
navigable waters or adjoining areas, preempting state workers compensation for such injuries.
- ABC Plumbing’s contract with Bill includes a $1,000 per day
penalty for late septic system installation. Which category of damages does this penalty fall into?
Correct: Liquidated damages*
Explanation: Liquidated damages are pre-agreed amounts
specified in a contract to compensate for delays or breaches, as seen here.
- Many states have funds from which employers may purchase
workers compensation insurance. Such funds may be either:
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Correct: Competitive or monopolistic*
Explanation: Competitive funds allow choice among insurers,
while monopolistic funds require use of a state-run program, varying by state.
- Which one of the following statements regarding who is
considered an insured under Section II of the CGL Coverage Form is most accurate?
Correct: When a CGL policy covers one or more individuals
as named insureds, any person or organization having proper temporary custody of the named insured's property following the named insured's death is an insured*
Explanation: This provision extends coverage post-death to
custodians, typically for up to 90 days, ensuring property protection.
- What is the name given to a claim by an employee who says
that he or she was fired because of filing a workers compensation claim?
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