CPCU 552 LATEST EXAM -

CPCU 552 LATEST EXAM -

BANK WITH 500 ACTUAL EXAM

QUESTIONS AND CORRECT ANSWERS

GRADED A (100% CORRECT ANSWERS)

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Michael is a general liability claims adjuster for Goshen Mutual. He wants to see if an insured has any endorsements that apply to its general liability policy. Which one of the following sections of the coverage form would provide this information for Michael?

Select one:

• Coverages
• Declarations
• Definitions
• Conditions
• Declarations

Suzanne is a commercial lines underwriter. Which one of the following components of the general liability coverage forms would she use to tailor the form to meet the specialized needs of an insured?

Select one:

• Conditions
• Endorsements
• Definitions
• Limits of Insurance
• Endorsements

Joe's Cleaning Service is having a very good year, with close to a 30 percent increase in sales. Joe is wondering if this growth will affect his general liability premium at the end of the policy period. Which one of the following sections of the general liability coverage form will provide this information?

Select one:

• Declarations Form 1 / 4

• Limits of Insurance
• Endorsements
• Extended Reporting Period
• Declarations Form

Under a Commercial General Liability (CGL) policy, an insured is found to be legally liable to pay medical expenses as well as loss of earnings to a claimant.This describes which one of the following types of damages?

Select one:

• Special damages
• General damages
• Excess damages
• Punitive damages
• Special damages

The Commercial General Liability (CGL) Coverage Form defines the term "occurrence" as

Select one:

• An incident, sudden and accidental in nature, causing bodily injury or property

damage.

• An accident, including continuous or repeated exposure to substantially the

same general harmful conditions.

• An accident, causing bodily injury or property damage, that occurs suddenly.
• An incident resulting from repeated exposure to substantially the same general

harmful conditions.

• An accident, including continuous or repeated exposure to substantially the

same general harmful conditions.BBC Manufacturing (BBC) has an unendorsed Commercial General Liability (CGL) Coverage Form. BBC has expanded its sales outside the United States. Due to injuries from alleged defective products of BBC, lawsuits are brought in Europe, Mexico, Canada and Puerto Rico. Which one of the following statements describes the extent for which BBC's insurer will provide coverage or defense in these jurisdictions?

Select one:

• There is coverage and defense for all but the European suits since Europe is not

part of the territory covered. 2 / 4

• There is coverage and defense for Canada and Puerto Rico, since these are

covered territories.

• There is no coverage or defense, as none of these jurisdictions meet the

territorial requirement.

• There is coverage and defense for the Puerto Rico lawsuit only as it is a territory

of the United States.

• There is coverage and defense for Canada and Puerto Rico, since these are

covered territories.Becky, the owner of Becky's Muffin Shop, sees a teenage boy take a cookie from the counter and start to leave the store without paying for the cookie. Becky intends to injure him as punishment for his misdeed. She tackles the boy, pins his arms behind his back, and pushes his face to the floor until the police arrive. The boy suffers a cracked rib, dislocated shoulder, and broken nose. Which one of the following exclusions in the Commercial General Liability (CGL) Coverage Form applies to this occurrence?

Select one:

• Malicious acts exclusion
• Insured's products and work exclusion
• Employers liability exclusion
• Expected or intended injury exclusion
• Expected or intended injury exclusion

The Coverage A Pollution exclusion applies to all of the following, EXCEPT:

Select one:

• Cleanup costs resulting from pollution incidents
• Bodily injury caused by smoke from a hostile fire
• Bodily injury resulting from pollution incidents
• Property damage resulting from pollution incidents
• Bodily injury caused by smoke from a hostile fire

The management of Maryland Marine Co. (MMC) must ensure that proper coverage is obtained for work- related injuries. The employee population of MMC is a mixture of full-time and part-time employees as well as some leased employees. Much of MMC's work is done by independent contractors and temporary employees during peak seasons. Which one of the following statements about these persons is true? 3 / 4

Select one:

• Leased employees are co-employees of MMC and the leasing company.
• Injuries to MMC's full-time ship captains are likely to be covered under state

workers compensation laws.

• Temporary employees are considered employees of MMC rather than

employees of the firm supplying them to MMC.

• The independent contractors are automatically employees under common law.
• Leased employees are co-employees of MMC and the leasing company.

Most of the claims covered by liability insurance are based on

• Tort law.
• Contract law.
• Government statutes.
• Regulatory law.
• Tort law.

A mining company has a partial ceiling collapse in one of its mines. Investigators discover that the company neglected maintenance of their safety systems which resulted in serious injury to several of their employees during the mine's ceiling collapse. The legal liability imposed on the company for the injury to its employees is based on

• Negligence.
• Statute
• Intentional Tort.
• Contractual Liability.
• Statute

A court rules that a demolition company is legally liable for claimed damages resulting from the demolition company's blasting operations at a construction site, in spite of the fact that the demolition company was in no way negligent and the resulting damages were entirely accidental. This type of liability is known as

• Statutory liability.
• Contractual liability.
• Strict liability
• Premises liability.
• Strict liability
• / 4