Question 1

Which of the following is not a type of property covered by the CPP's Building and Personal Property form?

Accepted Answer

A)   Automobiles
B)   Business personal property
C)   Personal property of others
D)   BuildingE) All of the above
F) A) and B)

Question 2

"Cargo" and "freight" losses are the same thing in ocean marine insurance.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a "bailment"?

Accepted Answer

A)   Leaving your car at an auto dealer for repair
B)   Loaning your car to your neighbor
C)   Eating at a restaurant
D)   Shipping goods on a truckE) A) and D)
F) A) and C)

Question 4

What are the categories of business income losses? Briefly explain each.

Accepted Answer

There are generally three categories of ...

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Class rating and schedule rating use the same approach in arriving at a final fire insurance rate; both use a system of debits and credits and charges for particular property as compared to a standard.

Accepted Answer

A) True 
 B)False

Question 8

All of the following are true concerning marine insurance except:

Accepted Answer

A)   bottomry was an early form of insurance that covered the outstanding balance on a loan for a ship
B)   respondentia was an early form of insurance that covered outstanding loans on cargo
C)   the earliest ocean marine contracts only covered losses caused by pirates and ship owner's fraud
D)   originally coverage did not specify (list)  the individual perils causing lossE) A) and B)
F) A) and D)

Question 9

What is the difference between class rating and schedule rating?

Accepted Answer

Class rating operates by combining compa...

Question 10

A commercial package policy:

Accepted Answer

A)   covers packages in transit
B)   is one in which two or more coverages are combined
C)   both A and B above
D)   none of the aboveE) All of the above
F) A) and C)

Question 11

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 12

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 freightE) A) and C)
F) A) and D)

Question 13

The personal articles floater is a type of inland marine coverage.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements about schedule rating is false?

Accepted Answer

A)   Analyzes each property individually
B)   Is used primarily in rating commercial buildings
C)   Starts with a rate for a standard building in the same city as the building being rated
D)   Uses the same rate for all buildings that have a particular construction typeE) A) and B)
F) A) and C)

Question 15

Ocean marine policies are typically "specified perils" contracts.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following factors would generally not be considered in a class rating scheme?

Accepted Answer

A)   Community firefighting capability
B)   Use of the structure
C)   External surrounding exposures
D)   The existence of sidewalks around the buildingE) A) and B)
F) B) and C)

Question 17

"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 flowE) None of the above
F) C) and D)

Question 18

The CPP's building and personal property insurance form is designed to cover residential property for individuals.

Accepted Answer

A) True 
 B)False

Question 19

The Broad Cause of Loss form adds perils to the Basic Cause of Loss form but does not increase the dollar amount of coverage.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following factors would not be considered in setting an ocean marine insurance rate?

Accepted Answer

A)   Route of the ship
B)   Type of cargo being transported
C)   Experience of the captain and crew
D)   ISO's standard base rate for marine exposuresE) A) and B)
F) A) and C)

Exam 22: Commercial Property Insurance

All of the following are true concerning marine insurance except:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements about schedule rating is false?

Correct AnswerverifiedShow Answer

The Broad Cause of Loss form adds perils to the Basic Cause of Loss form but does not increase the dollar amount of coverage.

Correct AnswerverifiedShow Answer

Ocean marine policies are typically "specified perils" contracts.

Correct AnswerverifiedShow Answer

Class rating and schedule rating use the same approach in arriving at a final fire insurance rate; both use a system of debits and credits and charges for particular property as compared to a standard.

Correct AnswerverifiedShow Answer

Which of the following factors would generally not be considered in a class rating scheme?

Correct AnswerverifiedShow Answer

The CPP's building and personal property insurance form is designed to cover residential property for individuals.

Correct AnswerverifiedShow Answer

Which of the following is not a "bailment"?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The personal articles floater is a type of inland marine coverage.

Correct AnswerverifiedShow Answer

"Cargo" and "freight" losses are the same thing in ocean marine insurance.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A commercial package policy:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are the categories of business income losses? Briefly explain each.

Correct AnswerverifiedThere are generally three categories of ...View AnswerShow Answer

Which of the following factors would not be considered in setting an ocean marine insurance rate?

Correct AnswerverifiedShow Answer

What is the difference between class rating and schedule rating?

Correct AnswerverifiedClass rating operates by combining compa...View AnswerShow Answer

Which of the following is not a type of property covered by the CPP's Building and Personal Property form?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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There are generally three categories of ...
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Class rating operates by combining compa...
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