ACA Exam
A property policy covers "fire" as a peril. A small fire starts, fortunately, the fire
department quickly arrives and puts out the fire. Unfortunately, there is water damage
due to the water from the fire hoses. This water damage would be covered because -
Answer Fire was the proximate cause of damage
The coverage for damage due to an aircraft under the care, custody, or control of the
insured while the plane is in for storage or service is: - Answer Hangarkeepers liability
Under the commercial property form, what length of time must expire before a building
is considered "vacant" -- thereby suspending some coverages, while reducing payment
on others? - Answer 60 days
A florist wanted coverage on business contents, which vary in amount over the course
of a year. Which form best covers this situation? - Answer The value reporting
endorsement
A community applied to be part of the National Flood Insurance Program. Until they are
approved, what is the status of the community of the community? - Answer They are in
the emergency program
Both commercial property and liability were combined into one policy, thus saving
money on underwriting expense. What is this combination called? - Answer A package
policy
What is the smallest amount of liability insurance under the business-owners policy
(BOP)? - Answer $300,000
Which of the following would be excluded under a personal articles floater on an "all
risks" basis? - Answer Insects destroy a valuable postage stamp worth $500
A ship loaded with lumber encountered a terrible storm, and some of the lumber was
thrown overboard to save the ship - this action is called: - Answer Jettison
A contracted was concerned some of his tools, such as a welder, could be stolen from
the job site. What inland marine form is best suited for this exposure? - Answer The
contractors equipment floater
All of the following are exclusions under the Personal Inland Marine Policy EXCEPT: -
Answer Theft from and "off site" location
An Umbrella Policy may be broader than the underlying policies and respond as primary
coverage. When the Umbrella is primary, there is an amount to be paid by the insured -
this is called: - Answer The self-insured retention
, If a person does not own an auto, but must provide Auto Liability, for what would he ask
his agent? - Answer A named non-owned policy
Which of the following is false concerning flood insurance? - Answer To be insured for
flood, a new building must be 25% complete, have the walls up - roof not required to
qualify
Vacancy of more than days suspends coverage on all the following EXCEPT: - Answer
Weight of ice and snow
If a homeowner lives in a home 80% or more of the time, Flood coverage will respond to
a loss in what manner? - Answer Replacement cost on primary residence, actual cash
value on others structures
All of the following are optional limits for the liability section of a BOP EXCEPT: -
Answer $250,000
Under Equipment Breakdown Protection, also called Boiler and Machinery Coverage,
the following are true statements: - Answer -Minimum limit for liability is $500,000
-"Accident" is defined as sudden and accidental breakdowns
-Exclusions include wear & tear and deterioration
There are advantages of an agent recommending a commercial package policy over
several monoline policies. Which of the following would NOT be an advantage? -
Answer The terminology in the package policy is easier to understand
A shipper contemplates 10 or 11 loads of produce to be shipped to Pennsylvania over
the course of the next 10 months. What inland marine coverage best fits this exposure?
- Answer An annual transit policy
An Inland Marine or Personal Articles Floater might be used to cover all of the following
except: - Answer Personal Auto
Exclusions to the All Risk Coverage of a Personal Article Floater Policy include all of the
following excepting: - Answer Theft
Umbrella Policies provide additional... - Answer Liability coverage
Umbrella Policies... - Answer - May contain a Self-insured retention
- May have coverage that is not available in the underlying policy
- May cover more than one underlying policy
Which of the following is true: - Answer With Flood Insurance, "other structures" are
paid at Actual Cash Value
A property policy covers "fire" as a peril. A small fire starts, fortunately, the fire
department quickly arrives and puts out the fire. Unfortunately, there is water damage
due to the water from the fire hoses. This water damage would be covered because -
Answer Fire was the proximate cause of damage
The coverage for damage due to an aircraft under the care, custody, or control of the
insured while the plane is in for storage or service is: - Answer Hangarkeepers liability
Under the commercial property form, what length of time must expire before a building
is considered "vacant" -- thereby suspending some coverages, while reducing payment
on others? - Answer 60 days
A florist wanted coverage on business contents, which vary in amount over the course
of a year. Which form best covers this situation? - Answer The value reporting
endorsement
A community applied to be part of the National Flood Insurance Program. Until they are
approved, what is the status of the community of the community? - Answer They are in
the emergency program
Both commercial property and liability were combined into one policy, thus saving
money on underwriting expense. What is this combination called? - Answer A package
policy
What is the smallest amount of liability insurance under the business-owners policy
(BOP)? - Answer $300,000
Which of the following would be excluded under a personal articles floater on an "all
risks" basis? - Answer Insects destroy a valuable postage stamp worth $500
A ship loaded with lumber encountered a terrible storm, and some of the lumber was
thrown overboard to save the ship - this action is called: - Answer Jettison
A contracted was concerned some of his tools, such as a welder, could be stolen from
the job site. What inland marine form is best suited for this exposure? - Answer The
contractors equipment floater
All of the following are exclusions under the Personal Inland Marine Policy EXCEPT: -
Answer Theft from and "off site" location
An Umbrella Policy may be broader than the underlying policies and respond as primary
coverage. When the Umbrella is primary, there is an amount to be paid by the insured -
this is called: - Answer The self-insured retention
, If a person does not own an auto, but must provide Auto Liability, for what would he ask
his agent? - Answer A named non-owned policy
Which of the following is false concerning flood insurance? - Answer To be insured for
flood, a new building must be 25% complete, have the walls up - roof not required to
qualify
Vacancy of more than days suspends coverage on all the following EXCEPT: - Answer
Weight of ice and snow
If a homeowner lives in a home 80% or more of the time, Flood coverage will respond to
a loss in what manner? - Answer Replacement cost on primary residence, actual cash
value on others structures
All of the following are optional limits for the liability section of a BOP EXCEPT: -
Answer $250,000
Under Equipment Breakdown Protection, also called Boiler and Machinery Coverage,
the following are true statements: - Answer -Minimum limit for liability is $500,000
-"Accident" is defined as sudden and accidental breakdowns
-Exclusions include wear & tear and deterioration
There are advantages of an agent recommending a commercial package policy over
several monoline policies. Which of the following would NOT be an advantage? -
Answer The terminology in the package policy is easier to understand
A shipper contemplates 10 or 11 loads of produce to be shipped to Pennsylvania over
the course of the next 10 months. What inland marine coverage best fits this exposure?
- Answer An annual transit policy
An Inland Marine or Personal Articles Floater might be used to cover all of the following
except: - Answer Personal Auto
Exclusions to the All Risk Coverage of a Personal Article Floater Policy include all of the
following excepting: - Answer Theft
Umbrella Policies provide additional... - Answer Liability coverage
Umbrella Policies... - Answer - May contain a Self-insured retention
- May have coverage that is not available in the underlying policy
- May cover more than one underlying policy
Which of the following is true: - Answer With Flood Insurance, "other structures" are
paid at Actual Cash Value
