Name: Score:
52 Multiple choice questions
Term 1 of 52
Which one of the following lists the two distinct benefits of enterprise risk management (ERM)?
Improved decision making and better communication
Compliance with legal requirements and compliance with regulatory requirements
The embracing of risk and a spirit of cooperation
Increased profitability and increased economic efficiency
Term 2 of 52
Umbrella liability policies are generally considered to afford superior coverage to excess liability
policies, because
Excess policies are equal to the maximum possible loss.
Umbrella policies provide coverages not available in underlying coverages.
Umbrella policies do not have a self-insured retention.
Excess policies are written with lower limits.
Term 3 of 52
Which one of the following statements is true regarding Coverage C—Medical Payments of the
Commercial General Liability policy?
Medical payments coverage applies to bodily injury to any insured.
Medical payments coverage is a means of making prompt settlements.
Medical payments coverage provides high limits of insurance for bodily injury losses.
Medical payments coverage is liability insurance because it pays only if the insured is
legally liable.
,Term 4 of 52
Chuckie's chicken distributor researches the benefits of consuming chicken versus consuming
beef. In November 2011, Chuckie's publishes a brochure outlining the potential health hazards of
consuming beef and explaining why chicken is a healthier alternative. Chuckie continues to
publish and distribute the same brochure for six months. In March 2012, several beef distributors
file a suit against Chuckie's for personal and advertising injury. Which one of the following
exclusions would apply to this claim under Coverage B of Chuckie's Commercial General Liability
Coverage Form (CGL) with a policy period of January 2012 - January 2013?
Unauthorized use of another's name or product
Knowing violation of rights of another
Material published prior to the policy period
Material published with knowledge of falsity
Term 5 of 52
Automobile liability exposures can result from
Damage to or destruction of an owned vehicle.
Loss of use of an owned automobile.
Hiring or borrowing an automobile.
Workers compensation laws.
Term 6 of 52
Which one of the following is the first step in the enterprise risk management (ERM) process?
Analyze risks
Identify risks
Scan the environment
Monitor and assure
, Term 7 of 52
A motor truck cargo liability policy
Provides broad coverage for parcel post shipments throughout the United States, Canada,
and Mexico.
Covers a trucking company's liability for damage to goods of others while being
transported by the trucker.
Covers property in the care, custody or control of a governmental agency.
Covers cargo either on an inland marine policy or an ocean marine policy.
Term 8 of 52
James is in the process of forming his own brokerage company which will include several
employees. James will be best protected by purchasing which one of the following to cover the
crime loss exposures of his company?
Fidelity Bond.
Commercial Crime Insurance.
Financial Institution Bond.
Surety Bond.
Term 9 of 52
Hank is a new commercial insurance producer. He is walking down the main street of Springfield
trying to determine which businesses might be eligible for the businessowners policy (BOP) and
which would not be eligible. Which one of the following main street businesses would be
ineligible for BOP coverage?
Kelly Plumbing
Springfield Bank
Ted's Coffee Shop
Rose's Dress Shop
52 Multiple choice questions
Term 1 of 52
Which one of the following lists the two distinct benefits of enterprise risk management (ERM)?
Improved decision making and better communication
Compliance with legal requirements and compliance with regulatory requirements
The embracing of risk and a spirit of cooperation
Increased profitability and increased economic efficiency
Term 2 of 52
Umbrella liability policies are generally considered to afford superior coverage to excess liability
policies, because
Excess policies are equal to the maximum possible loss.
Umbrella policies provide coverages not available in underlying coverages.
Umbrella policies do not have a self-insured retention.
Excess policies are written with lower limits.
Term 3 of 52
Which one of the following statements is true regarding Coverage C—Medical Payments of the
Commercial General Liability policy?
Medical payments coverage applies to bodily injury to any insured.
Medical payments coverage is a means of making prompt settlements.
Medical payments coverage provides high limits of insurance for bodily injury losses.
Medical payments coverage is liability insurance because it pays only if the insured is
legally liable.
,Term 4 of 52
Chuckie's chicken distributor researches the benefits of consuming chicken versus consuming
beef. In November 2011, Chuckie's publishes a brochure outlining the potential health hazards of
consuming beef and explaining why chicken is a healthier alternative. Chuckie continues to
publish and distribute the same brochure for six months. In March 2012, several beef distributors
file a suit against Chuckie's for personal and advertising injury. Which one of the following
exclusions would apply to this claim under Coverage B of Chuckie's Commercial General Liability
Coverage Form (CGL) with a policy period of January 2012 - January 2013?
Unauthorized use of another's name or product
Knowing violation of rights of another
Material published prior to the policy period
Material published with knowledge of falsity
Term 5 of 52
Automobile liability exposures can result from
Damage to or destruction of an owned vehicle.
Loss of use of an owned automobile.
Hiring or borrowing an automobile.
Workers compensation laws.
Term 6 of 52
Which one of the following is the first step in the enterprise risk management (ERM) process?
Analyze risks
Identify risks
Scan the environment
Monitor and assure
, Term 7 of 52
A motor truck cargo liability policy
Provides broad coverage for parcel post shipments throughout the United States, Canada,
and Mexico.
Covers a trucking company's liability for damage to goods of others while being
transported by the trucker.
Covers property in the care, custody or control of a governmental agency.
Covers cargo either on an inland marine policy or an ocean marine policy.
Term 8 of 52
James is in the process of forming his own brokerage company which will include several
employees. James will be best protected by purchasing which one of the following to cover the
crime loss exposures of his company?
Fidelity Bond.
Commercial Crime Insurance.
Financial Institution Bond.
Surety Bond.
Term 9 of 52
Hank is a new commercial insurance producer. He is walking down the main street of Springfield
trying to determine which businesses might be eligible for the businessowners policy (BOP) and
which would not be eligible. Which one of the following main street businesses would be
ineligible for BOP coverage?
Kelly Plumbing
Springfield Bank
Ted's Coffee Shop
Rose's Dress Shop
