CPCU 552 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++ LATEST UPDATE
If an employee rents a car in his or her own name and uses the auto to conduct
his or her employer's business, which one of the following endorsements of the
Business Auto Coverage Form would ensure that there is coverage if the
employee is in an accident?
Select one:
A. Rental Reimbursement Coverage endorsement
B. Employee Hired Autos endorsement
C. Broadened Coverage for Named Individuals endorsement
D. Drive Other Car endorsement
B. Employee Hired Autos endorsement
The purpose-of-use category that is used to classify and rate exposures such as
low-altitude photography, banner-towing, and firefighting is
Select one:
A. Business and pleasure.
B. Special use.
C. Industrial aid.
D. Airline.
B. Special use.
,Black and White Bakery (BWB) owns a private passenger vehicle and two vans,
which are insured under an unendorsed Business Auto Coverage Form (BACF)
with a $500,000 limit of insurance for liability coverage. James, a BWB employee,
was driving his own vehicle to meet with a customer to discuss a large wedding
that BWB was catering. His vehicle is insured under a Personal Auto Policy (PAP)
with a $100,000 limit of insurance for liability coverage. On his way to the meeting
James went through a stop sign and struck another vehicle, seriously injuring the
driver. The other driver made a claim against James and BWB for $60,000 in
bodily injury to himself and damage to his vehicle. The investigation determined
that James was responsible for the accident. BWB was also liable because James
was driving his vehicle in the course of employment for BWB at the time of the
accident. How much, if any, will BWB's auto insurer pay for this accident?
Select one:
A. $0
B. $30,000
C. $50,000
D. $60,000
A. $0
Under the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), the
total annual aggregate for government and insurer liability is capped at
Select one:
A. $50 billion.
, B. $500 billion.
C. $100 billion.
C. $100 billion.
John Smith owns a bookstore that is covered under an unendorsed Commercial
General Liability (CGL) Coverage Form. A customer falls in the store resulting in a
covered lawsuit against Smith. Smith is asked to testify in court by the defense
attorney, and incurs $500 in lost earnings for the one day trial. The
supplementary payments section of Smith's CGL policy will
Select one:
A. Not cover the lost earnings.
B. Cover the lost earnings of $500.
C. Cover the lost earnings only if Smith is found liable.
D. Cover the lost earnings up to $250.
D. Cover the lost earnings up to $250.
The insured has a business auto policy. Vandals break a window in the insured's
pickup truck. The insured makes an appointment for the claim representative to
see the damage five days after the occurrence. While the insured is waiting for
the insurance company to appraise the claim, there are two days of heavy rain.
Rain enters through the broken window and causes additional damage. What is
the insurance company's liability for the loss?
A. The insurance company is liable for the damage from the rain but not the
damage by the vandals.
B. The insurance company is not liable for either the damage by the vandals or
COMPLETE SOLUTIONS GRADED A++ LATEST UPDATE
If an employee rents a car in his or her own name and uses the auto to conduct
his or her employer's business, which one of the following endorsements of the
Business Auto Coverage Form would ensure that there is coverage if the
employee is in an accident?
Select one:
A. Rental Reimbursement Coverage endorsement
B. Employee Hired Autos endorsement
C. Broadened Coverage for Named Individuals endorsement
D. Drive Other Car endorsement
B. Employee Hired Autos endorsement
The purpose-of-use category that is used to classify and rate exposures such as
low-altitude photography, banner-towing, and firefighting is
Select one:
A. Business and pleasure.
B. Special use.
C. Industrial aid.
D. Airline.
B. Special use.
,Black and White Bakery (BWB) owns a private passenger vehicle and two vans,
which are insured under an unendorsed Business Auto Coverage Form (BACF)
with a $500,000 limit of insurance for liability coverage. James, a BWB employee,
was driving his own vehicle to meet with a customer to discuss a large wedding
that BWB was catering. His vehicle is insured under a Personal Auto Policy (PAP)
with a $100,000 limit of insurance for liability coverage. On his way to the meeting
James went through a stop sign and struck another vehicle, seriously injuring the
driver. The other driver made a claim against James and BWB for $60,000 in
bodily injury to himself and damage to his vehicle. The investigation determined
that James was responsible for the accident. BWB was also liable because James
was driving his vehicle in the course of employment for BWB at the time of the
accident. How much, if any, will BWB's auto insurer pay for this accident?
Select one:
A. $0
B. $30,000
C. $50,000
D. $60,000
A. $0
Under the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), the
total annual aggregate for government and insurer liability is capped at
Select one:
A. $50 billion.
, B. $500 billion.
C. $100 billion.
C. $100 billion.
John Smith owns a bookstore that is covered under an unendorsed Commercial
General Liability (CGL) Coverage Form. A customer falls in the store resulting in a
covered lawsuit against Smith. Smith is asked to testify in court by the defense
attorney, and incurs $500 in lost earnings for the one day trial. The
supplementary payments section of Smith's CGL policy will
Select one:
A. Not cover the lost earnings.
B. Cover the lost earnings of $500.
C. Cover the lost earnings only if Smith is found liable.
D. Cover the lost earnings up to $250.
D. Cover the lost earnings up to $250.
The insured has a business auto policy. Vandals break a window in the insured's
pickup truck. The insured makes an appointment for the claim representative to
see the damage five days after the occurrence. While the insured is waiting for
the insurance company to appraise the claim, there are two days of heavy rain.
Rain enters through the broken window and causes additional damage. What is
the insurance company's liability for the loss?
A. The insurance company is liable for the damage from the rain but not the
damage by the vandals.
B. The insurance company is not liable for either the damage by the vandals or
