CPCU 552 CH. #12 EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED
The Terrorism Risk Insurance Act (TRIA) applies to many commercial lines of
business, including:
a) General liability, workers compensation, and inland marine.
b) Auto, property, and professional liability
c) Medical malpractice, inland marine, and life & health
c) Workers compensation, life & health, and auto
a
According to the Terrorism Risk Insurance Act (TRIA), one of the 2 required
conditions that an Insurer must meet at the time of an initial offer, purchase, and
renewal of insurance is the disclosure of the premium for terrorism coverage.
What is the other condition?
a) Available deductibles
b) Opportunity to waive the coverage
c) Disclosure of the names of other Insureds who have purchased terrorism
coverage
d) Make-available provision
d
,Regarding coverage under the Terrorism Risk Insurance Act (TRIA) and any
subsequent extensions or modifications, which one of the following is a
requirement of an act to be considered a certified act of terrorism?
a) It must be an act of terrorism in the U.S., not an act of domestic terrorism.
b) It must result in aggregate property and casualty insurance losses that meet or
exceed $5 million.
c) It must result in aggregate property casualty insurance losses that meet or
exceed $10 million.
d) It must be certified by the Secretary of the Treasury, in concurrence with the
Secretary of State and the President of the United States.
b
The Terrorism Risk Insurance Act (TRIA) of 2002 set in motion a method of
providing federal reinsurance for terrorism losses. Which one of the following
describes the parties that have the authority to certify an act of terrorism under
the TRIA?
a) Secretary of Treasury, Secretary of State, and U.S. Attorney General
b) President, Secretary of Treasury, and Secretary of State
c) Vice President, U.S. Attorney General, and Secretary of State
d) President, U.S. Attorney General, and Secretary of Treasury
a
,According to TRIA, what are the 2 required conditions that an Insurer must meet
at the time of an initial offer, purchase, and renewal of insurance?
a) A make-available provision and the opportunity to waive coverage
b) The opportunity to waive coverage and disclosure of the premium for terrorism
coverage
c) A make-available provision and disclosure of the other Insureds who have
purchased the coverage
d) A make-available provision and disclosure of the premium for terrorism
coverage
d
Under the provisions of TRIA, a terrorist act must be certified in order to qualify
for gov't reinsurance coverage. Which one of the following individuals must
certify that the terrorist act meets the TRIA requirements?
a) Federal Insurance Administrator
b) Secretary of the Treasury
c) President of the United States
d) Secretary of Homeland Defense
b
TRIA does not apply to all lines of insurance. Which one of the following types of
insurance would be covered by TRIA?
, a) Property reinsurance
b) Commercial auto
c) Workers Compensation
d) Life and health
c
Under TRIA, the federal government will not make any payment for a certified act
of terrorism until the aggregate industry losses exceed:
a) $5 million
b) $10 million
c) $50 million
d) $100 million
d
Which one of the following types of acts triggers coverage under the Terrorism
Risk Insurance Act (TRIA)?
a) Certified act of terrorism
b) Declared act of terrorism
c) Undeclared act of terrorism
d) Anonymous act of terrorism
a
The original TRIA of 2002 was extended by the Terrorism Risk Insurance Program
Extension Act of 2007, which was set to expire on:
WITH COMPLETE SOLUTIONS VERIFIED
The Terrorism Risk Insurance Act (TRIA) applies to many commercial lines of
business, including:
a) General liability, workers compensation, and inland marine.
b) Auto, property, and professional liability
c) Medical malpractice, inland marine, and life & health
c) Workers compensation, life & health, and auto
a
According to the Terrorism Risk Insurance Act (TRIA), one of the 2 required
conditions that an Insurer must meet at the time of an initial offer, purchase, and
renewal of insurance is the disclosure of the premium for terrorism coverage.
What is the other condition?
a) Available deductibles
b) Opportunity to waive the coverage
c) Disclosure of the names of other Insureds who have purchased terrorism
coverage
d) Make-available provision
d
,Regarding coverage under the Terrorism Risk Insurance Act (TRIA) and any
subsequent extensions or modifications, which one of the following is a
requirement of an act to be considered a certified act of terrorism?
a) It must be an act of terrorism in the U.S., not an act of domestic terrorism.
b) It must result in aggregate property and casualty insurance losses that meet or
exceed $5 million.
c) It must result in aggregate property casualty insurance losses that meet or
exceed $10 million.
d) It must be certified by the Secretary of the Treasury, in concurrence with the
Secretary of State and the President of the United States.
b
The Terrorism Risk Insurance Act (TRIA) of 2002 set in motion a method of
providing federal reinsurance for terrorism losses. Which one of the following
describes the parties that have the authority to certify an act of terrorism under
the TRIA?
a) Secretary of Treasury, Secretary of State, and U.S. Attorney General
b) President, Secretary of Treasury, and Secretary of State
c) Vice President, U.S. Attorney General, and Secretary of State
d) President, U.S. Attorney General, and Secretary of Treasury
a
,According to TRIA, what are the 2 required conditions that an Insurer must meet
at the time of an initial offer, purchase, and renewal of insurance?
a) A make-available provision and the opportunity to waive coverage
b) The opportunity to waive coverage and disclosure of the premium for terrorism
coverage
c) A make-available provision and disclosure of the other Insureds who have
purchased the coverage
d) A make-available provision and disclosure of the premium for terrorism
coverage
d
Under the provisions of TRIA, a terrorist act must be certified in order to qualify
for gov't reinsurance coverage. Which one of the following individuals must
certify that the terrorist act meets the TRIA requirements?
a) Federal Insurance Administrator
b) Secretary of the Treasury
c) President of the United States
d) Secretary of Homeland Defense
b
TRIA does not apply to all lines of insurance. Which one of the following types of
insurance would be covered by TRIA?
, a) Property reinsurance
b) Commercial auto
c) Workers Compensation
d) Life and health
c
Under TRIA, the federal government will not make any payment for a certified act
of terrorism until the aggregate industry losses exceed:
a) $5 million
b) $10 million
c) $50 million
d) $100 million
d
Which one of the following types of acts triggers coverage under the Terrorism
Risk Insurance Act (TRIA)?
a) Certified act of terrorism
b) Declared act of terrorism
c) Undeclared act of terrorism
d) Anonymous act of terrorism
a
The original TRIA of 2002 was extended by the Terrorism Risk Insurance Program
Extension Act of 2007, which was set to expire on:
