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Commercial Lines Final Exam 1
Questions and Correct Answers/ Latest
Update / Already Graded
A BOP will cover losses to trees, shrubs and plants caused by the
perils of fire, lightning, explosion, riot, civil commotion or aircraft up to
$2,500 per occurrence, but the most the insurer will pay for the loss of
any one tree, shrub or plant is limited to?
Ans: $1,000
Consumer reports may be ordered for all of the following purposes
EXCEPT:
Ans: To gather information regarding a pending lawsuit
Absolute or strict liability exists for all of the following situations
EXCEPT:
Ans: Pharmaceutical drugs
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All are true about insurance in general EXCEPT:
Ans: A large number of different risk exposures are combined
The cost of a bail bond is covered as a supplementary payment on
a Business Auto policy up to:
Ans: $2,000
As a result of the Federal Motor Carrier Act of 1980, motor carriers
who transport goods in interstate commerce must file proof with the
applicable government agencies that they have adequate levels of
financial responsibility. Most commonly, motor carriers satisfy this
obligation by:
Ans: Adding a MCS-90 endorsement to their insurance policy
All of the following are true regarding medical payments on an HO
or CGL EXCEPT
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Ans: They are subject to a deductible
Which of the following is excluded on a Commercial General Liability
(CGL) policy?
Ans: The transportation of mobile equipment by an auto owned by the
insured
Any ambiguities contained in a policy of insurance are always
construed in favor of the insured under the Doctrine of:
Ans: adhesion
What is the co-insurance requirement on a Difference in Conditions
(DIC) policy?
Ans: none
All of the following are true regarding the liability coverage provided
by an unendorsed BOP EXCEPT:
Commercial Lines Final Exam 1
Questions and Correct Answers/ Latest
Update / Already Graded
A BOP will cover losses to trees, shrubs and plants caused by the
perils of fire, lightning, explosion, riot, civil commotion or aircraft up to
$2,500 per occurrence, but the most the insurer will pay for the loss of
any one tree, shrub or plant is limited to?
Ans: $1,000
Consumer reports may be ordered for all of the following purposes
EXCEPT:
Ans: To gather information regarding a pending lawsuit
Absolute or strict liability exists for all of the following situations
EXCEPT:
Ans: Pharmaceutical drugs
,2 | Page
All are true about insurance in general EXCEPT:
Ans: A large number of different risk exposures are combined
The cost of a bail bond is covered as a supplementary payment on
a Business Auto policy up to:
Ans: $2,000
As a result of the Federal Motor Carrier Act of 1980, motor carriers
who transport goods in interstate commerce must file proof with the
applicable government agencies that they have adequate levels of
financial responsibility. Most commonly, motor carriers satisfy this
obligation by:
Ans: Adding a MCS-90 endorsement to their insurance policy
All of the following are true regarding medical payments on an HO
or CGL EXCEPT
, 3 | Page
Ans: They are subject to a deductible
Which of the following is excluded on a Commercial General Liability
(CGL) policy?
Ans: The transportation of mobile equipment by an auto owned by the
insured
Any ambiguities contained in a policy of insurance are always
construed in favor of the insured under the Doctrine of:
Ans: adhesion
What is the co-insurance requirement on a Difference in Conditions
(DIC) policy?
Ans: none
All of the following are true regarding the liability coverage provided
by an unendorsed BOP EXCEPT:
