CPCU 551 EXAM | NEWEST ACTUAL EXAM
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COMPLETE QUESTIONS AND VERIFIED j j j j
ANSWERS GRADED A+ | 100% GUARAN j j j j j
TEED PASS | 2025 UPDATE! |(BRAND NE
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W) | LATEST VERSION. j j j
The businessowners policy (BOP) can be endorsed to provideprofessio
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nal liability for which one of the following types of professionals?
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A. Physicians
B. Beauticians
C. Lawyers
D. Politicians - ✔✔✔ Correct Answer > Beauticians
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The Completed Operations Aggregate Limit of the BOP may be increase
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d by endorsement to _
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times the liability and medicale j j j j j
xpense limit. - ✔✔✔ Correct Answer > three
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Which one of the following exposures is not included in a standard BOP,but c
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an be purchased as an optional coverage?
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A. Forgery
B. Electronic data j
,C. Employee dishonesty j
D. Interruption of computer operations - j j j j
✔✔✔ Correct Answer > Employeedishonesty
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Cindy owns an unendorsed Businessowners policy (BOP) on her cafe. Rece
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ntly, a minor earthquake caused the cafe to suffer several damages. The gla
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ss windows in the front of the store were shattered and the outdoor seating
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was destroyed. Additionally, the cafe's fire extinguisher was depleted and
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must be re-filled. Which of those losseswould be covered? -
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✔✔✔ Correct Answer > None, because the BOP does not cover an earthquake as a cau
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se of loss j j
What are two coverages that are unique to the BOP and not included inBPP?
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- ✔✔✔ Correct Answer > Glass Expenses and Fire Extinguisher Recharge Expense.
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The Liability and Medical Expenses Limit in the Businessowners Policy isthe
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equivalent of what limit or limits in the Commercial General Liability Policy
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?- j
✔✔✔ Correct Answer > C. Both the Each Occurrence Limit and the Personal and Adver
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tising Injury Limit j j
Damage to excavations, foundations, underground pipes and flues arecover
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ed under which one of the following policies?
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A. Business Income Coverage Form j j j
B. Businessowners Coverage Form j j
C. Business Contingent Coverage Form j j j
,D. Business and Personal Property Coverage Form - ✔✔✔ Correct Answer > B. BCFj j j j j j j j j j j j
An A&E Accounting Company (A&E) operates a bookkeeping business insur
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ed with an unendorsed Businessowners Policy (BOP). On rare occasions an A
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&E assistant will use a personal auto to drop off completed tax returns at the l
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ocal post office on the way home from work. Recently, the assistant was invo
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lved in an at- j j j
fault accident en route to the post office. Which one of the following best des
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cribes howthe BOP will handle this loss? -
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✔✔✔ Correct Answer > There will be no coverage because there isn't a Hired and NonO
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wned Auto endorsement on the policy.
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What are the 4 coverages (A, B, C, D) of the Farm Dwellings form?Correct Ans- ✔✔✔
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wer > A - dwellings, B-other private striations appurtenant to dwellings, C-
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household personal property, D-loss of use j j j j j
What does the Farm Dwellings form exclude? -
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✔✔✔ Correct Answer > farmstructures (barns, silos), farm personal property (
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feed, livestock, machinery) j j
What are coverages E and F under a Farmowners policy?E-
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scheduled farm personal property j j j
F-unscheduled farm personal property j j j
What is the difference between scheduled classes and scheduled itemsunde
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r Scheduled Farm Personal Property Coverage (E) in terms of their
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, limits when they are off the premises? -j j j j j j j
✔✔✔ Correct Answer > Scheduled itemsare covered off the premises for their full limi
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ts, but if they aren't specifically scheduled yet are still part of a scheduled cla
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ss (i.e. farm machinery) then they're only covered for up to 10% of their limit
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s.
What what basis are unscheduled farm personal property covered?
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Correct Answer > a blanked basis, subject to 80% coinsurance
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What what basis are barns, outbuildings and other farm structurescov
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ered, aside from improvements and betterments? replacement
j cost
- ✔✔✔ Correct Answer > j j j j j j j j j j j
of ACV j
A manufacturing company has business personal property valued at
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$1,500,000. The risk manager is considering insuring the business personal j j j j j j j j j j
property with 80 percent coinsurance at a $0.40 rate per $100of coverage. T
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he 100 percent rate is $0.35 per $100 of coverage. if the business personal p
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roperty is insured with an 80 percent coinsurance, how much premium will
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be saved? - ✔✔✔ Correct Answer > The savings will be
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$5,250 − $4,800 = $450 j j j j
When (if) can an insurer examine their insured's books and records? -
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✔✔✔ Correct Answer > Anytime during the policy period and up to 3 years after.The fin
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al premium is established after the policy period expires.
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Premiums are estimated at its formation. j j j j j
Can an insured transfer duties under common policy conditions?
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Correct Answer > Only with the insurer's written consent.
j j j j j j j j
j j j j j j
COMPLETE QUESTIONS AND VERIFIED j j j j
ANSWERS GRADED A+ | 100% GUARAN j j j j j
TEED PASS | 2025 UPDATE! |(BRAND NE
j j j j j j j
W) | LATEST VERSION. j j j
The businessowners policy (BOP) can be endorsed to provideprofessio
j j j j j j j j j
nal liability for which one of the following types of professionals?
j j j j j j j j j j
A. Physicians
B. Beauticians
C. Lawyers
D. Politicians - ✔✔✔ Correct Answer > Beauticians
j j j j j j
The Completed Operations Aggregate Limit of the BOP may be increase
j j j j j j j j j j
d by endorsement to _
j j j j
times the liability and medicale j j j j j
xpense limit. - ✔✔✔ Correct Answer > three
j j j j j j j
Which one of the following exposures is not included in a standard BOP,but c
j j j j j j j j j j j j j j
an be purchased as an optional coverage?
j j j j j j
A. Forgery
B. Electronic data j
,C. Employee dishonesty j
D. Interruption of computer operations - j j j j
✔✔✔ Correct Answer > Employeedishonesty
j j j j j j
Cindy owns an unendorsed Businessowners policy (BOP) on her cafe. Rece
j j j j j j j j j j
ntly, a minor earthquake caused the cafe to suffer several damages. The gla
j j j j j j j j j j j j
ss windows in the front of the store were shattered and the outdoor seating
j j j j j j j j j j j j j
was destroyed. Additionally, the cafe's fire extinguisher was depleted and
j j j j j j j j j j j
must be re-filled. Which of those losseswould be covered? -
j j j j j j j j j j
✔✔✔ Correct Answer > None, because the BOP does not cover an earthquake as a cau
j j j j j j j j j j j j j j j j
se of loss j j
What are two coverages that are unique to the BOP and not included inBPP?
j j j j j j j j j j j j j j
- ✔✔✔ Correct Answer > Glass Expenses and Fire Extinguisher Recharge Expense.
j j j j j j j j j j j j
The Liability and Medical Expenses Limit in the Businessowners Policy isthe
j j j j j j j j j j j j
equivalent of what limit or limits in the Commercial General Liability Policy
j j j j j j j j j j j
?- j
✔✔✔ Correct Answer > C. Both the Each Occurrence Limit and the Personal and Adver
j j j j j j j j j j j j j j j
tising Injury Limit j j
Damage to excavations, foundations, underground pipes and flues arecover
j j j j j j j j j
ed under which one of the following policies?
j j j j j j j
A. Business Income Coverage Form j j j
B. Businessowners Coverage Form j j
C. Business Contingent Coverage Form j j j
,D. Business and Personal Property Coverage Form - ✔✔✔ Correct Answer > B. BCFj j j j j j j j j j j j
An A&E Accounting Company (A&E) operates a bookkeeping business insur
j j j j j j j j j
ed with an unendorsed Businessowners Policy (BOP). On rare occasions an A
j j j j j j j j j j j
&E assistant will use a personal auto to drop off completed tax returns at the l
j j j j j j j j j j j j j j j
ocal post office on the way home from work. Recently, the assistant was invo
j j j j j j j j j j j j j
lved in an at- j j j
fault accident en route to the post office. Which one of the following best des
j j j j j j j j j j j j j j
cribes howthe BOP will handle this loss? -
j j j j j j j j
✔✔✔ Correct Answer > There will be no coverage because there isn't a Hired and NonO
j j j j j j j j j j j j j j j j
wned Auto endorsement on the policy.
j j j j j
What are the 4 coverages (A, B, C, D) of the Farm Dwellings form?Correct Ans- ✔✔✔
j j j j j j j j j j j j j j j j
wer > A - dwellings, B-other private striations appurtenant to dwellings, C-
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household personal property, D-loss of use j j j j j
What does the Farm Dwellings form exclude? -
j j j j j j j
✔✔✔ Correct Answer > farmstructures (barns, silos), farm personal property (
j j j j j j j j j j j j
feed, livestock, machinery) j j
What are coverages E and F under a Farmowners policy?E-
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scheduled farm personal property j j j
F-unscheduled farm personal property j j j
What is the difference between scheduled classes and scheduled itemsunde
j j j j j j j j j j
r Scheduled Farm Personal Property Coverage (E) in terms of their
j j j j j j j j j j
, limits when they are off the premises? -j j j j j j j
✔✔✔ Correct Answer > Scheduled itemsare covered off the premises for their full limi
j j j j j j j j j j j j j j j
ts, but if they aren't specifically scheduled yet are still part of a scheduled cla
j j j j j j j j j j j j j j
ss (i.e. farm machinery) then they're only covered for up to 10% of their limit
j j j j j j j j j j j j j j
s.
What what basis are unscheduled farm personal property covered?
j j j j j j j j -j✔✔✔
Correct Answer > a blanked basis, subject to 80% coinsurance
j j j j j j j j j
What what basis are barns, outbuildings and other farm structurescov
j j j j j j j j j j
ered, aside from improvements and betterments? replacement
j cost
- ✔✔✔ Correct Answer > j j j j j j j j j j j
of ACV j
A manufacturing company has business personal property valued at
j j j j j j j j
$1,500,000. The risk manager is considering insuring the business personal j j j j j j j j j j
property with 80 percent coinsurance at a $0.40 rate per $100of coverage. T
j j j j j j j j j j j j j
he 100 percent rate is $0.35 per $100 of coverage. if the business personal p
j j j j j j j j j j j j j j
roperty is insured with an 80 percent coinsurance, how much premium will
j j j j j j j j j j j j
be saved? - ✔✔✔ Correct Answer > The savings will be
j j j j j j j j j j
$5,250 − $4,800 = $450 j j j j
When (if) can an insurer examine their insured's books and records? -
j j j j j j j j j j j
✔✔✔ Correct Answer > Anytime during the policy period and up to 3 years after.The fin
j j j j j j j j j j j j j j j j
al premium is established after the policy period expires.
j j j j j j j j
Premiums are estimated at its formation. j j j j j
Can an insured transfer duties under common policy conditions?
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Correct Answer > Only with the insurer's written consent.
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