AU 61. Chapter 1
In the context of property loss exposures, flood is considered to be all of the following,
EXCEPT:
Select one:
A. A means by which property is damaged or destroyed
B. A peril
C. A cause of loss
D. An adverse financial consequence – answer D. An adverse financial consequence
Property insurance policies usually cover some property that is not contained within the
building. For this reason, most property policies use which one of the following terms?
Select one:
A. Personal property
B. Contents
C. Real property
D. Floating property – answer A. Personal property
Most property insurance policies use the term "personal property" rather than "contents"
because property not literally contained within the building often is covered.
All of the following are financial consequences of property loss exposures, EXCEPT:
Select one:
A. Extra expenses
B. Property value reduction
C. Lost income
D. Causes of loss - answerD. Causes of loss
To refer to items such as furniture and stock, most property insurance policies use the
term
Select one:
A. Contents.
B. Floating property.
C. Real property.
D. Personal property. - answerD. Personal property.
To refer to items such as furniture and stock, most property insurance policies use the
term personal property.
Why might an insured elect to purchase an output policy instead of a commercial
package policy (CPP)?
Select one:
A. Output policies are composed of different policy provisions than a CPP.
, B. Output policies often provide coverage enhancements not contained in the standard
CPP.
C. Output policies provide only essential coverages at a cheaper price than a CPP.
D. Output policies contain coverage tailored to smaller businesses. - answerB. Output
policies often provide coverage enhancements not contained in the standard CPP.
Output policies combine all commercial property coverages into one form, often provide
coverage enhancements not contained in the standard CPP, and are generally used by
midsize and large businesses.
Which one of the following statements is true regarding manuscript forms of insurance
policies?
Select one:
A. They are structured for smaller accounts.
B. The wording is often poor and unacceptable to insurers.
C. They usually offer more favorable terms for insureds than standard forms.
D. They tend to have more endorsements attached to them than standard forms -
answerC. They usually offer more favorable terms for insureds than standard forms.
Manuscript forms usually offer more favorable terms for insureds than standard forms.
The risk manager of a midsize manufacturing company would like several coverage
enhancements and a seamless approach to insurance for their Building and Business
Personal Property, Inland Marine and Crime insurance. What type of policy format
would best suit the risk manager's needs?
Select one:
A. Output policy
B. Commercial Package policy
C. Broker policy
D. Businessowners policy - answerOutput policy
Output policy would best suit the risk manager's needs.
An insured who owns a large business is comparing the different types of commercial
insurance policies. The insured would likely choose a Commercial Package Policy
because it will provide
Select one:
A. Automatic coverage for equipment breakdown at no additional premium.
B. An option for all coverages in one policy at an economical premium.
C. The option to add lines of insurance for all coverages that are needed.
D. Coverage enhancements that are not included in standard forms. - answerC. The
option to add lines of insurance for all coverages that are needed.
Which one of the following statements regarding package policy underwriting is true?
Select one:
In the context of property loss exposures, flood is considered to be all of the following,
EXCEPT:
Select one:
A. A means by which property is damaged or destroyed
B. A peril
C. A cause of loss
D. An adverse financial consequence – answer D. An adverse financial consequence
Property insurance policies usually cover some property that is not contained within the
building. For this reason, most property policies use which one of the following terms?
Select one:
A. Personal property
B. Contents
C. Real property
D. Floating property – answer A. Personal property
Most property insurance policies use the term "personal property" rather than "contents"
because property not literally contained within the building often is covered.
All of the following are financial consequences of property loss exposures, EXCEPT:
Select one:
A. Extra expenses
B. Property value reduction
C. Lost income
D. Causes of loss - answerD. Causes of loss
To refer to items such as furniture and stock, most property insurance policies use the
term
Select one:
A. Contents.
B. Floating property.
C. Real property.
D. Personal property. - answerD. Personal property.
To refer to items such as furniture and stock, most property insurance policies use the
term personal property.
Why might an insured elect to purchase an output policy instead of a commercial
package policy (CPP)?
Select one:
A. Output policies are composed of different policy provisions than a CPP.
, B. Output policies often provide coverage enhancements not contained in the standard
CPP.
C. Output policies provide only essential coverages at a cheaper price than a CPP.
D. Output policies contain coverage tailored to smaller businesses. - answerB. Output
policies often provide coverage enhancements not contained in the standard CPP.
Output policies combine all commercial property coverages into one form, often provide
coverage enhancements not contained in the standard CPP, and are generally used by
midsize and large businesses.
Which one of the following statements is true regarding manuscript forms of insurance
policies?
Select one:
A. They are structured for smaller accounts.
B. The wording is often poor and unacceptable to insurers.
C. They usually offer more favorable terms for insureds than standard forms.
D. They tend to have more endorsements attached to them than standard forms -
answerC. They usually offer more favorable terms for insureds than standard forms.
Manuscript forms usually offer more favorable terms for insureds than standard forms.
The risk manager of a midsize manufacturing company would like several coverage
enhancements and a seamless approach to insurance for their Building and Business
Personal Property, Inland Marine and Crime insurance. What type of policy format
would best suit the risk manager's needs?
Select one:
A. Output policy
B. Commercial Package policy
C. Broker policy
D. Businessowners policy - answerOutput policy
Output policy would best suit the risk manager's needs.
An insured who owns a large business is comparing the different types of commercial
insurance policies. The insured would likely choose a Commercial Package Policy
because it will provide
Select one:
A. Automatic coverage for equipment breakdown at no additional premium.
B. An option for all coverages in one policy at an economical premium.
C. The option to add lines of insurance for all coverages that are needed.
D. Coverage enhancements that are not included in standard forms. - answerC. The
option to add lines of insurance for all coverages that are needed.
Which one of the following statements regarding package policy underwriting is true?
Select one:
