Colorado Property &
Casualty Questions with
Accurate Answers
Which of the following describes the Lay Up Warranty under the Yacht Policy?
A
It is an additional coverage that applies when the yacht is being repaired or serviced
B
It is a limitation of coverage on the yacht that applies when the yacht is outside its navigational limits
C
It applies when the insured yacht is in storage and allows a return of premium due to the lower risk
D
It states that coverage is suspended while the yacht is laid up correct answer C
It applies when the insured yacht is in storage and allows a return of premium due to the lower risk
Under the property removed coverage extension of a Dwelling Policy, which of the following is
incorrect?
A
The extension does not change the Limit of Liability that applies to the property
B
Coverage applies up to 5 days under the DP-1, and up to 30 days in the DP-2 and DP-3 forms
C
The property is covered against direct loss from any peril
D
The policy will not provide any coverage while insured property is being removed from endangered
property correct answer D
The policy will not provide any coverage while insured property is being removed from endangered
property
,The DP-3 provides what coverage for damage to the insured's dwelling due to a power failure when
lightning strikes a power transformer 2 miles away?
A
10% of Coverage A
B
Coverage A amount
C
No coverage
D
10% of Coverage C correct answer C
No coverage
Which of the following is an element of fiduciary responsibility?
A
Contractual responsibility
B
Clean credit history
C
Liability protection
D
Duty of loyalty correct answer D
Duty of loyalty
The day after Employee Z was terminated from a job at a local community bank, Z was still able to use
access codes to initiate a series of unauthorized transfers to Z's personal accounts. Which of the
following insuring agreements would this loss be covered under?
A
Computer Fraud
,B
Outside the Premises
C
Funds Transfer Fraud
D
Employee Theft or Dishonesty correct answer D
Employee Theft or Dishonesty
What type of policy might cover an insurance producer's failure to renew a policy?
A
The producer's errors and omissions policy
B
The producer's license bond
C
The producer's performance bond
D
The producer's commercial CGL policy correct answer A
The producer's errors and omissions policy
Taxable corporate dividends are received by which type of insurer's shareholders?
A
Mutual
B
Reciprocal
C
Risk Retention Group
D
Stock correct answer D
, Stock
Property insurance policies that apply coverage only to perils that are stated in the policy, are
considered to be written on:
A
An open perils basis
B
A named peril basis
C
An actual cash value basis
D
A replacement cost basis correct answer B
A named peril basis
Which of the following would be included in the definition of Business Personal Property under the
Building and Personal Property Coverage Form?
A
Furniture and machinery owned by the insured
B
Business Personal Property of others rented to the insured
C
Accounts, bills, and currency of others on the premises in the insured's trust
D
Stock on consignment held for sale by the insured correct answer A
Furniture and machinery owned by the insured
Which of the following types of coverage is considered Type I Coverage?
A
Inland Marine
Casualty Questions with
Accurate Answers
Which of the following describes the Lay Up Warranty under the Yacht Policy?
A
It is an additional coverage that applies when the yacht is being repaired or serviced
B
It is a limitation of coverage on the yacht that applies when the yacht is outside its navigational limits
C
It applies when the insured yacht is in storage and allows a return of premium due to the lower risk
D
It states that coverage is suspended while the yacht is laid up correct answer C
It applies when the insured yacht is in storage and allows a return of premium due to the lower risk
Under the property removed coverage extension of a Dwelling Policy, which of the following is
incorrect?
A
The extension does not change the Limit of Liability that applies to the property
B
Coverage applies up to 5 days under the DP-1, and up to 30 days in the DP-2 and DP-3 forms
C
The property is covered against direct loss from any peril
D
The policy will not provide any coverage while insured property is being removed from endangered
property correct answer D
The policy will not provide any coverage while insured property is being removed from endangered
property
,The DP-3 provides what coverage for damage to the insured's dwelling due to a power failure when
lightning strikes a power transformer 2 miles away?
A
10% of Coverage A
B
Coverage A amount
C
No coverage
D
10% of Coverage C correct answer C
No coverage
Which of the following is an element of fiduciary responsibility?
A
Contractual responsibility
B
Clean credit history
C
Liability protection
D
Duty of loyalty correct answer D
Duty of loyalty
The day after Employee Z was terminated from a job at a local community bank, Z was still able to use
access codes to initiate a series of unauthorized transfers to Z's personal accounts. Which of the
following insuring agreements would this loss be covered under?
A
Computer Fraud
,B
Outside the Premises
C
Funds Transfer Fraud
D
Employee Theft or Dishonesty correct answer D
Employee Theft or Dishonesty
What type of policy might cover an insurance producer's failure to renew a policy?
A
The producer's errors and omissions policy
B
The producer's license bond
C
The producer's performance bond
D
The producer's commercial CGL policy correct answer A
The producer's errors and omissions policy
Taxable corporate dividends are received by which type of insurer's shareholders?
A
Mutual
B
Reciprocal
C
Risk Retention Group
D
Stock correct answer D
, Stock
Property insurance policies that apply coverage only to perils that are stated in the policy, are
considered to be written on:
A
An open perils basis
B
A named peril basis
C
An actual cash value basis
D
A replacement cost basis correct answer B
A named peril basis
Which of the following would be included in the definition of Business Personal Property under the
Building and Personal Property Coverage Form?
A
Furniture and machinery owned by the insured
B
Business Personal Property of others rented to the insured
C
Accounts, bills, and currency of others on the premises in the insured's trust
D
Stock on consignment held for sale by the insured correct answer A
Furniture and machinery owned by the insured
Which of the following types of coverage is considered Type I Coverage?
A
Inland Marine
