Exam (elaborations)
CPCU 552 test with complete solution
- Course
- Institution
CPCU 552 test with complete solution
[Show more]
Seller
Follow
EXAMQA
Reviews received
Content preview
CPCU 552A call center relies heavily on its proprietary software to assist in routing
incoming calls. Which one of the following insuring agreements should be
✅✅
included in the call center's cyber risk policy to provide coverage for
recovering or restoring the data after a cyber attack? - -Electronic data
protection (Electronic data protection should be included in the call center's
cyber risk policy to provide coverage for recovering or restoring the data after
a cyber attack.
A cargo ship en route for South East Asia makes a stop along the coast of
Africa. Some of the crew members contract malaria and suffer very high
fevers on the first day the boat is back in the high seas. The captain decides
to make an impromptu stop in South Africa so the crew can get medical
assistance. This unscheduled stop results in extra expenses of $12,000 due to
the unplanned deviation for medical care. Which one of the following
✅✅
Protection & Indemnity (P&I) coverages will cover the shipowner's extra
expenses? - -Putting-in-expenses coverage (The shipowner's Protection
& Indemnity (P&I) will cover the extra expenses due to the route deviation
under the putting-in-expenses coverage.
A claim representative is handling a claim for an auto dealership insured
under the Auto Dealers Coverage Form (ADCF). Several new autos and autos
left for service by customers were damaged when a fire started in the service
building. The representative has verified that the loss occurred to the named
insured at an insured location during the policy period; that Sections I and II of
the ADCF apply to the losses and that the autos qualify as covered autos. The
✅✅
next step that the representative should take in determining whether coverage
applies is to - -Review the policy conditions to determine whether they
preclude coverage at the time of loss. (The next step that the representative
should take in determining whether coverage applies is to review the policy
conditions to determine whether they preclude coverage at the time of loss.
✅✅
A commercial auto endorsement that provides coverage for individual named
insureds and their resident relatives is the - -Individual Named Insured
endorsement. (A commercial auto endorsement that provides coverage for
individual named insureds and their resident relatives is the Individual Named
Insured endorsement.
,A company carries a directors and officers (D&O) liability insurance policy
containing a typical definition of loss and a $1,000,000 annual aggregate limit.
The company suffers a covered loss resulting in payment of $300,000 of
indemnity, $200,000 of defense costs, and criminal fine of $25,000. After this
✅✅
loss, the company's remaining annual aggregate limit would be -
-$500,000. (After this loss, the company's remaining annual aggregate
limit would be $500,000.
A company has had significant declines in an employee benefit plan.
Significant abuses and underfunding have left the benefit plan on the brink of
✅✅
being insolvent. When employees file a suit against the company, which one
of the following policies would respond? - -Fiduciary liability insurance
policy (Fiduciary liability insurance policy would respond.
A company owns land that is used as a softball diamond and recreational park
for hosting employee picnics. Once a year the company also allows a
non-profit organization to hold a softball game on these premises. During this
year's softball game, the director of the non-profit was injured when a softball
hit him in the head. He asked the company that owns the land to pay for his
✅✅
trip to the emergency room. The company's unendorsed Commercial General
Liability policy - -Does not respond to the director's injuries sustained
because they happened during an athletic event. (The company's unendorsed
Commercial General Liability policy does not respond to the director's injuries
sustained because they happened during an athletic event.
✅✅
A component parts schedule would be attached to an aircraft policy when
underwriting which one of the following in particular? - -A very old aircraft
or one of relatively low value (A component parts schedule would be attached
to an aircraft policy when underwriting a very old aircraft or one of relatively
low value.
A cyber crime insuring agreement covers - ✅✅-Theft of money and
securities. (A cyber crime insuring agreement covers theft of money and
securities.
A defense attorney representing a client in a highly publicized trial for federal
tax evasion was speaking to a colleague outside the courtroom and
mentioned that the client was probably guilty of the charges. The attorney's
comments were picked up by a local media reporter's microphone and
publicized on that evening's newscast. Which one of the following best
, ✅✅
describes the legal foundation for the professional liability claim that the client
would have against the attorney? - -Both breach of contract and tort for
failure to maintain client-attorney confidentiality and failure to perform the
terms of the contract with standards of reasonable professional care (Both
breach of contract and tort for failure to maintain client-attorney confidentiality
and failure to perform the terms of the contract with standards of reasonable
professional care are claims that the client would have against the attorney.
A large electronics assembly company headquartered in the United States
bought a supplier that owns a small manufacturing plant in Vietnam. Having
studied the manufacturer's local insurance program, the assembly company
feels confident in the insurer's solvency and insurance coverage and plans to
retain the local coverage. One disadvantage of retaining the local coverage
✅✅
instead of insuring the manufacturer with the assembly company's insurer in
the United States is that the assembly company - -Loses bargaining
leverage. (One disadvantage of retaining the local coverage instead of
insuring the manufacturer with the assembly company's insurer in the United
States is that the assembly company loses bargaining leverage.
A large electronics assembly company headquartered in the United States
bought a supplier that owns a small manufacturing plant in Vietnam. Having
studied the manufacturer's local insurance program, the assembly company
feels confident in the insurer's solvency and insurance coverage and plans to
retain the local coverage. One disadvantage of retaining the local coverage
✅✅
instead of insuring the manufacturer with the assembly company's insurer in
the United States is that the assembly company - -Loses bargaining
leverage. (One disadvantage of retaining the local coverage instead of
insuring the manufacturer with the assembly company's insurer in the United
States is that the assembly company loses bargaining leverage.
A large scrap metal dealer sends product to its warehouse in Mexico before it
is sold to manufacturers of automobile parts. The scrap metal dealer is
headquartered in the United States and covers its foreign risk exposures by
✅✅
using an international package policy. The insurer that issues the policy is
most likely domiciled in - -The United States.
A named insured's employee rents an auto while on a business trip and is
✅✅
involved in an accident. Which one of the following symbols on the business
auto policy would provide coverage for the named insured? - -Symbol
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller EXAMQA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79271 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now