FUNDAMENTALS OF INSURANCE (Business)
REVISION STUDY QUESTIONS AND
ACCURATE SOLUTIONS FREQUENTLY
TESTED.
Your client, who owns and operates a Pizza Take-out and Delivery Service has just
received notice of a bodily injury claim by a customer against his business. The
customer alleges that he bit on a chicken bone in the topping of his pizza and
broke a tooth, which required substantial dental work. His business liability
exposures are covered under Commercial General Liability Policy. Which of the
following coverages under this policy would respond to this claim?
A. Premises and Operations Liability
B. Personal Injury Liability
C. Products Liability
D. Completed Operations Liability
Verified Answer -C. Products Liability
A business may be liable for causing a Personal Injury to a Third Party. All of the
following are "Personal Injury" claims, except one. Select the one, which is not a
Personal Injury Claim.
A. Claim for a broken hip caused by the collapse of a display chair the customer
sat on.
B. Claim by a tenant against the landlord for wrongful entry into the tenant's
apartment.
,C. Claim for false arrest by a customer, who was wrongfully detained for
shoplifting.
D. Claim against a business owner by a competitor for making slanderous
remarks about his business practices.
Verified Answer -A. Claim for a broken hip caused by the collapse of a display
chair the customer sat on.
Professionals require a special liability policy, which covers claims arising out of
the rendering or failure to render professional services. A doctor would require
this particular liability insurance:
A. Personal Injury Liability Policy
B. Malpractice Liability Insurance
C. Errors and Omissions Liability Insurance
D. Medical Expenses Insurance
Verified Answer -B. Malpractice Liability Insurance
Insureds, who wish to obtain the best own damage coverage on their vehicle,
would purchase Collision and Comprehensive Coverages. Only one of the
following losses is considered a "Comprehensive Claim".
A. Damage to the vehicle when the insured hit a pothole in the road.
B. Damage to the vehicle when a dear jumped in from of the vehicle.
C. Damage to the vehicle when the insured swerved to avoid hitting a moose.
D. Damage to the vehicle when a cyclist moved into the path of the vehicle.
Verified Answer -B. Damage to the vehicle when a dear jumped in from of the
vehicle.
,The Roadstar Package, which ICBC offers to eligible insureds, includes all of the
following coverages, except one. Select the one, which is not covered.
A. Loss of Use coverage up to $800 - for motor homes $1000, subject to a daily
limit.
B. Rental Vehicle Coverage - for rentals not exceeding 30 consecutive days.
C. Vehicle Travel Protection - covers additional expenses when the vehicle is
damaged in an accident or is stolen while on a trip away from home.
D. Cost to replace or recode locks, keys or remote keyless entry transmitters, if
they have been lost or stolen.
Verified Answer -D. Cost to replace or recode locks, keys or remote keyless entry
transmitters, if they have been lost or stolen.
As an Autoplan broker, you would advise your client to purchase the Excess
Special Equipment Endorsement to insure:
A. The stereo system valued at $1,600 - installed by the vehicle manufacturer.
B. The chrome wheels and light bar valued at $4,000 - mounted on the vehicle.
C. The sound equipment valued at $6,000 - replacing manufacturer's equipment.
D. The custom paint finish valued at $5,000 - done by the detailing shop.
Verified Answer -C. The sound equipment valued at $6,000 - replacing
manufacturer's equipment.
The Unlicensed Motor Vehicle Policy would be purchased to insure this vehicle:
A. An unlicensed dump truck operated in a gravel pit away from a public road.
B. A vehicle that was modified specifically to be used in races.
, C. An unlicensed truck kept in storage on private property.
D. An unlicensed motor cycle with a 150 cc engine used by a 14- year old operator.
Verified Answer -C. An unlicensed truck kept in storage on private property.
Travel Insurance is highly recommended for those who travel outside the province
for business purposes for a vacation. There are several factors that must be
considered, when determining the premium for a single trip. All of the following
factors, except one are applicable. Select the one, which is not a factor in
establishing the premium.
A. The length of the trip.
B. The destination of the trip.
C. The method of transportation.
D. The age and health condition of the applicant.
Verified Answer -C. The method of transportation.
Travel Insurance is designed to cover the medical expenses related to only one of
the following conditions. Select the condition to which the insurance would
respond:
A. Pregnancy, childbirth or miscarriage within eight (8) weeks of the expected
delivery date.
B. Injury sustained as a result of a skydiving accident.
C. Hospitalization due to a drug over doze.
D. Emergency medical treatment required due to food poisoning.
Verified Answer -D. Emergency medical treatment required due to food poisoning.
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 saraciousstuvia. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.
