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CPCU 552 Exam Latest | CPCU 552 Actual Exam Update 2024 Questions and Correct Answers Rated A+
CPCU 552 Exam Latest | CPCU 552 Actual Exam Update 2024 Questions and Correct Answers Rated A+
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CPCU 552 Exam Latest 2024 -2025 | CPCU 552 Actual Exam Update 2024 Questions and Correct Answers Rated A+ Which one of these is not an example of a coverage that is excluded under Coverage A of the CGL coverage form because it is insured under another policy? -ANSWER -Liquor liability (Liquor liability is not an example of a coverage that is excluded under Cove rage A of the CGL coverage form because it is insured under another policy . An endorsement that eliminates the liquor liability exclusion and provides coverage for organizations in the business of selling or serving alcoholic beverages is an example of wh ich type of endorsement? -ANSWER -Miscellaneous coverage amendment endorsement ( Which one of the following is true regarding the Commercial General Liability's (CGL's) unmanned aircraft coverage endorsements? -ANSWER -Premium for these endorsements is on a "refer to company" basis. Jill, who is the named insured on an unendorsed Business Auto Coverage Form (BACF), hired Jimmy to assist in her business. Jill asked Jimmy to purchase some business supplies. While he was driving his own car, Jimmy's vehicle wa s hit by an uninsured motorist. Jimmy's medical expenses were $2,000, and the damage to his car was $4,000. Which one of the following correctly indicates how much Jill's auto insurer will pay Jimmy for his losses? -ANSWER -$0 (An employee of the insured is not an insured if the covered auto is owned by the employee. An auto dealer advertises that a new vehicle is available for $18,000 with no down payment and an interest rate of 1 percent. A customer attempts to purchase the vehicle, but is told that the p rice is now $21,000 and the interest rate is 9 percent. The customer files suit, alleging false advertisement of prices and failure to comply with the Truth in Lending Act. Which one of the following correctly describes coverage for this claim under the Au to Dealers Coverage Form? -
ANSWER -There will be coverage for the failure to comply with the Truth in Lending Act, but not for the false advertisement of prices. (There will be coverage for the failure to comply with the Truth in Lending Act, but not for th e false advertisement of prices . 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 servi ce 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 -ANSWER -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 co verage applies is to review the policy conditions to determine whether they preclude coverage at the time of loss . The Motor Carrier Coverage Form (MCCF) covers owners and lessors of autos hired by the named insured, subject to conditions. When the hired auto is a trailer, the owner, or anyone else from whom the named insured hires or borrows a covered trailer, is an insured while the trailer is connected to a power unit that is a covered auto or while the trailer is -ANSWER -Not connected to a power unit b ut is being used exclusively in the named insured's business. (The owner is an insured while the trailer is connected to a power unit that is a covered auto or while the trailer is not connected to a power unit but is being used exclusively in the named in sured's business. Which one of the following would always be excluded under employers liability insurance? -ANSWER -An employee files a claim for depression resulting from harassment at work . Bill's Premium Packing (BPP) operates a fruit and vegetable can ning operation. It purchases its produce from growers in three states in the Northeast. As a result, its operations are seasonal and during peak periods it depends on large numbers of casual laborers who are exempt from coverage under the applicable state workers compensation laws. Therefore, the company has purchased a Voluntary Compensation and Employers Liability Endorsement for its Workers Compensation and Employers Liability Insurance (WC&EL) Policy. When a casual laborer is badly injured on the job, t he worker launches a lawsuit against BPP, alleging negligence. Which one of the following best describes how BPP's WC&EL insurer would respond? -
ANSWER -The insurer would defend the insured against the employee's suit and pay any settlement awarded, subject to the stipulated limits of liability. Some organizations such as school boards, municipalities, and non -
profit organizations carry a special type of directors and officers (D&O) liability policy. What is the name given to this type of D&O coverage? -
ANSWER -Occupation -specific An unendorsed securities brokers professional liability policy will insure the firm and registered representatives for claims alleging negligence committed on the firm's behalf in which one of the following capacities? -ANSWER -Selling life insurance products (An unendorsed securities brokers professional liability policy will insure the firm and registered representatives for claims alleging negligence committed on the firm's behalf while selling life insurance products . Concerning environmental liability, any organization can cause an intentional tort by -ANSWER -Making loud noises. (Concerning environmental liability, any organization can cause an intentional tort by making loud noises. A vessel valued at $40 million is carrying c argo for two customers. One customer's cargo consists of $6 million of handheld electronic games. The other customer's cargo consists of $4 million of designer shoes. During a storm, the crew throws overboard $1.5 million in cargo to prevent the vessel fro m sinking. What is the contribution to general average for the customer who owns the shoes? -ANSWER -
$120,000 (The contribution to general average for the customer who owns the shoes is $120,000. $4M/$50M = .08; .08 x $1.5M = $120,000 Which one of the following events would normally trigger the automatic termination provisions of a marine policy and cancel the hull coverage on a cargo vessel? -ANSWER -The ship is chartered by a third party on a bareboat basis. (War risk coverage is exclu ded, but the policy would remain in force; a bareboat charter would terminate the policy. Which one of the following property damage -type coverages under a Protection and Indemnity policy covers only cargo of other vessels due to the insured's negligence? -ANSWER -Damage to cargo of others (Damage to cargo of others is a property damage -type
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