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CPCU 551 FULL PRACTICE EXAM QUESTIONS WITH 100% CORRECT ANSWERS!!
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CPCU 551 FULL PRACTICE EXAM QUESTIONS WITH 100% CORRECT ANSWERS!!
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Name: Score:50 Multiple choice questions
Term 1 of 50
Question 21
ID# 5941517Points: 1
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Question text
Drake's Dry Cleaners damages $800 worth of linen tablecloths owned by Christopher's Cafe.
When Christopher asks for reimbursement, Drake tells Christopher that according to language on
the service slip, it is not liable for the damage. Christopher files a claim with its insurance company
for the damaged tablecloths. Which one of the following statements is the purpose of the No
Benefit to Bailee condition of the Commercial Property Conditions Form?
Select one:
It relieves bailees of liability for damage if the damage is recoverable under insurance
carried by the bailor.
It reinforces the insurer's right of subrogation against the bailee.
It relieves bailees of liability to bailors for any damage to the property they hold.
It allows bailees to limit their liability for others' property by using contractual provisions.
,Term 2 of 50
Question 37
ID# 5941431Points: 1
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Question text
Which one of the following items, owned or installed by the insured, is covered under the Building
and Personal Property Coverage Form (BPP) as business personal property?
Select one:
Building contents such as furniture
Fixtures, including outdoor fixtures
Completed additions to a building
Permanently installed machinery and equipment
Term 3 of 50
Question 1
ID# 5856418Points: 1
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Question text
One dimension of analyzing loss exposures is timing of losses. The timing of losses is significant
because
Select one:
Funds to pay for losses must be readily available and paid in full for valid claims.
Accurate reserves must be established.
Compliancy requirements must be met.
Money held in reserve to pay for a loss can earn interest until the actual payment is made.
, Term 4 of 50
Question 28
ID# 5841652Points: 1
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Question text
A retail store, owner of various commercial trucks, wants to send a small shipment of goods to
their warehouse 40 miles away. They want to keep this process as uncomplicated as possible.
Which one of the following methods of shipping would you suggest for the retailer?
Select one:
Ship the goods on their own truck to the warehouse.
Hire a rail car to carry the goods to the warehouse.
Ship the goods with a local trucking company to the warehouse.
Hire an aircraft to transport the goods to the warehouse.
Term 5 of 50
uestion 16
ID# 5868683Points: 1
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Question text
James is in the process of forming his own brokerage company which will include several
employees. James will be best protected by purchasing which one of the following to cover the
crime loss exposures of his company?
Select one:
Financial Institution Bond.
Surety Bond.
Commercial Crime Insurance.
Fidelity Bond.
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