CPCU 551 REAL EXAM AND STUDY GUIDE 270
QUESTIONS AND CORRECT ANSWERS 2024-2025 LATEST
VERSION//ALREADY GRADED A+
What are the differences between CP Builders Risk Coverage and IM Builders Risk Coverage - CORRECT
ANSWER-CP is named perils, IM is all risk and covers property in transit and away from the job site,
includes property of others. CP covers collapse, boiler explosion, theft, flood and earthquake, and sets
value at RC... IM doesn't.
Which prevents an insured from waiving rights of recovery against contractors and subcontractors, IM
or CP Builders Risk Insurance? - CORRECT ANSWER-CP prevents an insured from waiving rights of
recovery against contractors or subcontractors.
From what do soft costs derive? - CORRECT ANSWER-covered physical losses causing delay in
completion necessitating rewritten contracts, additional interest, readvertising, and additional
brokerage commissions.
What is a necessary characteristic of a sign to be covered under a sign coverage form? - CORRECT
ANSWER-either a neon tube or mechanical feature
Which one of the following describes the difference between a filed and a nonfiled policy form? -
CORRECT ANSWER-Nonfiled policies do not file forms or rates with state insurance departments but for
filed polices both are filed.
Luke is a commercial underwriter assessing the accounts receivable coverage for a prospective
customer. He wishes to make changes to various policy provisions before accepting the risk. What is true
regarding these changes? - CORRECT ANSWER-It is a filed class of inland marine coverage, and insurers
are allowed to substitute provision in the standard policies.
A shipping company contracted with Cruise Ship Art Galleries for delivery of artwork to be sold on the
ship. The shipping company delivered the artwork directly to each port of call. Coverage for the artwork
was under an inland marine policy. The valuation provision that would best be applied to a loss to the
artwork prior to delivery would be the - CORRECT ANSWER-Agreed value is appropriate for items that
are difficult to value such as works of art.
,what are the 8 ISO commercial crime coverage forms? - CORRECT ANSWER-employee theft,
forgery/alteration, inside the premises-theft of money/securities, inside the premises-safe/other
property, outside the premises, computer fraud, fund transfer, counterfeit/money orders.
is employee theft covered in mexico? - CORRECT ANSWER-No, the coverage territory is limited to the
US/territories, Puerto Rico, and Canada.
if an employee has was terminated 30 days ago and stole something, is the loss covered under
employee theft insuring agreement? - CORRECT ANSWER-Yes - employees terminated in the last 30 days
still count as employees if we were to take the title of this coverage literally
if an independent contractor steals something from an employer, is the loss covered under employee
theft insuring agreement? - CORRECT ANSWER-No
If an employee steals something, but they are not convicted of theft, is the loss covered under employee
theft insuring agreement? - CORRECT ANSWER-yes
What are the coverage limits of employee theft insuring agreement? (not a number, instead on what
basis is it covered and how is the limit measured) - CORRECT ANSWER-coverage is blanket and limited to
a stated amount per occurrence
what is the courage territory for forgery and alteration insuring agreement? - CORRECT ANSWER-
worldwide
If an employee, director, or trustee causes a loss by forgery or alteration, is the loss covered under
forgery or alteration insuring agreement? - CORRECT ANSWER-Nope, loses caused by these folks are
excluded
Who has the burden of proof under inside the premises-theft of money or securities insuring
agreement? - CORRECT ANSWER-the insured must prove destruction
What are the two coverage extensions for both inside the premises-theft of money or securities
coverage form and inside the premises-robbery or safe burglary insuring agreement? - CORRECT
ANSWER-damage to premises, containers
, Define robbery - CORRECT ANSWER-the unlawful taking of property from a custodian by one who has
threatened bodily harm to the custodian or committed an unlawful act seen by the custodian (robbery
requires the presence of another person)
is a watchman or janitor considered a custodian with respect to robbery? - CORRECT ANSWER-NO
are losses to money and securities caused by theft, disappearance, or destruction covered under the
outside the premises insuring agreement? - CORRECT ANSWER-Yes, and so is other property caused by
actual or attempted robbery IF the property is outside the premises AND in the care and custody of a
messenger or an armored vehicle company.
is computer fraud covered when the property is transferred from outside the premises? - CORRECT
ANSWER-No, it has to be from inside the premises.
is computer fraud covered if the culprit isa partner, employee, director, trustee, or authorized
representative? - CORRECT ANSWER-No
if there is overlapping coverage for a computer-related cause of loss, which insuring agreement takes
precedent, computer fraud or funds transfer fraud? - CORRECT ANSWER-computer fraud
is money orders and counterfeit money insuring agreement covered in canada? - CORRECT ANSWER-
Yes, along w/ US and Puerto Rico, like w/ employee theft
Which crime policy insuring agreements have a $5000 per occurrence limit - CORRECT ANSWER-inside
the premises - robbery/other property, outside the premises, and computer fraud
Let's say a company learned about an employee theft prior to the policy period, is this covered? -
CORRECT ANSWER-nope
is fire covered under inside and outside the premises crime insurance? - CORRECT ANSWER-ONLY for
money and securities
