Insurance MCQ

Darnell is applying for auto insurance with his agent. Currently, he only wants to get a minimal amount of coverage to keep his premiums as low as possible, so he decides not to include uninsured motorist coverage on his policy. His agent has him sign a document giving up his right to this coverage. What is this called? Answer: An express waiver

This type of trim is typically placed around windows and doors to give them a finished look. Answer: Casement

All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured

Jim is completely "upside down" financially on his car. He owes the finance company $8,000. If he sells the car, he knows he'll only get about $4,000 for it. But Jim knows that if the car was somehow stolen, his insurance company would pay him somewhere in the neighborhood of $7,000. Jim decides to have a friend steal the car and "make it disappear." Jim then files a claim with his insurance company to report his car stolen. Which best represents Jim's actions? Answer: Hard Fraud

In a third-party claim, the injured person has a duty to: Answer: Authorize the insurer to look at her medical records

Paul and his wife have three separate insurance policies covering their home: Policy X with a limit of $100,000, Policy Y with $50,000, and Policy Z with $25,000. These policies are set up to pay covered claims by contribution of equal shares. After a fire causes $125,000 in damage to their home, how much will each policy pay (ignoring any deductibles)? Policy X: 50,000 Policy Y: 50,000 Policy Z: 25,000

The use of which doctrine would result in David receiving no damages for his loss, if he were found 25% responsible for his own loss? Answer: Contributory negligence

A few weeks ago, Grace's garage was destroyed by an out-of-control motorist named Zach. Fortunately, Zach had sufficient liability insurance to cover the damages, but Zach's insurer is giving Grace the runaround negotiating the claim. Grace finally files a complaint, forcing Zach to: Answer: submit an answer

Ned's insurer made a business decision that broadened coverage in new standard policies without increasing premiums. Because of this, the insurer was required to automatically apply this new broadened coverage to Ned's existing policy. This requirement is documented in the: Answer: liberalization clause

Kerry accidentally set his kitchen on fire while frying a turkey for the holidays. The fire results in $32,000 in damage to his home, which is valued at $175,000. However, Kerry only has a $120,000 homeowners policy limit. Assuming Kerry's policy has the 80% coinsurance requirement, approximately how much of the damage will Kerry be responsible for paying? (Round all numbers to three decimal places.) Answer: $4,576

An insurance policy's declarations page contains all of the following, EXCEPT: Answer: The perils insured against

All of the following are true about the Law of Large Numbers in the insurance industry, except: Answer: The larger the number of units insured the larger the amount the insurer will have to pay out

What is the main difference between a stock insurance company and a mutual insurance company? Answer: A stock insurance company is owned by its shareholders, a mutual insurance company is owned by its policy holders

What are the four requirements of a legally binding contract? Answer: agreement, consideration, competant parties, legal purpose

While driving one winter day, April is surprised by a deer jumping into the road directly in front of her. She strikes the deer, overcorrects, and slides on the icy road. Her car skids off the road and plows through a barbed-wire fence. What is the proximate cause of the damage to the fence? Answer: The deer strike

Ronald always drives with his windows rolled down because he loves the feeling of the wind in his hair. However, he often forgets to roll his windows up when he gets out of the car. Of course, this behavior makes it easier for thieves to steal his belongings from the car, but Ronald can't help being forgetful. Ronald's behavior would be considered a: Answer: Morale hazard

Which of the following does NOT constitute one of the four elements of a negligent act? Answer: the defendant entered a legal contract with the plantif

Jim has been arrested for drunk driving. In order to be allowed out of jail before his court date, Jim will most likely need: Answer: A bail bond Jim will most likely need to post bail to be allowed out of jail before his court date.  Bail is a set amount of money an arrested individual must pay the court to guarantee they will appear for their scheduled hearings and trial dates. By posting bail, Jim can secure his release from jail pending his court appearances. There are several options for posting bail: Cash Bail : Jim or someone on his behalf can pay the total bail amount in cash directly to the court. Once the case is resolved, the bail money is returned minus any fees or fines imposed by the court. Bail Bond : If Jim or his family cannot afford to pay the full bail amount, they may use a bail bond service. A bail bondsman typically charges a non-refundable fee, usually a percentage of the total bail amount, in exchange for posting the full bail amount on Jim's behalf. The bon

As a requirement for getting her New York adjuster license, Alice is required to submit proof of bonding with her application. She purchases a surety bond from PBJ Bonds. In this contract, Alice is considered the: Answer: Principal

Hannah is six months pregnant when she switches jobs. Which law ensures that Hannah's "pre-existing condition" will be covered under her new health insurance plan? Answer: Health Insurance Portability and Accountability Act

How long before the expiration or anniversary date should the insurer notify the insured that it intends to renew the policy? Answer: 30 days

Under the Fraud and False Statements Act, what is the maximum prison sentence that can be imposed on an insurance professional who attempts to influence, obstruct, or impede the proper administration of the law while an insurance company is under investigation? Answer: 10 years

What information does NOT need to be included in the notice given to the insured any time the insurer issues or renews an insurance policy? Answer: Information about how to obtain coverage through the SCWHUA

The Director has just received a complaint stating that an adjuster has violated insurance law. Which of the following actions may the Director take? Answer: Commence an investigation of the adjuster's actions

If a building is completely destroyed by a fire, the Valued Policy Law states that the insurer should pay: Answer: The full amount listed in the policy

Every time Maria adjusts an auto claim, she refers the claimant to Bud's Body Shop for repairs. In turn, Bud's Body Shop pays Maria $50 dollars for every vehicle brought to their shop based on Maria's recommendation. By taking this money, Maria is accepting: Answer: kickbacks

If an insurance professional who has been convicted of fraud wishes to return to work in the insurance industry, in most cases he must: Answer: apply for a 1033 Waiver and have an offer of employment.

Which of the following is FALSE regarding terrorism insurance coverage under the Terrorism Risk Insurance Act (TRIA)? Answer: TRIA coverage is available for both personal and commercial lines of insurance.

Kerry's advertising business employs Meg to clean offices at night, and recently Meg slipped and fell at work, hurting her back. Kerry can be assured that workers' compensation insurance will provide Meg with: Answer: Medical Payments and lost wages

Who is responsible for paying the premiums on a workers' compensation policy? Answer: The Employer

Most states require businesses to purchase workers' compensation insurance to cover their employees. Workers' comp in those states is: Answer: Compulsory

African Spice Exporters Inc. brings two shipments of cloves from Zanzibar, Tanzania to the United States each year. When their second shipment of the year is stopped by the Coast Guard off the coast of Florida, 10 pounds of contraband is found hidden among the bins of cloves. All of the ship's cargo is seized and the ship's crew arrested. When African Spice Exporters Inc. files a claim with its insurer for the seized cargo, the claim comes back denied. Why might this claim have been denied? Answer: African Spice Exporters Inc. violated the "legality" implied warranty of ocean marine insurance.

Blue Lines Shipping sustains hundreds of thousands of dollars in losses when one of their ships full of cargo catches fire and sinks in the Pacific Ocean. Which of the following situations would NOT be cause for the insurer to refuse to indemnify Blue Lines Shipping for its losses? Answer: A storm knocks out the navigation system, causing an electrical fire.

Which of the following statements about flood insurance is FALSE? Answer: Flood insurance rates are determined by private insurers

Lena is moving to Japan for two years in order to take advantage of a promotion at her job. She won't bring her 4-seater propeller plane with her. What kind of aviation insurance should Lena purchase for her plane while it's in storage and she is away? Answer: All risks- Not in motion

Which of the following coverages is typically included in a BOP? Answer: Coverage for slander and copyright

Which of the following would be covered under Coverage B of a typical Business Owners Policy? Answer: Inventory

Which of the following would be covered under Coverage B of the Business Owners Policy? Answer: The copy machine in a restaurant's back office

Mindy filed a claim against XYZ Consulting on March 5, 2016 for an accident that happened on September 15, 2015. XYZ Consulting was previously covered by a claims-made CGL policy, but changed to an occurrence policy in January 2016, when the policy came up for annual renewal. How will XYZ Consulting's insurer respond to Mindy's claim? Answer: The claim will not be covered because the accident did not occur during the current policy period.

Julie owns the local shopping mall. One day, Julie sees Greg walking through the mall and doesn't like the way he looks, so she forces him to leave the premises. Greg then sues Julie for her actions. This is an example of what type of personal injury covered under Julie's Commercial General Liability policy? Answer: Wrongful eviction

On January 27, 2008, Ryan is using an exercise bike purchased from NusquamCycle when the chain breaks, causing him to fall and severely bruise his knee. It seems to heal just fine, but three years later, on January 29, 2011, Ryan's knee gives out while jogging. His doctor informs him that he'll need surgery and that this deterioration was most likely caused by his earlier accident with the exercise bike. Assuming NusquamCycle is no longer in business, which Commercial General Liability policy would cover Ryan's claim filed January 29, 2011? Answer: An occurrence policy from Jan 31 2006-Jan 31 2009

Deana has Personal Injury Protection coverage in her PAP. Which of these injuries would NOT be covered by Deana's PIP? Answer: Tom suffers neck injuries when Deana rear-ends him at a stop sign.

In a personal auto policy, Collision coverage: Answer: pays for physical damage to the vehicle caused by a rollover.

Rebecca has Collision coverage in her Personal Auto Policy. After a collision, the adjuster determines that Rebecca's car is totaled. How much is Rebecca likely to receive from her insurer (ignoring the deductible)? Answer: The actual cash value of her vehicle

Which of the following people would NOT qualify as an "insured" under a BAP? Answer: The policyholder's spouse, who is not named on the policy but habitually drives the company's SUV without permission.

In a personal auto policy, the Miscellaneous Vehicle Coverage endorsement: Answer: allows coverage to be added for motorcycles and motor homes.

Nancy borrows Drew's car so she can run to the grocery store. While out, she rear-ends an SUV, injuring the driver and one passenger. The passenger suffers $40,000 in injuries, while the driver suffers $60,000. Assuming Drew has a liability policy with limits of 30/60/10, while Nancy carries minimum coverage for South Carolina, how much will Nancy's policy cover? Answer: $35,000

PAP holders have several duties after a loss. Which of the following is NOT one of them? Answer: The Policy holder must complete a drivering safety course

Don has a PAP with $500 Collision and Comprehensive deductibles, Liability limits of 25/50/25, and $5,000 in Medical Payments coverage. He is struck by a car while taking a walk in his neighborhood, leaving him with $36,500 in medical costs. The driver of the vehicle has liability coverage of 30/60/25, which pays up to its limit for Don's injuries. How will Don's policy respond to the loss? Answer: Medical Payments will pay $5,000.

Part D of the Personal Auto Policy does NOT cover: Answer: Freezing

Liability limits in a Personal Auto Policy are applied: Answer: Per Person, and Per Accident

Molly borrows her friend Dom's car to run to the grocery store. On the way home, she rear-ends a van, injuring the driver and 3 other passengers. Each of the passengers suffers $45,000 in injuries, while the driver suffers $40,000. Assuming Dom has a liability policy with limits of 50/100/50, while Molly has 25/50/25 coverage, how much will the primary policy cover? Answer: 100,000

Which of the following people is NOT occupying a vehicle that would qualify as "your covered auto" on the declarations page of his Personal Auto Policy? Answer: Patrick borrows his neighbor's 45,000 pound semi truck to help his neighbor move.

Under a Personal Auto Policy, an insurer will cover Medical Payments for up to ____ from the date of the accident. Answer: 3 years

In a Commercial Auto Policy, which coverage symbol indicates that a car is subject to mandatory no-fault insurance? Answer: 5

Under a garagekeepers policy, which coverage would split a covered loss with the car owner's personal insurance? Answer: Direct Primary

In a Personal Auto Policy, the definition of "Your Covered Auto" can refer to any of the following vehicles, EXCEPT: Answer: a trailer that Tim's neighbor let him borrow.

D'Anton spills coffee in his lap while driving, causing him to veer off the road and smash into a lamp post. Which part of his Personal Auto Policy will help him pay for the repairs to the lamp post? Answer: Liability Coverage

Which of the following would most likely be covered under Other Than Collision coverage in a personal auto policy? Answer: Civil Unrest

The limit of liability for Coverage B - Other Structures is typically: Answer: 10% of coverage A

Michelle just purchased a homeowners policy for her new single-family home. Although she would have liked the best coverage money can buy, she could not afford the most expensive policy. She compromised with a policy that provides open-peril coverage for her house and detached garage, and named-peril coverage for her personal property. Which homeowners policy did Michelle purchase? Answer: HO-3

Jake and his neighbor Bill are working to repair Jake's roof. Jake sets up two ladders side-by-side for each of them to use while working on the gutters. While at the top of the ladder, Jake falls into Bill's ladder, sending both of them tumbling to the ground. Whose injuries will be covered by Jake's homeowners policy under Coverage E - Personal Liability? Answer: Bill's Injuries

Andrew's house is struck by lightning. The power surge fries two of the family's laptop computers, and starts a fire that damages his roof, two living room walls, and a leather sofa. Which of these damages would fall under Coverage C of Andrew's Homeowners 3 policy? Answer: The Sofa and laptop computers

The Water Backup and Sump Discharge or Overflow endorsement: Answer: covers water damage if it results from a mechanical breakdown of sump pump equipment.

Clark lost power to his home when a windstorm blew the roof off of his house. As a result, he lost several hundred dollars worth of meat that he was keeping in a freezer in his basement. Which homeowners coverage might indemnify Clark for the loss of his meat? Answer: Personal Property Coverage

Simon just bought his first home-a cheap fixer-upper in a town where average snowfall exceeds 80 inches per year. It may be an old house in a run-down neighborhood, but he still wants to protect his initial investment. What is the cheapest policy option that would protect Simon's financial interest in his home, even in the brutal winters? Answer: HO-2

In a Personal Watercraft policy, Part C would cover: Answer: damage to the covered craft caused by an uninsured operator of another watercraft.

Homeowners policies don't provide coverage for: Answer: Flood damage

Which of the following is eligible for coverage under the Personal Property Replacement Cost endorsement in a homeowners policy? Answer: Photographers equipment

Jeremy is purchasing a homeowners policy for his house in the country. He is a beer enthusiast and is especially concerned with protecting his home brewing equipment from the black bears commonly seen in the area. Which of the following is the least expensive option that meets Jeremy's special need? Answer: Homeowners 5

In order to be considered "fully insured" at 80% or more, Richard must carry at least $240,000 in insurance coverage on his home. What is the value of Richard's home? Answer: 300,000

In South Carolina, how much notice must an insurer give when cancelling a dwelling policy for non-payment of premiums? Answer: 10 days

Which of these homeowners policy coverages does NOT usually have a deductible? Answer: Fire department Service Charge

In which section of the Standard Fire Policy would you find an explanation of the losses covered under the policy and what the insurer has agreed to provide in exchange for premiums? Answer: Insuring agreement

An unendorsed Dwelling Policy is intended to cover all of the following except: Answer: liability damages

In which section of the Standard Fire Policy would one find the following subsection titled: "Duties of the Insured after an Occurrence"? Answer: Conditions

Coverage L in a Personal Liability Supplement provides: Answer: coverage for both bodily injury and property damage to a third party for which the insured is legally liable.

The Standard Fire policy has 4 main parts. They are: Answer: Declarations, Insuring Agreement, Conditions, and Exclusions

The primary purpose of the Insuring Agreement is to specify the ____________ of an insurance policy. Answer: Coverages

James rents a home to Jill and maintains a DP-3 policy on the dwelling. One day, Jill accidently leaves the oven on all day while she is out, and James' house burns to the ground, along with all the contents. Which items could be covered under Coverage C in James' DP-3? Answer: James Appliances

After Jerry pulled the fire alarm, the indoor sprinkler system came on and flooded the offices at Elliot Designs, which caused thousands of dollars in damage. Elliot Designs filed a claim with KLM Insurance, who dispatched Chrystal to investigate and process the claim. Who is the principal in this scenario? Answer: KLM Insurance

After a fire destroys Gale's kitchen, she files a claim with her insurer and hires a contractor. The contractor estimates it will take $42,250 to repair the damage, but the adjuster estimates it will only take $38,340. Which of the following is the best option for the adjuster's response to Gale's claim? Answer: Negotiate a settlement amount with Gail.

Why might a Reservation of Rights letter be sent? Answer: The Clamant took too long to file the claim

What does a declaratory judgment action seek? Answer: Legal Clarification of policy coverage

Which of the following people are in the process of submitting a formal request to settle the damage? Answer: Grace is filing a claim with her insurer for hail damage to her roof.

Whose responsibility is it to maintain an open line of communication during the settlement process? Answer: The Adjuster

Greg works for XYZ Insurance. Part of his daily tasks involve visiting sites, investigating liability, and determining the time and cost of repairs. On occasion, Greg will have to negotiate with claimants as part of his job. Which type of agent is Greg? Answer: Claims Adjuster

When a storm rolled through town a month ago, John's home suffered substantial damage. He filed a claim, but his insurer has offered a settlement much lower than John feels is fair. Each party selects an appraiser, who in turn agree on an umpire, to help settle the claim. If two of the three parties agree, their decision is: Answer: binding

Which of the following is NOT a way to determine an insurer's liability in a claim? Answer: Check if the current month's premium had been paid at the time of loss.

Which of the following is the easiest and least costly option? Answer: Adjuster/clamant negotiation

An adjuster has several tasks to complete during the adjusting process. All of the following are examples of the types of tasks an adjuster may be required to perform, EXCEPT: Answer: During a meeting with Darlene, Mindy collects various pieces of information and writes an auto policy for Darlene to purchase.

After Cindy crashes into Nancy's mailbox while driving drunk, she gets out of her car, trips over Nancy's sidewalk, falls and breaks her arm. She then sues Nancy for the medical bills related to her broken arm. They are in a state that follows the doctrine of comparative negligence. What is the likely outcome of Cindy's lawsuit against Nancy? Answer: The amount awarded to Cindy will be reduced by the percentage of her own negligence.

Frank purchases a homeowners policy worth $700,000 with a 4% deductible. A few months later, a heavy hailstorm destroys his roof, porch, and windows, causing $50,000 in damages. Frank should expect __________ from the insurance company to pay for the damages. Answer: $22,000

Under which circumstances may an insurer cancel a policy during the first 90 days that the policy is in effect? Answer: The insurer may cancel for any reason

After a hail storm passed through his neighborhood, Perry had his roof inspected by a local contractor. The contractor gave Perry an estimate of $9,850 to replace his roof, so he filed a claim with his insurer. The adjuster came up with her own estimate of $9,645 to replace Perry's roof. How will the adjuster likely respond to Perry's request? Answer: Accept his request, since the difference between the two amounts is small enough to settle in Perry's favor.

Bill's home was destroyed by a tornado, and Nick is adjusting the claim. Bill's home will cost $235,000 to rebuild. His homeowners policy has a $225,000 limit and a $1,700 deductible. How much would Nick typically calculate the final settlement amount to be? Answer: $225,000

Which ISO is known as the Condominium form? Answer: Homeowners 6

Jared is fishing from his 22-foot sailboat when he is caught in a sudden hailstorm. His boat suffers extensive hail damage. When he files a claim against his homeowners policy, he is upset to learn that his claim is denied because: Answer: the boat was not fully enclosed inside a building during the hailstorm.

What document do insurance companies give to claimants when they think something in the claim is not covered by the policy, but they are not sure yet? Answer: Reservation of rights letter

Sarah and a carload of her friends are driving to Vermont for the weekend when she hits a deer, causing $10,000 in damages to her car and $5,000 in medical bills for herself and her passengers. Which insurance coverage will pay for the damages to Sarah's car? Answer: Comprehensive

Sylvia is in the process of building an addition onto her used book store, which is insured under a commercial property policy. About 40 days into the process, her mother takes a bad fall and breaks her hip. Seeing that she needs to move closer to her mom, Sylvia sells the book store. Her Builder's Risk coverage is terminated because: Answer: Sylvia no longer has insurable interest in the building

Which of the following is least likely to be one of the important questions an adjuster must answer before entering into the negotiations process? Answer: How much is the insured willing to pay

The adjusters preliminary report would most likely not include: Answer: The settlement amount

Appraisal is used to decide: Answer: the settlement amount

Which of the following sequences is most likely in the correct chronological order? Answer: Acknowledge the claim, then open a line of communication with the claimant.

As Seth is driving along a country road, a deer jumps out in front of him. This causes Seth to veer off the road and crash into Cassie's wood fence and a brick mailbox. As a result of the crash, Seth suffers $3,700 in damage to his sedan and causes $1,800 in damage to Cassie's property. How much of the damage will be covered by Seth's liability insurance? Answer: $1800

Sara's vehicle was stolen and her insurer paid her theft claim for the total value of the car. A week later, the police found Sara's car and returned it to her. Which of the following statements is true? Answer: The Recovered Property provision states that Sara must notify the insurer and either return the settlement payment or surrender the vehicle to the insurer.

A power surge sparks a small electrical fire in an office building. The electrical fire triggers the automatic sprinkler system. The water from the sprinklers soaks the carpets and shorts-out all the computers, causing thousands of dollars in damage. The office must close for two months during repairs. The sprinklers soaking the office would be considered: Answer: An occurrence

ABC Consulting has a CGL policy and an Umbrella policy, but the CGL runs from January 1 to December 31 and the Umbrella policy runs from June 1 to May 31. This difference in inception and expiration dates creates confusion when settling claims. This condition is known as: Answer: Nonconcurency

Jackie recently inherited a life-sized marble statue of her great-grandfather. It is an irreplaceable antique, and it is nearly impossible to determine the ACV. Which type of policy would best indemnify Jackie in the event that the statue was ever damaged? Answer: Agreed Value Policy

Sam was tired of the neighbor's trees along the fence line poking through the fence and dropping leaves in his yard, so he reached across the fence with his pole saw and cut down the neighbor's tree. Sam's neighbor was upset and sued him for the damages. Sam is ordered to pay $500 for the tree. Under which category of damage would this fall? Answer: Compensory Damage

In an insurance contract, exclusions serve all of the following purposes, except: Answer: add coverages that need special treatment.

Anytown Pediatrics has been having a hard time finding medical malpractice insurance. The premiums are extraordinarily high, and they get higher every year. Finally, fed up with the cost of insurance, the directors decide to form their own insurance company, which will serve only Anytown Pediatrics. This way, any profits generated by the insurer will come back to Anytown Pediatrics. What kind of insurance company would this be? Answer: Captive insurer

An economic device used to protect against the risk of realizing unforeseen and extraordinary financial loss is called: Answer: A Peril

Nina's home is located in a high crime neighborhood. One day, she comes home from work to find that her garage door had been spray-painted with graffiti. Nina's insurer would consider the act of vandalism to Nina's garage a: Answer: Peril

Which of the following best defines the doctrine of Res Ipsa Loquitur? Answer: The circumstances of the injury make it obvious that the defendant is negligent; no proof is needed.

A lion at a zoo escaped when a zoo employee failed to follow protocol. The lion injured a zoo patron. In court, the injured patron's lawyer could invoke the doctrine of: Answer: Res Ipsa Loquitur.

Which of the following best describes a "risk," according to the insurance definition? Answer: A potential for financial loss

During a storm, heavy winds cause a tree limb to break and fall onto Paul's house, causing $6,500 in damage. Paul's insurance company now considers his house: Answer: A Loss

The Hitchcock Clock Company purchases a fire policy with a 90% coinsurance clause and a coverage limit of $150,000. The replacement cost of the building insured is $200,000. The company suffers a $20,000 fire loss. What will the insurance company pay? a. $12,500 b. $16,667 c. $18,750 d. $20,000 Answer: b. $16,667

Which of the following coverages IS included in the Homeowners policy but is NOT included in an unendorsed Dwelling policy? a. Dwelling b. Other structures c. Personal property d. Liability Answer: d. Liability

Malik is successfully sued for negligence. The jury awards the injured party $175,000. The limits under Malik's liability policy provide coverage up to $100,000 per occurrence. In addition, his insurance carrier is charged $17,000 for defending the suit. How much will Malik's carrier pay to the injured party? a. $100,000 b. $117,000 c. $125,000 d. $175,000 Answer: a. $100,000

If an HO-3 policy has a coverage limit of $100,000 on the dwelling, how much coverage would automatically apply to cover the insured's personal property under Coverage C? a. $20,000 b. $25,000 c. $50,000 d. $100,000 Answer: c. $50,000

To pay a claim, insurable interest with casualty insurance must exist a. At the time the policy is issued b. By the effective date of the policy c. When the policy is being underwritten d. At the time of loss Answer: d. At the time of loss

The Homeowners form that provides open peril coverage on the dwelling and broad coverage on personal property is the a. HO-3 b. HO-4 c. HO-2 d. HO-6 Answer: a. HO-3

What type of insurance policy insures against all risks of loss that are not specifically excluded by the policy? a. Named peril policy b. Open peril policy c. Specified peril policy d. Binder policy Answer: b. Open peril policy

Employee theft coverage would provide for a. The loss of money by a company officer b. The loss of securities due to the robbery of a safe c. Damage to the premises caused by a fire started by a burglar d. The loss of use of property taken in a robbery Answer: a. The loss of money by a company officer