Insurance MCQ

Which of the following is covered by Coverage E of the Farm Property Coverage Part? a. Unscheduled farm personal property b. Scheduled farm personal property c. Loss of use d. Other farm structures Answer: b. Scheduled farm personal property

Which statement is false regarding the Farm Liability Coverage Form? a. Medical payments provide coverage only when the insured is legally liable b. Medical payments would provide coverage for a neighbor who is injured while working the insured's livestock on a volunteer basis c. Medical payments do not provide coverage for anyone eligible for Workers' Compensation d. Personal injury includes damages arising out of false arrest, malicious prosecution, libel and slander Answer: a. Medical payments provide coverage only when the insured is legally liable

Which of the following is true about specialty or professional liability insurance? a. They are written on non-standard forms b. They provide excess coverage over the CGL policy c. Volunteer workers are excluded from coverage d. They protect businesses with few liability exposures Answer: a. They are written on non-standard forms

Livestock does not include which of the following animals? a. Donkeys b. Horses c. Poultry d. Goats Answer: c. Poultry

Which of the following provisions in an Ocean Marine policy covers direct damage caused by bursting of boilers? a. Boiler and Machinery Clause b. Mechanical Failure Clause c. Running Down Clause d. Inchmaree Clause Answer: d. Inchmaree Clause

The person whose responsibility it is to fulfill the obligation of a surety bond is the: a. Principal b. Surety c. Obligee d. Insurance company Answer: a. Principal

Livestock is not eligible for coverage on which Farm policy? a. Basic Cause of Loss Form b. Special Cause of Loss Form c. Broad Cause of Loss Form d. Livestock Coverage Form Answer: b. Special Cause of Loss Form

The Mobile Agricultural Machinery and Equipment Coverage Form includes coverage for all of the following, except: a. Irrigation equipment b. Farm tractors c. Hay balers d. Cotton pickers Answer: a. Irrigation equipment

Which of the following is not covered under the Installation Floater? a. Construction equipment b. Carpeting c. Electrical equipment d. Elevators Answer: a. Construction equipment

Which statement is false regarding the Farm Property Coverage Form? a. Exclusions include earth movement and intentional loss b. Coverage F includes unscheduled farm personal property c. Losses from nuclear damage are covered d. Coverage D provides coverage for loss of use Answer: c. Losses from nuclear damage are covered

All of the following are considered implied warranties in an Ocean Marine policy, except: a. Legality b. Protection clause c. No Deviation in Voyage d. Seaworthiness Answer: b. Protection clause

All of the following are true of Ocean Marine Insurance, except: a. Property coverage must be written to full value to avoid a penalty b. Policies are standardized c. Coverage is voided if implied warranties are violated d. General average refers to a partial loss where the loss is shared Answer: b. Policies are standardized

The party for whose benefit a surety bond is written is the: a. Surety b. Guarantor c. Obligee d. Principal Answer: c. Obligee

All of the following are true regarding Ocean Marine Insurance, except: a. Rates for ocean marine insurance are strictly regulated b. Cargo coverage is generally written on an open perils basis c. Breach of certain implied warranties may cause the contract to become void d. There is no standard Ocean Marine Form Answer: a. Rates for ocean marine insurance are strictly regulated

Hull insurance on an ocean marine policy covers the vessel for which of the following? a. Seaworthiness b. Physical damage c. Liability d. Cargo damage Answer: b. Physical damage

Goods being transported would be covered by which of the following types of insurance? a. Casualty b. Inland Marine c. Automobile d. Surety Answer: b. Inland Marine

Which of the following is not covered under the Valuable Papers and Records Floater? a. Maps b. Blueprints c. Securities d. Mortgages Answer: c. Securities

What type of policy can broaden coverage and increase the limits of the underlying insurance? a. Contingent Liability b. Legal Liability Coverage c. Umbrella d. Difference in Conditions Answer: c. Umbrella

Which source of liability would a trucker be liable for under a Motor Truck Cargo form? a. Cargo damage from overturn b. Faulty packing by a Shipper c. Exercise of Public Authority d. Acts of God Answer: a. Cargo damage from overturn

In bonding, the surety is also known as the: a. Principal b. Obligee c. Obligor d. Guarantor Answer: d. Guarantor