ACE Policy Analysis & Evaluation 2

Question 1

When analyzing a commercial general liability (CGL) policy, which coverage trigger determines when bodily injury must occur for coverage to apply under an occurrence form?

Accepted Answer

During the policy period

Answer

An occurrence-trigger CGL policy requires the bodily injury or property damage to occur during the policy period, regardless of when the claim is made.

Question 2

Which ACORD form is used to document a certificate of insurance for property and casualty coverage?

Accepted Answer

ACORD 25

Answer

ACORD 25 is the standard Certificate of Liability Insurance form used to summarize P&C coverage for third parties.

Question 3

A policyholder claims damage from a slow water leak discovered three years after it began. Under a property policy with a 'manifestation' trigger, coverage would be tied to:

Accepted Answer

When the damage first became apparent

Answer

A manifestation trigger attaches coverage to the policy in effect when the damage first became apparent or visible.

Question 4

What does the 'other insurance' clause in a policy primarily address?

Accepted Answer

How multiple policies sharing the same loss coordinate payment

Answer

The 'other insurance' clause establishes whether a policy is primary, excess, or contributes pro-rata when another policy also covers the same loss.

Question 5

Under a commercial property policy, which valuation method reimburses the cost to replace damaged property with new property of like kind and quality without a deduction for depreciation?

Accepted Answer

Replacement cost value (RCV)

Answer

Replacement cost value pays to repair or replace damaged property with new materials without subtracting depreciation.

(ACE) ACORD Certified Expert Practice Test

(ACE) ACORD Certified Expert Practice Test

ACE Policy Analysis & Evaluation 2