CALA Property & Casualty Insurance Coverage 2

Question 1

Under a standard homeowners policy, which of the following losses would be covered by Coverage B (Other Structures)?

Accepted Answer

A detached garage damaged by a fallen tree

Answer

Coverage B applies to detached structures on the residence premises; wind-blown tree damage is a covered peril under standard HO forms.

Question 2

A commercial general liability (CGL) policy's 'products-completed operations' hazard covers claims arising from:

Accepted Answer

Bodily injury caused by a product after it leaves the insured's control

Answer

Products-completed operations coverage applies to BI or PD arising from a product or completed work after it has left the insured's possession.

Question 3

Which valuation method pays the cost to repair or replace damaged property with like kind and quality without deducting for depreciation?

Accepted Answer

Replacement cost value

Answer

Replacement cost value (RCV) pays the full cost to repair or replace without subtracting depreciation.

Question 4

An insured's auto policy has a $500 comprehensive deductible. A deer strikes the vehicle, causing $1,800 in damage. How much does the insurer pay?

Accepted Answer

$1,300

Answer

Animal strikes are covered under comprehensive (other-than-collision); the insurer pays $1,800 minus the $500 deductible = $1,300.

Question 5

The 'inland marine floater' is best suited to insure which type of property?

Accepted Answer

Movable personal property frequently transported to different locations

Answer

Inland marine policies are designed for property that moves — such as cameras, contractor equipment, or fine art in transit.

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