CPIA Flashcards
7 cards from real CPSA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 CPIA flashcards as text
Which endorsement added to a homeowners policy would cover jewelry, furs, and fine arts on an open-perils, agreed-value basis?
Answer: Scheduled personal property endorsement
A scheduled personal property endorsement (personal articles floater) insures listed high-value items on an open-perils basis for a specified agreed value.
A manufacturer's product injures a consumer after the product leaves the manufacturer's control. Which CGL coverage part responds?
Answer: Coverage A – products-completed operations
The products-completed operations hazard within Coverage A responds to bodily injury or property damage arising from the insured's products after they have been distributed or sold.
Which term describes the practice of an agent placing insurance with an insurer that is not licensed to do business in the insured's state without following proper surplus lines procedures?
Answer: Unauthorized placement
Placing coverage with an unlicensed (non-admitted) insurer without following surplus lines regulations constitutes an unauthorized placement, which is illegal in most states.
What is the primary difference between an 'admitted' and a 'non-admitted' insurer operating in a state?
Answer: Admitted insurers are licensed and subject to state rate/form regulation; non-admitted insurers are not
Admitted insurers are licensed by the state and must file rates and forms for approval, while non-admitted (surplus lines) insurers operate outside these regulatory requirements.
An agent who convinces a client to replace an existing life insurance policy with a new one primarily to earn a new commission is guilty of:
Answer: Twisting
Twisting is the act of inducing a policyholder to drop an existing policy and purchase a new one through misrepresentation or incomplete comparison, often to benefit the agent.
Under the ISO commercial property policy, which cause of loss form provides the broadest coverage by insuring against all risks of direct physical loss not specifically excluded?
Answer: Special form
The Special Cause of Loss form provides open-perils (all-risk) coverage, paying for any direct physical loss not explicitly excluded in the policy.
Which of the following describes 'waiver of subrogation' and why an insured might request it?
Answer: The insurer agrees not to pursue recovery from a specified third party after paying a claim, protecting an important business relationship
A waiver of subrogation endorsement prevents the insurer from suing a designated party (such as a landlord or contractor) after paying a claim, preserving the business relationship.