CU Insurance Products & Coverage Types 2

Question 1

Which type of life insurance policy builds cash value AND provides a fixed death benefit for the insured's entire lifetime?

Accepted Answer

Whole life

Answer

Whole life insurance provides permanent coverage with a guaranteed death benefit and accumulates cash value over time.

Question 2

A homeowner's policy written on an 'open peril' (all-risk) basis covers losses from:

Accepted Answer

All causes of loss except those explicitly excluded

Answer

Open peril (all-risk) policies cover any cause of loss not specifically excluded, giving broader protection than named-peril forms.

Question 3

Under a Business Owners Policy (BOP), which coverage is typically EXCLUDED that must be purchased separately?

Accepted Answer

Commercial auto liability

Answer

A BOP bundles property and general liability but does NOT include commercial auto; vehicles require a separate commercial auto policy.

Question 4

The 'incontestability clause' in a life insurance policy generally prevents the insurer from voiding the policy after:

Accepted Answer

2 years

Answer

After two years, insurers cannot contest the validity of most life policies based on misrepresentation, except for fraud.

Question 5

Which liability coverage pays for bodily injury or property damage that occurred during the policy period, regardless of when the claim is filed?

Accepted Answer

Occurrence policy

Answer

Occurrence policies trigger on when the injury or damage happened, not when the claim is submitted.

(CU) Certified Underwriter Practice Test