Commercial Lines Insurance Flashcards
7 cards from real Property And Casualty Insurance License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Commercial Lines Insurance flashcards as text
A commercial umbrella policy primarily serves to:
Answer: Provide excess liability limits above the underlying primary policies and broaden coverage in some areas
A commercial umbrella policy sits above the underlying primary policies to provide higher limits and may also broaden coverage for certain gaps in the underlying policies.
Under the commercial property coverage form, which cause-of-loss form provides the broadest coverage?
Answer: Special Form
The Special Form (formerly 'All-Risk') covers all direct physical losses except those specifically excluded, making it broader than the Basic or Broad forms.
The 'products-completed operations' aggregate limit in a CGL policy applies to:
Answer: Claims arising from products the insured has sold or work the insured has completed
The products-completed operations aggregate limit is a separate sub-limit that applies specifically to bodily injury and property damage caused by the insured's products after they leave the insured's hands, or work that has been completed.
Which of the following losses would typically be covered under a commercial inland marine policy?
Answer: Theft of business computers from a temporary job site
Inland marine policies cover mobile or transportable property, such as equipment or merchandise in transit or at temporary locations, which standard commercial property policies may not cover.
A 'blanket' commercial property policy differs from a 'specific' policy in that:
Answer: It provides a single limit of insurance that applies across multiple locations or items
A blanket policy provides one combined limit that can be applied to any covered location or item, offering flexibility when values shift between locations.
Under a business owners policy (BOP), which type of business would typically NOT qualify for coverage?
Answer: A large manufacturing plant with hundreds of employees
BOPs are designed for small to medium-sized businesses that meet specific size and occupancy criteria; large manufacturers generally do not qualify and require individually rated commercial policies.
The 'extended period of indemnity' endorsement on a business income form:
Answer: Continues business income payments after the business resumes operations to allow revenue to return to pre-loss levels
The extended period of indemnity endorsement provides continued business income payments after the insured resumes operations while the business rebuilds its customer base and revenue to pre-loss levels.