Property & Casualty Insurance License Test Commercial Lines Insurance Questions and Answers Flashcards
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Read the first 6 Property & Casualty Insurance License Test Commercial Lines Insurance Questions and Answers flashcards as text
What is a 'monoline' commercial insurance policy?
Answer: A policy that covers only one line of insurance, such as property or liability alone
A monoline policy covers only one specific line of coverage (e.g., property only or liability only), as opposed to a package policy like a BOP that bundles multiple lines together.
A commercial crime policy covers which of the following losses?
Answer: Theft, forgery, computer fraud, and employee dishonesty
Commercial crime coverage protects businesses against financial losses from theft, robbery, forgery, computer fraud, funds transfer fraud, and employee dishonesty.
Cyber liability insurance is most commonly purchased to protect businesses against which type of loss?
Answer: Costs associated with data breaches, network failures, and privacy liability
Cyber liability insurance covers costs such as breach notification, credit monitoring, regulatory fines, legal defense, and business interruption arising from data breaches and cyberattacks.
A 'manuscript policy' in commercial insurance refers to which of the following?
Answer: A custom-drafted policy tailored specifically to the needs of one insured
A manuscript policy is individually negotiated and drafted for a specific insured, allowing unique terms and conditions not available in standard ISO forms.
Professional liability insurance (errors and omissions) is designed to protect which category of insureds?
Answer: Professionals who provide advice or services and may be sued for negligent errors
Professional liability (E&O) insurance protects doctors, lawyers, accountants, consultants, and other professionals against claims that their advice or services caused a client financial harm.
Under a commercial property policy, which cause-of-loss form provides the broadest coverage by insuring against all risks of physical loss except those specifically excluded?
Answer: Special form (open perils)
The Special Form (also called 'open perils' or 'all-risk') covers all direct physical losses except those explicitly excluded, providing the broadest commercial property protection.