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Reference: https://web.theinstitutes.org/course/cpcu/becoming-a-leader-in-risk-management-insurance
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Courtland Incorporated owns a $1 million office building which it insures under a Building and Personal Property Coverage Form with an 80 percent coinsurance provision. In an effort to reduce the premium, and assuming that it would never have a total loss, Courtland Incorporated decided to insure the building for
$600,000. Ignoring any deductible that may apply, how much would the BPP insurer pay if the building suffered a covered loss of $100,000?
Correct Answer: A 🗳️
Explanation: Only visible for VCEPrep members. You can sign-up / login (it's free).
Under the Commercial General Liability Coverage Form written on an occurrence basis, the insuring agreement imposes several conditions on the insurer's duty to pay damages. Which one of the following is such a condition?
Correct Answer: C 🗳️
Explanation: Only visible for VCEPrep members. You can sign-up / login (it's free).
Foster Plumbing dug a hole in the street to run a water pipe from the main line to a new home. Foster planned to fill in the hole the next day. No barriers were erected, and Joe drove his car into the hole. Joe was injured and his car was destroyed. Joe sued Foster for damages. Foster's liability to Joe arises out of Foster's
Correct Answer: B 🗳️
Bobbie works for Triple Hills Associates and is gathering current information to consider the application of a new account. She asks Reggie, a junior underwriter, to gather as much information as he can from public sources about the account to help in her analysis, but to be careful of bias and credibility issues. Which one of the following situations might Reggie avoid reporting to Bobbie due to the informational hazards she mentioned?
Correct Answer: A 🗳️
Explanation: Only visible for VCEPrep members. You can sign-up / login (it's free).
Best Builders is considering acquiring another contractor in order to expand its operations into another state.
The uncertainties involved with this decision should be analyzed under which one of the following quadrants of risk?
Correct Answer: D 🗳️
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