Commercial Insurance Quiz

Which coverage under Farm Liability Coverages is similar to CGL Coverage B?

• Coverage H

• Coverage I

• Coverage G

• Coverage J

Answer explanation

Coverage I under Farm Liability Coverages is similar to CGL Coverage B, as both provide coverage for personal and advertising injury, protecting against claims of libel, slander, and other related offenses.

What is a common exclusion in Professional Liability Insurance policies?

• Negligence

• Bodily injury

• Errors and omissions

• Fraudulent acts or intentional wrongdoing

Answer explanation

Fraudulent acts or intentional wrongdoing are commonly excluded from Professional Liability Insurance policies, as these policies typically cover negligence and errors and omissions, not intentional misconduct.

What does Coverage E in Farm Property Coverages specifically allow?

• Coverage for household personal property

• Coverage for barns and silos

• Blanket coverage for farm personal property

• Scheduling of specific farm property items

Answer explanation

Coverage E specifically allows for the scheduling of specific farm property items, providing tailored protection for individual assets rather than blanket coverage or coverage for personal property.

What does Employment Practices Liability Insurance (EPLI) cover?

• Professional negligence

• Claims related to employment practices

• Property damage claims

• Aircraft liability

Answer explanation

Employment Practices Liability Insurance (EPLI) specifically covers claims related to employment practices, such as wrongful termination, discrimination, and harassment, making it the correct choice.

What is a common feature of Commercial Umbrella Insurance?

• Covers only property damage

• Includes health insurance benefits

• Offers excess liability coverage

• Provides primary coverage for all risks

Answer explanation

Commercial Umbrella Insurance is designed to provide excess liability coverage, meaning it kicks in when the limits of your primary liability policies are exhausted, protecting against larger claims.

What is a key aspect of pilot warranties in aviation insurance?

• Exclusions for unapproved pilots

• Low deductibles for pilot errors

• Coverage for pilot training

• Coverage for all pilots

Answer explanation

A key aspect of pilot warranties in aviation insurance is the exclusion for unapproved pilots, meaning that coverage does not extend to pilots who are not specifically authorized by the insurer.

Which type of bond is included under Surety Bonds?

• Property Bonds

• Auto Bonds

• Health Bonds

• Contract Bonds

Answer explanation

Contract Bonds are a type of Surety Bond that guarantee the fulfillment of contractual obligations. They ensure that the contractor will complete the project as agreed, making them the correct choice among the options.

Which type of Professional Liability Insurance is specifically for medical professionals?

• Directors & Officers (D&O) Liability

• Errors & Omissions (E&O)

• Medical Malpractice

• Employment Practices Liability Insurance (EPLI)

Answer explanation

Medical Malpractice Insurance is specifically designed for medical professionals, covering claims related to negligence or errors in patient care, making it the correct choice for this question.

What is a common characteristic of Directors & Officers (D&O) Liability Insurance?

• Covers property damage

• Protects against lawsuits alleging wrongful acts in management

• Includes coverage for medical malpractice

• Covers employment practices

Answer explanation

A common characteristic of Directors & Officers (D&O) Liability Insurance is that it protects against lawsuits alleging wrongful acts in management, ensuring that directors and officers are covered for their decisions.

Which coverage under Farm Property Coverages is similar to homeowners insurance for a farmhouse?

• Coverage A

• Coverage B

• Coverage C

• Coverage D

Answer explanation

Coverage A under Farm Property Coverages is similar to homeowners insurance as it provides coverage for the dwelling, including the farmhouse itself, just like homeowners insurance covers a primary residence.