APCI - Arizona Property and Casualty Insurance Exam

Question 21: An Arizona trucking company's business auto policy shows a covered auto designation on the declarations for each coverage the company purchased, and the producer explains that these designations control which vehicles are insured. Which of the following names that designation system?

Interline endorsements

Coverage triggers

Rating classifications

Covered auto symbols

Question 22: An Arizona consulting firm in Phoenix owns no vehicles but frequently rents cars for staff traveling to client sites around the state. The firm wants liability coverage for those rentals under its business auto policy. Which category of covered auto applies?

Hired autos

Non-owned autos

Mobile equipment

Temporary substitute autos

Question 23: An Arizona distributor asks several employees to run occasional errands in their own personal vehicles during the workday, and the company wants protection against liability claims arising out of those trips. Which category of covered auto responds to that exposure?

Hired autos

Non-owned autos

Owned autos

Trailers in the insured's possession

Question 24: An Arizona fleet owner wants physical damage protection against fire, lightning, theft and vehicle collapse of a bridge, but does not want the full breadth of comprehensive coverage on his older trucks. Which business auto physical damage option fits that request?

Collision coverage

Comprehensive coverage

Specified causes of loss coverage

Towing and labor coverage

Question 25: An Arizona repair garage in Tempe keeps customer vehicles on its lot overnight while parts are on order, and the owner wants coverage for damage to those vehicles while they are in his care. Which coverage addresses that exposure?

Hired auto physical damage

Trailer interchange coverage

Non-owned auto liability

Garagekeepers coverage

Question 26: An Arizona company leases several delivery vans, and the leasing company insists on being protected under the company's business auto policy and named to receive payment for physical damage to the vans. Which endorsement accomplishes both of those objectives?

Lessor additional insured and loss payee

Mobile equipment

Employees as insureds

Drive other car coverage

Question 27: An Arizona corporation wants its workers protected under the business auto policy while they drive company vehicles and also while they use their own cars on company errands around Maricopa County. Which endorsement extends insured status to those employees?

Lessor additional insured

Employees as insureds

Mobile equipment

Broad form products

Question 28: An Arizona bakery is sued after a customer is injured by a foreign object in a pastry and after a delivery cart damages a customer's storefront. The bakery's commercial general liability policy responds to both claims. Which coverage part applies?

Coverage A

Coverage B

Coverage C

Supplementary payments

Question 29: An Arizona publisher is sued by a competitor claiming that a recent advertising campaign copied its slogan, and separately by an individual claiming a magazine article damaged her reputation. Which commercial general liability coverage part responds to those suits?

Coverage A

Coverage C

Products and completed operations

Coverage B

Question 30: A visitor to an Arizona insured's premises in Sedona trips on an uneven walkway and needs urgent care. The insured wants the modest medical bill paid promptly so the matter does not grow into a lawsuit. Which coverage part applies?

Coverage A

Coverage B

Coverage C

Interline endorsements

Question 31: An Arizona contractor is sued over a covered occurrence, and the insurer hires defense counsel, pays court costs taxed against the insured and posts the premium on a bond to release an attachment. Which of the following describes how those amounts affect the limit?

They reduce the each occurrence limit

They are paid in addition

They reduce the general aggregate only

They are paid after limit exhaustion

Question 32: An Arizona machine shop's general liability policy states that it responds to bodily injury and property damage that takes place during the policy period, regardless of when the resulting claim is eventually made. Which trigger does that describe?

Claims-made trigger

Retroactive date trigger

Occurrence trigger

Extended reporting trigger

Question 33: An Arizona engineering firm carries a claims-made general liability policy showing a date before which injury or damage will not be covered even if a claim is presented during the current policy period. Which of the following names that date?

Retroactive date

Effective date

Expiration date

Anniversary date

Question 34: An Arizona firm's claims-made general liability policy expires and the firm moves to a different insurer. Its former insurer offers a period during which claims arising from earlier covered work may still be reported. Which of the following names that feature?

Retroactive date

Prior acts coverage

Coverage territory

Extended reporting period

Question 35: An Arizona hardware store is sued after a customer slips on a wet floor near the entrance and again after an employee installing a display drops a fixture on a shopper. Which commercial general liability exposure covers both of those claims?

Products and completed operations

Contractual liability

Premises and operations

Personal and advertising injury

Question 36: An Arizona machine shop ships a component to a customer in another state, and months later the component fails and injures the customer's employee at that customer's plant. Which commercial general liability exposure responds to the resulting claim?

Products and completed operations

Premises and operations

Personal and advertising injury

Contractual liability

Question 37: An Arizona general contractor signs an agreement with a project owner in Tucson promising to hold that owner harmless for any claims arising out of the construction work. Which commercial general liability exposure addresses the obligation the contractor has assumed?

Premises and operations

Products and completed operations

Personal and advertising injury

Contractual liability

Question 38: An Arizona insured's commercial general liability declarations show a figure representing the most the insurer will pay in total for bodily injury and property damage during the policy period, apart from the products exposure. Which limit does that describe?

Each occurrence limit

General aggregate limit

Damage to premises rented to you limit

Medical expense limit

Question 39: An Arizona manufacturer reviews its commercial general liability declarations and finds a separate annual total that applies only to claims arising away from its own premises out of goods it sold and work it finished. Which limit is that?

Products-completed operations aggregate

General aggregate limit

Each occurrence limit

Personal and advertising injury limit

Question 40: An Arizona accounting firm leases office space in Phoenix, and a fire the firm negligently caused damages the leased suite. The landlord looks to the firm for the repair cost. Which commercial general liability limit responds to that claim?

Each occurrence limit

General aggregate limit

Medical expense limit

Damage to premises rented to you limit

APCI Arizona Property and Casualty Insurance Exam - Set 4 - Part 2

Question 21: An Arizona trucking company's business auto policy shows a covered auto designation on the declarations for each coverage the company purchased, and the producer explains that these designations control which vehicles are insured. Which of the following names that designation system?

Question 22: An Arizona consulting firm in Phoenix owns no vehicles but frequently rents cars for staff traveling to client sites around the state. The firm wants liability coverage for those rentals under its business auto policy. Which category of covered auto applies?

Question 23: An Arizona distributor asks several employees to run occasional errands in their own personal vehicles during the workday, and the company wants protection against liability claims arising out of those trips. Which category of covered auto responds to that exposure?

Question 24: An Arizona fleet owner wants physical damage protection against fire, lightning, theft and vehicle collapse of a bridge, but does not want the full breadth of comprehensive coverage on his older trucks. Which business auto physical damage option fits that request?

Question 25: An Arizona repair garage in Tempe keeps customer vehicles on its lot overnight while parts are on order, and the owner wants coverage for damage to those vehicles while they are in his care. Which coverage addresses that exposure?

Question 26: An Arizona company leases several delivery vans, and the leasing company insists on being protected under the company's business auto policy and named to receive payment for physical damage to the vans. Which endorsement accomplishes both of those objectives?

Question 27: An Arizona corporation wants its workers protected under the business auto policy while they drive company vehicles and also while they use their own cars on company errands around Maricopa County. Which endorsement extends insured status to those employees?

Question 28: An Arizona bakery is sued after a customer is injured by a foreign object in a pastry and after a delivery cart damages a customer's storefront. The bakery's commercial general liability policy responds to both claims. Which coverage part applies?

Question 29: An Arizona publisher is sued by a competitor claiming that a recent advertising campaign copied its slogan, and separately by an individual claiming a magazine article damaged her reputation. Which commercial general liability coverage part responds to those suits?

Question 30: A visitor to an Arizona insured's premises in Sedona trips on an uneven walkway and needs urgent care. The insured wants the modest medical bill paid promptly so the matter does not grow into a lawsuit. Which coverage part applies?

Question 31: An Arizona contractor is sued over a covered occurrence, and the insurer hires defense counsel, pays court costs taxed against the insured and posts the premium on a bond to release an attachment. Which of the following describes how those amounts affect the limit?

Question 32: An Arizona machine shop's general liability policy states that it responds to bodily injury and property damage that takes place during the policy period, regardless of when the resulting claim is eventually made. Which trigger does that describe?

Question 33: An Arizona engineering firm carries a claims-made general liability policy showing a date before which injury or damage will not be covered even if a claim is presented during the current policy period. Which of the following names that date?

Question 34: An Arizona firm's claims-made general liability policy expires and the firm moves to a different insurer. Its former insurer offers a period during which claims arising from earlier covered work may still be reported. Which of the following names that feature?

Question 35: An Arizona hardware store is sued after a customer slips on a wet floor near the entrance and again after an employee installing a display drops a fixture on a shopper. Which commercial general liability exposure covers both of those claims?

Question 36: An Arizona machine shop ships a component to a customer in another state, and months later the component fails and injures the customer's employee at that customer's plant. Which commercial general liability exposure responds to the resulting claim?

Question 37: An Arizona general contractor signs an agreement with a project owner in Tucson promising to hold that owner harmless for any claims arising out of the construction work. Which commercial general liability exposure addresses the obligation the contractor has assumed?

Question 38: An Arizona insured's commercial general liability declarations show a figure representing the most the insurer will pay in total for bodily injury and property damage during the policy period, apart from the products exposure. Which limit does that describe?

Question 39: An Arizona manufacturer reviews its commercial general liability declarations and finds a separate annual total that applies only to claims arising away from its own premises out of goods it sold and work it finished. Which limit is that?

Question 40: An Arizona accounting firm leases office space in Phoenix, and a fire the firm negligently caused damages the leased suite. The landlord looks to the firm for the repair cost. Which commercial general liability limit responds to that claim?

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