APCI - Arizona Property and Casualty Insurance Exam

Question 21: An Arizona bakery's industrial oven and its electrical control system are destroyed when a power surge causes an internal explosion in the equipment, and the bakery also loses income while replacements arrive. Which coverage form responds to both losses?

Equipment breakdown protection

Legal liability coverage

Builders risk coverage

Value reporting form

Question 22: An Arizona nonprofit in Phoenix discovers that its longtime bookkeeper has been quietly diverting donations into a personal account for several years. The board wants to know which coverage answers that discovery. Which commercial crime insuring agreement responds?

Robbery

Employee theft

Inside the premises theft of money

Computer and funds transfer fraud

Question 23: An Arizona retailer's employee is carrying the day's receipts to a bank branch in Glendale when a stranger threatens her with harm and takes the deposit bag directly from her hands. Which commercial crime term describes what occurred?

Burglary

Safe burglary

Theft

Robbery

Question 24: An Arizona jewelry store is entered overnight through a pried rear door, and the thieves also force open a locked vault in the back office. The owner asks how the crime form labels each of those two acts. Which of the following states them in order?

Burglary and safe burglary

Safe burglary and burglary

Robbery and burglary

Theft and robbery

Question 25: An Arizona company discovers that someone outside the organization used a fraudulent electronic instruction to move a large sum of funds out of its operating account to an unknown recipient. Which commercial crime insuring agreement is written for that loss?

Employee theft

Forgery or alteration

Computer and funds transfer fraud

Money orders and counterfeit money

Question 26: An Arizona producer explains that one specialty line covers property in transit, property held by a bailee and instrumentalities of transportation and communication, while a different line covers vessels and cargo on the water. Which of the following names them in order?

Ocean marine and inland marine

Inland marine and ocean marine

Commercial crime and inland marine

Inland marine and equipment breakdown

Question 27: An Arizona producer reviews four different prospects in the Phoenix area and recommends a businessowners policy to the one prospect whose insurance needs the form was actually designed to meet. Which of the following best describes the purpose behind that policy?

A prepackaged contract for smaller businesses

A monoline property contract

A liability-only professional contract

A surplus lines contract

Question 28: An Arizona producer screens four applicants for a businessowners policy: a small retail store, a heavy manufacturing plant, an office of a certified public accountant, and a small apartment building. Which applicant is most likely ineligible for the form?

The small retail store

The heavy manufacturing plant

The accountant's office

The small apartment building

Question 29: An Arizona flower shop insured under a businessowners policy suffers a covered fire that damages the building the shop owns and destroys the coolers, display cases and stock kept inside it. Which of the following describes how Section I responds?

Building coverage only

Business personal property coverage only

Neither, because both need endorsements

Both building and business personal property

Question 30: An Arizona hardware store insured under a businessowners policy wants coverage for money stolen from the register, for mechanical breakdown of its equipment, and for outdoor signs. The producer explains these are handled a particular way. Which of the following is correct?

They are included automatically at full limits

They are excluded and cannot be added

They are available as optional coverages

They require a separate commercial package policy

Question 31: An Arizona parts supplier insured under a businessowners policy suffers a covered water loss and asks how much of that loss it must absorb itself before the insurer begins paying. Which of the following describes the businessowners deductible structure?

No deductible applies to property losses

A percentage deductible applies to each loss

Separate deductibles apply to each coverage

A base property deductible applies per occurrence

Question 32: An Arizona bakery insured under a businessowners policy is closed for six weeks by a covered fire. The owner asks whether she must have purchased a separate limit for the earnings she lost during that period. Which of the following is correct?

A separate limit must be scheduled

No business income coverage is available

Business income is included automatically

Coverage begins only after ninety days

Question 33: An Arizona retailer insured under a businessowners policy is sued after a customer is injured by a falling display and again after the retailer's delivery driver damages a customer's fence. Which part of the policy responds to both suits?

Business liability coverage

Medical expenses coverage

Section I property coverage

Optional coverages

Question 34: A customer trips on a loose rug in an Arizona bookstore insured under a businessowners policy and needs a few stitches. The owner wants the modest bill paid quickly so that no larger claim develops. Which Section II coverage applies?

Business liability coverage

Medical expenses coverage

Fire legal liability

Personal and advertising injury

Question 35: An Arizona landscaping company organized as a partnership is insured under a businessowners policy, and one of the partners is sued over conduct in the course of the business. Which of the following describes his status under Section II?

A partner is an insured

Only the partnership is an insured

Partners are insureds for premises claims

Partners must be added by endorsement

Question 36: An Arizona accounting firm insured under a businessowners policy is sued by a client who says the firm's advice caused a substantial tax penalty. The firm expects its Section II coverage to respond. Which of the following correctly describes the result?

It responds, the firm being named

It responds after a professional deductible

Professional services claims are excluded

It responds only for defense costs

Question 37: An Arizona consulting firm insured under a businessowners policy owns no vehicles at all but rents cars for staff travel and asks employees to run errands in their own cars. Which endorsement extends Section II coverage to those exposures?

Protective safeguards

Hired and non-owned auto liability

Utility services time element

Employee dishonesty

Question 38: An Arizona insurer agrees to write a businessowners policy on a warehouse in Tolleson only if the sprinkler system and central station alarm are kept in working order, and it attaches a form saying so. Which endorsement has it attached?

Hired and non-owned auto liability

Utility services direct damage

Employee dishonesty

Protective safeguards

Question 39: A windstorm downs power lines several miles away from an Arizona insured's businessowners location, and the resulting outage forces the business to close for four days even though its own building is entirely untouched. Which endorsement addresses that loss?

Protective safeguards

Employee dishonesty

Utility services time element

Hired and non-owned auto liability

Question 40: An Arizona machine shop insured under a businessowners policy discovers that groundwater has seeped into its foundation over many months, and it files a claim for the resulting deterioration. Which of the following best explains the insurer's response?

Covered as an open peril

Covered after a waiting period

Covered under optional coverages

Within a standard exclusion

APCI Arizona Property and Casualty Insurance Exam - Set 5 - Part 2

Question 21: An Arizona bakery's industrial oven and its electrical control system are destroyed when a power surge causes an internal explosion in the equipment, and the bakery also loses income while replacements arrive. Which coverage form responds to both losses?

Question 22: An Arizona nonprofit in Phoenix discovers that its longtime bookkeeper has been quietly diverting donations into a personal account for several years. The board wants to know which coverage answers that discovery. Which commercial crime insuring agreement responds?

Question 23: An Arizona retailer's employee is carrying the day's receipts to a bank branch in Glendale when a stranger threatens her with harm and takes the deposit bag directly from her hands. Which commercial crime term describes what occurred?

Question 24: An Arizona jewelry store is entered overnight through a pried rear door, and the thieves also force open a locked vault in the back office. The owner asks how the crime form labels each of those two acts. Which of the following states them in order?

Question 25: An Arizona company discovers that someone outside the organization used a fraudulent electronic instruction to move a large sum of funds out of its operating account to an unknown recipient. Which commercial crime insuring agreement is written for that loss?

Question 26: An Arizona producer explains that one specialty line covers property in transit, property held by a bailee and instrumentalities of transportation and communication, while a different line covers vessels and cargo on the water. Which of the following names them in order?

Question 27: An Arizona producer reviews four different prospects in the Phoenix area and recommends a businessowners policy to the one prospect whose insurance needs the form was actually designed to meet. Which of the following best describes the purpose behind that policy?

Question 28: An Arizona producer screens four applicants for a businessowners policy: a small retail store, a heavy manufacturing plant, an office of a certified public accountant, and a small apartment building. Which applicant is most likely ineligible for the form?

Question 29: An Arizona flower shop insured under a businessowners policy suffers a covered fire that damages the building the shop owns and destroys the coolers, display cases and stock kept inside it. Which of the following describes how Section I responds?

Question 30: An Arizona hardware store insured under a businessowners policy wants coverage for money stolen from the register, for mechanical breakdown of its equipment, and for outdoor signs. The producer explains these are handled a particular way. Which of the following is correct?

Question 31: An Arizona parts supplier insured under a businessowners policy suffers a covered water loss and asks how much of that loss it must absorb itself before the insurer begins paying. Which of the following describes the businessowners deductible structure?

Question 32: An Arizona bakery insured under a businessowners policy is closed for six weeks by a covered fire. The owner asks whether she must have purchased a separate limit for the earnings she lost during that period. Which of the following is correct?

Question 33: An Arizona retailer insured under a businessowners policy is sued after a customer is injured by a falling display and again after the retailer's delivery driver damages a customer's fence. Which part of the policy responds to both suits?

Question 34: A customer trips on a loose rug in an Arizona bookstore insured under a businessowners policy and needs a few stitches. The owner wants the modest bill paid quickly so that no larger claim develops. Which Section II coverage applies?

Question 35: An Arizona landscaping company organized as a partnership is insured under a businessowners policy, and one of the partners is sued over conduct in the course of the business. Which of the following describes his status under Section II?

Question 36: An Arizona accounting firm insured under a businessowners policy is sued by a client who says the firm's advice caused a substantial tax penalty. The firm expects its Section II coverage to respond. Which of the following correctly describes the result?

Question 37: An Arizona consulting firm insured under a businessowners policy owns no vehicles at all but rents cars for staff travel and asks employees to run errands in their own cars. Which endorsement extends Section II coverage to those exposures?

Question 38: An Arizona insurer agrees to write a businessowners policy on a warehouse in Tolleson only if the sprinkler system and central station alarm are kept in working order, and it attaches a form saying so. Which endorsement has it attached?

Question 39: A windstorm downs power lines several miles away from an Arizona insured's businessowners location, and the resulting outage forces the business to close for four days even though its own building is entirely untouched. Which endorsement addresses that loss?

Question 40: An Arizona machine shop insured under a businessowners policy discovers that groundwater has seeped into its foundation over many months, and it files a claim for the resulting deterioration. Which of the following best explains the insurer's response?

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