APCI Arizona Property and Casualty Insurance Exam - Set 4 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: An Arizona excavating contractor owns a backhoe and a bulldozer that are used only at job sites and are hauled between them on a trailer. The contractor asks which policy addresses liability arising from those machines. Which of the following is correct?

The business auto policy, as covered autos

The general liability policy, as mobile equipment

Neither policy covers them

The workers compensation policy

Question 42: An Arizona contractor is sued and the complaint is groundless, false and fraudulent on its face, but defending it will still cost a great deal. The contractor asks whether the insurer must respond. Which of the following describes the insurer's obligation?

It need not defend a groundless suit

It defends once liability is established

It must defend even a groundless suit

It reimburses defense costs after judgment

Question 43: An Arizona roofing contractor installs shingles supplied by a manufacturer. Water later enters a Scottsdale home because of the way the shingles were fastened rather than any defect in the shingles themselves. Which defined term captures the source of the problem?

Your product

Impaired property

Mobile equipment

Your work

Question 44: An Arizona corporation is the named insured on a commercial general liability policy, and one of its warehouse workers injures a visitor while performing his duties. The worker asks whether he is protected under the company's policy. Which of the following is correct?

Only corporate officers are insureds

Only the corporation is an insured

Employees are insureds within employment scope

Employees are never insureds

Question 45: An Arizona warehouse worker is injured lifting a pallet and asks whether he must prove that his employer was careless in order to receive benefits, and whether he may instead sue the employer for his injuries. Which of the following describes Arizona's system?

Fault proven, and suit permitted

No fault shown, and suit barred

Fault proven, but suit barred

No fault shown, and suit permitted

Question 46: An Arizona manufacturer reviews its workers compensation and employers liability policy and finds one section paying statutory benefits to injured workers and another responding when an employee sues outside the compensation system. Which of the following names those two sections in order?

Part One and Part Two

Part Two and Part One

Part One and Part Three

Part Three and Part Two

Question 47: An Arizona roofing contractor and a clerical office both buy workers compensation coverage, and the roofing contractor's premium is dramatically higher for the same payroll. The owner asks what drives that difference. Which of the following explains it?

The number of employees at each business

The size of the deductible selected

Job classification and experience rating

The limits of insurance purchased

Question 48: An Arizona employee develops a respiratory condition traced to years of exposure to dust at a Casa Grande plant, while a coworker breaks an ankle in a single fall. The claims manager must classify each. Which of the following labels them in order?

Occupational accident and occupational disease

Occupational accident and occupational accident

Occupational disease and occupational disease

Occupational disease and occupational accident

Question 49: An Arizona worker is unable to perform any job for several months after surgery but is expected to recover fully and return to his former position. His claims examiner must classify the disability. Which of the following labels this situation?

Temporary total disability

Permanent total disability

Temporary partial disability

Permanent partial disability

Question 50: An Arizona manufacturer expands into marine cargo handling and asks which federal statute would govern compensation for workers injured loading vessels, as distinct from the statute covering crew members of a vessel at sea. Which of the following names them in order?

The Jones Act and the Longshore Act

The Longshore Act and the Jones Act

The Employers Liability Act and Jones Act

The Longshore and Employers Liability Acts

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