MPCP - Minnesota Property and Casualty Producer Exam

Question 1: A scaffold collapse injures six employees of the same contractor in a single event, and each later sues the employer at common law. The employers liability section applies. Which limit caps everything the insurer pays for that one event?

Bodily injury by disease, each employee

Bodily injury by disease, policy limit

Bodily injury by accident, each accident

An annual limit for all accidents

Question 2: A toy company must pull thousands of units from store shelves after discovering a suspected defect in a latch. It asks whether the cost of the withdrawal falls to its commercial general liability policy. Which of the following is correct?

No, product recall costs are excluded

Yes, under the products aggregate limit

Yes, as a supplementary payment

Yes, under Coverage C medical payments

Question 3: A general contractor wins a school construction job. The school district wants assurance that subcontractors and material suppliers will be paid so that no liens attach to the finished building. Which contract bond gives the district that particular assurance?

A bid bond

A performance bond

A supply bond

A payment bond

Question 4: A commercial general liability policy names the insured in the declarations as an individual. The producer explains which other person becomes an insured under that designation and in what circumstances. Which of the following states the rule correctly?

The spouse, for the sole proprietorship

Any relative living in the household

All employees for personal activities

Stockholders, for their stockholder liability

Question 5: An employer buys protection against dishonest acts by its own workers. Its producer explains that this product is filed under the bond heading but functions as insurance and is bought by the party seeking protection. Which statement correctly distinguishes fidelity bonds from surety bonds?

Fidelity bonds are purchased by the principal

Fidelity bonds guarantee completion of a contract

Fidelity bonds are purchased by the obligee

Fidelity bonds always expire after one year

Question 6: An architecture firm insured under a businessowners policy is sued by a client who claims a design mistake caused costly delays. The firm assumes its bundled policy covers the claim. Which statement correctly describes the businessowners policy liability section?

Professional liability is not included

Professional services are covered automatically

Professional liability replaces medical expense coverage

Professional claims fall under supplementary payments

Question 7: A landscaping firm signs an agreement promising to answer for another party's liability, and later asks whether its commercial general liability policy will respond. The policy handles assumed liability in a particular way. Which of the following describes the CGL treatment?

All assumed liability is fully covered

Assumed liability is covered after thirty days

Assumed liability is covered by Coverage B

Excluded except for listed insured contracts

Question 8: A producer studying the commercial general liability form is asked whether damage arising from continuous or repeated exposure to the same general harmful conditions is treated as an exclusion under Coverage A. Which of the following is the correct response?

Yes, it is excluded as gradual damage

Yes, unless the insured reports it early

No, it falls inside the occurrence definition

No, but only under the claims-made form

Question 9: A clothing company is sued because its new logo copies a trademark belonging to another firm, and the suit also alleges misuse of a patented design. Coverage B of the commercial general liability form treats these allegations in one way. Which of the following applies?

Infringement is covered as an advertisement

Intellectual property infringement is excluded

Infringement is paid under Coverage A

Infringement is a supplementary payment

Question 10: Two armed men surprise a shipping clerk who is stacking boxes in a warehouse, threaten him, and empty the shelves while he stands helpless. Which crime definition covers property taken from the care and custody of a person by threat?

Safe burglary

Forgery

Robbery

Computer fraud

Question 11: A customer leaves her sedan at an auto dealership overnight for warranty service, and a fire in the service bay destroys it. The dealership carries a full garage coverage form. Which section of that form responds to the customer's loss?

Garage liability coverage

Dealers physical damage coverage

Trailer interchange coverage

Garagekeepers coverage

Question 12: An inventory count at a jewelry store shows a bracelet gone. There are no marks of entry, no confrontation with any employee, and investigators cannot establish that anyone took it. Which term describes property that has vanished with no explanation?

Theft by stealth

Mysterious disappearance

Safe burglary

Employee dishonesty

Question 13: An insured suffers bodily injury damages well above what the at-fault driver's liability policy will pay, and that driver did carry legally adequate insurance. The insured wants the shortfall covered. Which coverage was designed for exactly this kind of situation?

Uninsured motorists coverage

Medical payments coverage

Underinsured motorists coverage

Other than collision coverage

Question 14: A landscaping firm insured for operations in its home state accepts a contract that will put crews to work in two neighboring states next spring. Which part of the workers compensation policy is designed to respond to that expansion?

Part Three other states insurance

Part Six conditions

Part Four duties if injury occurs

The voluntary compensation endorsement

Question 15: A landscaping firm owns bulldozers, forklifts, and farm machinery designed principally for use away from public roads, along with vehicles that travel on crawler treads. Commercial auto forms use a particular term for this class of land vehicles. Which term applies?

Temporary substitute autos

Hired autos

Specifically described autos

Mobile equipment

Question 16: The declarations of a commercial general liability policy designate the named insured as a corporation. The president's spouse is sued over an incident connected with the corporation's business. Which of the following correctly states the spouse's status under the who is an insured provision?

An insured while conducting the business

An insured only for medical payments

Not an insured under that designation

An insured as an executive officer

Question 17: A visitor is hurt by a falling carton inside the insured's retail store, and the insurer pays her emergency room bill even though the store's negligence was never established. Which feature of Coverage C medical payments does this illustrate?

It applies only after a judgment

It pays without regard to fault

It requires proof of the insured's fault

It replaces the injured person's lost wages

Question 18: An insured is asked to attend a deposition and loses a day of pay while helping the insurer investigate a liability claim. The supplementary payments section addresses this situation. Which of the following describes what the insurer will do?

Pay reasonable expenses including daily earnings loss

Pay nothing for the insured's time

Pay lost wages up to policy limits

Pay only if the insured wins

Question 19: A contractor insuring a fleet under the business auto coverage form wants physical damage protection cheaper than open peril comprehensive, accepting a named list that includes fire, lightning, explosion, theft, windstorm, hail, earthquake, flood, and vandalism. Which physical damage option fits that request?

Comprehensive coverage

Collision coverage

Trailer interchange coverage

Specified causes of loss coverage

Question 20: A business carries a claims-made commercial general liability policy with a retroactive date shown in the declarations. For the policy to respond to a claim, two separate requirements must both be met. Which of the following pairs states them?

Claim in period, occurrence after retroactive date

Injury and claim in the same year

Suit filed and damages paid promptly

Notice given and premium fully earned

MPCP Minnesota Property and Casualty Producer Exam - Set 4 - Part 1