MPCP - Minnesota Property and Casualty Producer Exam

Question 21: A tenant business negligently starts a fire that damages the portion of the building it leases. Its commercial general liability declarations carry a specific sublimit for this loss. Which of the following limits applies to the fire damage?

Products-completed operations aggregate limit

Personal and advertising injury limit

Damage to premises rented to you limit

Medical expense limit

Question 22: The personal auto policy defines one of its key terms as bodily harm, sickness, or disease, including death that results from any of those conditions. Which term carries that meaning throughout the liability and medical payments coverages of the policy?

Personal injury

Property damage

Occupying

Bodily injury

Question 23: After a covered collision leaves an insured's car in the body shop for eleven days, she takes taxis to work and then rents a small sedan. She carries collision coverage. Which Part D benefit reimburses the cost of those substitute travel arrangements?

Transportation expenses coverage

Towing and labor costs coverage

Loss of use liability coverage

Supplementary payments under Part A

Question 24: An insured who already carries liability, medical payments, and both physical damage coverages on two cars buys a third car on a Saturday. Her producer explains the reporting rule that keeps the new car insured. Which requirement did the producer describe?

Notify the insurer within thirty days

Notify the insurer before taking delivery

No notice is ever required

Notify the insurer within fourteen days

Question 25: While a covered auto is parked overnight, a deer runs into the driver's door and a hailstorm cracks the windshield before morning. The owner has purchased every Part D coverage available. Which coverage responds to both of these losses?

Collision coverage

Other than collision coverage

Liability coverage

Uninsured motorists coverage

Question 26: Beyond paying damages, the commercial general liability insurer takes on a second obligation whenever a suit alleges liability for injury or damage the policy covers, even when the allegations may prove groundless. Which of the following names that obligation?

The duty to reinstate the aggregate limit

The duty to pay medical expenses

The duty to arbitrate every claim

The duty to defend the insured

Question 27: An insurer rating a manufacturer's workers compensation policy consults published manuals that assign classifications according to the type of work employees perform and their relative exposure to injury. Which of the following serves as the exposure base those classification rates are applied against?

Annual payroll for each class

Total square footage occupied

Gross annual sales revenue

Number of vehicles owned

Question 28: A covered auto slides on ice, leaves the roadway, and rolls onto its side in a ditch without striking any other vehicle. The owner carries both physical damage coverages. Which coverage in Part D pays for the damage to the auto?

Other than collision coverage

Collision coverage

Specified causes of loss coverage

Transportation expenses coverage

Question 29: A former employee sues a company and two of its managers, alleging she was passed over for promotion and then fired because of her age. The employer wants defense costs paid whether it wins or loses. Which policy provides that protection?

Workers compensation and employers liability

Directors and officers liability

Cyber liability

Employment practices liability

Question 30: An auto liability policy is written on a split-limits basis showing three separate figures in the declarations. The insured wants to know what each figure controls when a serious accident produces several injury claims and damage to another car. Which description is correct?

One amount covers every loss combined

Two amounts, one for injury deductibles

Per person injury, per accident injury, property

Three amounts, all applying per person

Question 31: The declarations of a claims-made commercial general liability policy show a date that fixes how far back in time an incident may have happened and still be eligible for coverage under that policy. Which of the following identifies that date?

The retroactive date

The expiration date

The anniversary date

The reporting date

Question 32: An insurer decides not to renew a commercial general liability policy issued to a partnership with several named insureds. The nonrenewal condition tells the insurer whom to notify and how far in advance. Which of the following states that requirement?

All named insureds, ten days ahead

Every insured, on the expiration date

The producer of record, immediately

The first named insured, thirty days ahead

Question 33: A driver swerves at an insured, forces her off the road, and speeds away without ever touching her car. She reports it to her insurer as a hit-and-run claim under Part C. Why will that claim most likely fail?

Part C excludes all single vehicle accidents

Hit-and-run drivers are never covered anywhere

No contact with the unidentified vehicle occurred

The insured failed to buy collision coverage

Question 34: A neighborhood tavern serves a patron past the point of intoxication, and he later injures a pedestrian while driving home. The tavern learns its general liability form excludes this exposure. Which separate coverage responds to liability for contributing to intoxication?

Liquor liability coverage

Employment practices liability

Errors and omissions

Fiduciary liability

Question 35: Instead of three separate figures, an insured's auto liability coverage shows one amount that responds to bodily injury and property damage together, drawing both kinds of damages from the same pool for any one accident. Which limit arrangement is described?

Split limits

Combined single limit

Per accident property damage limit

Per person medical payments limit

Question 36: A retail chain buys a standard workers compensation and employers liability policy. The owner asks what maximum dollar amount the insurer will pay for statutory benefits owed to an injured worker under Part One of that policy. Which answer is correct?

The amount shown in the declarations

One hundred thousand dollars per accident

No dollar limit applies to benefits

Twice the employers liability limit

Question 37: A manufacturer reviews its commercial general liability declarations and notices that one category of damages is deliberately kept outside the general aggregate limit and given a separate annual ceiling of its own. Which of the following is that category?

Products and completed operations damages

Damage to premises rented to the insured

Medical expenses under Coverage C

Personal and advertising injury damages

Question 38: While defending an insured contractor, the insurer pays court costs taxed against the insured and interest that accrued on a judgment during an appeal. The insured asks what these payments do to the policy limits. Which of the following is correct?

They reduce the general aggregate only

They reduce the per occurrence limit

They do not reduce the limits

They reduce the medical expense limit

Question 39: A stock clerk knocks over a display while restocking shelves for her employer, injuring a customer. The employer carries a commercial general liability policy, and the clerk is not listed in the declarations. Which of the following explains her position under the policy?

An insured, acting within her employment

Not an insured, being unnamed

An insured only for medical payments

Not an insured until endorsed

Question 40: A distributor faces a two million dollar judgment for a loss that its commercial general liability policy specifically excludes. The commercial umbrella above it does not exclude the loss. Which statement best describes how the umbrella responds to the judgment?

It pays nothing because coverage was excluded

It pays only the primary policy limit

It reimburses the primary insurer instead

It pays once the retention is satisfied

MPCP Minnesota Property and Casualty Producer Exam - Set 4 - Part 2