MPCP Minnesota Property and Casualty Producer 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: A business that sells new and used trucks, keeps an auto body repair shop on the premises, and stores customer vehicles overnight needs commercial auto coverage tailored to its operations. Which of the five commercial auto coverage forms fits this risk?

Business auto coverage form

Truckers coverage form

Garage coverage form

Motor carrier coverage form

Question 42: A diner serves a chowder that has spoiled, and two patrons become seriously ill at their table inside the restaurant. The owner assumes the loss is a premises claim because the illness began on site. Which exposure actually responds?

Products and completed operations exposure

Premises and operations exposure

Contractual liability exposure

Fire legal liability exposure

Question 43: A caterer's client trips at an event and is treated at a clinic. For Coverage C of the commercial general liability policy to pay the bills, the expenses must satisfy a timing condition. Which of the following states that condition?

Bills must be paid before renewal

Incurred and reported within one year

Treatment must begin within thirty days

Suit must be filed within two years

Question 44: A retailer runs an advertisement containing a statement about a competitor that the retailer knew was untrue when it was published. The competitor sues. Which of the following explains how Coverage B of the commercial general liability form treats this?

It is covered up to the aggregate

It is covered as a products claim

It is covered without any deductible

It is excluded from Coverage B

Question 45: Shareholders of a corporation sue several board members personally, claiming their decisions destroyed company value. The board members learn that neither the corporate general liability policy nor their homeowners policies will respond. Which coverage was designed for this exposure?

Fiduciary liability insurance

Directors and officers liability insurance

Employment practices liability insurance

Commercial umbrella liability insurance

Question 46: A repair shop owner argues that because his garage form includes broad liability for garage operations, it must also pay when a mechanic wrecks a customer's car on a test drive. Which reason explains why the liability section alone will not respond?

Test drives are always excluded activities

Garage operations exclude all repair work

Only symbol one autos are covered

Care, custody, or control property is excluded

Question 47: An assembly worker is hurt on the job and receives the wage replacement and medical benefits set by his state's workers compensation law. He then wants to sue his employer in court for a larger award. Which doctrine explains why that lawsuit is barred?

Contributory negligence

The exclusive remedy doctrine

Assumption of risk

The fellow servant rule

Question 48: Someone alters the amount on a company check drawn on the insured's account and cashes it. The insured has commercial crime coverage. Which crime coverage responds to loss from altered checks, drafts and similar instruments drawn by the insured?

Employee theft

Funds transfer fraud

Forgery or alteration

Money orders and counterfeit money

Question 49: A personal auto policy insured begins carrying paying strangers around town in his sedan, charging a fare for each trip. During one of those trips he causes a crash. Which liability exclusion most likely defeats coverage for the resulting claims?

Intentional injury caused by the insured

Racing or speed contest exclusion

Property in the insured's care exclusion

Public or livery conveyance exclusion

Question 50: A city requires a paving contractor to post a bond before work begins, and an insurance company agrees to pay the penalty if the contractor fails to perform the job. Which party in this three-party arrangement is the principal?

The city

The paving contractor

The insurance company

The project architect

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