PPCI - Pennsylvania Property and Casualty Insurance Exam

Question 21: A Pennsylvania architect is sued after a design error forces a client to rebuild part of a structure. The claim alleges no bodily injury and no damage to the architect's own property. Which coverage responds to a claim of this kind?

Commercial general liability

Professional liability, also called errors and omissions

Employment practices liability

Directors and officers liability

Question 22: A Pennsylvania employer is sued by a former employee who alleges she was passed over for promotion because of her age and then terminated for complaining. Which specialty coverage is designed to respond to allegations of this kind?

Employee benefits liability

Directors and officers liability

Employment practices liability

Workers compensation and employers liability

Question 23: A Pennsylvania company's human resources clerk forgets to enroll a newly hired employee in the group health plan, and the employee incurs uncovered medical bills. Which specialty liability coverage responds to an administrative error of this particular kind?

Employee benefits liability

Employment practices liability

Fiduciary liability for investment decisions

Commercial general liability

Question 24: A Pennsylvania retailer's customer database is breached, the company must notify affected customers, and its website is offline for several days while systems are restored. Which specialty coverage is designed to respond to this combination of exposures at once?

Employee benefits liability

Difference in conditions

Internet liability and network protection

Equipment breakdown protection

Question 25: A Pennsylvania tavern serves a visibly intoxicated patron who then causes a serious highway accident, and the injured parties sue the tavern. The tavern's general liability policy excludes this exposure. Which coverage was written to respond to it?

Employment practices liability

Professional liability insurance

Commercial umbrella liability

Liquor liability insurance

Question 26: A Pennsylvania township requires a paving contractor to guarantee that it will finish a road project as promised, and a surety company issues a bond backing that promise. Which term identifies the township in this three-party arrangement?

The principal

The obligee

The surety

The penalty

Question 27: A Pennsylvania school district opens bidding on a construction project and requires each bidder to guarantee that, if awarded the work, it will actually sign the contract at the price quoted. Which surety bond satisfies that particular requirement?

A bid bond

A performance bond

A payment bond

A supply bond

Question 28: A Pennsylvania county awards a bridge contract and wants protection against the financial loss it would suffer if the contractor abandoned the project halfway through. Which surety bond is designed to protect the county against that particular outcome?

A bid bond

A performance bond

A license and permit bond

A fiduciary bond

Question 29: Subcontractors and material suppliers on a Pennsylvania public project want assurance that they will be paid in full so that no liens attach to the completed work. Which surety bond is written specifically to give them that assurance?

A bid bond

A performance bond

A judicial bond

A payment bond

Question 30: A Pennsylvania court appoints an administrator to manage the assets of an estate and requires a bond, while in a separate case a defendant must post a bond to protect the plaintiff during an appeal. Which pair of bond categories do these two situations represent?

Bid and performance bonds

License and permit bonds

Fiduciary and judicial bonds

Payment and supply bonds

Question 31: A Pennsylvania borough will issue a contractor's license only on the condition that the applicant guarantee compliance with the local ordinances governing that license. Which type of surety bond does the borough require the applicant to furnish first?

A performance bond

A license and permit bond

A fiduciary bond

A payment bond

Question 32: A Pennsylvania bank wants protection against loss caused by dishonest acts of its own employees, and it wants the coverage written so that every person in a named group of positions is automatically included. Which type of coverage fits that description?

A judicial bond

A license and permit bond

A supply bond

A fidelity bond

Question 33: A Pennsylvania family wants an additional layer of liability protection above their homeowners and personal auto policies, and the insurer requires those two policies to remain in force at stated limits. What are those required underlying policies commonly called?

The self-insured retention

The follow form provision

The underlying limits requirement

The retroactive date

Question 34: A Pennsylvania insured's umbrella policy responds to a personal injury claim that her homeowners policy excludes entirely. Before the umbrella pays, she must absorb a stated amount herself. Which term describes the amount the insured retains in that situation?

The self-insured retention

The underlying limit

The aggregate limit

The coinsurance requirement

Question 35: A Pennsylvania insured is sued for personal injury arising from a false arrest allegation, an offense her homeowners policy does not cover, and her umbrella policy names it as a covered offense. How does the umbrella respond to this claim?

It denies because the underlying policy denied

It pays only above the homeowners limit

It splits the loss with the insured

It responds as primary above the retention

Question 36: A Pennsylvania manufacturer buys a commercial umbrella above its general liability, auto liability and employers liability policies. The umbrella states that it adopts the terms and conditions of those underlying coverages. Which umbrella feature does that statement describe?

The self-insured retention

The underlying limits requirement

The follow form provision

The extended reporting period

Question 37: A Pennsylvania family owns and operates a working farm, lives in the farmhouse, and needs coverage for the dwelling, the barns, the machinery, the livestock and their liability to visitors. Which policy was designed to package all of those exposures together?

A homeowners policy

A farmowners policy

A dwelling policy

A businessowners policy

Question 38: A Pennsylvania couple owns a manufactured home set on a permanent foundation and wants coverage for the home itself, other structures, their contents and loss of use. Which statement correctly describes how that coverage is commonly arranged for them?

As an endorsement or a separate policy

Only as a commercial package policy

Only through the National Flood Insurance Program

Only under a dwelling basic form

Question 39: A Pennsylvania manufacturer already carries a commercial property policy and wants a second contract that fills in catastrophic perils the property form excludes, written with high deductibles and no coinsurance requirement. Which specialty policy answers that description best?

Businessowners policy

Equipment breakdown protection

Difference in conditions

Commercial umbrella liability

Question 40: A Pennsylvania community has been rate mapped and participates fully in the National Flood Insurance Program. A homeowner there wants the maximum building coverage available. Which limit applies to a single-family dwelling under the regular program today?

Two hundred fifty thousand dollars

One hundred thousand dollars

Thirty-five thousand dollars

Five hundred thousand dollars

PPCI Pennsylvania Property and Casualty Insurance Exam - Set 5 - Part 2

Question 21: A Pennsylvania architect is sued after a design error forces a client to rebuild part of a structure. The claim alleges no bodily injury and no damage to the architect's own property. Which coverage responds to a claim of this kind?

Question 22: A Pennsylvania employer is sued by a former employee who alleges she was passed over for promotion because of her age and then terminated for complaining. Which specialty coverage is designed to respond to allegations of this kind?

Question 23: A Pennsylvania company's human resources clerk forgets to enroll a newly hired employee in the group health plan, and the employee incurs uncovered medical bills. Which specialty liability coverage responds to an administrative error of this particular kind?

Question 24: A Pennsylvania retailer's customer database is breached, the company must notify affected customers, and its website is offline for several days while systems are restored. Which specialty coverage is designed to respond to this combination of exposures at once?

Question 25: A Pennsylvania tavern serves a visibly intoxicated patron who then causes a serious highway accident, and the injured parties sue the tavern. The tavern's general liability policy excludes this exposure. Which coverage was written to respond to it?

Question 26: A Pennsylvania township requires a paving contractor to guarantee that it will finish a road project as promised, and a surety company issues a bond backing that promise. Which term identifies the township in this three-party arrangement?

Question 27: A Pennsylvania school district opens bidding on a construction project and requires each bidder to guarantee that, if awarded the work, it will actually sign the contract at the price quoted. Which surety bond satisfies that particular requirement?

Question 28: A Pennsylvania county awards a bridge contract and wants protection against the financial loss it would suffer if the contractor abandoned the project halfway through. Which surety bond is designed to protect the county against that particular outcome?

Question 29: Subcontractors and material suppliers on a Pennsylvania public project want assurance that they will be paid in full so that no liens attach to the completed work. Which surety bond is written specifically to give them that assurance?

Question 30: A Pennsylvania court appoints an administrator to manage the assets of an estate and requires a bond, while in a separate case a defendant must post a bond to protect the plaintiff during an appeal. Which pair of bond categories do these two situations represent?

Question 31: A Pennsylvania borough will issue a contractor's license only on the condition that the applicant guarantee compliance with the local ordinances governing that license. Which type of surety bond does the borough require the applicant to furnish first?

Question 32: A Pennsylvania bank wants protection against loss caused by dishonest acts of its own employees, and it wants the coverage written so that every person in a named group of positions is automatically included. Which type of coverage fits that description?

Question 33: A Pennsylvania family wants an additional layer of liability protection above their homeowners and personal auto policies, and the insurer requires those two policies to remain in force at stated limits. What are those required underlying policies commonly called?

Question 34: A Pennsylvania insured's umbrella policy responds to a personal injury claim that her homeowners policy excludes entirely. Before the umbrella pays, she must absorb a stated amount herself. Which term describes the amount the insured retains in that situation?

Question 35: A Pennsylvania insured is sued for personal injury arising from a false arrest allegation, an offense her homeowners policy does not cover, and her umbrella policy names it as a covered offense. How does the umbrella respond to this claim?

Question 36: A Pennsylvania manufacturer buys a commercial umbrella above its general liability, auto liability and employers liability policies. The umbrella states that it adopts the terms and conditions of those underlying coverages. Which umbrella feature does that statement describe?

Question 37: A Pennsylvania family owns and operates a working farm, lives in the farmhouse, and needs coverage for the dwelling, the barns, the machinery, the livestock and their liability to visitors. Which policy was designed to package all of those exposures together?

Question 38: A Pennsylvania couple owns a manufactured home set on a permanent foundation and wants coverage for the home itself, other structures, their contents and loss of use. Which statement correctly describes how that coverage is commonly arranged for them?

Question 39: A Pennsylvania manufacturer already carries a commercial property policy and wants a second contract that fills in catastrophic perils the property form excludes, written with high deductibles and no coinsurance requirement. Which specialty policy answers that description best?

Question 40: A Pennsylvania community has been rate mapped and participates fully in the National Flood Insurance Program. A homeowner there wants the maximum building coverage available. Which limit applies to a single-family dwelling under the regular program today?

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