PPCI Pennsylvania 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: A Pennsylvania insured buys a crime policy and wants coverage for losses that happened at any time in the past, so long as the loss is discovered while the policy is in force. Which form should the producer recommend to that insured?

The discovery form

The loss sustained form

The occurrence form

The claims-made form

Question 42: A Pennsylvania hotel wants coverage for the money, jewelry and luggage that guests leave in rooms and in the front desk safe, since the hotel may be held responsible for those items. Which crime coverage addresses this exposure?

Lessees of safe deposit boxes

Securities deposited with others

Guests' property

Safe depository coverage

Question 43: A Pennsylvania accounting firm with one small office and modest annual receipts wants property and liability coverage in a single prepackaged contract designed for businesses of its size. Which policy is the producer most likely to recommend for this account?

A businessowners policy

A commercial package policy

A monoline general liability policy

A difference in conditions policy

Question 44: A Pennsylvania retailer insured under a businessowners policy suffers water damage when a river overflows its banks and floods the sales floor. The owner assumed the open peril property coverage would respond. How does the policy treat this loss?

It pays subject to a higher deductible

It pays only the business income portion

It excludes flood among listed exclusions

It pays after the aggregate is exhausted

Question 45: A Pennsylvania bakery insured under a businessowners policy suffers a covered fire loss to its building and its business personal property. The owner asks how much of the loss she absorbs before the insurer pays. What is the standard businessowners deductible?

One thousand dollars

Five hundred dollars

Two thousand five hundred dollars

There is no deductible

Question 46: A Pennsylvania restaurant insured under a businessowners policy accepts several counterfeit bills and a fraudulent money order from customers in the ordinary course of business during a busy weekend. Which statement correctly describes how the form treats that loss?

The loss is excluded as employee dishonesty

The loss is covered only by endorsement

The loss is paid without limit

An additional coverage pays a stated limit

Question 47: A Pennsylvania distributor insured under a businessowners policy buys a second warehouse in another county and asks whether the new building has any coverage before the policy is amended. Which pair of terms describes the newly acquired buildings coverage extension?

Sixty days and one hundred thousand

Thirty days and two hundred fifty thousand

Ninety days and five hundred thousand

Fourteen days and fifty thousand

Question 48: A customer is injured on the premises of a Pennsylvania hardware store insured under a businessowners policy, and the store is sued. Which section of the businessowners policy responds to that suit, and what does it include beyond damages?

Section One, plus loss of income

Section Three, plus deductible relief

Section Two, plus defense costs

Section One, plus extra expense

Question 49: A Pennsylvania insurer offers a premium credit to a businessowners policyholder whose building has an automatic sprinkler system and a central station alarm, on the condition that both systems stay in service. Which policy endorsement documents that arrangement?

Hired and non-owned auto liability

Utility services direct damage

Utility services time element

Protective safeguards

Question 50: A storm knocks down power lines several miles from a Pennsylvania insured's premises, and the resulting outage forces the business to close for three days with no physical damage at the premises. Which businessowners endorsement responds to the lost earnings?

Utility services time element

Protective safeguards

Utility services direct damage

Hired and non-owned auto liability

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