SCPCIP - South Carolina Property and Casualty Insurance Producer Exam

Question 1: A manufacturer studies the six limits on its commercial general liability declarations and asks which losses are kept out of the general aggregate limit and charged against a separate annual limit instead. Which losses are treated that way?

Products-completed operations damages

Personal and advertising injury damages

Medical payments to injured customers

Damage to premises rented to the insured

Question 2: A shopper is struck by a falling box in the insured's retail store and runs up hospital bills. She is not an employee or tenant, and the store disputes fault. Which commercial general liability coverage pays her medical expenses without regard to fault?

Coverage A, bodily injury liability

Coverage C, medical payments

Coverage B, personal and advertising injury

Supplementary payments for first aid

Question 3: An insured whose policy carries liability only buys a second car and wants collision and other than collision on it. Two days later a hailstorm damages the new car, and he has already asked his insurer to add the coverage. Which of the following applies?

No coverage until the endorsement is issued

Coverage applies with no deductible at all

He had fourteen days to request coverage

A five hundred dollar deductible applies

Question 4: A contractor's covered pickup is in the shop with a blown transmission, so the owner rents a similar truck for the week and keeps working. The business auto form treats that rental as a covered auto for liability under which provision?

The temporary substitute auto provision

The trailer load capacity rule

The mobile equipment towing provision

The newly acquired auto provision

Question 5: The named insured is walking along the shoulder of a road when a passing van strikes her, and she is taken to the hospital. She was not in any vehicle at the time. Which of the following coverages in her own policy responds?

Part A liability coverage

Part D other than collision

Part D collision coverage

Part B medical payments coverage

Question 6: A professional liability policy lets the insured refuse a settlement the insurer recommends, but adds that if the insured refuses, the insurer's obligation is capped at the amount it could have settled for plus defense costs to that date. Which provision is described?

The hammer clause in the consent-to-settle provision

The subrogation condition

The other insurance condition

The supplementary payments provision

Question 7: A tenant restaurant negligently starts a kitchen fire that burns the space it leases from a landlord. One of the six commercial general liability limits addresses exactly this loss. Which limit applies to fire damage to premises rented to the insured?

The medical expense limit

The products-completed operations aggregate

The damage to premises rented limit

The personal and advertising injury limit

Question 8: A florist buys an unendorsed business auto coverage form and assumes it includes protection if one of her drivers is hit by a motorist carrying no insurance. Her producer corrects her. How does the form treat uninsured motorists and medical payments?

Both are automatically included

Both are permanently unavailable

Both apply only to hired autos

Both must be added by endorsement

Question 9: A business warranted that it would keep a stated amount of underlying liability insurance in force, then allowed that policy to lapse. A covered judgment now exceeds the warranted underlying amount. How does the umbrella insurer respond to that judgment?

It pays only the excess portion

It pays the entire judgment

It voids the umbrella from inception

It drops down to the first dollar

Question 10: A bookkeeper signs the company president's name on a business check made out to herself, intending the bank to treat the check as genuine. Which term describes signing the name of another person or organization with intent to deceive?

Counterfeiting of money orders

Forgery

Computer fraud

Extortion

Question 11: Two customers are hurt in the same accident at an insured's store and both receive medical treatment. The producer explains that one of the six limits caps what Coverage C pays for each of them separately. Which limit is applied per person?

The general aggregate limit

The per occurrence limit

The products-completed operations aggregate limit

The medical expense limit

Question 12: Two injured workers consult the same attorney: a deckhand serving as a member of a ship's crew and a brakeman employed by an interstate railroad. Neither collects scheduled state benefits. What remedy do the governing federal laws give each of them?

The right to sue for employer negligence

Scheduled benefits under a federal fund

Automatic medical care with no lawsuit

State benefits plus a federal supplement

Question 13: A retailer's annual count shows merchandise worth far less than the books indicate, and the owner files an employee theft claim resting entirely on that shortage. Which rule in the employee theft coverage determines how the insurer will handle this claim?

Proof of loss must name each employee

Coverage applies only to blanket written forms

Proof cannot rest on an inventory shortage

Inventory records alone establish the amount owed

Question 14: An insured borrows a coworker's pickup truck for an afternoon and causes an accident. The coworker carries liability limits large enough to pay the entire claim, and the insured also has a personal auto policy. Which of the following describes how the two policies respond?

Both share the loss pro rata

The truck's insurance pays the whole claim

The insured's policy pays first

Each policy pays exactly half

Question 15: A shopper buys a box of cereal at a neighborhood grocery store, takes it home for breakfast, and chips a tooth on a small stone mixed into the cereal. She sues the manufacturer. Which liability exposure does this claim illustrate?

Premises and operations

Contractual liability

Fire legal liability

Products and completed operations

Question 16: Under a personal yacht policy the hull is damaged in a partial loss, and later in the policy year a second incident destroys the vessel entirely. The two claims are settled on different bases. Which pairing describes how yacht hull losses are normally paid?

Replacement cost partial, valued basis total

Actual cash value for both losses

Replacement cost for both losses

Valued partial loss, actual cash value total

Question 17: An aircraft is damaged while being flown by a pilot who does not hold the certificate and ratings named in the declarations, on a flight carrying goods for hire when the policy was written for pleasure use. Which policy feature most likely defeats this claim?

The coinsurance requirement

The pilot and purpose of use exclusions

The sue and labor clause

The abandonment condition

Question 18: A couple leaving on a three-week trip wants open peril protection on the clothing, cameras and souvenirs they will carry, without scheduling any of it. Which personal inland marine form fits this need, keeping in mind property at home stays uncovered?

Personal articles form

Contractors equipment floater

Installation floater

Personal effects floater

Question 19: A vessel owner charges shippers a fee for carrying their merchandise from one port to another and stands to lose that income if the voyage is never completed. Which ocean marine coverage indemnifies the carrier for the loss of those transportation charges?

Freight insurance

Cargo insurance

Hull insurance

Protection and indemnity insurance

Question 20: While maneuvering into a berth, a tugboat operator injures a longshoreman and damages the pier. The vessel owner needs coverage for the bodily injury and property damage claims that follow. Which of the four ocean marine coverages answers this liability exposure?