SCPCIP - South Carolina Property and Casualty Insurance Producer Exam

Question 21: A company sending executives to high risk regions wants a contract that reimburses ransom money actually paid, the fees of a professional negotiator, and money lost while it is being delivered to the abductors. Which specialty coverage meets that need?

Employment practices liability insurance

Kidnap and ransom insurance

Fiduciary liability insurance

Difference in conditions insurance

Question 22: During a violent storm the master of a ship deliberately jettisons part of the deck cargo so the vessel and the remaining goods can survive. The sacrifice is later shared proportionally by every interest in the venture. Which marine loss principle describes this?

Particular average

Constructive total loss

General average

Subrogation

Question 23: An aircraft owner selects a hull form that responds only while the airplane sits at rest and not moving under its own power, which means damage occurring during a taxi to the runway would not be paid. Which hull coverage basis has been selected?

In flight coverage

Ground and flight coverage

Taxiing coverage

Not in motion coverage

Question 24: A company that sells and installs commercial elevators needs coverage on equipment while it travels to the site and while it sits waiting to be put in place, with protection ending once installation is finished. Which form does the company need?

Bailee's customer policy

Accounts receivable coverage form

Installation floater

Annual transit policy

Question 25: A chemical blender learns that its general liability policy excludes most bodily injury, property damage and cleanup costs arising from the discharge of contaminants. The firm needs a separate contract for that exposure. Which specialty product is written to fill this gap?

Liquor liability insurance

Pollution liability insurance

Directors and officers liability insurance

Kidnap and ransom insurance

Question 26: A shipping company insures the physical structure of its cargo vessel, including the hull, machinery and equipment, against damage from storms, stranding and fire while the ship is at sea. Which of the four ocean marine coverages responds to this particular loss exposure?

Cargo insurance

Freight insurance

Hull insurance

Protection and indemnity insurance

Question 27: Personal watercraft policies require that the craft be used solely for private pleasure purposes, and they list several activities that suspend or void coverage. One activity in particular removes coverage while it is taking place. Which activity do these policies commonly exclude?

Taking family and friends aboard

Entering an unofficial fun run

Mooring the craft at a dock

Racing in an official speed contest

Question 28: Seawater enters a hold through a hatch cover damaged by heavy weather and ruins one shipper's consignment of textiles. No other interest in the voyage benefited from the damage, so that shipper bears the loss alone. Which term describes this type of partial loss?

General average

Actual total loss

Particular average

Salvage

Question 29: A county opens sealed bids for a public bridge project and requires each bidder to post a bond guaranteeing that a winning bidder will sign the contract at the price quoted. Which contract bond provides that specific guarantee?

Performance bond

Payment bond

Fiduciary bond

Bid bond

Question 30: A furniture maker ships only three or four loads a year and wants coverage for one particular shipment, running from the point of origin to the point of destination on that single trip. Which transportation form suits this shipper?

Annual transit policy

Motor truck cargo policy

Trip transit policy

Contractors equipment floater

Question 31: A freighter insured under an ocean marine policy leaves its customary trade route without necessity in order to pick up an unscheduled load at a distant port. The insurer denies the resulting loss. Which implied warranty has the vessel owner broken?

Seaworthiness

Legality

Insurable interest

No deviation

Question 32: An intruder breaks into a retailer's computer system and customer records are published online. The retailer is then sued by the affected customers. Which cyber coverage responds to the retailer's liability to those third parties for the released personal information?

Cyber extortion coverage

Electronic data restoration coverage

Network security liability coverage

Business income and extra expense

Question 33: A collector of large pleasure boats insures a thirty-two foot inboard cruiser under a package that combines hull, boat trailer, protection and indemnity, medical payments and Longshore and Harbor Workers coverage. Which kind of policy has this owner purchased for the cruiser?

A boatowners package policy

An inland marine personal effects floater

A homeowners policy endorsement

A personal yacht policy

Question 34: A homeowner frustrated by the small theft limit on jewelry buys a separate personal inland marine form that lists each valuable item and its own amount of insurance across nine optional classes of property. Which form has the homeowner bought?

Personal articles form

Personal effects floater

Bailee's customer policy

Accounts receivable coverage form

Question 35: A staffing firm faces claims from a former worker alleging discrimination, harassment, failure to promote and retaliation. Both the general liability policy and the workers compensation policy exclude employment-related practices. Which standalone product was developed to respond to these allegations?

Fiduciary liability insurance

Errors and omissions insurance

Employment practices liability insurance

Commercial umbrella liability insurance

Question 36: A trucking company hauls goods belonging to other businesses and needs coverage for its legal responsibility as a bailee if that cargo is damaged in its custody. Which form is written to insure the carrier rather than the shipper?

Motor truck cargo owner's form

Annual transit policy

Accounts receivable coverage form

Motor truck cargo trucker's form

Question 37: An exporter ships a container of machine parts overseas and wants protection for the goods themselves against loss while they are in the hold of the vessel. Which ocean marine coverage is designed to indemnify the owner of those transported goods?

Freight insurance

Hull insurance

Cargo insurance

Protection and indemnity insurance

Question 38: A small manufacturer bonds only four workers who handle company money, listing each of them by name in the schedule and assigning a different dollar limit to each one. Which fidelity bond form is described by that arrangement?

Name schedule bond

Blanket position bond

Position schedule bond

Commercial blanket bond

Question 39: A probate court appoints an executor to manage a deceased person's estate and requires a bond guaranteeing that the executor handles the property honestly and follows the court's directions. Which type of court bond is being required here?

Performance bond

License and permit bond

Fiduciary bond

Payment bond

Question 40: The nationwide marine definition adopted by the industry lists six categories of eligible marine risks. Two of those categories fall to ocean marine rather than to inland marine insurance. Which pair of categories does ocean marine insurance take under that definition?

Domestic shipments and personal floaters

Imports and exports

Bridges and pipelines

Bailee forms and equipment forms

SCPCIP South Carolina Property and Casualty Insurance Producer Exam - Set 5 - Part 2

Question 21: A company sending executives to high risk regions wants a contract that reimburses ransom money actually paid, the fees of a professional negotiator, and money lost while it is being delivered to the abductors. Which specialty coverage meets that need?

Question 22: During a violent storm the master of a ship deliberately jettisons part of the deck cargo so the vessel and the remaining goods can survive. The sacrifice is later shared proportionally by every interest in the venture. Which marine loss principle describes this?

Question 23: An aircraft owner selects a hull form that responds only while the airplane sits at rest and not moving under its own power, which means damage occurring during a taxi to the runway would not be paid. Which hull coverage basis has been selected?

Question 24: A company that sells and installs commercial elevators needs coverage on equipment while it travels to the site and while it sits waiting to be put in place, with protection ending once installation is finished. Which form does the company need?

Question 25: A chemical blender learns that its general liability policy excludes most bodily injury, property damage and cleanup costs arising from the discharge of contaminants. The firm needs a separate contract for that exposure. Which specialty product is written to fill this gap?

Question 26: A shipping company insures the physical structure of its cargo vessel, including the hull, machinery and equipment, against damage from storms, stranding and fire while the ship is at sea. Which of the four ocean marine coverages responds to this particular loss exposure?

Question 27: Personal watercraft policies require that the craft be used solely for private pleasure purposes, and they list several activities that suspend or void coverage. One activity in particular removes coverage while it is taking place. Which activity do these policies commonly exclude?

Question 28: Seawater enters a hold through a hatch cover damaged by heavy weather and ruins one shipper's consignment of textiles. No other interest in the voyage benefited from the damage, so that shipper bears the loss alone. Which term describes this type of partial loss?

Question 29: A county opens sealed bids for a public bridge project and requires each bidder to post a bond guaranteeing that a winning bidder will sign the contract at the price quoted. Which contract bond provides that specific guarantee?

Question 30: A furniture maker ships only three or four loads a year and wants coverage for one particular shipment, running from the point of origin to the point of destination on that single trip. Which transportation form suits this shipper?

Question 31: A freighter insured under an ocean marine policy leaves its customary trade route without necessity in order to pick up an unscheduled load at a distant port. The insurer denies the resulting loss. Which implied warranty has the vessel owner broken?

Question 32: An intruder breaks into a retailer's computer system and customer records are published online. The retailer is then sued by the affected customers. Which cyber coverage responds to the retailer's liability to those third parties for the released personal information?

Question 33: A collector of large pleasure boats insures a thirty-two foot inboard cruiser under a package that combines hull, boat trailer, protection and indemnity, medical payments and Longshore and Harbor Workers coverage. Which kind of policy has this owner purchased for the cruiser?

Question 34: A homeowner frustrated by the small theft limit on jewelry buys a separate personal inland marine form that lists each valuable item and its own amount of insurance across nine optional classes of property. Which form has the homeowner bought?

Question 36: A trucking company hauls goods belonging to other businesses and needs coverage for its legal responsibility as a bailee if that cargo is damaged in its custody. Which form is written to insure the carrier rather than the shipper?

Question 37: An exporter ships a container of machine parts overseas and wants protection for the goods themselves against loss while they are in the hold of the vessel. Which ocean marine coverage is designed to indemnify the owner of those transported goods?

Question 38: A small manufacturer bonds only four workers who handle company money, listing each of them by name in the schedule and assigning a different dollar limit to each one. Which fidelity bond form is described by that arrangement?

Question 39: A probate court appoints an executor to manage a deceased person's estate and requires a bond guaranteeing that the executor handles the property honestly and follows the court's directions. Which type of court bond is being required here?

Question 40: The nationwide marine definition adopted by the industry lists six categories of eligible marine risks. Two of those categories fall to ocean marine rather than to inland marine insurance. Which pair of categories does ocean marine insurance take under that definition?

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