WPCI - Washington Property and Casualty Insurance Exam

Question 21: At closing time in a Tacoma store, two armed individuals confront a clerk, threaten bodily harm, and force the clerk to hand over cash from the register. Which crime definition best fits this taking of property directly from a person by threat?

Burglary

Safe burglary

Theft by stealth

Robbery

Question 22: An instructor asks students to pick the single term that broadly describes any unlawful taking of property, one that encompasses burglary, safe burglary, and robbery and also reaches quiet takings by stealth such as shoplifting. Which term is the broadest?

Theft

Robbery

Burglary

Mysterious disappearance

Question 23: A bookkeeper embezzles funds from her employer over several months. The business wants the crime coverage that pays it directly for money stolen by an employee, and it knows proof cannot rest solely on an inventory shortage. Which coverage form applies?

Forgery or alteration

Employee theft

Computer fraud

Money orders and counterfeit money

Question 24: A company discovers that several of its outgoing checks were forged and altered by an outside party, and the losses occurred in three different countries. Which commercial crime coverage responds to forged or altered checks and applies on a worldwide basis?

Employee theft

Computer fraud

Forgery or alteration

Funds transfer fraud

Question 25: A fraudster uses a computer to break into a firm's system and electronically transfer the firm's securities to an outside account. The firm seeks the crime coverage triggered specifically by the use of a computer to move property offsite. Which coverage responds?

Computer fraud

Funds transfer fraud

Forgery or alteration

Robbery coverage

Question 26: An impostor telephones a company's bank, pretends to be an authorized officer, and instructs the bank to wire money out of the company's account without the company's knowledge. Which commercial crime coverage responds to these fraudulent instructions given to a financial institution?

Computer fraud

Forgery or alteration

Employee theft

Funds transfer fraud

Question 27: Two commercial crime forms differ by what triggers coverage. One pays for losses sustained at any time but discovered during the policy period or up to sixty days after it ends. Which form is being described by that discovery based trigger?

The loss sustained form

The discovery form

The forgery form

The reporting form

Question 28: A licensed professional is sued for a mistake made while rendering services, and the producer notes that this exposure is excluded by the commercial general liability policy and that most such policies are written on a claims made basis. Which coverage handles this exposure?

Commercial general liability

Commercial property coverage

Professional liability coverage

Workers compensation coverage

Question 29: An insurance agent, an accountant, and an architect each want professional liability protection for claims that they made errors in their non medical services. Which broad term names the professional liability coverage designed for these kinds of practitioners?

Medical malpractice

Directors and officers liability

Fiduciary liability

Errors and omissions

Question 30: Shareholders sue a corporation's directors and officers as individuals, alleging their management decisions caused financial harm. These leaders have no coverage under the commercial general liability policy for such personal liability. Which coverage is designed to protect them here?

Directors and officers liability

Employment practices liability

Commercial general liability

Medical malpractice

Question 31: A company faces a lawsuit alleging wrongful termination, discrimination, and sexual harassment by a former worker. Both the commercial general liability policy and workers compensation exclude these employment related practices. Which coverage responds to this workplace conduct claim?

Directors and officers liability

Employment practices liability

Commercial general liability

Fiduciary liability

Question 32: A hacker gains unauthorized access to a firm's network and publishes its clients' personal information online. The firm looks to its internet liability and network protection policy. Which insuring agreement responds when someone breaches the system and exposes client data?

Website publishing liability

Cyber extortion

Network security liability

Replacement or restoration of data

Question 33: Physicians, nurses, dentists, surgeons, and veterinarians all need professional liability protection tailored to the healthcare field for claims that patients were harmed by their treatment. Which professional liability policy is written specifically for these medical practitioners and institutions?

Medical malpractice

Errors and omissions

Directors and officers liability

Employment practices liability

Question 34: A firm's administrators manage its private pension and employee benefit plans and want protection against liability for violating the federal law that governs employer sponsored retirement plans. Which liability policy is designed to protect these plan managers against such violations?

Directors and officers liability

Employment practices liability

Medical malpractice

Fiduciary liability

Question 35: A producer explains that a surety bond differs fundamentally from an insurance policy in the number of parties involved and in who ultimately bears the loss. Which statement correctly captures how a surety arrangement differs from ordinary two party insurance?

Surety involves only two parties

Surety involves three parties

Surety pays regardless of default

Surety never expects repayment

Question 36: In a bond, three roles exist: one party makes a promise and is required to post the bond, another receives the promise and is protected by it, and a third pays if the promise is broken. Which party is the one required to post the bond?

The obligee

The surety

The principal

The beneficiary

Question 37: On a construction project, the owner wants a contract bond guaranteeing that the contractor will complete the work according to the contract specifications, protecting the owner from loss if the contractor fails to finish. Which contract bond provides that specific guarantee?

Performance bond

Bid bond

Payment bond

Supply bond

Question 38: Before awarding a public contract, the government agency wants assurance that if it accepts the lowest bid, that contractor will actually enter into the contract at the quoted price and furnish the required performance bond. Which contract bond gives this assurance?

Performance bond

Payment bond

Supply bond

Bid bond

Question 39: A project owner wants a contract bond that guarantees the contractor will pay its subcontractors and material suppliers, keeping the finished project free of mechanics liens filed by unpaid parties. Which contract bond delivers this particular protection to the owner?

Bid bond

Payment bond

Performance bond

Fidelity bond

Question 40: An employer wants a bond that protects it against dishonest acts committed by its own employees, comparable to the crime employee dishonesty coverage. Unlike a surety bond bought by the principal, this bond is purchased by the party it protects. Which bond is this?

Bid bond

Performance bond

Fidelity bond

Public official bond

WPCI Washington Property and Casualty Insurance Exam - Set 5 - Part 2

Question 21: At closing time in a Tacoma store, two armed individuals confront a clerk, threaten bodily harm, and force the clerk to hand over cash from the register. Which crime definition best fits this taking of property directly from a person by threat?

Question 22: An instructor asks students to pick the single term that broadly describes any unlawful taking of property, one that encompasses burglary, safe burglary, and robbery and also reaches quiet takings by stealth such as shoplifting. Which term is the broadest?

Question 23: A bookkeeper embezzles funds from her employer over several months. The business wants the crime coverage that pays it directly for money stolen by an employee, and it knows proof cannot rest solely on an inventory shortage. Which coverage form applies?

Question 24: A company discovers that several of its outgoing checks were forged and altered by an outside party, and the losses occurred in three different countries. Which commercial crime coverage responds to forged or altered checks and applies on a worldwide basis?

Question 25: A fraudster uses a computer to break into a firm's system and electronically transfer the firm's securities to an outside account. The firm seeks the crime coverage triggered specifically by the use of a computer to move property offsite. Which coverage responds?

Question 26: An impostor telephones a company's bank, pretends to be an authorized officer, and instructs the bank to wire money out of the company's account without the company's knowledge. Which commercial crime coverage responds to these fraudulent instructions given to a financial institution?

Question 27: Two commercial crime forms differ by what triggers coverage. One pays for losses sustained at any time but discovered during the policy period or up to sixty days after it ends. Which form is being described by that discovery based trigger?

Question 28: A licensed professional is sued for a mistake made while rendering services, and the producer notes that this exposure is excluded by the commercial general liability policy and that most such policies are written on a claims made basis. Which coverage handles this exposure?

Question 29: An insurance agent, an accountant, and an architect each want professional liability protection for claims that they made errors in their non medical services. Which broad term names the professional liability coverage designed for these kinds of practitioners?

Question 30: Shareholders sue a corporation's directors and officers as individuals, alleging their management decisions caused financial harm. These leaders have no coverage under the commercial general liability policy for such personal liability. Which coverage is designed to protect them here?

Question 31: A company faces a lawsuit alleging wrongful termination, discrimination, and sexual harassment by a former worker. Both the commercial general liability policy and workers compensation exclude these employment related practices. Which coverage responds to this workplace conduct claim?

Question 32: A hacker gains unauthorized access to a firm's network and publishes its clients' personal information online. The firm looks to its internet liability and network protection policy. Which insuring agreement responds when someone breaches the system and exposes client data?

Question 34: A firm's administrators manage its private pension and employee benefit plans and want protection against liability for violating the federal law that governs employer sponsored retirement plans. Which liability policy is designed to protect these plan managers against such violations?

Question 35: A producer explains that a surety bond differs fundamentally from an insurance policy in the number of parties involved and in who ultimately bears the loss. Which statement correctly captures how a surety arrangement differs from ordinary two party insurance?

Question 36: In a bond, three roles exist: one party makes a promise and is required to post the bond, another receives the promise and is protected by it, and a third pays if the promise is broken. Which party is the one required to post the bond?

Question 37: On a construction project, the owner wants a contract bond guaranteeing that the contractor will complete the work according to the contract specifications, protecting the owner from loss if the contractor fails to finish. Which contract bond provides that specific guarantee?

Question 38: Before awarding a public contract, the government agency wants assurance that if it accepts the lowest bid, that contractor will actually enter into the contract at the quoted price and furnish the required performance bond. Which contract bond gives this assurance?

Question 39: A project owner wants a contract bond that guarantees the contractor will pay its subcontractors and material suppliers, keeping the finished project free of mechanics liens filed by unpaid parties. Which contract bond delivers this particular protection to the owner?

Question 40: An employer wants a bond that protects it against dishonest acts committed by its own employees, comparable to the crime employee dishonesty coverage. Unlike a surety bond bought by the principal, this bond is purchased by the party it protects. Which bond is this?

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