Who does a general liability policy cover?
The business owner only
Small businesses
Many of the people involved in a business
Major corporations only
If you have subsidiaries, your policy’s liability coverage extends to any subsidiary where you own at least ____ percent of the stock.
10
33
85
50
Which is NOT protected by CGL?
Bodily injury
Property damage
Fire, explosion or lightning damage
Drug liability
Even if your company is not found liable for a claim, without insurance coverage, mounting a defense is:
Expensive
Impossible
Easy
Unnecessary
________ law protects the legal rights of parties that have voluntarily entered into contractual agreements.
Criminal
Tort
Comprehensive
Contract
While the public may associate the legal concept of tort with _______, torts in fact may be either intentional or unintentional.
Liability
Injury
Malice
Negligence
Which of the following is NOT on the list of breaches of duties insured by a CGL policy?
Breaking and entering
False arrest
Invasion of privacy
Assault
Which kind of car should NOT be covered by comprehensive insurance?
Owner’s second vehicle
Sports car
Car with very low value
Car older than 10 years
______ liability arises out of injury and damage caused by conditions that exist in and around the insured’s premises.
Premises
General
Operations
Minimum
Some premises liability suits are legitimate, but many are:
Complex
Frivolous
Obvious
Settled
When was the development of standard general liability insurance provisions undertaken?
1930s
1880s
1970s
These provisions still need to be developed
The _______ page of the typical ISO CGL is usually the first page of the policy, and provides a summary of the policy.
Endorsements
Insuring Agreement
Terms and Conditions
Declarations
Which is NOT provided by ISO?
Legal representation
Policy language
Technical services
Fraud-identification tools
ISO’s legal and government relations staffs are current with developments in _____ government and courts.
Federal
Internal
Local
State
ISO’s available information helps insurers price their products by:
More accurately predicting losses
Offsetting costs of business
Avoiding unprofitable customers
Absorbing some of the risk
What key necessity for remaining in the market do small or new insurance firms often lack?
Liability
Adequate information
Proprietary factors
Underwriters
ISO actuaries use the following principles for data collection and analysis EXCEPT:
Generally Accepted Actuarial Principles
Work independently
Analyze raw data
Make powerpoints
ISO actuaries use raw data to perform:
Prospective cost information
Ratio analysis
Complex analysis
Trend analysis
The ________ Act gives primary insurance regulation to the states.
Sherman
McCarran-Ferguson
Gramm-Leach-Bliley
Glass-Steagall
Why might insurers need a limited exemption from state antitrust laws?
To restrict competition
To share loss information
To fix prices
To initiate appropriate boycotts
Forms that apply to more than one line are available as _________ forms.
Multiline
Double-lined
Interline
Extra
Which GCL Insuring Agreement defines the broadest scope of coverage?
Coverage A
Coverage B
Coverage C
Coverage D
Which is NOT included in a property damage claim?
Medical expenses
Cost to repair
Lost income
Cost to replace
The common question regarding cyber coverage asks whether a loss of such data constitutes a ______ harm suf¬ficient to trigger coverage under traditional GLC policies.
Financial
Psychological
Physical
Reputational
Businesses must guard against inadver¬tently purchasing insurance that is too ______ to cover the numerous risks that they may face.
Narrow
Expensive
Technologically outdated
Vague
Which is an indirect benefit to purchasing cyber-security insurance?
Encouraging best security practices
Expanded coverage for data
More purchasers means lower risk
Fewer IT department costs