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1. An insured who owns a factory had a major loss. A pressure vessel ruptured due to a faulty safety valve, causing water escape, that resulted in significant water damage. The insured is covered by two insurance policies. Which policy will cover this loss?
A) The insured's EBI policy will pay the loss in full.
B) The insured's CGL policy will pay the loss in full.
C) The insured will select which policy to cover the loss.
D) The insured's remediation policy will cover the loss.
2. Amy, an agent, is inspecting a facility of a prospective client, Medical Manufacturing Inc. A junior employee, Max, is showing Amy around the main facility while it is in action, and answering her questions. Toward the end of the tour, Max's manager joins them and chastises Max for his negligence. What did Max likely forget to do?
A) Provide Amy with the facility's business interruption plan
B) Prevent Amy from recording proprietary information
C) Examine Amy's agent identification
D) Request a copy of Amy's coverage proposal
3. How do privacy laws impact brokers?
A) Provincial privacy legislation follows the same rules and regulations as federal privacy legislation.
B) Third parties must submit notarized written requests for the broker to release the insured's claims information.
C) Brokers may be held accountable for third parties' duty to provide appropriate privacy protection to clients.
D) Implied permission is given when a potential client asks for a quote.
4. The senior manager of XYZ Trucking Company has received her company's automobile renewal policy, and considers the premium excessive. She asks her broker what exposures are covered under the policy. What will her broker make her aware of?
A) The non-owned exposure could include XYZ's own trucks.
B) The owned exposure includes rented vehicles that replace any of XYZ's vehicles.
C) There could be a non-owned exposure if XYZ's employees use their own vehicles for company business.
D) There could be an owned exposure if the directors and officers use their personal vehicles to attend trade shows.
5. Davies Architect has opened two new offices in the last quarter. Its recent claims history includes a break-in at its head office a month ago and legal action against the firm due to a structural mistake made by the architect and engineer six months ago. The firm's insurance broker is reviewing its current insurance program, and the renewal date is in two months. Due to stable market conditions, there have been no recent changes made by insurers to policy wordings or pricing. The firm has been very cooperative with providing information. Briefly discuss how the broker would review the renewal for this architectural firm.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: Only visible for members |
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