The auto dealers coverage form pays for damages that the insured is legally obligated to pay because of damage to a customer’s auto left in the insured’s car while it is being serviced or repaired. This coverage is called A) garagekeepers coverage. B) general liability coverage. C) other-than-collision loss coverage. D) acts, errors or omissions […]
Based on the information in Table 3-2, what is Enigma’s cash flow from operations? A) $75,000 B) $105,000 C) $85,000 D) $100,000 ANSWER A
All of the following statements about aviation insurance are true EXCEPT A) Physical damage coverage can be written on an “all-risks” basis. B) Liability coverage also applies to bodily injury arising out of the premises where the aircraft is stored. C) Liability coverage applies to liability arising out of a workers compensation law. D) Aviation […]
Based on the information in Table 4-3, the operating return on total assets is A) 33.33%. B) 10.06%. C) 44.74%. D) 55.62%. ANSWER A
All of the following statements about liability coverage under the businessowners policy are true EXCEPT A) Liability arising out of personal and advertising injury is covered as part of the insuring agreement. B) Medical payments coverage is provided. C) Employees acting within the scope of their employment are excluded from coverage. D) Coverage is included […]
Sensitivity analysis highlights the impact of a change in one key variable on another key variable. Indicate whether the statement is true or false ANSWER TRUE
Which of the following statements about physicians, surgeons, and dentists liability insurance is true? A) Liability coverage is restricted to accidental acts. B) The policy eliminates the need for medical practitioners to purchase general liability insurance. C) The insurer must obtain the consent of medical practitioners before the insurer can settle claims. D) The policy […]
Which of the following statements about errors and omissions insurance is (are) true? I. It is purchased by professionals to protect against claims arising for negligent acts, errors, and omissions. II. It is designed to meet the needs of stock brokers, attorneys, engineers, architects and other professionals who give advice to clients. A) I only […]
Based on the information in Table 4-2, the inventory turnover ratio is A) 2.37 times. B) 4.43 times. C) 1.29 times. D) 2.99 times. ANSWER A
Which of the following statements about the typical commercial umbrella policy is (are) true? I. The policy is designed to cover only those loss exposures specifically excluded by the underlying insurance contracts. II. The policy is excess over the required underlying coverages. A) I only B) II only C) both I and II D) neither […]
