50 Insurance Questions PDF

**1. What is the maximum coverage amount for loss or damage to newly acquired buildings under the policy?** - A\) \$250,000 per building - B\) \$500,000 per building - C\) \$1,000,000 per building - D\) \$2,000,000 per building **2. What is the limit of coverage for loss or damage to bu...

**1. What is the maximum coverage amount for loss or damage to newly acquired buildings under the policy?** - A\) \$250,000 per building - B\) \$500,000 per building - C\) \$1,000,000 per building - D\) \$2,000,000 per building **2. What is the limit of coverage for loss or damage to business personal property?** - A\) \$100,000 per occurrence - B\) \$250,000 per occurrence - C\) \$1,000,000 per occurrence - D\) \$2,000,000 per occurrence **3. What type of property is excluded from the policy under \"Property Not Covered\"?** - A\) Personal effects of employees - B\) Foundations of buildings - C\) Employee tools - D\) Inventory **4. Under which condition does the policy exclude coverage for damage caused by fungi or microbes?** - A\) When fungi or microbes are used for food - B\) When fungi or microbes are part of a covered loss - C\) When the damage is caused by water - D\) None of the above **5. How long is the period of coverage for newly acquired property?** - A\) 30 days - B\) 60 days - C\) 90 days - D\) 180 days **6. What is the maximum amount the policy will pay for loss or damage to personal effects of others?** - A\) \$2,500 - B\) \$5,000 - C\) \$10,000 - D\) \$25,000 **7. In the event of loss, what is the maximum coverage for valuable papers and records?** - A\) \$25,000 - B\) \$50,000 - C\) \$75,000 - D\) Subject to the Basket Aggregate Limit **8. What is the coverage limit for property off-premises?** - A\) \$10,000 - B\) \$25,000 - C\) \$50,000 - D\) \$100,000 **9. Which of the following is not covered under the \"Employee Tools\" extension?** - A\) Tools owned by employees - B\) Tools used for business purposes - C\) Tools used in personal activities - D\) None of the above **10. What is the maximum payout for the loss of a master key under the policy?** - A\) \$1,000 - B\) \$5,000 - C\) \$10,000 - D\) \$25,000 **11. What does the \"Green Standards\" coverage apply to?** - A\) Energy-efficient appliances - B\) Rebuilding according to green building codes - C\) Office supplies - D\) Motor vehicles **12. What is the maximum payout for business income loss due to alternative energy interruption?** - A\) \$25,000 - B\) \$50,000 - C\) \$100,000 - D\) Subject to Business Income limits **13. What is the coverage for loss caused by the accidental discharge of chemicals from a fire extinguisher?** - A\) Equipment Breakdown Coverage - B\) Burglary Damage Coverage - C\) Fire Extinguisher Systems Expense Coverage - D\) Business Income Coverage **14. What is the coverage extension for \"Property Off Premises\"?** - A\) Covers property at an exhibition, fair, or trade show - B\) Covers only property stored at a third-party facility - C\) Excludes property in transit - D\) Covers only property located within 100 feet of the described premises **15. What type of property is included under the definition of \"fine arts\"?** - A\) Paintings and sculptures - B\) Furniture and fixtures - C\) Business inventory - D\) Vehicles and equipment **16. What is the maximum coverage for loss or damage to \"Employee Tools\" at a described premises?** - A\) \$100,000 - B\) \$250,000 - C\) \$500,000 - D\) Subject to the SCHEDULE **17. What is the maximum payout for loss or damage to personal effects of employees?** - A\) \$2,500 - B\) \$5,000 - C\) \$10,000 - D\) \$25,000 **18. What is the maximum coverage for burglary damage to a building the insured occupies but does not own?** - A\) \$10,000 - B\) \$25,000 - C\) \$50,000 - D\) \$100,000 **19. What is the maximum coverage for loss or damage to business income due to government confiscation?** - A\) \$25,000 - B\) \$50,000 - C\) \$100,000 - D\) \$250,000 **20. What does the \"Certified Act of Terrorism\" definition in the policy require for certification?** - A\) Must be certified by the Secretary of Defense - B\) Must involve physical damage to property - C\) Must result in insured losses exceeding \$5 million - D\) Must involve foreign nationals only **21. What is the maximum coverage for the loss of \"net leasehold interest\" due to lease cancellation?** - A\) \$25,000 - B\) \$50,000 - C\) \$100,000 - D\) \$250,000 **22. What is the coverage for loss of \"net leasehold interest\" due to lease cancellation?** - A\) Loss based on the value of the property - B\) Loss of rental income during the restoration period - C\) Loss resulting from an earthquake or flood - D\) Loss of business income due to a governmental action **23. What is the coverage amount for fine arts under the policy?** - A\) \$5,000 - B\) \$10,000 - C\) \$25,000 - D\) \$100,000 **24. What is the maximum payout for mobile communication property under the policy?** - A\) \$5,000 - B\) \$10,000 - C\) \$50,000 - D\) \$100,000 **25. What does the \"Alternative Energy\" coverage apply to?** - A\) Losses due to power outages from non-renewable sources - B\) Loss of income due to the suspension of operations caused by alternative energy system failure - C\) Costs to retrofit a building with solar power - D\) Business interruption due to environmental disasters **26. What is the maximum coverage for loss due to a \"Certified Act of Terrorism\"?** - A\) \$100,000 - B\) \$500,000 - C\) \$1,000,000 - D\) Subject to the aggregate limit **27. What is the maximum coverage for the loss of \"employee tools\" under the policy?** - A\) \$10,000 - B\) \$50,000 - C\) \$250,000 - D\) \$500,000 **28. What does the \"Green Standards\" coverage apply to when repairing or replacing covered property?** - A\) The hiring of professionals to participate in the repair - B\) The removal of hazardous materials - C\) The installation of new appliances - D\) The installation of energy-efficient windows **29. What is the maximum coverage for loss or damage to valuable papers and records at a location more than 100 feet away from the described premises?** - A\) \$10,000 - B\) \$25,000 - C\) \$50,000 - D\) \$100,000 **30. What is the coverage for loss or damage to business property located more than 100 feet from the described premises?** - A\) No coverage is provided - B\) Coverage is provided for up to \$50,000 - C\) Coverage is provided for up to \$25,000 - D\) Coverage is provided as per the Basket Aggregate Limit **31. What does the \"Service of Suit\" endorsement in the policy provide?** - A\) Designation of an agent to receive legal notices - B\) A waiver of all legal claims - C\) An expedited claims process - D\) An automatic renewal of the policy **32. What is the coverage for \"Alternative Energy\"?** - A\) Actual loss of business income - B\) Extra expense due to energy failure - C\) Both A and B - D\) None of the above **33. What is the maximum coverage for debris removal under the policy?** - A\) 10% of the total loss amount - B\) 25% of the total loss amount plus \$10,000 - C\) 50% of the total loss amount - D\) \$100,000 **34. What is the coverage for business income loss due to the suspension of operations caused by a covered cause of loss?** - A\) Limited to the policy\'s coverage limits - B\) Only for damages caused by fire - C\) A fixed amount for each occurrence - D\) Based on actual loss of income during the period of restoration **35. What does the \"Alternative Energy\" coverage not apply to?** - A\) Utilities supplying your premises - B\) Alternate power generating equipment - C\) Business income losses caused by alternative energy system failure - D\) Costs associated with purchasing energy from third parties **36. What is the coverage for loss or damage caused by a \"Certified Act of Terrorism\"?** - A\) A specific exclusion for terrorism - B\) Full coverage for damages exceeding \$100 million - C\) Coverage based on the federal Terrorism Risk Insurance Act - D\) Limited to incidents that affect only property **37. What is the coverage for the \"Loss of Master Key\" under the policy?** - A\) \$1,000 per occurrence - B\) \$10,000 per occurrence - C\) \$25,000 per occurrence - D\) \$50,000 per occurrence **38. What is the maximum payout for \"Pollutant Clean-up and Removal\" under the policy?** - A\) \$25,000 per occurrence - B\) \$50,000 per occurrence - C\) \$100,000 per occurrence - D\) \$250,000 per occurrence **39. What is the maximum coverage for loss of business income due to government confiscation?** - A\) \$25,000 - B\) \$50,000 - C\) \$100,000 - D\) \$250,000 **40. What does the \"Alternative Water System\" coverage apply to?** - A\) Equipment used for potable water distribution - B\) Equipment used for collecting and circulating non-potable water - C\) Underground water pipes - D\) Water systems not related to energy efficiency **41. What is the coverage for loss of business income due to a third-party location?** - A\) \$100,000 - B\) \$50,000 - C\) \$25,000 - D\) \$10,000 **42. What is the maximum coverage for loss of business income during the \"period of restoration\"?** - A\) \$50,000 - B\) \$100,000 - C\) Based on actual loss of income - D\) No limit on coverage **43. What does the \"Pollutant Clean-up and Removal\" coverage apply to?** - A\) Cleanup of hazardous materials on site - B\) Cleanup of pollutants inside buildings - C\) Cleanup of pollutants outside buildings - D\) All of the above **44. What is the coverage limit for \"employee tools\" at a described premises?** - A\) \$250,000 - B\) \$500,000 - C\) \$100,000 - D\) Subject to the Basket Aggregate Limit **45. What does the \"Loss Prevention Expense\" coverage pay for?** - A\) Costs to prevent damage to insured property - B\) Costs to repair property after a loss - C\) Costs associated with legal fees - D\) None of the above **46. What is the maximum coverage for a loss caused by a \"Certified Act of Terrorism\"?** - A\) \$50,000 - B\) \$100,000 - C\) \$250,000 - D\) Subject to the Basket Aggregate Limit **47. What is the coverage for \"business income\" loss under the policy?** - A\) Covers only losses due to fire - B\) Covers loss of income caused by a covered peril during the period of restoration - C\) Covers losses due to third-party negligence - D\) Covers both direct and indirect losses from accidents **48. What does the policy exclude under the \"War and Military Action Exclusion\"?** - A\) Damage caused by terrorism - B\) Damage from civil commotion - C\) Damage from military action or war - D\) Damage caused by natural disasters **49. What is the maximum coverage for loss due to a \"Certified Act of Terrorism\"?** - A\) \$100,000 - B\) \$500,000 - C\) \$1,000,000 - D\) Subject to the Basket Aggregate Limit **50. What is the purpose of the \"Service of Suit\" endorsement in the policy?** - A\) It sets up a dispute resolution process - B\) It names the insurer's attorney for lawsuits - C\) It specifies the arbitration procedure - D\) It defines the jurisdiction for legal proceedings