Ann was visiting and put her expensive designer sunglasses on the couch. I didn’t notice and sat on them! Am I covered?

Under coverage G, voluntary payments for property damage

Which of the following situations would most likely be covered under a personal liability policy?

I am excited, start gesturing wildly and accidentally poke Barb in the eye

Which statement is true about defence costs with respect to commercial liability insurance?

Defence costs may be in addition to or included within policy limits

Which statement is true?

Dairy farms need a milk contamination endorsement

I was staying in a hotel and while practising ballet, I accidentally broke 2 lamps and the tv. Do I have cover for this?

Yes, this is covered under coverage E, personal liability

Which of these would be considered a bailee?

A warehouse that stores fur coats for customers during the summer

Staff at Gino’s Garage drive their own cars to pick up parts and shop customers. What coverage does Gino's Garage need?

All of these are a good idea for Gino's

Chester has an accounts receivable policy. Which of the following will help him reduce his premiums for this cover?

Keeping a copy of the records off-site as a backup

Which of these risks would most likely require a commercial policy?

Betty owns a rental property that has eight apartments

Jan got drunk at my house. When going to a cab, she tripped over her feet and broke her arm. Should I tell my insurer?

Yes, because this may become a claim & not notifying may lead to forfeiture

While Ron and I were arguing about shovelling the driveway, the Amazon driver slipped and was injured. Do we have cover?

Yes, because this is a premises liability situation

Which statement is true about farm liability policies?

They have 2 sections – personal & premises , covering personal & commercial

Which statement is true for the coverage under the earnings approach to business interruption?

It normally has a 50% or 80% coinsurance clause

Which statement best explains the difference between umbrella and excess liability?

Umbrella gives extra limits & wider cover, excess only gives extra limits

Which statement is false with respect to the deferred payment clause?

The insurer will not pay for a damaged farm building until it is rebuilt

What does the acronym COPE stand for?

Construction, occupancy, protection, exposure

Which of these is most likely considered personal injury?

Martha loses a job when Farah posts “Martha is a criminal” on social media

Which statement is true?

The limits for builders risk should be the value of the completed building

Which statement is false with respect to umbrella insurance?

Insurers use an industry standard wording for this type of policy

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6 & 7

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Questions 31

Answers

1
Ann was visiting and put her expensive designer sunglasses on the couch. I didn’t notice and sat on them! Am I covered?
Under coverage E, personal liability
Under coverage G, voluntary payments for property damage
Under coverage C, contents
No, there is no coverage for this
2
Which of the following situations would most likely be covered under a personal liability policy?
David slashes my tires because he’s tired of me smack talking him in class
Ron plays the hockey game so loud that it shakes our neighbour's walls
The institute sues me because I don't show up for Tuesday's class as agreed
I am excited, start gesturing wildly and accidentally poke Barb in the eye
3
Which of these situations is excluded for watercraft?
All of these
Carrying passengers for hire
Racing
Rental
4
Which statement is true about defence costs with respect to commercial liability insurance?
Defence costs may be in addition to or included within policy limits
Defence costs are included within (not in addition to) the policy limits
Defence costs are paid in addition to the policy limits
Defence costs are excluded from liability policies
5
Which policy will cover an air conditioning system that is being installed in a new building?
Commercial general liability
Contractors equipment
Builders risk
Installation floater
6
Which coverage is most helpful for a lawyer that wanted to ensure that client documents and records were protected?
Miscellaneous office supplies coverage
Crime
Valuable papers
Accounts receivable
7
Which statement is true?
Small hobby farms do not need a commercial policy
Farm pollution coverage covers property and liability
Produce coverage includes seeds, harvested crops and growing crops
Dairy farms need a milk contamination endorsement
8
Which of these situations would most likely qualify as strict liability?
I am a licensed accountant, and I advertise as a personal tax expert
I have three kids under the age of 10
I served wine with dinner
I own a swimming pool
9
I was staying in a hotel and while practising ballet, I accidentally broke 2 lamps and the tv. Do I have cover for this?
No, this is not covered because seriously, Leona??
No, this isn't covered because it did not occur on my premises
No, this is not covered because the damaged property doesn't belong to me
Yes, this is covered under coverage E, personal liability
10
Which of these would be considered a bailee?
A warehouse that stores fur coats for customers during the summer
A wholesaler who sells goods to retailers
A bookstore
A commercial car wash
11
Staff at Gino’s Garage drive their own cars to pick up parts and shop customers. What coverage does Gino's Garage need?
All of these are a good idea for Gino's
Garage liability
Non-owned automoblie
Commercial General Liabiltiy
12
Chester has an accounts receivable policy. Which of the following will help him reduce his premiums for this cover?
Having good credit terms so his customers pay sooner
Printing everything on yellow paper
Keeping a copy of the records off-site as a backup
Charging a reasonable rate of interest on overdue balances
13
Which of these risks would most likely require a commercial policy?
Betty owns a rental property that has eight apartments
Fred sells vegetables from his garden at a roadside stand during the summer
Barney paints happy messages on rocks on weekends to sell at a town fair
Wilma is a travel agent that sometimes works from home
14
Jan got drunk at my house. When going to a cab, she tripped over her feet and broke her arm. Should I tell my insurer?
Yes, because host liquor liability is a strict liability situation
No, I don’t need to notify my insurer unless she threatens to sue me
Yes, because this may become a claim & not notifying may lead to forfeiture
No, I don’t need to notify my insurer because I am not legally liable
15
What peril is covered under a liability policy?
Defence costs
All of the above
Negligence
Legal expense
16
Which of the following costs would not normally be covered by cyber insurance?
Costs to defend lawsuits for some perils
Business interruption
Crisis management in the event of a loss
Reputational damage
17
The regulator made Bob get a bond from Ace to guarantee he'll meet the terms of his gas fitters licence. Which is true?
Ace is the obligee
Bob's licence is the obligee
Bob is the obligee
The regulator is the obligee
18
While Ron and I were arguing about shovelling the driveway, the Amazon driver slipped and was injured. Do we have cover?
Yes, because the Amazon driver is considered a residence employee
Yes, because this is a premises liability situation
No, because the Amazon driver is supposed to have workers' compensation
No, because the failure to clear the ice was a deliberate decision
19
Which statement is true about farm liability policies?
They only cover commercial exposures
They don't cover the farmer and their family (this is personal liability)
They have 2 sections – personal & premises , covering personal & commercial
The do not exist
20
Which statement is true for the coverage under the earnings approach to business interruption?
It covers until the business’ earnings are no longer affected by the loss
It overs additional expenses to keep the business running
All of these are true
It normally has a 50% or 80% coinsurance clause
21
Ron’s Handyman Service Inc. wants to buy insurance in case its employees steal from the business. Which cover is best?
Office/store burglary and robbery
Inside/outside burglary
Fidelity
Safe burglary
22
Which statement best explains the difference between umbrella and excess liability?
Umbrella insurance doesn’t require underlying insurance, but excess does
Umbrella and excess are two ways to say the same thing
Umbrella gives extra limits & wider cover, excess only gives extra limits
Umbrella gives higher limits, whereas excess gives additional coverage
23
What type of protection would having a sprinkler system, fire extinguishers and a monitored alarm system be called?
Public protection
Municipal protection
Private protection
Exposure reduction
24
What kind of bond guarantees the principle will pay for all materials and sub-trades as required?
bid
performance bond
surety
labour and materials
25
Which statement is false with respect to the deferred payment clause?
The building must be rebuilt within 9 - 12 months
The farmer will only initially receive 50% of the amount payable
The building must be rebuilt within 60 metres of the original
The insurer will not pay for a damaged farm building until it is rebuilt
26
What does the acronym COPE stand for?
Construction, occupancy, protection, exposure
Coinsurance, original conditions, premium, exclusions
Commercial, occupational, personal, errors & omissions
Constructed, occupied, protected, evaluated
27
Which information is least likely to be found on the declarations page of a commercial policy?
Exclusions
Premium
Deductible
Coinsurance
28
Mary asks about the age of the building, how large it is and the type of heating system. Which element of COPE is this?
Exposure
Occupancy
Protection
Construction
29
Which of these is most likely considered personal injury?
Farah injures James when she throws a book at him
Farah is injured leaving Happy’s Bar after having one too many cocktails
Farah damages Fred’s car when she throws a stick for her dog to chase
Martha loses a job when Farah posts “Martha is a criminal” on social media
30
Which statement is true?
Glass insurance does not cover the cost of boarding up the broken window
Equipment breakdown does not cover business interruption
Farm policies are normally on an all-risk basis
The limits for builders risk should be the value of the completed building
31
Which statement is false with respect to umbrella insurance?
It normally has a self-insured retention
It usually provides worldwide cover
It may provide drop down cover for certain exposures
Insurers use an industry standard wording for this type of policy

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