Online Access Free CPCU-500 Exam Questions

The risk manager for Blue Manufacturing is trying to decide if the company needs an Equipment Breakdown policy. Which one of the following losses would be covered by equipment breakdown insurance rather than a commercial property policy?

• A.The damage from the explosion of a steam boiler
• B.The damage to an electrical component struck by lightning
• C.The damage from the explosion of a furnace
• D.The fire damage from the electrical breakdown of a circuit breaker

John works for J & J Plumbing. One day while driving a company truck from one customer's house to another customer, he went through a stop sign and struck another vehicle. John only suffered a minor injury, but the driver of the other vehicle was seriously injured and the car was totaled. Which one of the following J
& J Plumbing commercial liability coverages would cover the other driver's medical expenses and the damage to the vehicle?

• A.Employers liability insurance
• B.Commercial general liability insurance
• C.Commercial auto liability insurance
• D.Workers compensation insurance

Directors and Officers liability loss exposures arise out of directors' and officers' legal responsibilities and duties. Of the major responsibilities of corporate directors and officers listed below, which one of the following is the most important in analyzing D&O liability loss exposures? The duty to

• A.Produce interim reports for shareholders.
• B.Perpetuate a competent board through regular elections.
• C.Maintain the corporate charter and update the bylaws.
• D.Act as a fiduciary in their relationship to the corporation and its shareholders.

Foster Plumbing dug a hole in the street to run a water pipe from the main line to a new home. Foster planned to fill in the hole the next day. No barriers were erected, and Joe drove his car into the hole. Joe was injured and his car was destroyed. Joe sued Foster for damages. Foster's liability to Joe arises out of Foster's

• A.Products and completed operations liability exposure.
• B.Absolute liability exposure.
• C.Employers' liability exposure.
• D.Premises and operations liability exposure.

Manufacturing Company outsources some component finishing to Company Q. A contract between the two companies says that Company Q will hold harmless and reimburse Manufacturing Company in response to any claim of defect pertaining to the component. In this scenario, Company Q is the

• A.Indentured party
• B.Surety
• C.Indemnitor
• D.Indemnitee