Free The Institutes CPCU-500 Exam Dumps Questions & Answers

Helen and George purchased a vacation unit in a seaside condominium community. They should obtain coverage for it under an

• A.  HO-2 policy
• B.  HO-5 policy
• C.  HO-4 policy
• D.  HO-6 policy

Ace Accounting Group insures its property exposures under the commercial property coverage part of a Commercial Package Policy. It owns the building and most of the furniture and office equipment, but decided to lease the copiers and telephone equipment from Singer Leasing. The leasing agreement requires that Ace provide insurance coverage for this equipment. Which of the following would provide Ace with this property coverage?

• A.  Personal property of others
• B.  Building and personal property blanket coverage
• C.  Business personal property
• D.  Equipment breakdown coverage

Manufacturing Company applied for general liability insurance from Insurance Company. Underwriter Raul reviewed Manufacturing Company's application and was favorably impressed with what he saw. No claims, lawsuits, or potential claims were disclosed. He spoke by phone to Manufacturing Company's management and was equally impressed with their qualifications and attitude, so he approved the application. If Raul had conducted a web search, he would have found many complaints about the quality of the company's products and several products liability court cases against it. Which one of the following statements concerning Raul's approach to handling Manufacturing Company's application is correct?

• A.  Raul should not have spoken to Manufacturing Company's leaders.
• B.  Raul did not recognize his own biases.
• C.  Raul did not analyze information logically.
• D.  Raul failed to gather reliable information.

Which one of the following is the foundation of the "predict and prevent" mindset that is permeating the insurance value chain?

• A.  Insurance premium increases
• B.  Natural disaster trends
• C.  Emerging technology
• D.  Competition

Sally recently went to a local nursery to purchase some plants for her yard. She was injured when she tripped over a piece of equipment that a salesperson had left in the aisle after demonstrating it for a customer. From the standpoint of the nursery, this is an example of which one of the following types of liability loss exposure?

• A.  Completed operations
• B.  Employers liability
• C.  Products
• D.  Premises and operations