CIC Commercial Multi-Line Exam Questions and Answers Latest Update.
Describe how inland marine insurance started - Correct answer -evolved from ocean marine
-filled gap in coverage as good transitioned from ocean marine
-cover goods in transit over land
Does inland marine also apply to instruments of transportation and communication? - Correct answer Yes, ex. Bridges, tunnels, piers, cell towers, pipelines.
What is the basic exclusion applicable to inland marine? - Correct answer Property in a fixed location is not eligible for marine insurance
Lost 4 types of floaters - Correct answer -jewelry -fine arts
-guns
-wine
List characteristics of filed or controlled forms - Correct answer -Relative uniformity of exposures
-Tend to be specialty coverage’s
-Inflexible terms/conditions
-Outcome of filed or controlled forms is.... rates are filed and coverage forms are filed
List characteristics of Non-Filed or Unfiled forms - Correct answer -Exposures not
uniform
-Exposures too unique or diverse to assume insurer can write not on a case by case basis
-More flexibility on terms and conditions
-Ex. Contractors equip, transportation, builders risk
Describe bailment relationship - Correct answer one person accepts personal property from another for a particular purpose. Baylor is the owner of property. Bailee is the party that accepts the property of others
List the three types of bailment - Correct answer Gratuitous bailment for benefit of bailer
Gratuitous bailment for benefit of Bailee
Bailment for mutual benefit
What is the standard of care for gratuitous bailment for benefit of bailer? - Correct
answer Low standard of care
What is the standard of care for gratuitous bailment for benefit of Bailee? - Correct answer High standard of care.
What is the standard of care for mutual benefit of bailer and Bailee? - Correct answer Reasonable duty of care
What drives the need for coverage of bailment exposure? - Correct answer CGL excludes property in care custody or control
Many policies contain a no benefit to Bailee condition
Explain the difference in coverage triggers for Bailee’s written on a legal liability basis vs. direct damage basis - Correct answer Insured must be legally liable for damage to bailer’s property to trigger coverage for legal liability. Direct damage, insured does not have to be legally liable. Also both types include the value of Bailee’s investment in labor and materials
P a g e 1 | 8 List some types of property not covered under Bailee's - Correct answer - aircraft or water craft
-Contraband
-Furs
-Jewelry
-Money and securities
-Vehicles
-Waterborne property
How would you describe the covered causes of loss for Bailee’s? - Correct answer -Open perils policy
-List of exclusions to clarify coverage
-Exclusions include- -theft of property left overnight in or on a vehicle, unless inside a locked building and there are signs of forced entry
-Misdelivery
-Voluntary parting
-Damage caused by processing
What is the coverage territory for Bailee’s? - Correct answer USA, and its territories or possessions, Canada and Puerto rice
List options for payment for Bailee’s - Correct answer -Pay value of lost or damaged property
-pay the cost to repair -Rebuilt repair or replace with like kind or quality
List some unique challenges for covering BR - Correct answer -changing/increasing exposures
-insurable interest can value as project develops
-property to be covered not at jobsite
-projects in course of construction are more susceptible to loss
What can BR be written to cover? - Correct answer -New construction
-Additions
-Renovations
List those who can be NI's on a BR - Correct answer -Project owners
-GC's
-Architects/engineers
-Mortgagee and other lenders
-Suppliers
-Construction manager
List advantages to having all insurable interests under 1 policy for BR - Correct answer -greater efficiency including avoidance of litigation
-Fewer coverage disputes
-All parties entitled to copy of policy
-All insured parties have direct policy rights
-Will usually limit any suborn efforts by an insurer
List disadvantages of having all insurable interests in one policy for BR - Correct answer -claim payment may be made to all insured’s
-misrepresentation, concealment or fraud by any insured may void coverage unless there is a provision to protect innocent insured’s
List some exposures to loss for BR - Correct answer -Building or structure-
=Materials and supplies at the jobsite
-Materials and supplies at temp storage locations
-Temp structures
-Materials/supplies of others in CCC
P a g e 2 | 8
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Lectjoe. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
