General Liability Line Of Business Quiz
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An endorsement that removes Farm Bureau's ability to subrogate against a party at fault is:
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Additional Insured Endorsement
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Owners & Contractors Protective Endorsement
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Waiver of Subrogation Endorsement
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Professional Liability Endorsement
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This quiz is aimed at affording you more knowledge regarding the General Liability line of business -- both in conjunction with the BOP and CPP.
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- 2.
The voluntary property damage endorsement that can be added as a part of the General Liability package, is best described as:
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An endorsement that warrants little understanding.
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Removes the exclusion for damage you do to others property while it is in your care, custody, or control. Including items being directly worked on.
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An endorsement that removes all negligence required under suit for a liability case against the insured.
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An endorsement that covers vehicles while in your care, custody, or control.
Correct Answer
A. Removes the exclusion for damage you do to others property while it is in your care, custody, or control. Including items being directly worked on.Explanation
This is an especially important endorsement for contractor type risks. It cover items they are directly working on for damage they may cause to that item, without this endorsement, there would be no coverage for that damage.Rate this question:
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- 3.
In order to write liquor liability on the CPP for a casual restaurant, the liquor sales must be under 30% of total gross revenue.
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True
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False
Correct Answer
A. TrueExplanation
To write liquor liability on the CPP for a casual restaurant, the liquor sales must be under 30% of total gross revenue. This means that if the liquor sales exceed 30% of the total gross revenue, the CPP cannot provide liquor liability coverage for the restaurant. Therefore, the statement that the answer is "True" is correct.Rate this question:
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- 4.
Within the Underwriting Guidelines you will find the GL class code for Grocery Stores. Underneath the class code it states 'sales.' Does this mean sales will have an impact on your liability premium?
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True
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False
Correct Answer
A. TrueExplanation
Whatever verbiage is listed underneath your class code should be obtained prior to quoting (Payroll, Sales, Area, Members, etc.) as it will have a direct impact on your liability premium.Rate this question:
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- 5.
Farm Bureau has the capability to offer the Voluntary Property Damage endorsement to anyone obtaining General Liability coverage.
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True
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False
Correct Answer
A. TrueExplanation
Farm Bureau has the capability to offer the Voluntary Property Damage endorsement to anyone obtaining General Liability coverage. This means that anyone who purchases General Liability coverage from Farm Bureau has the option to also add on the Voluntary Property Damage endorsement.Rate this question:
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- 6.
If a standard ISO CGL policy is providing coverage to your insured, defense costs are payable in addition to the policy limit, with no dollar limitation.
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True
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False
Correct Answer
A. TrueExplanation
A standard ISO CGL policy provides coverage for defense costs in addition to the policy limit, without any dollar limitation. This means that if a claim is made against the insured, the policy will cover the costs of defending against the claim, regardless of the amount. This is beneficial for the insured as they do not have to worry about the defense costs exceeding the policy limit and having to pay out of pocket. Therefore, the statement is true.Rate this question:
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- 7.
One of the most important reasons to purchase liability insurance, out of the options listed below, is:
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Defense Costs
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Proof of Liability for a job
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To pay for injuries when customers come to your premises
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A reason to work with that good looking agent who is selling it to you
Correct Answer
A. Defense CostsExplanation
Defense costs can be argued as one of the most important reasons for purchasing insurance as the duty to defend can cost hundreds of thousands of dollars in some cases. Without insurance - the business owner is on their own for these costs.Rate this question:
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- 8.
The Commercial Department will write Day Care Facilities so long as the number of children is under 10.
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True
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False
Correct Answer
A. FalseExplanation
The commercial department does not write any type of day care facilities regardless of number of children.Rate this question:
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- 9.
Joe is a carpentry contractor requesting a quote from your Agency. Joe states he makes $55,000 annually as well as having 2 employees who carry a combined payroll of $30,000. The payroll applied to Joe's exposure within Agency Link is:
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$30,000
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$55,000
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$20,000
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$50,000
Correct Answer
A. $50,000Explanation
You will always charge $20,000 for any individual owners ($20,000 per owner) + any associated employee payroll. Joe = $20,000 Employees = $30,000 Total Charge for Payroll = $50,000Rate this question:
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- 10.
Check all types of businesses that are eligible for Professional Liability coverage with Farm Bureau:
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Veterinarians
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Accountants
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Beauticians
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Insurance Agents
Correct Answer(s)
A. Veterinarians
A. BeauticiansExplanation
Farm Bureau offers Professional Liability coverage for veterinarians and beauticians. This means that if a veterinarian or beautician is sued by a client for professional negligence or errors in their work, Farm Bureau's Professional Liability insurance can provide coverage for legal expenses and potential damages. It is important for professionals in these fields to have this type of coverage to protect themselves and their businesses from financial loss in the event of a lawsuit.Rate this question:
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Quiz Review Timeline (Updated): Mar 15, 2023 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 15, 2023Quiz Edited by
ProProfs Editorial Team -
Nov 06, 2013Quiz Created by
Jamesjohns82
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