CPCU 551 Full Latest Update 2024-2025 1500 Questions and 100% Verified Correct Answers Guaranteed A+ At First Attempt
Accounts Receivable insurance 8-48 - CORRECT ANSWER: Insurance that covers the
sums the insured is unable to colelct when records of accounts receivable are destroyed by a covered cause of loss
Accumulation Clause 8-27 - CORRECT ANSWER: A clause in open cargo policies that
doubles the policy limit when, for reasons beyond the control of the assured, shipments may accumulate at some point in transit
Act of God 8-11 - CORRECT ANSWER: A natural and unavoidable catastrophe that
interrupts the expected course of events
Actual Cash Value (ACV) 1-6 - CORRECT ANSWER: Cost to replace property with new
property of like kind and quality less depreciation
Agreed Value Method 8-6 - CORRECT ANSWER: A method of valuing property in
which the insurer and the insured agree, at the time the policy is written, on the maximum amount that will be paid in the event of a total loss.
Agreed Value Optional Coverage 2-5 - CORRECT ANSWER: Optional coverage that
suspends the Coinsurance condition if the insured carries the amount of insurance agreed to by the insurer and the insured
All-in Concept (additional installations coverage) 5-8 - CORRECT ANSWER: A concept of condo ownerhsip that is similar to the single-entity concept except that the all-in concept includes improvements made by the unit owner, not just the original installations or replacements of like kind and quality
Annual Transit Policy 8-15 - CORRECT ANSWER: Policy that covers all shipments
made or received by the insured throughout a one-year policy period
Appeal Bond 13-18 - CORRECT ANSWER: A judicial bond guaranteeing that a plaintiff who appeals an adverse decision to a higher court will pay all court costs of the appeal
Assured 8-17 - CORRECT ANSWER: In ocean marine policies, the party named as the
insured
Attachment Bond 13-16 - CORRECT ANSWER: A judicial bond guaranteeing that, if the court decides against a plaintiff who has requested attachment of the defendant's property, the defendant will be paid any damages that result from the property attachment. 1 / 4
Attachment Point 6-11 - CORRECT ANSWER: The dollar amount above which the
reinsurer responds to losses
Bailee 8-39 - CORRECT ANSWER: The party temporarily possessing the personal
property in a bailment
Bailees' customers policy 8-42 - CORRECT ANSWER: A policy that covers damage to
customers' goods while in the possession of the insured, regardless of whether the insured is legally liable for the damage
Bailor 8-40 - CORRECT ANSWER: The owner of the personal property in a bailment
Bare-Walls Concept 5-6 - CORRECT ANSWER: A concept of condo ownership in which
the association has no ownership interest within the bare walls of each unit
Bid Bond 13-7 - CORRECT ANSWER: a contract bond guaranteeing that a contractor
bidding on a construction or supply contract will enter into the contract and will provide a performance bond of the bid is accepted
Bill of Lading 8-13 - CORRECT ANSWER: A document acknowledging receipt of goods
from the shipper, given by the carrier which includes the term of the contract of carriage for the goods.
Blanket Insurance 4-4 - CORRECT ANSWER: Insurance that covers either of the
following with one limit of insurance:
1) one type of property in one or more separately rated buildings, or 2) two or more types of property in one or more separately rated buildings"
Block policy 8-46 - CORRECT ANSWER: A dealers policy, particularly one written for a jeweler or furrier
BMC 32 - Endorsement for Motor Common Carrier Policies of Insurance for Cargo
Liability 8-33 - CORRECT ANSWER: An endorsement that insurers must attach to
motor truck cargo liability policies of interstate carriers stating that the insurer will pay cargo claims for which the insured is liable, up to the limits required by the US Dept of Transportation, even if such claims are not covered under the policy
Boiler 10-1 - CORRECT ANSWER: A fired pressure vessel constructed of cast iron or steel in which water is heated to produce steam or hot water
Breakdown Coverage 8-37 - CORRECT ANSWER: Coverage, in an EDP equipment
floater, for perils such as mechanical failure, electrical disturbance, and damage do electronic data when covered equipment breaks down
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Builders Risk Coverage Form 5-11 - CORRECT ANSWER: A form that covers buildings
in the course of construction, including additions or alterations to existing buildings
Business Income 7-26 - CORRECT ANSWER: Sum of 1) Net Profit or loss that would
have been earned if the suspension had not occurred and 2) Normal operating expenses, including payroll, that continue during the suspension
Business Income Changes - Educational Institutions endorsement 7-23 - CORRECT
ANSWER: Endorsement that modifies business income coverage forms to make them
more appropriate for covering the business income loss exposures for schools.
Business Income Insurance 7-1 - CORRECT ANSWER: Insurance that covers the
reduction in an organization's income when operations are interrupted by damage to property caused by a covered peril
Business Income Premium Adjustment endorsement 7-22 - CORRECT ANSWER:
Endorsement that bases the final policy premium earned by the insurer on the actual exposure as reported to the insured at 12-month intervals.
Business Income Worksheet 7-10 - CORRECT ANSWER: A worksheet for calculating
the amount of insurance necessary to comply with the Coinsurance condition of business income forms, for reporting business income values to the insurer, or for providing underwriters with information they need to evaluate an organizations business income loss exposure
Businessowners Policy (BOP) 1-2 - CORRECT ANSWER: A package policy that
combines most of the property and liability coverages needed by small and medium- sized businesses
Causes of Loss - Basic Form 3-1 - CORRECT ANSWER: Form that covers Fire,
Lightning, Explosion, Windstorm, Hail, Smoke, Aircraft, Vehicles, Riot, Civil Commotion, Vandalism, Sprinkler Leakage, Sinkhole Collapse, and Volcanic Action
Causes of Loss - Broad Form 3-2 - CORRECT ANSWER: Form that covers basic form
perils, plus Falling Objects; Weight of Snow, Ice, or sleet; Water Damage; and (as additional coverage) Collapse caused by certain perils
Charter 8-14 - CORRECT ANSWER: A travel contract in which transportation is
temporarily hired for a specific trip
Civil Authority Additional Coverage 7-12 - CORRECT ANSWER: An additional coverage in business insurance form, coverint loss of business income and/or extra expense that results when access to the insured's premises is prohibited by civil authority because fo damage by a covered cause of loss to property other than the insured's
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Coinsurance 6-6 - CORRECT ANSWER: An insurance-to-value provision in many
property insurance policies providing that if the property is underinsured, the amount that an insurer will pay for a covered loss is reduced.
Coinsurance Basis 7-9 - CORRECT ANSWER: The sum of the insured's estimated net
income and operatying expenses for 12 months following policy inception, minus only those expenses listed in the form
Combination Safe Depository Policy 12-5 - CORRECT ANSWER: A policy that enables
a financial institutionn to cover loss of or damage to its customers' property in the insured's safe-depository facilities and damage to the insured's premises
Commercial Bailment 2-4 - CORRECT ANSWER: The temporary possession by one
party (the bailee) of personal property of another party (the bailor) for a specific purpose beneficial to both parties
Commercial Package Policy (CPP) 1-1 - CORRECT ANSWER: Policy that covers two
or more lines of business by combining ISO's commercial lines coverage parts
Commercial Property Conditions 1-4 - CORRECT ANSWER: A required component of
the commercial property coverage part that contains conditions applicable to all commercial property coverage forms
Common Carrier 8-9 - CORRECT ANSWER: Airlines, railroads, or trucking companies
that furnish transportation to any member of the public seeking their offered services
Common Elements 5-4 - CORRECT ANSWER: Areas of a condominium that are jointly
owned by all unit owners, including the land on which the building is located
Computer Fraud coverage 9-3 - CORRECT ANSWER: Coverage for loss covered
property due to the use of a computer to fraudulently transfer covered property to the wrongoer.
Condominium 5-1 - CORRECT ANSWER: A real estate development consisting of a
group of units, in which the air space within the boundaries of each unit is owned by the unit owner, and all remaining real and personal property is owned jointly by all the unit owners.
Condominium Association 5-3 - CORRECT ANSWER: The entity composed of the unit
owners in a condominium to manage the condominium and to own the common elements
Condominium Association Agreement 5-5 - CORRECT ANSWER: A document that
describes what each condo owner has purchased, and clarifies the rights and responsibilies of the unit owners and the association
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