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Business & FinanceAdminmedium26% of exam part

A Jacksonville subcontractor submits a certificate of insurance before contract award. Which item should the office verify first for risk-control purposes?

Correct Answer

D) named insured and limits

The certificate review should confirm that the insurance evidence matches the required coverage, insured party, and project risk transfer terms.

Answer Options
A
unconditional final release
B
equipment rental agreement
C
monthly bank statement
D
named insured and limits

Why This Is the Correct Answer

The certificate review should confirm that the insurance evidence matches the required coverage, insured party, and project risk transfer terms.

Why the Other Options Are Wrong

Option A: unconditional final release

unconditional final release skips the written authority, scope, price, notice, or release control needed for certificate of insurance.

Option B: equipment rental agreement

equipment rental agreement skips the written authority, scope, price, notice, or release control needed for certificate of insurance.

Option C: monthly bank statement

monthly bank statement skips the written authority, scope, price, notice, or release control needed for certificate of insurance.

Memory Technique

When review clashes with confirm, let the contract speak before Office Administrator.

Reference Hint

Open-book path: tab Contractor's Manual, 2025 to Business Administration, Insurance Certificates and Risk Transfer; confirm the administrative duty, record, or control described in the stem.

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