FREE Property & Casualty Insurance License Test Casualty Policy Types Questions and Answers

Question 1

Which type of casualty policy is designed to cover an employer's legal liability for injuries sustained by employees during the course of their employment, regardless of fault?

Accepted Answer

Workers' Compensation Policy

Answer

Commercial General Liability Policy

Answer

Professional Liability Policy

Answer

Business Owner's Policy

Question 2

A small business owner is concerned about potential lawsuits arising from a customer slipping and falling inside their store, or from product defects causing harm. Which casualty policy type would primarily address these types of risks?

Accepted Answer

Commercial General Liability (CGL) Policy

Answer

Commercial Property Policy

Answer

Business Auto Policy

Answer

Errors and Omissions (E&O) Policy

Question 3

What is the primary purpose of a Professional Liability policy, also known as Errors and Omissions (E&O) insurance?

Accepted Answer

To protect against claims of negligence or mistakes made in providing professional services.

Answer

To cover damage to the professional's business property.

Answer

To provide coverage for employee injuries occurring at the professional's office.

Answer

To insure the professional's vehicles used for business purposes.

Question 4

A Directors and Officers (D&O) Liability policy is primarily designed to protect:

Accepted Answer

The personal assets of corporate directors and officers against claims of wrongful acts in their managerial capacity.

Answer

The company's physical assets from theft or damage.

Answer

Employees from workplace injuries.

Answer

The company from general public liability claims.

Question 5

Which of the following best describes the coverage provided by a Personal Auto Policy's Liability section?

Accepted Answer

Coverage for bodily injury and property damage to others for which the insured is legally responsible.

Answer

Coverage for physical damage to the insured's own vehicle.

Answer

Coverage for medical expenses of the insured and their passengers, regardless of fault.

Answer

Coverage for theft of personal belongings from the insured's vehicle.

Question 6

A company requires a casualty policy to cover potential losses due to an employee's dishonest acts, such as embezzlement or theft of company funds. Which type of policy would be most appropriate?

Accepted Answer

Fidelity Bond

Answer

Commercial General Liability Policy

Answer

Commercial Property Policy

Answer

Cyber Liability Policy