Property & Casualty Insurance License Test Property & Casualty Insurance License Test Commercial Lines Insurance Questions and Answers 2

Question 1

A commercial umbrella policy is best described as which of the following?

Accepted Answer

Excess liability coverage that sits above underlying policies and fills coverage gaps

Answer

A commercial umbrella provides higher liability limits above the underlying CGL, auto, and employers' liability policies and may drop down to fill coverage gaps not covered by those underlying policies.

Question 2

Which commercial fidelity bond covers an employer for losses caused by dishonest acts of employees who handle money or securities?

Accepted Answer

Employee dishonesty bond

Answer

An employee dishonesty bond (fidelity bond) protects an employer against theft, embezzlement, or fraud committed by its own employees.

Question 3

Under a claims-made Commercial General Liability (CGL) form, a claim is covered only if which condition is met?

Accepted Answer

The claim is first made during the policy period, regardless of when the occurrence happened

Answer

A claims-made form triggers coverage when the claim is first made against the insured during the policy period, not necessarily when the underlying injury or damage occurred.

Question 4

Employment Practices Liability Insurance (EPLI) protects employers against claims arising from which of the following?

Accepted Answer

Wrongful termination, discrimination, and sexual harassment by employees

Answer

EPLI covers employers against employment-related claims such as wrongful termination, workplace discrimination, sexual harassment, and retaliation lawsuits filed by current, former, or prospective employees.

Question 5

Workers' Compensation insurance is primarily designed to provide which benefit to injured employees?

Accepted Answer

Medical expenses and lost wages regardless of fault

Answer

Workers' compensation provides a no-fault system that pays an injured employee's medical expenses and a portion of lost wages without requiring proof of employer negligence.

Property & Casualty Insurance License Test Practice Test

Property & Casualty Insurance License Test Practice Test

Property & Casualty Insurance License Test Property & Casualty Insurance License Test Commercial Lines Insurance Questions and Answers 2