Property And Casualty Insurance License Casualty Insurance Basics

Question 1

What does a Commercial General Liability (CGL) policy primarily cover?

Accepted Answer

Third-party bodily injury and property damage claims arising from business operations

Answer

Property damage to the insured's business assets

Answer

Employee injuries on the job

Answer

Directors and officers liability

Question 2

Under a personal auto policy, which coverage pays for damage to the insured's own vehicle caused by a collision?

Accepted Answer

Collision

Answer

Liability

Answer

Comprehensive

Answer

Uninsured motorist

Question 3

Which coverage on a personal auto policy pays for injuries to others when the insured is at fault in an accident?

Accepted Answer

Bodily injury liability

Answer

Medical payments

Answer

Collision

Answer

Personal injury protection

Question 4

What does 'uninsured motorist' (UM) coverage protect against?

Accepted Answer

Injuries to the insured caused by a driver who has no liability insurance

Answer

Accidents caused by the insured while uninsured

Answer

Damage to the insured's vehicle from a hit-and-run

Answer

Medical expenses for the insured's passengers

Question 5

Workers' compensation insurance provides benefits for:

Accepted Answer

Job-related injuries and occupational diseases suffered by employees

Answer

Only fatal occupational injuries

Answer

Voluntary overtime injuries only

Answer

Injuries occurring outside of work hours

Question 6

What is 'products liability' coverage designed to protect against?

Accepted Answer

Claims arising from bodily injury or property damage caused by the insured's product after it has been sold

Answer

Damage to the insured's products in storage

Answer

The cost of recalling defective products

Answer

Theft of finished goods