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

A CGL policy protects businesses against third-party claims for bodily injury, property damage, personal injury, and advertising injury arising from business operations.

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

Collision coverage pays for damage to the insured's vehicle resulting from contact with another vehicle or object, regardless of fault.

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

Bodily injury liability coverage pays for injuries suffered by third parties when the insured driver is legally responsible for the accident.

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

UM coverage compensates the insured for bodily injuries caused by a driver who carries no liability insurance or by a hit-and-run driver.

Question 5

Workers' compensation insurance provides benefits for:

Accepted Answer

Job-related injuries and occupational diseases suffered by employees

Answer

Workers' compensation covers medical expenses, lost wages, and rehabilitation costs for employees who are injured or become ill as a result of their employment.

Property And Casualty Insurance License Practice Test

Property And Casualty Insurance License Practice Test

Property And Casualty Insurance License Casualty Insurance Basics