Commercial Lines Insurance Flashcards
7 cards from real Property And Casualty Insurance License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Commercial Lines Insurance flashcards as text
Which commercial package policy (CPP) component provides coverage for physical damage to a business's own building and contents?
Answer: Commercial Property Coverage
Commercial Property Coverage within a CPP covers direct physical loss to a business's buildings and business personal property.
Under a Commercial General Liability (CGL) policy, 'occurrence' coverage is triggered by:
Answer: When the bodily injury or property damage occurs
An occurrence-based CGL policy is triggered when the actual bodily injury or property damage takes place, regardless of when the claim is filed.
A business income coverage form is designed primarily to protect against:
Answer: Loss of net income when operations are suspended due to a covered peril
Business income coverage reimburses a business for lost net income and continuing operating expenses when a covered peril forces a suspension of operations.
Which of the following best describes 'claims-made' coverage under a CGL policy?
Answer: Coverage applies when the claim is first made during the policy period, regardless of when the injury occurred
A claims-made CGL policy is triggered when the claim is first made against the insured during the active policy period, not necessarily when the incident occurred.
Under a commercial auto policy, 'hired and non-owned auto' coverage protects the business from liability arising from:
Answer: Vehicles rented or borrowed by the business, and employee-owned vehicles used for company business
Hired and non-owned auto (HNOA) coverage extends liability protection to rented, leased, or borrowed vehicles as well as employee vehicles used on company business.
The 'each occurrence' limit in a CGL policy represents:
Answer: The maximum the insurer will pay for any single occurrence of bodily injury or property damage
The each occurrence limit caps the insurer's payment for all bodily injury and property damage arising from a single occurrence or event.
Which commercial coverage is specifically designed to cover losses caused by an employee stealing money or property from the employer?
Answer: Commercial Crime Coverage / Employee Dishonesty Bond
Commercial crime coverage, including employee dishonesty bonds (fidelity bonds), specifically addresses losses caused by employee theft or fraud against the employer.