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
A CGL policy's 'medical payments' coverage differs from bodily injury liability coverage primarily because:
Answer: Medical payments coverage pays regardless of fault and does not require a lawsuit
Medical payments under a CGL policy are paid on a no-fault basis to third parties injured on the insured's premises, without requiring proof of the insured's negligence.
Under commercial property coverage, 'coinsurance' requires the insured to:
Answer: Insure the property to a specified percentage (e.g., 80%) of its replacement cost or face a penalty at loss
Coinsurance clauses penalize policyholders who insure property for less than the required percentage of value by reducing claim payments proportionally.
Which of the following best describes 'extra expense' coverage in a commercial property context?
Answer: Coverage for additional costs incurred to continue or expedite operations after a covered loss
Extra expense coverage pays for additional costs beyond normal operating expenses that allow the business to continue operations or resume them more quickly after a covered loss.
Under a commercial general liability policy, 'personal and advertising injury' coverage protects the insured from claims such as:
Answer: Libel, slander, copyright infringement in advertising, and false arrest
Personal and advertising injury coverage in a CGL addresses offenses such as libel, slander, defamation, malicious prosecution, copyright infringement in advertising, and wrongful eviction.
A garage liability policy is specifically designed for:
Answer: Auto dealers and service operations such as repair shops to cover their garage operations and customer vehicles in their care
Garage liability policies cover the unique needs of auto dealers, service stations, and repair shops, including liability for their operations and coverage for customer vehicles in their care, custody, or control.
Under the commercial auto coverage symbol '1' (Any Auto), which vehicles are covered?
Answer: All vehicles, including owned, hired, borrowed, and non-owned autos
Symbol 1 provides the broadest commercial auto coverage by covering any auto the insured owns, hires, borrows, or that is not owned but used in the business.
The 'retroactive date' on a claims-made CGL policy:
Answer: Sets the earliest date from which occurrences will be covered under the claims-made form
The retroactive date on a claims-made policy establishes the earliest date an injury or damage must have occurred for the resulting claim to be covered; incidents before this date are excluded.