Casualty Insurance Basics Flashcards
6 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 6 Casualty Insurance Basics flashcards as text
What does a Commercial General Liability (CGL) policy primarily cover?
Answer: Third-party bodily injury and property damage claims arising from business operations
A CGL policy protects businesses against third-party claims for bodily injury, property damage, personal injury, and advertising injury arising from business operations.
Under a personal auto policy, which coverage pays for damage to the insured's own vehicle caused by a collision?
Answer: Collision
Collision coverage pays for damage to the insured's vehicle resulting from contact with another vehicle or object, regardless of fault.
Which coverage on a personal auto policy pays for injuries to others when the insured is at fault in an accident?
Answer: Bodily injury liability
Bodily injury liability coverage pays for injuries suffered by third parties when the insured driver is legally responsible for the accident.
What does 'uninsured motorist' (UM) coverage protect against?
Answer: Injuries to the insured caused by a driver who has no liability insurance
UM coverage compensates the insured for bodily injuries caused by a driver who carries no liability insurance or by a hit-and-run driver.
Workers' compensation insurance provides benefits for:
Answer: Job-related injuries and occupational diseases suffered by employees
Workers' compensation covers medical expenses, lost wages, and rehabilitation costs for employees who are injured or become ill as a result of their employment.
What is 'products liability' coverage designed to protect against?
Answer: Claims arising from bodily injury or property damage caused by the insured's product after it has been sold
Products liability covers the insured's legal liability for harm caused to third parties by a defective product they manufactured, distributed, or sold.