Property And Casualty Insurance License Commercial Lines Insurance

Question 1

Which commercial package policy (CPP) component provides coverage for physical damage to a business's own building and contents?

Accepted Answer

Commercial Property Coverage

Answer

Commercial General Liability

Answer

Commercial Auto Physical Damage

Answer

Business Income Coverage

Question 2

Under a Commercial General Liability (CGL) policy, 'occurrence' coverage is triggered by:

Accepted Answer

When the bodily injury or property damage occurs

Answer

When the claim is first reported to the insurer

Answer

When the policy is purchased

Answer

When the lawsuit is filed in court

Question 3

A business income coverage form is designed primarily to protect against:

Accepted Answer

Loss of net income when operations are suspended due to a covered peril

Answer

Theft of business inventory

Answer

Employee dishonesty

Answer

Product liability claims

Question 4

Which of the following best describes 'claims-made' coverage under a CGL policy?

Accepted Answer

Coverage applies when the claim is first made during the policy period, regardless of when the injury occurred

Answer

Coverage applies only if the injury occurs and the claim is filed in the same policy year

Answer

Coverage applies only to claims arising from products the business has sold

Answer

Coverage applies when the insurer pays the claim

Question 5

Under a commercial auto policy, 'hired and non-owned auto' coverage protects the business from liability arising from:

Accepted Answer

Vehicles rented or borrowed by the business, and employee-owned vehicles used for company business

Answer

Only vehicles owned and titled to the business

Answer

Only newly acquired company vehicles

Answer

Vehicles owned by company officers exclusively

Question 6

The 'each occurrence' limit in a CGL policy represents:

Accepted Answer

The maximum the insurer will pay for any single occurrence of bodily injury or property damage

Answer

The maximum the insurer will pay for all claims during the policy period

Answer

The deductible the insured must pay before coverage applies

Answer

The aggregate amount available for products liability only

Question 7

Which commercial coverage is specifically designed to cover losses caused by an employee stealing money or property from the employer?

Accepted Answer

Commercial Crime Coverage / Employee Dishonesty Bond

Answer

Commercial Property Coverage

Answer

Commercial Umbrella Policy

Answer

Employment Practices Liability