Property And Casualty Insurance License Commercial Lines Insurance 3

Question 1

A CGL policy's 'medical payments' coverage differs from bodily injury liability coverage primarily because:

Accepted Answer

Medical payments coverage pays regardless of fault and does not require a lawsuit

Answer

Medical payments coverage requires proof of negligence by the insured

Answer

Medical payments coverage only applies to employees of the insured

Answer

Medical payments coverage has a higher per-occurrence limit

Question 2

Under commercial property coverage, 'coinsurance' requires the insured to:

Accepted Answer

Insure the property to a specified percentage (e.g., 80%) of its replacement cost or face a penalty at loss

Answer

Purchase a deductible equal to at least 10% of the property value

Answer

Share all claims equally with the insurer

Answer

Pay premiums based on actual cash value, not replacement cost

Question 3

Which of the following best describes 'extra expense' coverage in a commercial property context?

Accepted Answer

Coverage for additional costs incurred to continue or expedite operations after a covered loss

Answer

Coverage for additional liability claims during a loss event

Answer

Coverage for the extra cost of rebuilding with upgraded materials

Answer

Coverage for overtime pay to employees during a reconstruction period

Question 4

Under a commercial general liability policy, 'personal and advertising injury' coverage protects the insured from claims such as:

Accepted Answer

Libel, slander, copyright infringement in advertising, and false arrest

Answer

Physical injuries caused by defective products

Answer

Bodily injury claims from slip-and-fall accidents on premises

Answer

Workers' compensation claims from employees

Question 5

A garage liability policy is specifically designed for:

Accepted Answer

Auto dealers and service operations such as repair shops to cover their garage operations and customer vehicles in their care

Answer

Businesses that store automobiles in a parking garage

Answer

Trucking companies transporting vehicles across state lines

Answer

Personal auto owners who store cars in rented garage space

Question 6

Under the commercial auto coverage symbol '1' (Any Auto), which vehicles are covered?

Accepted Answer

All vehicles, including owned, hired, borrowed, and non-owned autos

Answer

Only vehicles owned by the named insured

Answer

Only hired and non-owned vehicles

Answer

Only scheduled vehicles listed on the policy declarations

Question 7

The 'retroactive date' on a claims-made CGL policy:

Accepted Answer

Sets the earliest date from which occurrences will be covered under the claims-made form

Answer

Indicates when the policy expires and new coverage must be purchased

Answer

Determines when the insurer must acknowledge receipt of a claim

Answer

Specifies the date the aggregate limit resets each year