Property And Casualty Insurance License Commercial Lines Insurance 1

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 Property Coverage within a CPP covers direct physical loss to a business's buildings and business personal property.

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

An occurrence-based CGL policy is triggered when the actual bodily injury or property damage takes place, regardless of when the claim is filed.

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

Business income coverage reimburses a business for lost net income and continuing operating expenses when a covered peril forces a suspension of operations.

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

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.

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

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.

Property And Casualty Insurance License Practice Test

Property And Casualty Insurance License Practice Test

Property And Casualty Insurance License Commercial Lines Insurance 1