Property & Casualty Insurance License Test Property & Casualty Insurance License Test Commercial Lines Insurance Questions and Answers 2

Question 1

A commercial umbrella policy is best described as which of the following?

Accepted Answer

Excess liability coverage that sits above underlying policies and fills coverage gaps

Answer

A replacement for the primary CGL policy when limits are exhausted

Answer

A property policy that covers catastrophic losses only

Answer

A workers' compensation excess policy

Question 2

Which commercial fidelity bond covers an employer for losses caused by dishonest acts of employees who handle money or securities?

Accepted Answer

Employee dishonesty bond

Answer

Performance bond

Answer

License and permit bond

Answer

Judicial bond

Question 3

Under a claims-made Commercial General Liability (CGL) form, a claim is covered only if which condition is met?

Accepted Answer

The claim is first made during the policy period, regardless of when the occurrence happened

Answer

The occurrence and the claim both happen during the policy period

Answer

The occurrence happens before the policy inception date

Answer

The claim is reported within 30 days of the occurrence

Question 4

Employment Practices Liability Insurance (EPLI) protects employers against claims arising from which of the following?

Accepted Answer

Wrongful termination, discrimination, and sexual harassment by employees

Answer

On-the-job physical injuries sustained by workers

Answer

Property damage caused by employee negligence

Answer

Automobile accidents during employee commutes

Question 5

Workers' Compensation insurance is primarily designed to provide which benefit to injured employees?

Accepted Answer

Medical expenses and lost wages regardless of fault

Answer

Pain and suffering damages after a negligence determination

Answer

Property replacement for tools damaged on the job

Answer

Unemployment benefits after a work-related layoff

Question 6

Which commercial policy form is specifically designed to cover the legal liability of automobile dealers, service stations, and parking garages for customer vehicles in their care?

Accepted Answer

Garage liability policy with garagekeepers coverage

Answer

Commercial auto policy with hired and non-owned coverage

Answer

Business auto policy with symbol 7 designation

Answer

Commercial general liability policy with auto endorsement