Property & Casualty Insurance License Test Commercial Lines Insurance Questions and Answers Flashcards
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Read the first 6 Property & Casualty Insurance License Test Commercial Lines Insurance Questions and Answers flashcards as text
A commercial umbrella policy is best described as which of the following?
Answer: Excess liability coverage that sits above underlying policies and fills coverage gaps
A commercial umbrella provides higher liability limits above the underlying CGL, auto, and employers' liability policies and may drop down to fill coverage gaps not covered by those underlying policies.
Which commercial fidelity bond covers an employer for losses caused by dishonest acts of employees who handle money or securities?
Answer: Employee dishonesty bond
An employee dishonesty bond (fidelity bond) protects an employer against theft, embezzlement, or fraud committed by its own employees.
Under a claims-made Commercial General Liability (CGL) form, a claim is covered only if which condition is met?
Answer: The claim is first made during the policy period, regardless of when the occurrence happened
A claims-made form triggers coverage when the claim is first made against the insured during the policy period, not necessarily when the underlying injury or damage occurred.
Employment Practices Liability Insurance (EPLI) protects employers against claims arising from which of the following?
Answer: Wrongful termination, discrimination, and sexual harassment by employees
EPLI covers employers against employment-related claims such as wrongful termination, workplace discrimination, sexual harassment, and retaliation lawsuits filed by current, former, or prospective employees.
Workers' Compensation insurance is primarily designed to provide which benefit to injured employees?
Answer: Medical expenses and lost wages regardless of fault
Workers' compensation provides a no-fault system that pays an injured employee's medical expenses and a portion of lost wages without requiring proof of employer negligence.
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?
Answer: Garage liability policy with garagekeepers coverage
A garage liability policy includes garagekeepers coverage, which protects auto dealers and service facilities from liability for damage to customers' vehicles left in their custody.