Property & Casualty Insurance Practice Test
P&C Insurance Commercial Liability & Workers Comp Practice Questions
Commercial Liability & Workers Comp makes up 6 of every 50 questions on a Tigertest P&C Insurance practice test. Here are 10 of the 24 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on the general (national) portion of the property and casualty producer exam outlines. State laws and the state portion are not covered.
1. Coverage A of the Commercial General Liability policy pays for:
- A.Workers compensation benefits
- B.Bodily injury and property damage
- C.Medical payments without regard to fault
- D.Personal and advertising injury
Answer: B. Coverage A is the core liability coverage for premises, operations, products and completed operations. Personal and advertising injury is Coverage B.
2. Coverage B of the CGL covers:
- A.Injury to employees
- B.Damage to rented premises from fire
- C.Property damage to the insured's own work
- D.Personal and advertising injury
Answer: D. Coverage B responds to listed offenses such as libel, slander, false arrest and copyright infringement in an advertisement, rather than accidents. Fire damage to rented premises is covered under Coverage A.
3. Coverage C, Medical Payments, of the CGL pays:
- A.Visitors' medical bills regardless of fault
- B.Injuries to the insured's employees
- C.Expenses only after liability is established
- D.The insured's own medical costs
Answer: A. Coverage C is a goodwill coverage for members of the public injured on the premises or by operations, paid without regard to fault or a lawsuit if reported within one year. Employees and the insured are excluded.
4. Under the CGL supplementary payments, the insurer pays the insured's loss of earnings for attending trials at the insurer's request up to:
- A.$100 per day
- B.$200 per day
- C.$250 per day
- D.$500 per day
Answer: C. The CGL allows $250 per day, paid in addition to the limits. The PAP figure is $200 per day.
5. Under the CGL, an 'occurrence' is:
- A.A claim filed with the insurer
- B.Intentional conduct that results in injury
- C.An accident, including gradual exposure
- D.A written demand for damages
Answer: C. Occurrence means an accident, including continuous or repeated exposure to substantially the same general harmful conditions, so a slow leak counts as well as a sudden accident. Expected or intended injury is excluded.
6. Under an occurrence form CGL, coverage is triggered by:
- A.Injury or damage during the policy period
- B.The date suit is filed against the insured
- C.The date the claim is first made
- D.The date the insured reports the claim
Answer: A. An occurrence policy covers injury taking place during its term even if the claim arrives years later. The claims-made form keys on when the claim is first made.
7. Under a claims-made CGL, a claim is covered only if the injury occurred:
- A.Before the retroactive date
- B.At any time, as long as it is reported
- C.Within 60 days after expiration, with no other condition
- D.On or after the retroactive date
Answer: D. The retroactive date sets the earliest injury date covered, and the claim must be made during the policy period or an extended reporting period.
8. The basic extended reporting period (tail) under a claims-made CGL is provided:
- A.Only if purchased within 30 days
- B.Automatically, at no charge
- C.Only for premises claims
- D.Never; all tails must be bought
Answer: B. The basic tail is provided automatically at no additional charge when the policy is canceled or replaced: 60 days, plus five years for occurrences reported within those 60 days. The supplemental tail is unlimited and must be purchased.
9. The CGL general aggregate limit is:
- A.The limit that applies only to Coverage A
- B.The yearly cap on Coverage A, B and C claims
- C.A limit that resets after each covered claim
- D.The most paid for any one occurrence
Answer: B. The general aggregate caps total payments for all Coverage A, B and C claims during the policy period, with a separate products-completed operations aggregate. Each occurrence has its own per-occurrence limit.
10. A customer is injured by a ladder the insured sold six months earlier. Under the CGL this claim falls under:
- A.Personal and advertising injury
- B.Premises and ongoing operations
- C.Contractual liability
- D.Products-completed operations
Answer: D. Injury away from the premises arising from the insured's product after it leaves the insured's hands is products liability. Premises and operations covers injuries on the premises or during ongoing work.
Practice all 24 commercial liability & workers comp questions, and the rest of the 200-question bank, in the free P&C Insurance training sets. Questions you miss come back until you have mastered them.
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