Commercial General Liability (CGL) Exam
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Personal injury is covered, if at all, under which part of the commercial general liability
policy?
Coverage B
Personal injury is not covered under the commercial general liability policy.
Coverage A
Coverage C - CORRECT ANSWER Coverage B
All of the following types of exposures are covered by the CGL policy, EXCEPT:
products liability
contractual liability
premises liability
professional liability - CORRECT ANSWER professional liability
How many coverage sections are there in a commercial general liability (CGL) policy?
Seven
Four
Three
Two - CORRECT ANSWER Three
Mitch is an adjuster who must inform a policyholder, Bob, that his CGL policy doesn't cover
a claim. Bob's claim involves a customer who claims injury from an advertising brochure that
Bob published. What coverage will Mitch discuss with Bob?
,Part D
Part A
Part C
Part B - CORRECT ANSWER Part B
A customer of the Perky Coffee Shop breaks his tooth on a bagel he bought at the shop. The
injury occurred at the customer's home. The customer's resulting claim against Perky is an
example of a
contractual liability loss.
premises and operations liability loss.
completed operations liability loss.
products liability loss. - CORRECT ANSWER products liability loss
The commercial general liability (CGL) policy contains three coverage sections. Which of the
following is not one of those sections?
Part A-Liability (bodily injury liability)
Part B-Personal and Advertising Injury Liability
Part A-Liability (bodily injury and property damage liability)
Part C-Medical Payments - CORRECT ANSWER Part A-Liability (bodily injury
liability)
Advertising injury is covered, if at all, under which part of the commercial general liability
policy?
Personal injury is not covered under the commercial general liability policy.
Coverage C
Coverage B
,Coverage A - CORRECT ANSWER Coverage B
A customer of the Perky Coffee Shop slips on a wet floor that has just been mopped and
breaks an ankle. The customer's resulting claim against Perky is an example of a
products liability loss.
contractual liability loss.
completed operations liability loss.
premises and operations liability loss. - CORRECT ANSWER premises and operations
liability loss.
When Leona rents the storefront space to open a store, she signs a lease in which she assumes
responsibility for liability to anybody who is injured inside her store, even if the injury is her
landlord's fault. What kind of general liability exposure that she would not otherwise have
does Leona assume as a result of this lease?
Premises and operations liability
Contractual liability
Independent contractor liability
Products and completed operations liability - CORRECT ANSWER Contractual
liability
The property, circumstances, activities, and events that can give rise to an insured loss are
called
loss exposures
mistakes
accidents
violations - CORRECT ANSWER loss exposures
, Personal injury is covered, if at all, under which part of the commercial general liability
policy?
Coverage A
Personal injury is not covered under the commercial general liability policy.
Coverage C
Coverage B - CORRECT ANSWER Coverage B
When Leona rents the storefront space to open a store, she signs a lease in which she assumes
responsibility for liability to anybody who is injured inside her store, even if the injury is her
landlord's fault. What kind of general liability exposure that she would not otherwise have
does Leona assume as a result of this lease?
Contractual liability
Products and completed operations liability
Premises and operations liability
Independent contractor liability - CORRECT ANSWER Contractual liability
Evidence points to Zeta Construction's negligence as the cause of a stage collapse that
resulted in the death of Bonita, a famous performer. Zeta Construction's commercial general
liability (CGL) policy with Alpha Insurance Company has limits of $300,000 that would
apply to the multimillion dollar claim of Bonita's estate. Under the circumstances,
Alpha's obligations can be discharged only by a final court judgment.
Alpha should seek a declaratory judgment to determine whether it has an obligation to defend
Zeta.
Alpha has a duty to defend Zeta until Alpha has paid $300,000 in judgments or reached a
settlement.
Alpha may conclude its obligations by immediately paying $300,000 to Bonita's estate. -
CORRECT ANSWER Alpha has a duty to defend Zeta until Alpha has paid $300,000
in judgments or reached a settlement.
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Personal injury is covered, if at all, under which part of the commercial general liability
policy?
Coverage B
Personal injury is not covered under the commercial general liability policy.
Coverage A
Coverage C - CORRECT ANSWER Coverage B
All of the following types of exposures are covered by the CGL policy, EXCEPT:
products liability
contractual liability
premises liability
professional liability - CORRECT ANSWER professional liability
How many coverage sections are there in a commercial general liability (CGL) policy?
Seven
Four
Three
Two - CORRECT ANSWER Three
Mitch is an adjuster who must inform a policyholder, Bob, that his CGL policy doesn't cover
a claim. Bob's claim involves a customer who claims injury from an advertising brochure that
Bob published. What coverage will Mitch discuss with Bob?
,Part D
Part A
Part C
Part B - CORRECT ANSWER Part B
A customer of the Perky Coffee Shop breaks his tooth on a bagel he bought at the shop. The
injury occurred at the customer's home. The customer's resulting claim against Perky is an
example of a
contractual liability loss.
premises and operations liability loss.
completed operations liability loss.
products liability loss. - CORRECT ANSWER products liability loss
The commercial general liability (CGL) policy contains three coverage sections. Which of the
following is not one of those sections?
Part A-Liability (bodily injury liability)
Part B-Personal and Advertising Injury Liability
Part A-Liability (bodily injury and property damage liability)
Part C-Medical Payments - CORRECT ANSWER Part A-Liability (bodily injury
liability)
Advertising injury is covered, if at all, under which part of the commercial general liability
policy?
Personal injury is not covered under the commercial general liability policy.
Coverage C
Coverage B
,Coverage A - CORRECT ANSWER Coverage B
A customer of the Perky Coffee Shop slips on a wet floor that has just been mopped and
breaks an ankle. The customer's resulting claim against Perky is an example of a
products liability loss.
contractual liability loss.
completed operations liability loss.
premises and operations liability loss. - CORRECT ANSWER premises and operations
liability loss.
When Leona rents the storefront space to open a store, she signs a lease in which she assumes
responsibility for liability to anybody who is injured inside her store, even if the injury is her
landlord's fault. What kind of general liability exposure that she would not otherwise have
does Leona assume as a result of this lease?
Premises and operations liability
Contractual liability
Independent contractor liability
Products and completed operations liability - CORRECT ANSWER Contractual
liability
The property, circumstances, activities, and events that can give rise to an insured loss are
called
loss exposures
mistakes
accidents
violations - CORRECT ANSWER loss exposures
, Personal injury is covered, if at all, under which part of the commercial general liability
policy?
Coverage A
Personal injury is not covered under the commercial general liability policy.
Coverage C
Coverage B - CORRECT ANSWER Coverage B
When Leona rents the storefront space to open a store, she signs a lease in which she assumes
responsibility for liability to anybody who is injured inside her store, even if the injury is her
landlord's fault. What kind of general liability exposure that she would not otherwise have
does Leona assume as a result of this lease?
Contractual liability
Products and completed operations liability
Premises and operations liability
Independent contractor liability - CORRECT ANSWER Contractual liability
Evidence points to Zeta Construction's negligence as the cause of a stage collapse that
resulted in the death of Bonita, a famous performer. Zeta Construction's commercial general
liability (CGL) policy with Alpha Insurance Company has limits of $300,000 that would
apply to the multimillion dollar claim of Bonita's estate. Under the circumstances,
Alpha's obligations can be discharged only by a final court judgment.
Alpha should seek a declaratory judgment to determine whether it has an obligation to defend
Zeta.
Alpha has a duty to defend Zeta until Alpha has paid $300,000 in judgments or reached a
settlement.
Alpha may conclude its obligations by immediately paying $300,000 to Bonita's estate. -
CORRECT ANSWER Alpha has a duty to defend Zeta until Alpha has paid $300,000
in judgments or reached a settlement.
