Coverage and Exposures Exam UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
What is the purpose of Commercial General Liability (CGL) coverage? - CORRECT
ANSWER To protect a business from common legal liabilities.
What are the four pillars of CGL coverage? - CORRECT ANSWER The Risks
(Exposures), The Protections (Coverages), The Timing (Triggers), and The Financial Caps
(Limits).
What is meant by 'Premises Exposure' in CGL? - CORRECT ANSWER Liability for
injuries occurring at the business location.
What does 'Operations Exposure' refer to? - CORRECT ANSWER Liability for
damage caused while working away from the business premises.
Define 'Products Exposure' in the context of CGL. - CORRECT ANSWER Liability for
injuries caused by defective products sold by the business after they have left its control.
What is 'Completed Operations Exposure'? - CORRECT ANSWER Liability for
damages caused by faulty work after the job has been completed.
What is 'Contractual Liability'? - CORRECT ANSWER Liability assumed through a
legal agreement.
What does the acronym LEASE stand for in CGL? - CORRECT ANSWER Lease of
premises, Easement agreements, Agreements to indemnify a municipality, Sidetrack
agreements with railroads, Elevator maintenance agreements.