CPCU 552 CP&L FINAL EXAM
2026 EXAM QUESTIONS AND
ANSWERS | 100% PASS
Railroad owners commonly require contractors to purchase a Railroad
Protective Liability Coverage Form. Which one of the following statements
about this form is true? - 🧠ANSWER ✔✔One of the coverage limits applies
to physical damage to property owned by or leased or entrusted to the
railroad
,Which one of the following statements about the general aggregate limit
under a Commercial General Liability (CGL) Coverage Form is true? -
🧠ANSWER ✔✔It is reduced by an claims paid for medical payments under
Coverage C.
Tom often runs errands for his boss at XYZ Company, using the boss' car.
On one of these errands, Tom is involved in a serious auto accident. He
spends a couple of weeks in the hospital; misses four weeks of work; and
must undergo physical therapy. Does XYZ's Workers Compensation and
Employers Liability Insurance (WC&EL) Policy cover Tom's injuries, lost
income, and rehabilitation expenses? - 🧠ANSWER ✔✔Yes, the workers
compensation policy would pay all of Tom's expenses, because his injuries
arose out of his employment at XYZ Company.
Aircraft have a significant exposure to catastrophe losses. Of the many
reasons for the catastrophic loss potential of aircraft, the most significant is
- 🧠ANSWER ✔✔The physical properties of aircraft.
A security guard is employed at a pier where shipping containers are
loaded and unloaded from barges. There is also a small marina for
pleasure craft at the pier. The security guard trips over equipment left on a
dock alongside a pleasure craft and is injured. The pier only has insurance
,coverage that provides benefits under the Longshore and Harbor Workers
Compensation Act (LHWCA). Is the guard's injury covered under LHWCA?
- 🧠ANSWER ✔✔The injury is covered by LHWCA because the guard is not
covered under a state's workers compensation law.
ABC Plumbing entered into a contract with Bill to install a commercial grade
septic system on his property. The installation of the septic septic was time
sensitive because the rest of Bill's construction project could not go forward
until the septic system was in place. The contract required that the work be
done within 30 days of contract signing, or ABC would have to pay a
penalty of $1,000 per day. Which one of the following categories of
damages does the $1,000 per day penalty specified in the contract fall
into? - 🧠ANSWER ✔✔Liquidated damages
Many states have funds from which employers may purchase workers
compensation insurance. Such funds may be either - 🧠ANSWER
✔✔Competitive or monopolistic
Section II—Who Is an Insured identifies the persons and organizations that
qualify as insureds under the Commercial General Liability (CGL)
Coverage Form. Which one of the following statements regarding who is
considered an insured is most accurate? - 🧠ANSWER ✔✔When a CGL
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, policy covers one or more individuals as named insureds, any person or
organization having proper temporary custody of the named insured's
property following the named insured's death is an insured.
What is the name given to a claim by an employee who says that he or she
was fired because of the filing of a workers compensation claim? -
🧠ANSWER ✔✔Retaliation claim
Javier's business auto policy contains a personal injury protection (PIP)
endorsement. He is involved in an auto accident in the covered auto,
resulting in $30,000 in property damage, $5,000 in third-party bodily injury,
and $10,000 in personal medical expenses. If Javier's business auto policy
has a general aggregate limit of $100,000 and a PIP limit of $15,000 and
he is at fault for the accident, how much will his insurer pay under the PIP
coverage - 🧠ANSWER ✔✔PIP provides first-party benefits for medical
expenses, loss of income, loss of services, and funeral expenses resulting
from bodily injury to occupants of a covered auto because of an auto
accident. It pays regardless of which party was at fault in the accident.
Therefore, Javier's insurer will pay him $10,000 in medical expenses from
the PIP coverage. The other damages will be payable under different
coverages available on his policy.
2026 EXAM QUESTIONS AND
ANSWERS | 100% PASS
Railroad owners commonly require contractors to purchase a Railroad
Protective Liability Coverage Form. Which one of the following statements
about this form is true? - 🧠ANSWER ✔✔One of the coverage limits applies
to physical damage to property owned by or leased or entrusted to the
railroad
,Which one of the following statements about the general aggregate limit
under a Commercial General Liability (CGL) Coverage Form is true? -
🧠ANSWER ✔✔It is reduced by an claims paid for medical payments under
Coverage C.
Tom often runs errands for his boss at XYZ Company, using the boss' car.
On one of these errands, Tom is involved in a serious auto accident. He
spends a couple of weeks in the hospital; misses four weeks of work; and
must undergo physical therapy. Does XYZ's Workers Compensation and
Employers Liability Insurance (WC&EL) Policy cover Tom's injuries, lost
income, and rehabilitation expenses? - 🧠ANSWER ✔✔Yes, the workers
compensation policy would pay all of Tom's expenses, because his injuries
arose out of his employment at XYZ Company.
Aircraft have a significant exposure to catastrophe losses. Of the many
reasons for the catastrophic loss potential of aircraft, the most significant is
- 🧠ANSWER ✔✔The physical properties of aircraft.
A security guard is employed at a pier where shipping containers are
loaded and unloaded from barges. There is also a small marina for
pleasure craft at the pier. The security guard trips over equipment left on a
dock alongside a pleasure craft and is injured. The pier only has insurance
,coverage that provides benefits under the Longshore and Harbor Workers
Compensation Act (LHWCA). Is the guard's injury covered under LHWCA?
- 🧠ANSWER ✔✔The injury is covered by LHWCA because the guard is not
covered under a state's workers compensation law.
ABC Plumbing entered into a contract with Bill to install a commercial grade
septic system on his property. The installation of the septic septic was time
sensitive because the rest of Bill's construction project could not go forward
until the septic system was in place. The contract required that the work be
done within 30 days of contract signing, or ABC would have to pay a
penalty of $1,000 per day. Which one of the following categories of
damages does the $1,000 per day penalty specified in the contract fall
into? - 🧠ANSWER ✔✔Liquidated damages
Many states have funds from which employers may purchase workers
compensation insurance. Such funds may be either - 🧠ANSWER
✔✔Competitive or monopolistic
Section II—Who Is an Insured identifies the persons and organizations that
qualify as insureds under the Commercial General Liability (CGL)
Coverage Form. Which one of the following statements regarding who is
considered an insured is most accurate? - 🧠ANSWER ✔✔When a CGL
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, policy covers one or more individuals as named insureds, any person or
organization having proper temporary custody of the named insured's
property following the named insured's death is an insured.
What is the name given to a claim by an employee who says that he or she
was fired because of the filing of a workers compensation claim? -
🧠ANSWER ✔✔Retaliation claim
Javier's business auto policy contains a personal injury protection (PIP)
endorsement. He is involved in an auto accident in the covered auto,
resulting in $30,000 in property damage, $5,000 in third-party bodily injury,
and $10,000 in personal medical expenses. If Javier's business auto policy
has a general aggregate limit of $100,000 and a PIP limit of $15,000 and
he is at fault for the accident, how much will his insurer pay under the PIP
coverage - 🧠ANSWER ✔✔PIP provides first-party benefits for medical
expenses, loss of income, loss of services, and funeral expenses resulting
from bodily injury to occupants of a covered auto because of an auto
accident. It pays regardless of which party was at fault in the accident.
Therefore, Javier's insurer will pay him $10,000 in medical expenses from
the PIP coverage. The other damages will be payable under different
coverages available on his policy.
