CIC Commercial Casualty Institute
Exam ACTUAL EXAM 2026/2027 |
Practice Test | Newest Actual Exam |
Verified | Curriculum | Verified Q&A |
Pass Guaranteed - A+ Graded
DOMAIN 1: COMMERCIAL GENERAL LIABILITY (CGL)
COVERAGE (45 Questions)
Q1: Under the standard ISO CGL policy (CG 00 01), defense costs are:
● A. Covered in addition to the limits of insurance
● B. Covered within the limits of insurance (inside limits) [CORRECT]
● C. Not covered under the CGL policy
● D. Covered only if a separate defense endorsement is purchased
Rationale: Under the standard ISO CGL policy (CG 00 01), defense costs are covered within
(inside) the applicable limits of insurance. This means that defense costs erode the policy limit
available for settlement.
,CIC Note: This is a key distinction from many professional liability policies where defense costs are
often in addition to limits. Always check whether defense is "inside" or "outside" limits on casualty
exams.
Q2: A contractor completes a roofing job on a commercial building. Six months later, the roof leaks
causing water damage to the interior. The building owner sues the contractor. Which CGL
coverage part applies?
● A. Coverage A (Bodily Injury and Property Damage) – Products-Completed Operations
Hazard [CORRECT]
● B. Coverage A – Premises and Operations Hazard
● C. Coverage B (Personal and Advertising Injury)
● D. Coverage C (Medical Payments)
Rationale: The claim arises from completed work (the roofing job) that was completed 6 months
ago. This falls under the Products-Completed Operations Hazard, which is part of Coverage A.
Premises and Operations Hazard (B) applies to ongoing operations.
CIC Note: Completed operations claims are subject to a separate aggregate limit
(Products-Completed Operations Aggregate Limit), distinct from the General Aggregate Limit.
Q3: Which of the following is NOT included in the definition of "personal injury" under Coverage B
of the CGL policy?
● A. False arrest, detention, or imprisonment
● B. Malicious prosecution
● C. Libel or slander
● D. Bodily injury [CORRECT]
,Rationale: "Personal injury" under Coverage B specifically excludes bodily injury, which is covered
under Coverage A. Personal injury includes non-physical harms such as false arrest, malicious
prosecution, wrongful eviction, libel, slander, and invasion of privacy.
CIC Note: This is a common exam trap—many candidates confuse "personal injury" (intangible
harms to reputation/rights) with "bodily injury" (physical harm).
Q4: Under the CGL policy, the definition of "occurrence" is:
● A. An accident that results in bodily injury or property damage during the policy period
● B. An accident, including continuous or repeated exposure to substantially the same
general harmful conditions [CORRECT]
● C. Any negligent act committed by the insured
● D. A claim first made against the insured during the policy period
Rationale: The CGL policy (CG 00 01) defines "occurrence" as "an accident, including continuous
or repeated exposure to substantially the same general harmful conditions." This definition is
critical because CGL is occurrence-triggered, not claims-made.
CIC Note: The "continuous or repeated exposure" language allows coverage for gradual harm (like
toxic exposure over time) as long as the damage occurs during the policy period.
Q5: Which of the following is NOT an exclusion under Coverage A of the CGL policy?
● A. Expected or intended injury
● B. Contractual liability
● C. Liquor liability for businesses in the business of selling alcohol
● D. Fire damage to premises rented to the insured [CORRECT]
, Rationale: Fire damage to premises rented to the insured is actually a covered peril under
Coverage A, subject to a specific Fire Damage Limit. The other options (A, B, C) are all standard
exclusions under Coverage A.
CIC Note: The Fire Damage Limit is a separate sublimit that applies only to fire damage to premises
rented to the insured—know this limit for calculation questions.
Q6: A retail store customer slips and falls on the premises, breaking their arm. The store pays
$5,000 for the customer's immediate medical expenses without admitting liability. This payment is
made under:
● A. Coverage A – Bodily Injury Liability
● B. Coverage C – Medical Payments [CORRECT]
● C. Supplementary Payments
● D. Coverage B – Personal Injury
Rationale: Coverage C (Medical Payments) provides no-fault coverage for medical expenses
incurred by others who are injured on the insured's premises or by the insured's operations,
regardless of negligence. Payments are made without admission of liability.
CIC Note: Medical Payments is limited to "medical expenses" only—no coverage for pain and
suffering, lost wages, or other damages. Also note the per-person limit applies.
Q7: The standard ISO CGL policy uses which type of trigger?
● A. Claims-made trigger
● B. Occurrence trigger [CORRECT]
● C. Claims-made and reported trigger
● D. Discovery trigger
Exam ACTUAL EXAM 2026/2027 |
Practice Test | Newest Actual Exam |
Verified | Curriculum | Verified Q&A |
Pass Guaranteed - A+ Graded
DOMAIN 1: COMMERCIAL GENERAL LIABILITY (CGL)
COVERAGE (45 Questions)
Q1: Under the standard ISO CGL policy (CG 00 01), defense costs are:
● A. Covered in addition to the limits of insurance
● B. Covered within the limits of insurance (inside limits) [CORRECT]
● C. Not covered under the CGL policy
● D. Covered only if a separate defense endorsement is purchased
Rationale: Under the standard ISO CGL policy (CG 00 01), defense costs are covered within
(inside) the applicable limits of insurance. This means that defense costs erode the policy limit
available for settlement.
,CIC Note: This is a key distinction from many professional liability policies where defense costs are
often in addition to limits. Always check whether defense is "inside" or "outside" limits on casualty
exams.
Q2: A contractor completes a roofing job on a commercial building. Six months later, the roof leaks
causing water damage to the interior. The building owner sues the contractor. Which CGL
coverage part applies?
● A. Coverage A (Bodily Injury and Property Damage) – Products-Completed Operations
Hazard [CORRECT]
● B. Coverage A – Premises and Operations Hazard
● C. Coverage B (Personal and Advertising Injury)
● D. Coverage C (Medical Payments)
Rationale: The claim arises from completed work (the roofing job) that was completed 6 months
ago. This falls under the Products-Completed Operations Hazard, which is part of Coverage A.
Premises and Operations Hazard (B) applies to ongoing operations.
CIC Note: Completed operations claims are subject to a separate aggregate limit
(Products-Completed Operations Aggregate Limit), distinct from the General Aggregate Limit.
Q3: Which of the following is NOT included in the definition of "personal injury" under Coverage B
of the CGL policy?
● A. False arrest, detention, or imprisonment
● B. Malicious prosecution
● C. Libel or slander
● D. Bodily injury [CORRECT]
,Rationale: "Personal injury" under Coverage B specifically excludes bodily injury, which is covered
under Coverage A. Personal injury includes non-physical harms such as false arrest, malicious
prosecution, wrongful eviction, libel, slander, and invasion of privacy.
CIC Note: This is a common exam trap—many candidates confuse "personal injury" (intangible
harms to reputation/rights) with "bodily injury" (physical harm).
Q4: Under the CGL policy, the definition of "occurrence" is:
● A. An accident that results in bodily injury or property damage during the policy period
● B. An accident, including continuous or repeated exposure to substantially the same
general harmful conditions [CORRECT]
● C. Any negligent act committed by the insured
● D. A claim first made against the insured during the policy period
Rationale: The CGL policy (CG 00 01) defines "occurrence" as "an accident, including continuous
or repeated exposure to substantially the same general harmful conditions." This definition is
critical because CGL is occurrence-triggered, not claims-made.
CIC Note: The "continuous or repeated exposure" language allows coverage for gradual harm (like
toxic exposure over time) as long as the damage occurs during the policy period.
Q5: Which of the following is NOT an exclusion under Coverage A of the CGL policy?
● A. Expected or intended injury
● B. Contractual liability
● C. Liquor liability for businesses in the business of selling alcohol
● D. Fire damage to premises rented to the insured [CORRECT]
, Rationale: Fire damage to premises rented to the insured is actually a covered peril under
Coverage A, subject to a specific Fire Damage Limit. The other options (A, B, C) are all standard
exclusions under Coverage A.
CIC Note: The Fire Damage Limit is a separate sublimit that applies only to fire damage to premises
rented to the insured—know this limit for calculation questions.
Q6: A retail store customer slips and falls on the premises, breaking their arm. The store pays
$5,000 for the customer's immediate medical expenses without admitting liability. This payment is
made under:
● A. Coverage A – Bodily Injury Liability
● B. Coverage C – Medical Payments [CORRECT]
● C. Supplementary Payments
● D. Coverage B – Personal Injury
Rationale: Coverage C (Medical Payments) provides no-fault coverage for medical expenses
incurred by others who are injured on the insured's premises or by the insured's operations,
regardless of negligence. Payments are made without admission of liability.
CIC Note: Medical Payments is limited to "medical expenses" only—no coverage for pain and
suffering, lost wages, or other damages. Also note the per-person limit applies.
Q7: The standard ISO CGL policy uses which type of trigger?
● A. Claims-made trigger
● B. Occurrence trigger [CORRECT]
● C. Claims-made and reported trigger
● D. Discovery trigger
