2
CIC Commercial Casualty Exam with accurate detailed solutions
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What coverage is typically excluded from standard general liability policies? - ✔✔intentional
|| || || || || || || || || || || ||
acts and contractual liabilities
|| || ||
competitive state funds - ✔✔options for WC from state funds competing with private
|| || || || || || || || || || || || ||
carriers
aggregate limit - ✔✔maximum amount the insurer will pay for all claims during a policy
|| || || || || || || || || || || || || || ||
period
What is the importance of "employer's liability" insurance? - ✔✔covers costs related to
|| || || || || || || || || || || || ||
employee claims for work-related injuries not covered by workers' compensation
|| || || || || || || || ||
Who typically requires general liability insurance? - ✔✔any business that interacts with
|| || || || || || || || || || || ||
clients or customers|| ||
What is a key implication of statutes in relation to common law? - ✔✔they can modify or
|| || || || || || || || || || || || || || || || ||
override common law || ||
elective states (in terms of WC) - ✔✔states with voluntary workers compensation systems
|| || || || || || || || || || || ||
property damage - ✔✔physical damage of tangible property
|| || || || || || ||
sovereign immunity - ✔✔protects municipalities from being sued or committing legal
|| || || || || || || || || || ||
wrongs
,2
waiver of subrogation - ✔✔clause preventing the insurer from seeking reimbursement from
|| || || || || || || || || || || ||
a third party for claims already paid
|| || || || || ||
employers' liability - ✔✔protects employers against claims for work-related injuries not
|| || || || || || || || || || ||
covered by state laws || || ||
What is the primary characteristic of a sole proprietorship? - ✔✔profits and losses are
|| || || || || || || || || || || || || ||
solely the responsibility of one individual
|| || || || ||
"excess" liability policy - ✔✔provides additional coverage above the limits of primary
|| || || || || || || || || || || ||
liability policies ||
diminution - ✔✔perceived loss in market or resale value due to a direct loss
|| || || || || || || || || || || || ||
indemnitor - ✔✔provides the hold harmless agreement || || || || || ||
What does "fungus" coverage generally pertain to in liability insurance? - ✔✔claims related
|| || || || || || || || || || || || ||
to mold, mildew, and similar issues
|| || || || ||
How does occupational accident insurance differ from traditional workers' compensation? -
|| || || || || || || || || || ||
✔✔it covers independent contractors rather than traditional employees
|| || || || || || ||
Who is a permissive user in terms of auto insurance coverage? - ✔✔person granted
|| || || || || || || || || || || || || ||
permission by the NI to use a covered auto || || || || || || || ||
pollutants - ✔✔any solid, liquid, gaseous, or thermal irritant or contaminant
|| || || || || || || || || ||
loss control - ✔✔strategies designed to minimize potential losses' frequency and severity
|| || || || || || || || || || ||
,2
de facto employer - ✔✔an employer who treats independent contractors as qualified
|| || || || || || || || || || || ||
employees
fellow-servant rule - ✔✔protects employer from injuries caused by the negligence of a co-
|| || || || || || || || || || || || ||
worker
Who is typically the primary beneficiary in a hold harmless agreement? - ✔✔indemnitee,
|| || || || || || || || || || || || ||
who is protected from liability
|| || || ||
impaired property - ✔✔tangible property, other than an insured's product or work, which
|| || || || || || || || || || || || ||
cannot be used because it is thought or known to be defective, inadequate, deficient, or
|| || || || || || || || || || || || || || ||
dangerous
third-party claims - ✔✔claims made by individuals other than the insured or insurer
|| || || || || || || || || || || ||
What is the main distinction between "professional liability" and "general liability"
|| || || || || || || || || || ||
insurance? - ✔✔professional liability covers claims arising from professional services, while
|| || || || || || || || || || ||
general liability covers general business risks
|| || || || ||
hold harmless agreement - ✔✔a contractual agreement that transfers the liability of one
|| || || || || || || || || || || || ||
party to another party; it is used by landlords, contractors, and others as a way to avoid or
|| || || || || || || || || || || || || || || || || ||
reduce risk ||
host liquor liability - ✔✔covers liability resulting from alcohol furnished by the insured, but
|| || || || || || || || || || || || || ||
only for building owners leasing space to a bar, business supplying alcohol for a company
|| || || || || || || || || || || || || || ||
party, and other incidental presence of alcohol
|| || || || || ||
temporary total disability - ✔✔disability benefit for when an injured worker cannot work at
|| || || || || || || || || || || || || ||
all for a limited period of time, but is expected to recover and return to work
|| || || || || || || || || || || || || || ||
, 2
temporary partial disability - ✔✔disability benefit for when an injured worker can do some
|| || || || || || || || || || || || || ||
work, but not their full job duties, while recovering
|| || || || || || || ||
permanent partial disability - ✔✔disability benefit for when a worker has a lasting
|| || || || || || || || || || || || ||
impairment but can still do some types of work; compensation is based on the degree of
|| || || || || || || || || || || || || || || ||
permanent loss ||
permanent total disability - ✔✔disability benefit for when an injury or illness leaves a
|| || || || || || || || || || || || || ||
worker completely and permanently unable to perform any gainful work
|| || || || || || || || ||
vicarious liability - ✔✔being legally responsible for the actions of your employees or agents
|| || || || || || || || || || || || ||
contingent liability - ✔✔liability that depends on the actions or negligence of another party,
|| || || || || || || || || || || || ||
often arising from contractual or third-party relationships
|| || || || || || ||
product liability begins when a product ______ - ✔✔leaves the insured's premises
|| || || || || || || || || || ||
general employer - ✔✔a person or organization that lends, rents, or leases an employee to
|| || || || || || || || || || || || || || ||
another employer ||
How do "defense costs" work in liability insurance? - ✔✔most policies cover legal defense
|| || || || || || || || || || || || || ||
costs in addition to the policy limits
|| || || || || ||
occurrence basis - ✔✔covers incidents that occur during the policy period, regardless of
|| || || || || || || || || || || || ||
when the claim is filed (event triggers coverage)
|| || || || || || ||
CIC Commercial Casualty Exam with accurate detailed solutions
|| || || || || || ||
What coverage is typically excluded from standard general liability policies? - ✔✔intentional
|| || || || || || || || || || || ||
acts and contractual liabilities
|| || ||
competitive state funds - ✔✔options for WC from state funds competing with private
|| || || || || || || || || || || || ||
carriers
aggregate limit - ✔✔maximum amount the insurer will pay for all claims during a policy
|| || || || || || || || || || || || || || ||
period
What is the importance of "employer's liability" insurance? - ✔✔covers costs related to
|| || || || || || || || || || || || ||
employee claims for work-related injuries not covered by workers' compensation
|| || || || || || || || ||
Who typically requires general liability insurance? - ✔✔any business that interacts with
|| || || || || || || || || || || ||
clients or customers|| ||
What is a key implication of statutes in relation to common law? - ✔✔they can modify or
|| || || || || || || || || || || || || || || || ||
override common law || ||
elective states (in terms of WC) - ✔✔states with voluntary workers compensation systems
|| || || || || || || || || || || ||
property damage - ✔✔physical damage of tangible property
|| || || || || || ||
sovereign immunity - ✔✔protects municipalities from being sued or committing legal
|| || || || || || || || || || ||
wrongs
,2
waiver of subrogation - ✔✔clause preventing the insurer from seeking reimbursement from
|| || || || || || || || || || || ||
a third party for claims already paid
|| || || || || ||
employers' liability - ✔✔protects employers against claims for work-related injuries not
|| || || || || || || || || || ||
covered by state laws || || ||
What is the primary characteristic of a sole proprietorship? - ✔✔profits and losses are
|| || || || || || || || || || || || || ||
solely the responsibility of one individual
|| || || || ||
"excess" liability policy - ✔✔provides additional coverage above the limits of primary
|| || || || || || || || || || || ||
liability policies ||
diminution - ✔✔perceived loss in market or resale value due to a direct loss
|| || || || || || || || || || || || ||
indemnitor - ✔✔provides the hold harmless agreement || || || || || ||
What does "fungus" coverage generally pertain to in liability insurance? - ✔✔claims related
|| || || || || || || || || || || || ||
to mold, mildew, and similar issues
|| || || || ||
How does occupational accident insurance differ from traditional workers' compensation? -
|| || || || || || || || || || ||
✔✔it covers independent contractors rather than traditional employees
|| || || || || || ||
Who is a permissive user in terms of auto insurance coverage? - ✔✔person granted
|| || || || || || || || || || || || || ||
permission by the NI to use a covered auto || || || || || || || ||
pollutants - ✔✔any solid, liquid, gaseous, or thermal irritant or contaminant
|| || || || || || || || || ||
loss control - ✔✔strategies designed to minimize potential losses' frequency and severity
|| || || || || || || || || || ||
,2
de facto employer - ✔✔an employer who treats independent contractors as qualified
|| || || || || || || || || || || ||
employees
fellow-servant rule - ✔✔protects employer from injuries caused by the negligence of a co-
|| || || || || || || || || || || || ||
worker
Who is typically the primary beneficiary in a hold harmless agreement? - ✔✔indemnitee,
|| || || || || || || || || || || || ||
who is protected from liability
|| || || ||
impaired property - ✔✔tangible property, other than an insured's product or work, which
|| || || || || || || || || || || || ||
cannot be used because it is thought or known to be defective, inadequate, deficient, or
|| || || || || || || || || || || || || || ||
dangerous
third-party claims - ✔✔claims made by individuals other than the insured or insurer
|| || || || || || || || || || || ||
What is the main distinction between "professional liability" and "general liability"
|| || || || || || || || || || ||
insurance? - ✔✔professional liability covers claims arising from professional services, while
|| || || || || || || || || || ||
general liability covers general business risks
|| || || || ||
hold harmless agreement - ✔✔a contractual agreement that transfers the liability of one
|| || || || || || || || || || || || ||
party to another party; it is used by landlords, contractors, and others as a way to avoid or
|| || || || || || || || || || || || || || || || || ||
reduce risk ||
host liquor liability - ✔✔covers liability resulting from alcohol furnished by the insured, but
|| || || || || || || || || || || || || ||
only for building owners leasing space to a bar, business supplying alcohol for a company
|| || || || || || || || || || || || || || ||
party, and other incidental presence of alcohol
|| || || || || ||
temporary total disability - ✔✔disability benefit for when an injured worker cannot work at
|| || || || || || || || || || || || || ||
all for a limited period of time, but is expected to recover and return to work
|| || || || || || || || || || || || || || ||
, 2
temporary partial disability - ✔✔disability benefit for when an injured worker can do some
|| || || || || || || || || || || || || ||
work, but not their full job duties, while recovering
|| || || || || || || ||
permanent partial disability - ✔✔disability benefit for when a worker has a lasting
|| || || || || || || || || || || || ||
impairment but can still do some types of work; compensation is based on the degree of
|| || || || || || || || || || || || || || || ||
permanent loss ||
permanent total disability - ✔✔disability benefit for when an injury or illness leaves a
|| || || || || || || || || || || || || ||
worker completely and permanently unable to perform any gainful work
|| || || || || || || || ||
vicarious liability - ✔✔being legally responsible for the actions of your employees or agents
|| || || || || || || || || || || || ||
contingent liability - ✔✔liability that depends on the actions or negligence of another party,
|| || || || || || || || || || || || ||
often arising from contractual or third-party relationships
|| || || || || || ||
product liability begins when a product ______ - ✔✔leaves the insured's premises
|| || || || || || || || || || ||
general employer - ✔✔a person or organization that lends, rents, or leases an employee to
|| || || || || || || || || || || || || || ||
another employer ||
How do "defense costs" work in liability insurance? - ✔✔most policies cover legal defense
|| || || || || || || || || || || || || ||
costs in addition to the policy limits
|| || || || || ||
occurrence basis - ✔✔covers incidents that occur during the policy period, regardless of
|| || || || || || || || || || || || ||
when the claim is filed (event triggers coverage)
|| || || || || || ||
