CIC COMMERCIAL GENERAL LIABILITY
PART 3 EXAM QUESTIONS WITH
COMPLETE ANSWERS
How many givebacks are there in the pollution exclusion? - Answer-The pollution
exclusion has 8 givebacks- 3 for premises, 4 for operation with one being implied, and
one from completed operations.
What is the smoke fumes, vapor, or soot exception in the pollution exemption? -
Answer-If BI is caused by smoke fumes, vapor or soot from a buildings heating
equipment use to heat the building or the water for the use of the occupants or guests is
covered by the CGL policy.
EX- Gas heater malfunctions causing carbon monoxide claims.
What is the contractor operations exemption in the pollution exclusion of the CGL? -
Answer-if BI or PD was caused by a contractor has been added as an additional insured
at the premise and it was never owned or occupied to any insured other than that
additional insured.
EX: you are added as an additional insured and you knock over some chemicals that
cause them to leak and cause property damage
What is the hostile fire exemption in the pollution exclusion? - Answer-that if a hostile
fire causes the BI or PD damage out of heat, smoke, or fumes that there is coverage.
Ex: Hostile fire causes chemicals at a paint store to be released causing bodily damage.
this is covered
what is the landfill exclusion? - Answer-Excludes at or from any premises used by any
insured for handling, storage, disposal, processing or treatment of waste
what is the transporter exclusion? - Answer-Excludes pollutants transported, handled,
stored, treated, disposed of, or processed as waste
what is the performing operations exclusion in the pollution exclusion - Answer-
Excludes at or from any premises for insured and contractors/subs while performing
operations if the pollutants are brought on or to premises in connection with the
operations. (Operations Exclusion) - if they bring the pollutants with them.
what are the exemptions to the pollution exclusion from performing operations? -
Answer-1. BI or PD from arising out of the accidental release of fuels, lubricants or other
operating fluids related to the operation of mobile equipment
, • EX: Scraper hits a rock and there was no intentional discharge of the fuel but no it has
occurred. IF we caused BI or PD from this incident, it is covered.
• EX: Hydralic pump bursts and sprays fluid everywhere and caused PD or BI. This is
covered.
2. BI or PD caused by the release of gases, fumes or vapors from materials brought into
that building in connection with the operations being performed
• Example: Tile installers chemicals have a very strong scent and if someone gets sick
because of that strong odor, there will be coverage.
3. BI or PD arising out of heat, smoke or fumes from a "hostile fire"
What is the inferred exception of the CGL policy example? - Answer-if you are making a
retention pond and at that location there are storage containers of chemicals. If you
back into them and cause a spill, there is coverage. This is because you did not take the
pollutants with me, no intentional discharge, not there to work on the pollutant
How does the pollution exclusion handle operations to test for, monitor, clean up,
remove, contain, treat, detoxify, or neutralize, or assess? - Answer-it is excluded those
types of operations because those are considered to be environmental work operations
and they need to be endorsed for coverage which is done outside of the standard
market.
How does the pollution policy handle clean up costs? - Answer-IT excludes them if it is
arising out of regulatory requirements or for claims by governmental authority for
damages because of testing or cleaning.
EX: If the government tells you that you need to monitor the area for the next 30 years
because of pollution, That is not covered.
When are clean up costs covered by the CGL policy regardless of the pollution
exclusion? - Answer-If the expense is included as part of the damages because of a
covered claim.
EX: If the government tells you that you need to monitor the area for the next 30 years
because of pollution, That is not covered.
What are the exclusions in a CGL Policy? - Answer-1. Expected or intended injury
2. contractual Liability
3. Liquor Liability
4. Work Comp and Similar Laws
5. Employer's liability
6. Pollution
7. Aircraft, auto, or watercraft
8.Mobile Equipment
9. War
10. damage to property
PART 3 EXAM QUESTIONS WITH
COMPLETE ANSWERS
How many givebacks are there in the pollution exclusion? - Answer-The pollution
exclusion has 8 givebacks- 3 for premises, 4 for operation with one being implied, and
one from completed operations.
What is the smoke fumes, vapor, or soot exception in the pollution exemption? -
Answer-If BI is caused by smoke fumes, vapor or soot from a buildings heating
equipment use to heat the building or the water for the use of the occupants or guests is
covered by the CGL policy.
EX- Gas heater malfunctions causing carbon monoxide claims.
What is the contractor operations exemption in the pollution exclusion of the CGL? -
Answer-if BI or PD was caused by a contractor has been added as an additional insured
at the premise and it was never owned or occupied to any insured other than that
additional insured.
EX: you are added as an additional insured and you knock over some chemicals that
cause them to leak and cause property damage
What is the hostile fire exemption in the pollution exclusion? - Answer-that if a hostile
fire causes the BI or PD damage out of heat, smoke, or fumes that there is coverage.
Ex: Hostile fire causes chemicals at a paint store to be released causing bodily damage.
this is covered
what is the landfill exclusion? - Answer-Excludes at or from any premises used by any
insured for handling, storage, disposal, processing or treatment of waste
what is the transporter exclusion? - Answer-Excludes pollutants transported, handled,
stored, treated, disposed of, or processed as waste
what is the performing operations exclusion in the pollution exclusion - Answer-
Excludes at or from any premises for insured and contractors/subs while performing
operations if the pollutants are brought on or to premises in connection with the
operations. (Operations Exclusion) - if they bring the pollutants with them.
what are the exemptions to the pollution exclusion from performing operations? -
Answer-1. BI or PD from arising out of the accidental release of fuels, lubricants or other
operating fluids related to the operation of mobile equipment
, • EX: Scraper hits a rock and there was no intentional discharge of the fuel but no it has
occurred. IF we caused BI or PD from this incident, it is covered.
• EX: Hydralic pump bursts and sprays fluid everywhere and caused PD or BI. This is
covered.
2. BI or PD caused by the release of gases, fumes or vapors from materials brought into
that building in connection with the operations being performed
• Example: Tile installers chemicals have a very strong scent and if someone gets sick
because of that strong odor, there will be coverage.
3. BI or PD arising out of heat, smoke or fumes from a "hostile fire"
What is the inferred exception of the CGL policy example? - Answer-if you are making a
retention pond and at that location there are storage containers of chemicals. If you
back into them and cause a spill, there is coverage. This is because you did not take the
pollutants with me, no intentional discharge, not there to work on the pollutant
How does the pollution exclusion handle operations to test for, monitor, clean up,
remove, contain, treat, detoxify, or neutralize, or assess? - Answer-it is excluded those
types of operations because those are considered to be environmental work operations
and they need to be endorsed for coverage which is done outside of the standard
market.
How does the pollution policy handle clean up costs? - Answer-IT excludes them if it is
arising out of regulatory requirements or for claims by governmental authority for
damages because of testing or cleaning.
EX: If the government tells you that you need to monitor the area for the next 30 years
because of pollution, That is not covered.
When are clean up costs covered by the CGL policy regardless of the pollution
exclusion? - Answer-If the expense is included as part of the damages because of a
covered claim.
EX: If the government tells you that you need to monitor the area for the next 30 years
because of pollution, That is not covered.
What are the exclusions in a CGL Policy? - Answer-1. Expected or intended injury
2. contractual Liability
3. Liquor Liability
4. Work Comp and Similar Laws
5. Employer's liability
6. Pollution
7. Aircraft, auto, or watercraft
8.Mobile Equipment
9. War
10. damage to property
