CIC CASUALTY GENERAL LIABILITY
CGL SECTION EXAM QUESTIONS WITH
100% CORRECT ANSWERS
Advertising Liability - Answer-*limited to actual advertisements, advertising the named
insured's goods, products, or services*
liability caused by harm from such things as misappropriation of advertising ideas, style
of doing business or infringement of copyright
Who is an insured? - Individual - Answer-Named Individual & Spouses - only with
respect to the conduct of the named insureds business
Who is an insured? - Partnership or Joint Venture - Answer-Named Partnership, Named
Joint Venture, Members, Partners, and spouse(s) - only with respect to the conduct of
the named insureds business
Who is an insured? - LLC - Answer--Named LLC
-Members - only with respect to the conduct of the named insureds business
-Managers - only with respect to their duties
Who is an insured? - Other (Corporations) - Answer--Named Entity
-Executive officers - with respect to their duties
-Directors - with respect to their duties
-Stockholders - with respect to their liability as stockholders
(NOT D&O)
Who is an insured? - Trust - Answer--Named Trust
-Trustees - only within the scope of their duties as trustees
Who is an insured? - Employees, Volunteer Workers - Answer-Employee - only for acts
within the scope of employment
Volunteer - only while performing duties related to the named insureds business
Employee - Answer-Other included as automatic insured
includes "leased worker"
excludes "temporary worker"
Leased Worker - Answer-Worker furnished to you through labor leasing firm under an
agreement
Temporary Worker - Answer-A person who is furnished to the insured to substitute for a
permanent employee on leave or to meet seasonal or short-term workload conditions
,When are Employees and Volunteers not considered insureds? - Answer-WHEN THEY
CAUSE:
-BI or P&AI to a named insured, partners, members, co employees or to other volunteer
workers
-Consequential injury to the family of an injured co employee or volunteer worker
-Third party action over as a result of the above
-BI or P&AI arising out of providing or failing to provide professional health services
-PD to property owned by or in the care, custody or control of the named insured, any
employees, volunteer workers, any partners or members
Real Estate Managers - Answer-Other included as automatic insured
insured while acting as such for the named insured
*a property manager's policy is always secondary to the landlord's
Named Insured Death - Answer-Other included as automatic insured
insured if persons or organizations with proper temporary custody of the named
insureds property, but only with respect to liability arising out of:
1. the maintenance or use of that property
2. until the named insured's legal rep has been appt -> then legal rep is insured
Newly Acquired or Newly Formed Organizations (Corporations) - Answer-Other
included as automatic insured
are insured:
a.) until the end of the policy period or the 90th day, whichever is earlier
b.) excludes prior BI or PD that occurs before the organization is acquired or formed
c.) excludes P&AI offenses committed before the organization is acquired or formed
DOES NOT INCLUDE: newly acquired or formed partnerships, joint ventures, or LLCs
Last Paragraph of Section II - Answer-WHO IS NOT AN INSURED
WHO IS NOT AN INSURED - Answer-no person or organization is an insured with
respect to current or past partnerships, joint ventures, or LLCs not shown as a Named
Insured in the declarations page
-this can create a coverage gap, may need to write a separate policy for
*discontinued products - completed ops insurance*
Ex: Jay Williams DBA Jay's Plumbing -->
Williams Plumbing, Inc.
... eliminated coverage for work done (completed ops) as Jay Williams
, can also combat coverage gap by adding the previous named insured as additional
named insured on the new policy
COVERAGE A - Answer-Bodily Injury and Property Damage Liability
Two promises under COVERAGE A - Answer-1.) Pay sums the insured becomes
legally obligated to pay as damages because of the BI or PD to which this insurance
applies (subject to terms and conditions)
2.) Right and duty to defend against any suit seeking damages -> but no defense if it
isn't covered, allegation/s have to be within the four corners of the insurance policy, and
if even one allegation triggers coverage, the insurer has to cover all allegations
Bodily injury defined - Answer-BI, sickness or disease sustained by a person, including
death
Property damage defined - Answer-physical injury to tangible property, including all
resulting loss of use OR loss of use to tangible property that is not physically injured
Do you need an insured's consent to settle? - Answer-NO
When does duty to defend end? - Answer-When the limit of insurance has been
exhausted by judgements or settlements under Coverages A or B or medical expenses
under Coverage C
Coverage for BI & PD applies ONLY IF - Answer--occurrence
-in coverage territory
-during policy period
Occurrence defined - Answer-an accident, including continuous or repeated exposure to
substantially the same general harmful conditions
Coverage territory defined - Answer-US (including its territories & possessions), Puerto
Rico & Canada, International waters and airspace between the above, and anywhere in
the world IF:
1. products made or sold in territory
2. temporary business travel of a resident of territory
3. P&AI takes places thru the internet
4. suit must be brought in the U.S., or there is an agreement to settle
Limited World Wide Coverage can be endorsed... - Answer-Worldwide coverage CG 24
22
Additional Scheduled Countries CG 24 23
Worldwide coverage w/ specified exceptions
CGL SECTION EXAM QUESTIONS WITH
100% CORRECT ANSWERS
Advertising Liability - Answer-*limited to actual advertisements, advertising the named
insured's goods, products, or services*
liability caused by harm from such things as misappropriation of advertising ideas, style
of doing business or infringement of copyright
Who is an insured? - Individual - Answer-Named Individual & Spouses - only with
respect to the conduct of the named insureds business
Who is an insured? - Partnership or Joint Venture - Answer-Named Partnership, Named
Joint Venture, Members, Partners, and spouse(s) - only with respect to the conduct of
the named insureds business
Who is an insured? - LLC - Answer--Named LLC
-Members - only with respect to the conduct of the named insureds business
-Managers - only with respect to their duties
Who is an insured? - Other (Corporations) - Answer--Named Entity
-Executive officers - with respect to their duties
-Directors - with respect to their duties
-Stockholders - with respect to their liability as stockholders
(NOT D&O)
Who is an insured? - Trust - Answer--Named Trust
-Trustees - only within the scope of their duties as trustees
Who is an insured? - Employees, Volunteer Workers - Answer-Employee - only for acts
within the scope of employment
Volunteer - only while performing duties related to the named insureds business
Employee - Answer-Other included as automatic insured
includes "leased worker"
excludes "temporary worker"
Leased Worker - Answer-Worker furnished to you through labor leasing firm under an
agreement
Temporary Worker - Answer-A person who is furnished to the insured to substitute for a
permanent employee on leave or to meet seasonal or short-term workload conditions
,When are Employees and Volunteers not considered insureds? - Answer-WHEN THEY
CAUSE:
-BI or P&AI to a named insured, partners, members, co employees or to other volunteer
workers
-Consequential injury to the family of an injured co employee or volunteer worker
-Third party action over as a result of the above
-BI or P&AI arising out of providing or failing to provide professional health services
-PD to property owned by or in the care, custody or control of the named insured, any
employees, volunteer workers, any partners or members
Real Estate Managers - Answer-Other included as automatic insured
insured while acting as such for the named insured
*a property manager's policy is always secondary to the landlord's
Named Insured Death - Answer-Other included as automatic insured
insured if persons or organizations with proper temporary custody of the named
insureds property, but only with respect to liability arising out of:
1. the maintenance or use of that property
2. until the named insured's legal rep has been appt -> then legal rep is insured
Newly Acquired or Newly Formed Organizations (Corporations) - Answer-Other
included as automatic insured
are insured:
a.) until the end of the policy period or the 90th day, whichever is earlier
b.) excludes prior BI or PD that occurs before the organization is acquired or formed
c.) excludes P&AI offenses committed before the organization is acquired or formed
DOES NOT INCLUDE: newly acquired or formed partnerships, joint ventures, or LLCs
Last Paragraph of Section II - Answer-WHO IS NOT AN INSURED
WHO IS NOT AN INSURED - Answer-no person or organization is an insured with
respect to current or past partnerships, joint ventures, or LLCs not shown as a Named
Insured in the declarations page
-this can create a coverage gap, may need to write a separate policy for
*discontinued products - completed ops insurance*
Ex: Jay Williams DBA Jay's Plumbing -->
Williams Plumbing, Inc.
... eliminated coverage for work done (completed ops) as Jay Williams
, can also combat coverage gap by adding the previous named insured as additional
named insured on the new policy
COVERAGE A - Answer-Bodily Injury and Property Damage Liability
Two promises under COVERAGE A - Answer-1.) Pay sums the insured becomes
legally obligated to pay as damages because of the BI or PD to which this insurance
applies (subject to terms and conditions)
2.) Right and duty to defend against any suit seeking damages -> but no defense if it
isn't covered, allegation/s have to be within the four corners of the insurance policy, and
if even one allegation triggers coverage, the insurer has to cover all allegations
Bodily injury defined - Answer-BI, sickness or disease sustained by a person, including
death
Property damage defined - Answer-physical injury to tangible property, including all
resulting loss of use OR loss of use to tangible property that is not physically injured
Do you need an insured's consent to settle? - Answer-NO
When does duty to defend end? - Answer-When the limit of insurance has been
exhausted by judgements or settlements under Coverages A or B or medical expenses
under Coverage C
Coverage for BI & PD applies ONLY IF - Answer--occurrence
-in coverage territory
-during policy period
Occurrence defined - Answer-an accident, including continuous or repeated exposure to
substantially the same general harmful conditions
Coverage territory defined - Answer-US (including its territories & possessions), Puerto
Rico & Canada, International waters and airspace between the above, and anywhere in
the world IF:
1. products made or sold in territory
2. temporary business travel of a resident of territory
3. P&AI takes places thru the internet
4. suit must be brought in the U.S., or there is an agreement to settle
Limited World Wide Coverage can be endorsed... - Answer-Worldwide coverage CG 24
22
Additional Scheduled Countries CG 24 23
Worldwide coverage w/ specified exceptions
