CIC - COMMERCIAL CASUALTY
INSTITUTE EXAM QUESTIONS WITH
VERIFIED ANSWERS
True or False:
A newly formed Joint Venture is an Automatic Insured - Answer-False
Joint Ventures, Partnerships or LLCs are all excluded as Automatic Insureds
Under the CGL - Coverage A, BI/PD, what are the 2 promises made in the insuring
Agreement? - Answer-1 - Legal Liability -- Pays sums, to which coverage applies and
the Insured becomes legally liable to pay
2 - Defense -- Right and Duty to Defend the Insured (but if coverage does not apply, no
defense)
"Bodily Injury" - Definition? - Answer-Bodily Injury
Sickness or Disease
Death
"Property Damage" - definition? - Answer-- physical injury to tangible property
- loss of use
Electronic Data ( is/ is not) considered tangible property - Answer-Is NOT
In the CGL the company's Duty to Defend ends when? - Answer-The Limit of Insurance
has been exhausted under Coverage A,B or C
Coverage in the CGL applies only to ___________or____________ caused by
____________, inside the _______ _______, and must take place during the _______
______. - Answer-- BI or PD
- an Occurrence
- Coverage Territory
- Policy Period
"Coverage Territory" is defined in the CGL as... - Answer-- US (territories and
possessions), Puerto Rico & Canada
- International Waters/ Airspace, between and above
- Worldwide with Limitations
, Name the conditions in which you would get worldwide coverage by the CGL - Answer--
Products, made or sold in the Coverage Territory (CT)
- Temporary business travel of a resident of the CT
- PAI, if it takes place thru the internet
- As long as suit is brought in the CT - OR - there is agreement to settle the claim
What are the 6 Requirements must be met for Coverage-A (BI/PD) of the CGL to apply?
- Answer-1- Must qualify as an insured
2- Must meet the definitions of: BI, PD, Occurrence and Coverage Territory
3- BI or PD must be caused by an Occurrence
4- BI or PD must take place within the Coverage Territory
5- BI or PD must occur during the Policy Period
6- Subject to the CGL's Terms and Conditions
T/F
Physical Injury to tangible property includes all resulting loss of use of that property -
Answer-True
T/F
Loss of Use of tangible property that is not physically injured is within the definition of
Property Damage - Answer-False
T/F
Electronic Data is considered tangible property - Answer-False
The NI manufactures and sells kitchen appliances in the US. A customer living in
Mexico is injured while using an appliance manufactured by the insured.
What circumstances would allow this claim to be covered? - Answer-Suit must be filed
in the US or Coverage Territory
The NI, located in New York, is in the fashion business. Do the following employees
have insured status while conducting business for the NI?
1 - (Yes or No) - A salesperson travels to Europe on business for 10 days?
INSTITUTE EXAM QUESTIONS WITH
VERIFIED ANSWERS
True or False:
A newly formed Joint Venture is an Automatic Insured - Answer-False
Joint Ventures, Partnerships or LLCs are all excluded as Automatic Insureds
Under the CGL - Coverage A, BI/PD, what are the 2 promises made in the insuring
Agreement? - Answer-1 - Legal Liability -- Pays sums, to which coverage applies and
the Insured becomes legally liable to pay
2 - Defense -- Right and Duty to Defend the Insured (but if coverage does not apply, no
defense)
"Bodily Injury" - Definition? - Answer-Bodily Injury
Sickness or Disease
Death
"Property Damage" - definition? - Answer-- physical injury to tangible property
- loss of use
Electronic Data ( is/ is not) considered tangible property - Answer-Is NOT
In the CGL the company's Duty to Defend ends when? - Answer-The Limit of Insurance
has been exhausted under Coverage A,B or C
Coverage in the CGL applies only to ___________or____________ caused by
____________, inside the _______ _______, and must take place during the _______
______. - Answer-- BI or PD
- an Occurrence
- Coverage Territory
- Policy Period
"Coverage Territory" is defined in the CGL as... - Answer-- US (territories and
possessions), Puerto Rico & Canada
- International Waters/ Airspace, between and above
- Worldwide with Limitations
, Name the conditions in which you would get worldwide coverage by the CGL - Answer--
Products, made or sold in the Coverage Territory (CT)
- Temporary business travel of a resident of the CT
- PAI, if it takes place thru the internet
- As long as suit is brought in the CT - OR - there is agreement to settle the claim
What are the 6 Requirements must be met for Coverage-A (BI/PD) of the CGL to apply?
- Answer-1- Must qualify as an insured
2- Must meet the definitions of: BI, PD, Occurrence and Coverage Territory
3- BI or PD must be caused by an Occurrence
4- BI or PD must take place within the Coverage Territory
5- BI or PD must occur during the Policy Period
6- Subject to the CGL's Terms and Conditions
T/F
Physical Injury to tangible property includes all resulting loss of use of that property -
Answer-True
T/F
Loss of Use of tangible property that is not physically injured is within the definition of
Property Damage - Answer-False
T/F
Electronic Data is considered tangible property - Answer-False
The NI manufactures and sells kitchen appliances in the US. A customer living in
Mexico is injured while using an appliance manufactured by the insured.
What circumstances would allow this claim to be covered? - Answer-Suit must be filed
in the US or Coverage Territory
The NI, located in New York, is in the fashion business. Do the following employees
have insured status while conducting business for the NI?
1 - (Yes or No) - A salesperson travels to Europe on business for 10 days?
