1. Which of the following is NOT covered under the Commercial
General Liability (CGL) policy's Coverage A – Bodily Injury and
Property Damage Liability?
A. Damage to a customer's property while in the insured's care
B. Bodily injury caused by the insured's negligence
C. Property damage caused by the insured's operations
D. Bodily injury caused by a product sold by the insured
Answer and Rationale: A. Damage to a customer's property while
in the insured's care is excluded under the CGL policy as it falls
under the "care, custody, or control" exclusion.
2. Which of the following is true about the medical payments
coverage under a CGL policy?
A. It covers injuries to employees of the insured.
B. It is a no-fault coverage for third-party injuries.
C. It applies only to claims involving negligence.
D. It is subject to the policy's aggregate limit.
Answer and Rationale: B. Medical payments coverage is no-fault,
providing immediate payment for third-party injuries regardless
of negligence.
,3. Which of the following statements about the "contractual
liability" exclusion in a CGL policy is true?
A. It excludes all liabilities assumed through contracts.
B. It only excludes liabilities arising from leases and real property
contracts.
C. It excludes liabilities arising from contractual agreements,
except when specifically covered.
D. It includes coverage for contractual liabilities related to
professional services.
Answer and Rationale: C. The contractual liability exclusion
removes coverage for liabilities assumed through most contracts,
except in cases where specific endorsements or exceptions apply.
4. What does the "pollution exclusion" in a CGL policy typically
eliminate?
A. Claims arising from intentional acts of pollution
B. All claims related to bodily injury and property damage caused
by pollutants
C. Claims for sudden and accidental pollution incidents
D. Liability claims for cleanup costs mandated by government
authorities
Answer and Rationale: B. The pollution exclusion eliminates most
claims related to pollutants, with exceptions for certain sudden
and accidental events.
, 5. What is the standard deductible for liability claims under a
CGL policy?
A. $0 – liability claims typically do not have deductibles.
B. $500 per claim
C. $1,000 per claim
D. $5,000 per claim
Answer and Rationale: A. Most CGL policies do not include
deductibles for liability claims, though deductibles may apply in
special cases.
6. Which of the following is true about the "Your Product"
exclusion in a CGL policy?
A. It excludes all claims related to the insured’s products.
B. It applies only to product recalls initiated by the insured.
C. It excludes coverage for damage to the insured’s product itself.
D. It applies to bodily injury caused by the insured’s product.
Answer and Rationale: C. The "Your Product" exclusion removes
coverage for damage to the insured’s product but does not exclude
injury or damage caused by the product.
7. Which coverage is provided under Coverage C of a CGL policy?
A. Medical Payments
General Liability (CGL) policy's Coverage A – Bodily Injury and
Property Damage Liability?
A. Damage to a customer's property while in the insured's care
B. Bodily injury caused by the insured's negligence
C. Property damage caused by the insured's operations
D. Bodily injury caused by a product sold by the insured
Answer and Rationale: A. Damage to a customer's property while
in the insured's care is excluded under the CGL policy as it falls
under the "care, custody, or control" exclusion.
2. Which of the following is true about the medical payments
coverage under a CGL policy?
A. It covers injuries to employees of the insured.
B. It is a no-fault coverage for third-party injuries.
C. It applies only to claims involving negligence.
D. It is subject to the policy's aggregate limit.
Answer and Rationale: B. Medical payments coverage is no-fault,
providing immediate payment for third-party injuries regardless
of negligence.
,3. Which of the following statements about the "contractual
liability" exclusion in a CGL policy is true?
A. It excludes all liabilities assumed through contracts.
B. It only excludes liabilities arising from leases and real property
contracts.
C. It excludes liabilities arising from contractual agreements,
except when specifically covered.
D. It includes coverage for contractual liabilities related to
professional services.
Answer and Rationale: C. The contractual liability exclusion
removes coverage for liabilities assumed through most contracts,
except in cases where specific endorsements or exceptions apply.
4. What does the "pollution exclusion" in a CGL policy typically
eliminate?
A. Claims arising from intentional acts of pollution
B. All claims related to bodily injury and property damage caused
by pollutants
C. Claims for sudden and accidental pollution incidents
D. Liability claims for cleanup costs mandated by government
authorities
Answer and Rationale: B. The pollution exclusion eliminates most
claims related to pollutants, with exceptions for certain sudden
and accidental events.
, 5. What is the standard deductible for liability claims under a
CGL policy?
A. $0 – liability claims typically do not have deductibles.
B. $500 per claim
C. $1,000 per claim
D. $5,000 per claim
Answer and Rationale: A. Most CGL policies do not include
deductibles for liability claims, though deductibles may apply in
special cases.
6. Which of the following is true about the "Your Product"
exclusion in a CGL policy?
A. It excludes all claims related to the insured’s products.
B. It applies only to product recalls initiated by the insured.
C. It excludes coverage for damage to the insured’s product itself.
D. It applies to bodily injury caused by the insured’s product.
Answer and Rationale: C. The "Your Product" exclusion removes
coverage for damage to the insured’s product but does not exclude
injury or damage caused by the product.
7. Which coverage is provided under Coverage C of a CGL policy?
A. Medical Payments
