1. Under a CGL policy, which of the following is an example of an
“insured contract”?
A. A contract for repair services provided by the insured
B. A lease agreement assuming liability for a premises
C. A vendor agreement to sell the insured’s products
D. A loan agreement between the insured and a bank
Answer and Rationale: B. A lease agreement assuming liability for
premises is one of the defined "insured contracts" under the CGL
policy.
2. Which of the following endorsements extends coverage for
completed operations into future policy periods?
A. Extended Reporting Period Endorsement
B. Waiver of Subrogation Endorsement
C. Additional Insured Endorsement
D. Retroactive Date Endorsement
Answer and Rationale: A. The Extended Reporting Period
Endorsement allows for the reporting of claims after the policy
period ends.
,3. Which of the following best describes “primary insurance” in a
liability program?
A. Insurance that pays claims only after all other coverage is
exhausted
B. Insurance that pays first in the event of a covered claim
C. Coverage limited to catastrophic losses
D. Insurance required by law before additional policies can be
purchased
Answer and Rationale: B. Primary insurance responds first to a
covered claim, subject to its limits and exclusions.
4. Which of the following is true about the Claims-Made CGL
policy form?
A. It provides coverage only for claims reported within the policy
period.
B. It covers incidents that occurred prior to the retroactive date.
C. It applies to claims made at any time as long as the incident
occurred during the policy period.
D. It automatically includes prior acts coverage.
Answer and Rationale: A. The Claims-Made form provides
coverage for claims reported during the policy period, subject to
the retroactive date and policy terms.
, 5. Which coverage part in a CGL policy addresses libel and
slander claims?
A. Coverage A – Bodily Injury and Property Damage Liability
B. Coverage B – Personal and Advertising Injury Liability
C. Coverage C – Medical Payments
D. Coverage D – Umbrella Liability
Answer and Rationale: B. Coverage B specifically addresses claims
related to personal and advertising injuries, including libel and
slander.
6. What is the "supplementary payments" provision in a CGL
policy designed to cover?
A. Medical payments for injured employees
B. Defense costs and related legal expenses
C. Replacement of damaged property
D. Lost wages due to business interruption
Answer and Rationale: B. Supplementary payments include defense
costs and legal expenses incurred by the insurer in handling a
claim.
7. Which endorsement is required to cover an insured's liability
arising from pollution events under the CGL policy?
A. Pollution Liability Coverage Endorsement
“insured contract”?
A. A contract for repair services provided by the insured
B. A lease agreement assuming liability for a premises
C. A vendor agreement to sell the insured’s products
D. A loan agreement between the insured and a bank
Answer and Rationale: B. A lease agreement assuming liability for
premises is one of the defined "insured contracts" under the CGL
policy.
2. Which of the following endorsements extends coverage for
completed operations into future policy periods?
A. Extended Reporting Period Endorsement
B. Waiver of Subrogation Endorsement
C. Additional Insured Endorsement
D. Retroactive Date Endorsement
Answer and Rationale: A. The Extended Reporting Period
Endorsement allows for the reporting of claims after the policy
period ends.
,3. Which of the following best describes “primary insurance” in a
liability program?
A. Insurance that pays claims only after all other coverage is
exhausted
B. Insurance that pays first in the event of a covered claim
C. Coverage limited to catastrophic losses
D. Insurance required by law before additional policies can be
purchased
Answer and Rationale: B. Primary insurance responds first to a
covered claim, subject to its limits and exclusions.
4. Which of the following is true about the Claims-Made CGL
policy form?
A. It provides coverage only for claims reported within the policy
period.
B. It covers incidents that occurred prior to the retroactive date.
C. It applies to claims made at any time as long as the incident
occurred during the policy period.
D. It automatically includes prior acts coverage.
Answer and Rationale: A. The Claims-Made form provides
coverage for claims reported during the policy period, subject to
the retroactive date and policy terms.
, 5. Which coverage part in a CGL policy addresses libel and
slander claims?
A. Coverage A – Bodily Injury and Property Damage Liability
B. Coverage B – Personal and Advertising Injury Liability
C. Coverage C – Medical Payments
D. Coverage D – Umbrella Liability
Answer and Rationale: B. Coverage B specifically addresses claims
related to personal and advertising injuries, including libel and
slander.
6. What is the "supplementary payments" provision in a CGL
policy designed to cover?
A. Medical payments for injured employees
B. Defense costs and related legal expenses
C. Replacement of damaged property
D. Lost wages due to business interruption
Answer and Rationale: B. Supplementary payments include defense
costs and legal expenses incurred by the insurer in handling a
claim.
7. Which endorsement is required to cover an insured's liability
arising from pollution events under the CGL policy?
A. Pollution Liability Coverage Endorsement
