1. What is the primary purpose of the retroactive date in a Claims-
Made policy?
A. To limit coverage to events occurring after a specific date
B. To define the start of the policy period
C. To specify the expiration date of the policy
D. To exclude prior acts from coverage
Answer and Rationale: A. The retroactive date ensures that only
claims arising from incidents occurring after the specified date are
covered.
2. Which endorsement is required to cover an insured's liability
arising from pollution events under the CGL policy?
A. Pollution Liability Coverage Endorsement
B. Additional Insured Endorsement
C. Waiver of Subrogation Endorsement
D. Excess Liability Endorsement
Answer and Rationale: A. Pollution Liability Coverage
Endorsement adds coverage for pollution events, which are
typically excluded under standard CGL policies.
,3. What does the “damage to your work” exclusion in a CGL
policy address?
A. Damage to a third party’s property caused by the insured’s
work
B. Damage to the insured’s work due to the insured’s negligence
C. Damage caused by subcontractors’ faulty workmanship
D. Liability for completed operations hazards
Answer and Rationale: B. The exclusion eliminates coverage for
damage to the insured’s work arising from their own faulty
workmanship.
4. What is the purpose of the "insured vs. insured" exclusion in a
CGL policy?
A. To exclude claims between employees and the insured.
B. To prevent coverage for claims made by one insured party
against another.
C. To limit coverage to third-party claims only.
D. To restrict coverage for contractual liabilities.
Answer and Rationale: B. The "insured vs. insured" exclusion
prevents coverage for claims between individuals or entities
covered under the same policy.
5. What is the purpose of the "supplementary payments" section
in a CGL policy?
, A. To pay for damages to the insured's property
B. To cover defense costs in addition to policy limits
C. To reimburse the insured for lost income
D. To pay for punitive damages
Answer and Rationale: B. Supplementary payments include defense
costs and related expenses, which are paid in addition to the
policy limits.
6. Which coverage is provided under Coverage C of a CGL policy?
A. Medical Payments
B. Property Damage Liability
C. Bodily Injury Liability
D. Contractual Liability
Answer and Rationale: A. Coverage C provides Medical Payments
coverage for injuries to third parties regardless of fault.
7. What is the general purpose of the CGL "defense" provision?
A. To provide legal defense only in cases of negligence
B. To cover the costs associated with defending the insured in
lawsuits
C. To eliminate the insurer’s responsibility for claims against the
insured
D. To limit the insurer's liability to settlement payments
Made policy?
A. To limit coverage to events occurring after a specific date
B. To define the start of the policy period
C. To specify the expiration date of the policy
D. To exclude prior acts from coverage
Answer and Rationale: A. The retroactive date ensures that only
claims arising from incidents occurring after the specified date are
covered.
2. Which endorsement is required to cover an insured's liability
arising from pollution events under the CGL policy?
A. Pollution Liability Coverage Endorsement
B. Additional Insured Endorsement
C. Waiver of Subrogation Endorsement
D. Excess Liability Endorsement
Answer and Rationale: A. Pollution Liability Coverage
Endorsement adds coverage for pollution events, which are
typically excluded under standard CGL policies.
,3. What does the “damage to your work” exclusion in a CGL
policy address?
A. Damage to a third party’s property caused by the insured’s
work
B. Damage to the insured’s work due to the insured’s negligence
C. Damage caused by subcontractors’ faulty workmanship
D. Liability for completed operations hazards
Answer and Rationale: B. The exclusion eliminates coverage for
damage to the insured’s work arising from their own faulty
workmanship.
4. What is the purpose of the "insured vs. insured" exclusion in a
CGL policy?
A. To exclude claims between employees and the insured.
B. To prevent coverage for claims made by one insured party
against another.
C. To limit coverage to third-party claims only.
D. To restrict coverage for contractual liabilities.
Answer and Rationale: B. The "insured vs. insured" exclusion
prevents coverage for claims between individuals or entities
covered under the same policy.
5. What is the purpose of the "supplementary payments" section
in a CGL policy?
, A. To pay for damages to the insured's property
B. To cover defense costs in addition to policy limits
C. To reimburse the insured for lost income
D. To pay for punitive damages
Answer and Rationale: B. Supplementary payments include defense
costs and related expenses, which are paid in addition to the
policy limits.
6. Which coverage is provided under Coverage C of a CGL policy?
A. Medical Payments
B. Property Damage Liability
C. Bodily Injury Liability
D. Contractual Liability
Answer and Rationale: A. Coverage C provides Medical Payments
coverage for injuries to third parties regardless of fault.
7. What is the general purpose of the CGL "defense" provision?
A. To provide legal defense only in cases of negligence
B. To cover the costs associated with defending the insured in
lawsuits
C. To eliminate the insurer’s responsibility for claims against the
insured
D. To limit the insurer's liability to settlement payments
