1. Which of the following is NOT an endorsement typically used
to modify a CGL policy?
A. Additional Insured Endorsement
B. Liquor Liability Endorsement
C. Workers’ Compensation Endorsement
D. Contractual Liability Endorsement
Answer and Rationale: C. Workers' compensation is a separate
coverage from CGL and is not typically included as an
endorsement in a CGL policy.
2. Which of the following incidents would typically trigger
Coverage A of a CGL policy?
A. A customer's property is damaged while being repaired by the
insured.
B. An employee slips and falls at the insured's workplace.
C. A passerby is injured due to the insured's ongoing operations.
D. The insured is sued for breach of contract.
Answer and Rationale: C. Coverage A responds to bodily injury or
property damage liability, such as a passerby being injured due to
the insured’s operations.
,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. Which of the following is a key characteristic of a Claims-Made
policy?
A. Coverage is triggered when the incident occurs, regardless of
when the claim is made.
B. Coverage applies only if the claim is made during the policy
period.
C. It offers broader coverage than an occurrence policy.
D. It excludes any incidents prior to the policy’s start date.
Answer and Rationale: B. A Claims-Made policy requires that the
claim be made and reported during the policy period for coverage
to apply.
, 5. Which of the following best describes the “liability arising from
work performed by subcontractors” exclusion in a CGL policy?
A. It excludes any claims arising from subcontracted work
regardless of circumstances.
B. It excludes claims arising from work performed by
subcontractors who are not insured under the policy.
C. It includes coverage for work performed by subcontractors, but
not their employees.
D. It includes coverage for subcontractors' defective work as long
as the insured is not negligent.
Answer and Rationale: B. The exclusion typically removes
coverage for claims arising from work performed by
subcontractors who are not covered under the policy.
6. Which of the following statements about the products-
completed operations hazard is true?
A. It applies only to damages occurring on the insured’s premises.
B. It includes coverage for defective workmanship.
C. It applies to damages caused by the insured’s product after sale.
D. It excludes bodily injury caused by completed operations.
Answer and Rationale: C. The products-completed operations
hazard covers liability for damages caused by the insured’s
products or completed work after sale or completion.
to modify a CGL policy?
A. Additional Insured Endorsement
B. Liquor Liability Endorsement
C. Workers’ Compensation Endorsement
D. Contractual Liability Endorsement
Answer and Rationale: C. Workers' compensation is a separate
coverage from CGL and is not typically included as an
endorsement in a CGL policy.
2. Which of the following incidents would typically trigger
Coverage A of a CGL policy?
A. A customer's property is damaged while being repaired by the
insured.
B. An employee slips and falls at the insured's workplace.
C. A passerby is injured due to the insured's ongoing operations.
D. The insured is sued for breach of contract.
Answer and Rationale: C. Coverage A responds to bodily injury or
property damage liability, such as a passerby being injured due to
the insured’s operations.
,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. Which of the following is a key characteristic of a Claims-Made
policy?
A. Coverage is triggered when the incident occurs, regardless of
when the claim is made.
B. Coverage applies only if the claim is made during the policy
period.
C. It offers broader coverage than an occurrence policy.
D. It excludes any incidents prior to the policy’s start date.
Answer and Rationale: B. A Claims-Made policy requires that the
claim be made and reported during the policy period for coverage
to apply.
, 5. Which of the following best describes the “liability arising from
work performed by subcontractors” exclusion in a CGL policy?
A. It excludes any claims arising from subcontracted work
regardless of circumstances.
B. It excludes claims arising from work performed by
subcontractors who are not insured under the policy.
C. It includes coverage for work performed by subcontractors, but
not their employees.
D. It includes coverage for subcontractors' defective work as long
as the insured is not negligent.
Answer and Rationale: B. The exclusion typically removes
coverage for claims arising from work performed by
subcontractors who are not covered under the policy.
6. Which of the following statements about the products-
completed operations hazard is true?
A. It applies only to damages occurring on the insured’s premises.
B. It includes coverage for defective workmanship.
C. It applies to damages caused by the insured’s product after sale.
D. It excludes bodily injury caused by completed operations.
Answer and Rationale: C. The products-completed operations
hazard covers liability for damages caused by the insured’s
products or completed work after sale or completion.
