7/13/25, 12:15
PM
CPCU 552 | (2025) COMPREHENSIVE (136)
QUESTIONS AND VERIFIED DETAILED SOLUTIONS (
MULTIPLE CHOICES) |100% VERIFIED GRADED A++
Terms in this set (136)
The term "you" is used throughout the A
Commercial General Liability Coverage
Form. "You" is defined to include:
A) The named insured shown in the
declarations.
B) The named insured shown in the
declarations and any employees of the
named insured.
C) The named insured and any officers
or directors of the named insured's
organization.
D) All persons or entities who have
any type of liability protection under the
policy.
1/
155
,7/13/25, 12:15
PM
Smart Endeavors, a retail clothing C
store, hired ABC Contractors to install
a new air conditioning system in one EXPLANATION: ABC will pay
of its stores. $80,000 for the fire damage to
ABC misrouted some wires during the the building and
installation process, which caused the inventory as well as the
wires to overheat and caused a fire. lost profits, but the CGL
The air excludes the cost of
conditioning unit had to be rewired, work that was
which cost $1,000. Smart incorrectly performed,
Endeavors' building sustained so the $1,000 rewiring
$30,000 worth of damage and costs are excluded.
$40,000 worth of inventory was
damaged by smoke. Smart Endeavors
was closed for two weeks and lost
$10,000 in profits
during that period. ABC has liability
insurance under a standard Commercial
General Liability (CGL) Coverage Form
with
$1,000,000 per occurrence limits. Which
one of the following statements
concerning coverage for damages
under Coverage A of the CGL is most
accurate?
2/
155
,7/13/25, 12:15
PM
A) ABC will pay $81,000 for all of
the physical damage to the
building and inventory, the air
conditioning rewiring costs, and
Smart Endeavors' lost profits.
B) ABC will pay
Which one of the following statements D
concerning the Damage to Your
Product and Damage to Your Work
exclusions in Coverage A of the
Commercial General Liability
Coverage Form is most correct?
A) These exclusions only apply to
products or work that are in the
care, custody and
control of the named insured at the
premises location listed in the
declarations page.
B) There are two exceptions to
this exclusion which are meant to
provide limited property damage
coverage for minor claims that
would fall below the
deductible of the named insured's
3/
155
, 7/13/25, 12:15
PM
property insurance policy.
C) The exclusions only apply to work
or products that were damaged
by
subcontractors or outside parties who
are expected to have their own
insurance coverage, but the
exclusions do not apply to damage
done by the named insured.
D) These exclusions only apply to
damage to the work or product
itself, but do not
apply to any subsequent damage or
injury
th
4/
155
PM
CPCU 552 | (2025) COMPREHENSIVE (136)
QUESTIONS AND VERIFIED DETAILED SOLUTIONS (
MULTIPLE CHOICES) |100% VERIFIED GRADED A++
Terms in this set (136)
The term "you" is used throughout the A
Commercial General Liability Coverage
Form. "You" is defined to include:
A) The named insured shown in the
declarations.
B) The named insured shown in the
declarations and any employees of the
named insured.
C) The named insured and any officers
or directors of the named insured's
organization.
D) All persons or entities who have
any type of liability protection under the
policy.
1/
155
,7/13/25, 12:15
PM
Smart Endeavors, a retail clothing C
store, hired ABC Contractors to install
a new air conditioning system in one EXPLANATION: ABC will pay
of its stores. $80,000 for the fire damage to
ABC misrouted some wires during the the building and
installation process, which caused the inventory as well as the
wires to overheat and caused a fire. lost profits, but the CGL
The air excludes the cost of
conditioning unit had to be rewired, work that was
which cost $1,000. Smart incorrectly performed,
Endeavors' building sustained so the $1,000 rewiring
$30,000 worth of damage and costs are excluded.
$40,000 worth of inventory was
damaged by smoke. Smart Endeavors
was closed for two weeks and lost
$10,000 in profits
during that period. ABC has liability
insurance under a standard Commercial
General Liability (CGL) Coverage Form
with
$1,000,000 per occurrence limits. Which
one of the following statements
concerning coverage for damages
under Coverage A of the CGL is most
accurate?
2/
155
,7/13/25, 12:15
PM
A) ABC will pay $81,000 for all of
the physical damage to the
building and inventory, the air
conditioning rewiring costs, and
Smart Endeavors' lost profits.
B) ABC will pay
Which one of the following statements D
concerning the Damage to Your
Product and Damage to Your Work
exclusions in Coverage A of the
Commercial General Liability
Coverage Form is most correct?
A) These exclusions only apply to
products or work that are in the
care, custody and
control of the named insured at the
premises location listed in the
declarations page.
B) There are two exceptions to
this exclusion which are meant to
provide limited property damage
coverage for minor claims that
would fall below the
deductible of the named insured's
3/
155
, 7/13/25, 12:15
PM
property insurance policy.
C) The exclusions only apply to work
or products that were damaged
by
subcontractors or outside parties who
are expected to have their own
insurance coverage, but the
exclusions do not apply to damage
done by the named insured.
D) These exclusions only apply to
damage to the work or product
itself, but do not
apply to any subsequent damage or
injury
th
4/
155
