1
CIC COMMERCIAL CASUALTY EXAM
QUESTIONS AND ANSWERS (VERIFIED
AND WELL DETAILED ANSWERS) LATEST
UPDATE 2025/2026
What coverage is typically excluded from standard general liability policies? -
(answers)intentional acts and contractual liabilities
competitive state funds - (answers)options for WC from state funds competing
with private carriers
aggregate limit - (answers)maximum amount the insurer will pay for all claims
during a policy period
What is the importance of "employer's liability" insurance? - (answers)covers
costs related to employee claims for work-related injuries not covered by
workers' compensation
Who typically requires general liability insurance? - (answers)any business that
interacts with clients or customers
What is a key implication of statutes in relation to common law? - (answers)they
can modify or override common law
,2
elective states (in terms of WC) - (answers)states with voluntary workers
compensation systems
property damage - (answers)physical damage of tangible property
sovereign immunity - (answers)protects municipalities from being sued or
committing legal wrongs
waiver of subrogation - (answers)clause preventing the insurer from seeking
reimbursement from a third party for claims already paid
employers' liability - (answers)protects employers against claims for work-related
injuries not covered by state laws
What is the primary characteristic of a sole proprietorship? - (answers)profits and
losses are solely the responsibility of one individual
"excess" liability policy - (answers)provides additional coverage above the limits
of primary liability policies
diminution - (answers)perceived loss in market or resale value due to a direct loss
indemnitor - (answers)provides the hold harmless agreement
,3
What does "fungus" coverage generally pertain to in liability insurance? -
(answers)claims related to mold, mildew, and similar issues
How does occupational accident insurance differ from traditional workers'
compensation? - (answers)it covers independent contractors rather than
traditional employees
Who is a permissive user in terms of auto insurance coverage? - (answers)person
granted permission by the NI to use a covered auto
pollutants - (answers)any solid, liquid, gaseous, or thermal irritant or contaminant
loss control - (answers)strategies designed to minimize potential losses' frequency
and severity
de facto employer - (answers)an employer who treats independent contractors as
qualified employees
fellow-servant rule - (answers)protects employer from injuries caused by the
negligence of a co-worker
Who is typically the primary beneficiary in a hold harmless agreement? -
(answers)indemnitee, who is protected from liability
, 4
impaired property - (answers)tangible property, other than an insured's product
or work, which cannot be used because it is thought or known to be defective,
inadequate, deficient, or dangerous
third-party claims - (answers)claims made by individuals other than the insured or
insurer
What is the main distinction between "professional liability" and "general liability"
insurance? - (answers)professional liability covers claims arising from professional
services, while general liability covers general business risks
hold harmless agreement - (answers)a contractual agreement that transfers the
liability of one party to another party; it is used by landlords, contractors, and
others as a way to avoid or reduce risk
host liquor liability - (answers)covers liability resulting from alcohol furnished by
the insured, but only for building owners leasing space to a bar, business
supplying alcohol for a company party, and other incidental presence of alcohol
temporary total disability - (answers)disability benefit for when an injured worker
cannot work at all for a limited period of time, but is expected to recover and
return to work
temporary partial disability - (answers)disability benefit for when an injured
worker can do some work, but not their full job duties, while recovering
CIC COMMERCIAL CASUALTY EXAM
QUESTIONS AND ANSWERS (VERIFIED
AND WELL DETAILED ANSWERS) LATEST
UPDATE 2025/2026
What coverage is typically excluded from standard general liability policies? -
(answers)intentional acts and contractual liabilities
competitive state funds - (answers)options for WC from state funds competing
with private carriers
aggregate limit - (answers)maximum amount the insurer will pay for all claims
during a policy period
What is the importance of "employer's liability" insurance? - (answers)covers
costs related to employee claims for work-related injuries not covered by
workers' compensation
Who typically requires general liability insurance? - (answers)any business that
interacts with clients or customers
What is a key implication of statutes in relation to common law? - (answers)they
can modify or override common law
,2
elective states (in terms of WC) - (answers)states with voluntary workers
compensation systems
property damage - (answers)physical damage of tangible property
sovereign immunity - (answers)protects municipalities from being sued or
committing legal wrongs
waiver of subrogation - (answers)clause preventing the insurer from seeking
reimbursement from a third party for claims already paid
employers' liability - (answers)protects employers against claims for work-related
injuries not covered by state laws
What is the primary characteristic of a sole proprietorship? - (answers)profits and
losses are solely the responsibility of one individual
"excess" liability policy - (answers)provides additional coverage above the limits
of primary liability policies
diminution - (answers)perceived loss in market or resale value due to a direct loss
indemnitor - (answers)provides the hold harmless agreement
,3
What does "fungus" coverage generally pertain to in liability insurance? -
(answers)claims related to mold, mildew, and similar issues
How does occupational accident insurance differ from traditional workers'
compensation? - (answers)it covers independent contractors rather than
traditional employees
Who is a permissive user in terms of auto insurance coverage? - (answers)person
granted permission by the NI to use a covered auto
pollutants - (answers)any solid, liquid, gaseous, or thermal irritant or contaminant
loss control - (answers)strategies designed to minimize potential losses' frequency
and severity
de facto employer - (answers)an employer who treats independent contractors as
qualified employees
fellow-servant rule - (answers)protects employer from injuries caused by the
negligence of a co-worker
Who is typically the primary beneficiary in a hold harmless agreement? -
(answers)indemnitee, who is protected from liability
, 4
impaired property - (answers)tangible property, other than an insured's product
or work, which cannot be used because it is thought or known to be defective,
inadequate, deficient, or dangerous
third-party claims - (answers)claims made by individuals other than the insured or
insurer
What is the main distinction between "professional liability" and "general liability"
insurance? - (answers)professional liability covers claims arising from professional
services, while general liability covers general business risks
hold harmless agreement - (answers)a contractual agreement that transfers the
liability of one party to another party; it is used by landlords, contractors, and
others as a way to avoid or reduce risk
host liquor liability - (answers)covers liability resulting from alcohol furnished by
the insured, but only for building owners leasing space to a bar, business
supplying alcohol for a company party, and other incidental presence of alcohol
temporary total disability - (answers)disability benefit for when an injured worker
cannot work at all for a limited period of time, but is expected to recover and
return to work
temporary partial disability - (answers)disability benefit for when an injured
worker can do some work, but not their full job duties, while recovering
