Commercial Casualty – CIC Exam/ Actual Exam
Questions with Correct Detailed Answers (Verified
Answers) Graded A+
What are the two promises the insurer makes? - Correct Answer - 1. Indemnity
2.Defense
What is an exception in any easement or license agreement? - Correct Answer -
connection with construction or demolition operation on or within 50 feet of a railroad
Hold Harmless agreement or Indemnity agreement - Correct Answer - on party (the
indemnitor) promises to reimburse, and in some cases defend the other party (the
indemnitee) against claims or suits brought against the indemnitee by a third party
The purpose of a hold harmless agreement - Correct Answer - to transfer the risk of
financial loss from one party (the indemnitee) to another party (the indemnitor)
Indemnitor - Correct Answer - the person or organization that holds another (the
indemnitee) harmless in a contract
ex. sub contractor - they would respond to the suit bc they held the general contractor
harmless
Indemnitee - Correct Answer - The person or organization that is held harmless in a
contract (the indemnitor)
ex. the general contractor - they are not held harmless
Contingent Liability - Correct Answer - Arises out of work performed for the named
insured by someone else
ex. can protect a named insured from negligent acts of an independent contractor
pg. 1
,Personal Injury Liability - Correct Answer - Liability arising from intentional torts, such as
libel, slander, wrongful eviction
-coverage applies to named offenses as defined in the policy
Advertising Liability - Correct Answer - Liability caused by harm from such things as
misappropriation of advertising ideas, style of doing business or infringement of
copyright
-Coverage applies to named offenses committed in the course of advertising the named
insured's goods, products, or services
A person or organization must qualify as an insured in order to be provided insurance
protection. They must be: - Correct Answer - 1. Named insureds (those listed on
Declarations or Schedule)
2. Automatic Insureds
3. Those who qualify as named insured
4. Non-automatic insureds - those added by endorsement
What is included in an insured contract? - Correct Answer - L - Leases of premises
E - Easement or license agreement
A - An obligation to indemnify a municipality as required by ordinance
S - Sidetrack agreement
E - Elevator maintenance agreement
P - Plus, any other contract in which the named insured assumes the tort liability of
another party to pay for BI or PD to a third person
What is not included in an insured contract? - Correct Answer - 1. A railroad indemnity
agreement
2. Architect, engineer or surveyor indemnity agreement
3. An agreement in which the insured, if an architect, engineer or surveyor assumes
liability for injury or damage arising out of the insured's rendering or failure to render
professional services
pg. 2
,Liquor Liability Exclusion - Correct Answer - Only applies if you are in the business of
manufacturing, distributing, selling, servicing or furnishing alcoholic beverages
Excluded losses under Liquor Liability - Correct Answer - 1. Causing or contributing to
the intoxication of any person
2. Furnishing to a person under the legal drinking age or under the influence of alcohol
3. Any statute, ordinance or regulation
4. Applies to supervision, hiring, employment training or monitoring others or providing
or failing to provide transportation to an intoxicated person
One exception to Liquor Liability - Correct Answer - "Host" liquor liability coverage if the
named insured is not in the business of manufacturing, distributing, selling, servicing or
furnishing alcoholic beverages
Endorsements that amend the liquor liability exclusion - Correct Answer - Liquor Liability
- removes the liquor liability exclusion
Amendment of liquor liability exclusion - exclusion applies when there is a charge
whether or not a profit is derived, applies when it is a gift if a license or permit is
required, also applies to BYO establishments
Amendment of Liquor Liability Exclusion - Exception for scheduled premises or activities
Fourth Paragraph on the insurance contract - Correct Answer - Indicates that certain
words and phrases in quotations have a special meaning
If the named insured is an individual (sole proprietorship), - Correct Answer - Then the
following are insureds:
-Named Individual
-Spouse
pg. 3
, If named insured is a partnership or joint venture, - Correct Answer - Then the following
are insureds:
-Named Partnership
-Named Joint Venture
-Partners
-Members
_Spouses
If the named insured is a limited liability company, - Correct Answer - Then the following
are insureds:
-Named LLC
-Members
-Managers
If the named insured is an other organization (corporation, municipality, etc.), - Correct
Answer - Then the following are insureds:
-Named Entity
-Executive Officers
-Directors
-Stock Holders
Definition of Executive Officer - Correct Answer - means a person holding any of the
officer positions created by your charter, constitution, by laws or any other similar
governing document
If the named insured is a trust, - Correct Answer - Then the following are insureds:
-Named Trust
-Trustees
First Paragraph on the insurance contract - Correct Answer - States that various
provisions restrict coverage
pg. 4
Questions with Correct Detailed Answers (Verified
Answers) Graded A+
What are the two promises the insurer makes? - Correct Answer - 1. Indemnity
2.Defense
What is an exception in any easement or license agreement? - Correct Answer -
connection with construction or demolition operation on or within 50 feet of a railroad
Hold Harmless agreement or Indemnity agreement - Correct Answer - on party (the
indemnitor) promises to reimburse, and in some cases defend the other party (the
indemnitee) against claims or suits brought against the indemnitee by a third party
The purpose of a hold harmless agreement - Correct Answer - to transfer the risk of
financial loss from one party (the indemnitee) to another party (the indemnitor)
Indemnitor - Correct Answer - the person or organization that holds another (the
indemnitee) harmless in a contract
ex. sub contractor - they would respond to the suit bc they held the general contractor
harmless
Indemnitee - Correct Answer - The person or organization that is held harmless in a
contract (the indemnitor)
ex. the general contractor - they are not held harmless
Contingent Liability - Correct Answer - Arises out of work performed for the named
insured by someone else
ex. can protect a named insured from negligent acts of an independent contractor
pg. 1
,Personal Injury Liability - Correct Answer - Liability arising from intentional torts, such as
libel, slander, wrongful eviction
-coverage applies to named offenses as defined in the policy
Advertising Liability - Correct Answer - Liability caused by harm from such things as
misappropriation of advertising ideas, style of doing business or infringement of
copyright
-Coverage applies to named offenses committed in the course of advertising the named
insured's goods, products, or services
A person or organization must qualify as an insured in order to be provided insurance
protection. They must be: - Correct Answer - 1. Named insureds (those listed on
Declarations or Schedule)
2. Automatic Insureds
3. Those who qualify as named insured
4. Non-automatic insureds - those added by endorsement
What is included in an insured contract? - Correct Answer - L - Leases of premises
E - Easement or license agreement
A - An obligation to indemnify a municipality as required by ordinance
S - Sidetrack agreement
E - Elevator maintenance agreement
P - Plus, any other contract in which the named insured assumes the tort liability of
another party to pay for BI or PD to a third person
What is not included in an insured contract? - Correct Answer - 1. A railroad indemnity
agreement
2. Architect, engineer or surveyor indemnity agreement
3. An agreement in which the insured, if an architect, engineer or surveyor assumes
liability for injury or damage arising out of the insured's rendering or failure to render
professional services
pg. 2
,Liquor Liability Exclusion - Correct Answer - Only applies if you are in the business of
manufacturing, distributing, selling, servicing or furnishing alcoholic beverages
Excluded losses under Liquor Liability - Correct Answer - 1. Causing or contributing to
the intoxication of any person
2. Furnishing to a person under the legal drinking age or under the influence of alcohol
3. Any statute, ordinance or regulation
4. Applies to supervision, hiring, employment training or monitoring others or providing
or failing to provide transportation to an intoxicated person
One exception to Liquor Liability - Correct Answer - "Host" liquor liability coverage if the
named insured is not in the business of manufacturing, distributing, selling, servicing or
furnishing alcoholic beverages
Endorsements that amend the liquor liability exclusion - Correct Answer - Liquor Liability
- removes the liquor liability exclusion
Amendment of liquor liability exclusion - exclusion applies when there is a charge
whether or not a profit is derived, applies when it is a gift if a license or permit is
required, also applies to BYO establishments
Amendment of Liquor Liability Exclusion - Exception for scheduled premises or activities
Fourth Paragraph on the insurance contract - Correct Answer - Indicates that certain
words and phrases in quotations have a special meaning
If the named insured is an individual (sole proprietorship), - Correct Answer - Then the
following are insureds:
-Named Individual
-Spouse
pg. 3
, If named insured is a partnership or joint venture, - Correct Answer - Then the following
are insureds:
-Named Partnership
-Named Joint Venture
-Partners
-Members
_Spouses
If the named insured is a limited liability company, - Correct Answer - Then the following
are insureds:
-Named LLC
-Members
-Managers
If the named insured is an other organization (corporation, municipality, etc.), - Correct
Answer - Then the following are insureds:
-Named Entity
-Executive Officers
-Directors
-Stock Holders
Definition of Executive Officer - Correct Answer - means a person holding any of the
officer positions created by your charter, constitution, by laws or any other similar
governing document
If the named insured is a trust, - Correct Answer - Then the following are insureds:
-Named Trust
-Trustees
First Paragraph on the insurance contract - Correct Answer - States that various
provisions restrict coverage
pg. 4
