Commercial Casualty I Exam Questions and Answers Latest Update 2025
Two weeks after repairing a water leak, the pipe joint separates due to poor workmanship, causing
property damage to a customer's house. This is an example of: - Answers completed operations
exposure
Which of the following is true about punitive damages? - Answers since punitive damages punish a
wrongdoer, states can prohibit or restrict insurance liability policies from paying punitive damages
A can falls from the top shelf in a retail location and injures a customer. This is an example of: - Answers
premises exposure
In liability, the money awarded in a suit or claim is referred to as damages. Compensatory damages are
sums of money that compensate actual loss. Which of the following is true about compensatory
damages? - Answers loss of use is a type of special damage
A defective drill bit that fragments and injures a customer's hand is an example of: - Answers products
exposure
An employee rupturing a customer's underground sprinkler system while digging a hole is an example
of: - Answers operations exposure
Give an example of absolute liability - Answers a neighbor's child is injured by a pet lion
Give an example of negligence - Answers a driver runs a red light and causes vehicle damage to another
vehicle in an auto accident
Give an example of an intentional act - Answers a landlord allegedly enters the premises of a tenant
without permission
Give an example of strict liability - Answers a toaster does not shut off and starts a fire in the kitchen
List compensatory damage examples - Answers pain and suffering
lost income
medical bills
repair or replacement of property
List punitive damage examples - Answers compensation in excess of actual damages
compensation for malicious conduct
punishes the defendant
Which of the following best describes "property damage" as defined in the CGL Policy? - Answers
damage to the tangible property of others and the loss of use of that property
, A defective manufacturing process causes automobile tire treads to separate, resulting in collisions and
bodily injuries. This is an example of: - Answers product liability
While painting a house, the insured accidentally sprays paint onto their customer's autos. This is an
example of: - Answers operations liability
Which of the following is considered part of the "coverage territory" as defined in the CGL Policy? -
Answers canadian cities with an international bridge to the US
A customer trips over an electrical extension cord used in a retail store and injures his back. This is an
example of: - Answers premises liability
Which of the following is not considered "mobile equipment"? - Answers a pick-up truck with a
permanently mounted cherry picker
Which of the following is considered part of the "coverage territory" as defined in the CGL Policy? -
Answers the insured makes a product in the US, sells it in Mexico, and a product liability suit is filed in
the US
Mobile equipment is an important definition in the CGL Policy and the BAP. The definition is the same
for both policies. Which of the following vehicles is not considered "mobile equipment"? - Answers a
street sweeper used by city street maintenance department
An owner is held liable when an employee wrongfully accuses a customer of shoplifting. This is an
example of: - Answers vicarious liability
Which of the following is true about the named insured when the business is a partnership? - Answers
partners' spouses, while doing partnership business, are considered insureds, even if they are not
named in the Declarations
Which of the following is true about the named insured when the business is a corporation? - Answers
newly formed corporations have automatic coverage for 90 days or until the end of the policy period,
whichever is earlier
Employees of the named insured are insureds, but only within the scope of their job and related to the
conduct of the business. There are exceptions to the coverage. When is an employee considered an
insured under your CGL Policy? - Answers when they cause bodily injury to a customer
Your insured, Green Grow Inc., just formed a new partnership. Which of the following is correct under
the unendorsed CGL Coverage Form? - Answers there is no automatic coverage for the new partnership
Which of the following is considered an insured under your CGL Policy? - Answers your real estate
manager
Which of the following best describes others who are automatically considered insureds under your CGL
Policy? - Answers they do not have to be listed on the Declaration Page to be covered by the CGL
Two weeks after repairing a water leak, the pipe joint separates due to poor workmanship, causing
property damage to a customer's house. This is an example of: - Answers completed operations
exposure
Which of the following is true about punitive damages? - Answers since punitive damages punish a
wrongdoer, states can prohibit or restrict insurance liability policies from paying punitive damages
A can falls from the top shelf in a retail location and injures a customer. This is an example of: - Answers
premises exposure
In liability, the money awarded in a suit or claim is referred to as damages. Compensatory damages are
sums of money that compensate actual loss. Which of the following is true about compensatory
damages? - Answers loss of use is a type of special damage
A defective drill bit that fragments and injures a customer's hand is an example of: - Answers products
exposure
An employee rupturing a customer's underground sprinkler system while digging a hole is an example
of: - Answers operations exposure
Give an example of absolute liability - Answers a neighbor's child is injured by a pet lion
Give an example of negligence - Answers a driver runs a red light and causes vehicle damage to another
vehicle in an auto accident
Give an example of an intentional act - Answers a landlord allegedly enters the premises of a tenant
without permission
Give an example of strict liability - Answers a toaster does not shut off and starts a fire in the kitchen
List compensatory damage examples - Answers pain and suffering
lost income
medical bills
repair or replacement of property
List punitive damage examples - Answers compensation in excess of actual damages
compensation for malicious conduct
punishes the defendant
Which of the following best describes "property damage" as defined in the CGL Policy? - Answers
damage to the tangible property of others and the loss of use of that property
, A defective manufacturing process causes automobile tire treads to separate, resulting in collisions and
bodily injuries. This is an example of: - Answers product liability
While painting a house, the insured accidentally sprays paint onto their customer's autos. This is an
example of: - Answers operations liability
Which of the following is considered part of the "coverage territory" as defined in the CGL Policy? -
Answers canadian cities with an international bridge to the US
A customer trips over an electrical extension cord used in a retail store and injures his back. This is an
example of: - Answers premises liability
Which of the following is not considered "mobile equipment"? - Answers a pick-up truck with a
permanently mounted cherry picker
Which of the following is considered part of the "coverage territory" as defined in the CGL Policy? -
Answers the insured makes a product in the US, sells it in Mexico, and a product liability suit is filed in
the US
Mobile equipment is an important definition in the CGL Policy and the BAP. The definition is the same
for both policies. Which of the following vehicles is not considered "mobile equipment"? - Answers a
street sweeper used by city street maintenance department
An owner is held liable when an employee wrongfully accuses a customer of shoplifting. This is an
example of: - Answers vicarious liability
Which of the following is true about the named insured when the business is a partnership? - Answers
partners' spouses, while doing partnership business, are considered insureds, even if they are not
named in the Declarations
Which of the following is true about the named insured when the business is a corporation? - Answers
newly formed corporations have automatic coverage for 90 days or until the end of the policy period,
whichever is earlier
Employees of the named insured are insureds, but only within the scope of their job and related to the
conduct of the business. There are exceptions to the coverage. When is an employee considered an
insured under your CGL Policy? - Answers when they cause bodily injury to a customer
Your insured, Green Grow Inc., just formed a new partnership. Which of the following is correct under
the unendorsed CGL Coverage Form? - Answers there is no automatic coverage for the new partnership
Which of the following is considered an insured under your CGL Policy? - Answers your real estate
manager
Which of the following best describes others who are automatically considered insureds under your CGL
Policy? - Answers they do not have to be listed on the Declaration Page to be covered by the CGL
