CPL&L FINAL EXAM AND PRACTICE EXAM QUESTIONS
2025 NEWEST ACTUAL EXAM COMPLETE EXAM |WITH
DETAILED VERIFIED ANSWERS |PRE-EVALUATED A+
Railroad owners commonly require contractors to purchase a Railroad Protective
Liability Coverage Form. Which one of the following statements about this form is
true? - ANSWER-One of the coverage limits applies to physical damage to property
owned by or leased or entrusted to the railroad
Which one of the following statements about the general aggregate limit under a
Commercial General Liability (CGL) Coverage Form is true? - ANSWER-It is reduced
by an claims paid for medical payments under Coverage C.
Tom often runs errands for his boss at XYZ Company, using the boss' car. On one of
these errands, Tom is involved in a serious auto accident. He spends a couple of
weeks in the hospital; misses four weeks of work; and must undergo physical
therapy. Does XYZ's Workers Compensation and Employers Liability Insurance
(WC&EL) Policy cover Tom's injuries, lost income, and rehabilitation expenses? -
ANSWER-Yes, the workers compensation policy would pay all of Tom's expenses,
because his injuries arose out of his employment at XYZ Company.
,Aircraft have a significant exposure to catastrophe losses. Of the many reasons for
the catastrophic loss potential of aircraft, the most significant is - ANSWER-The
physical properties of aircraft.
A security guard is employed at a pier where shipping containers are loaded and
unloaded from barges. There is also a small marina for pleasure craft at the pier. The
security guard trips over equipment left on a dock alongside a pleasure craft and is
injured. The pier only has insurance coverage that provides benefits under the
Longshore and Harbor Workers Compensation Act (LHWCA). Is the guard's injury
covered under LHWCA? - ANSWER-The injury is covered by LHWCA because the
guard is not covered under a state's workers compensation law.
ABC Plumbing entered into a contract with Bill to install a commercial grade septic
system on his property. The installation of the septic septic was time sensitive
because the rest of Bill's construction project could not go forward until the septic
system was in place. The contract required that the work be done within 30 days of
contract signing, or ABC would have to pay a penalty of $1,000 per day. Which one of
the following categories of damages does the $1,000 per day penalty specified in the
contract fall into? - ANSWER-Liquidated damages
Many states have funds from which employers may purchase workers compensation
insurance. Such funds may be either - ANSWER-Competitive or monopolistic
Section II—Who Is an Insured identifies the persons and organizations that qualify as
insureds under the Commercial General Liability (CGL) Coverage Form. Which one of
the following statements regarding who is considered an insured is most accurate? -
ANSWER-When a CGL policy covers one or more individuals as named insureds, any
person or organization having proper temporary custody of the named insured's
property following the named insured's death is an insured.
,What is the name given to a claim by an employee who says that he or she was fired
because of the filing of a workers compensation claim? - ANSWER-Retaliation claim
Javier's business auto policy contains a personal injury protection (PIP)
endorsement. He is involved in an auto accident in the covered auto, resulting in
$30,000 in property damage, $5,000 in third-party bodily injury, and $10,000 in
personal medical expenses. If Javier's business auto policy has a general aggregate
limit of $100,000 and a PIP limit of $15,000 and he is at fault for the accident, how
much will his insurer pay under the PIP coverage - ANSWER-PIP provides first-party
benefits for medical expenses, loss of income, loss of services, and funeral expenses
resulting from bodily injury to occupants of a covered auto because of an auto
accident. It pays regardless of which party was at fault in the accident. Therefore,
Javier's insurer will pay him $10,000 in medical expenses from the PIP coverage. The
other damages will be payable under different coverages available on his policy.
Which one of the following statements about coverage triggers in cyber risk
insurance policies is most accurate? - ANSWER-Both claims-made coverage triggers
and occurrence coverage triggers are available, but occurrence coverage triggers are
more appropriate for some insuring agreements than for others
According to the Terrorism Risk Insurance Act (TRIA), one of the two required
conditions that an insurer must meet at the time of an initial offer, purchase, and
renewal of insurance is the disclosure of the premium for terrorism coverage. What is
the other condition - ANSWER-A make-available provision
Acme Insurance cannot agree with insured Jill Jenkins on the amount of a covered
physical damage loss under Jill's Business Auto Coverage Form. Jill requested an
appraisal. Acme and Jill each appoint an appraiser, and the appraisers appoint an
umpire. An award in writing signed by any two of the three binds both Acme and Jill.
One appraiser and the umpire ruled for Jill and against Acme. Which one of the
following statements is true regarding this scenario? - ANSWER-Jill and Acme will
share the cost of the umpire.
, Matthew Jones, the named insured under an unendorsed Business Auto Coverage
Form (BACF), requires his employees to use their own cars for business purposes.
One of Matthew's employees, Paul, causes an accident while driving his own truck
for the business. Matthew's BACF shows symbol 1 for liability coverage. Which one
of the following correctly indicates whether Paul is an insured under the policy for
the accident? - ANSWER-Paul is not covered because employees are not insured
while using their own autos in the named insured's business.
ABC Corporation is insured under a standard unendorsed workers compensation
policy for only the state of Florida. Three months before the present policy began,
ABC opened a sales office in Georgia due to business volume growing in that state.
ABC failed to report the new location and new state at policy inception. The manager
of the Georgia office fell and was injured and missed work for three weeks after the
inception of the ABC policy. The manager made claim for Georgia benefits. Which
one of the following is true regarding ABC's coverage for Georgia benefits? -
ANSWER-Coverage for this claim would not be covered by ABC's insurance.
The claims-made trigger in a site specific environmental impairment liability policy
differs in three ways from the trigger in other claims-made liability policies. Which
one of the following best describes one of those three ways? - ANSWER-A site-
specific environmental impairment liability policy typically does not have a
retroactive date.
The Grey Corporation has a Commercial General Liability Coverage Form with the
following limits:
Each Occurrence $1,000,000
Damage to rented premises $100,000 each occurrence
Medical expense $5,000 any one person
Personal and advertising injury $1,000,000 any one person or organization
General aggregate limit $2,000,000
Product/completed operations aggregate limit $2,000,000
2025 NEWEST ACTUAL EXAM COMPLETE EXAM |WITH
DETAILED VERIFIED ANSWERS |PRE-EVALUATED A+
Railroad owners commonly require contractors to purchase a Railroad Protective
Liability Coverage Form. Which one of the following statements about this form is
true? - ANSWER-One of the coverage limits applies to physical damage to property
owned by or leased or entrusted to the railroad
Which one of the following statements about the general aggregate limit under a
Commercial General Liability (CGL) Coverage Form is true? - ANSWER-It is reduced
by an claims paid for medical payments under Coverage C.
Tom often runs errands for his boss at XYZ Company, using the boss' car. On one of
these errands, Tom is involved in a serious auto accident. He spends a couple of
weeks in the hospital; misses four weeks of work; and must undergo physical
therapy. Does XYZ's Workers Compensation and Employers Liability Insurance
(WC&EL) Policy cover Tom's injuries, lost income, and rehabilitation expenses? -
ANSWER-Yes, the workers compensation policy would pay all of Tom's expenses,
because his injuries arose out of his employment at XYZ Company.
,Aircraft have a significant exposure to catastrophe losses. Of the many reasons for
the catastrophic loss potential of aircraft, the most significant is - ANSWER-The
physical properties of aircraft.
A security guard is employed at a pier where shipping containers are loaded and
unloaded from barges. There is also a small marina for pleasure craft at the pier. The
security guard trips over equipment left on a dock alongside a pleasure craft and is
injured. The pier only has insurance coverage that provides benefits under the
Longshore and Harbor Workers Compensation Act (LHWCA). Is the guard's injury
covered under LHWCA? - ANSWER-The injury is covered by LHWCA because the
guard is not covered under a state's workers compensation law.
ABC Plumbing entered into a contract with Bill to install a commercial grade septic
system on his property. The installation of the septic septic was time sensitive
because the rest of Bill's construction project could not go forward until the septic
system was in place. The contract required that the work be done within 30 days of
contract signing, or ABC would have to pay a penalty of $1,000 per day. Which one of
the following categories of damages does the $1,000 per day penalty specified in the
contract fall into? - ANSWER-Liquidated damages
Many states have funds from which employers may purchase workers compensation
insurance. Such funds may be either - ANSWER-Competitive or monopolistic
Section II—Who Is an Insured identifies the persons and organizations that qualify as
insureds under the Commercial General Liability (CGL) Coverage Form. Which one of
the following statements regarding who is considered an insured is most accurate? -
ANSWER-When a CGL policy covers one or more individuals as named insureds, any
person or organization having proper temporary custody of the named insured's
property following the named insured's death is an insured.
,What is the name given to a claim by an employee who says that he or she was fired
because of the filing of a workers compensation claim? - ANSWER-Retaliation claim
Javier's business auto policy contains a personal injury protection (PIP)
endorsement. He is involved in an auto accident in the covered auto, resulting in
$30,000 in property damage, $5,000 in third-party bodily injury, and $10,000 in
personal medical expenses. If Javier's business auto policy has a general aggregate
limit of $100,000 and a PIP limit of $15,000 and he is at fault for the accident, how
much will his insurer pay under the PIP coverage - ANSWER-PIP provides first-party
benefits for medical expenses, loss of income, loss of services, and funeral expenses
resulting from bodily injury to occupants of a covered auto because of an auto
accident. It pays regardless of which party was at fault in the accident. Therefore,
Javier's insurer will pay him $10,000 in medical expenses from the PIP coverage. The
other damages will be payable under different coverages available on his policy.
Which one of the following statements about coverage triggers in cyber risk
insurance policies is most accurate? - ANSWER-Both claims-made coverage triggers
and occurrence coverage triggers are available, but occurrence coverage triggers are
more appropriate for some insuring agreements than for others
According to the Terrorism Risk Insurance Act (TRIA), one of the two required
conditions that an insurer must meet at the time of an initial offer, purchase, and
renewal of insurance is the disclosure of the premium for terrorism coverage. What is
the other condition - ANSWER-A make-available provision
Acme Insurance cannot agree with insured Jill Jenkins on the amount of a covered
physical damage loss under Jill's Business Auto Coverage Form. Jill requested an
appraisal. Acme and Jill each appoint an appraiser, and the appraisers appoint an
umpire. An award in writing signed by any two of the three binds both Acme and Jill.
One appraiser and the umpire ruled for Jill and against Acme. Which one of the
following statements is true regarding this scenario? - ANSWER-Jill and Acme will
share the cost of the umpire.
, Matthew Jones, the named insured under an unendorsed Business Auto Coverage
Form (BACF), requires his employees to use their own cars for business purposes.
One of Matthew's employees, Paul, causes an accident while driving his own truck
for the business. Matthew's BACF shows symbol 1 for liability coverage. Which one
of the following correctly indicates whether Paul is an insured under the policy for
the accident? - ANSWER-Paul is not covered because employees are not insured
while using their own autos in the named insured's business.
ABC Corporation is insured under a standard unendorsed workers compensation
policy for only the state of Florida. Three months before the present policy began,
ABC opened a sales office in Georgia due to business volume growing in that state.
ABC failed to report the new location and new state at policy inception. The manager
of the Georgia office fell and was injured and missed work for three weeks after the
inception of the ABC policy. The manager made claim for Georgia benefits. Which
one of the following is true regarding ABC's coverage for Georgia benefits? -
ANSWER-Coverage for this claim would not be covered by ABC's insurance.
The claims-made trigger in a site specific environmental impairment liability policy
differs in three ways from the trigger in other claims-made liability policies. Which
one of the following best describes one of those three ways? - ANSWER-A site-
specific environmental impairment liability policy typically does not have a
retroactive date.
The Grey Corporation has a Commercial General Liability Coverage Form with the
following limits:
Each Occurrence $1,000,000
Damage to rented premises $100,000 each occurrence
Medical expense $5,000 any one person
Personal and advertising injury $1,000,000 any one person or organization
General aggregate limit $2,000,000
Product/completed operations aggregate limit $2,000,000
