CIC Commercial Multi-Line Exam 2025
– Verified Questions and 100% Correct
Coverage Answers
1. Multiple-Choice
Question: What is the primary purpose of a Commercial General Liability (CGL) policy?
A) Cover employee injuries
B) Protect against property damage to owned buildings
C) Provide coverage for third-party bodily injury and property damage
D) Insure business vehicles
Answer: C) Provide coverage for third-party bodily injury and property damage
Rationale: A CGL policy covers liability for bodily injury and property damage to third
parties arising from business operations, not employee injuries or owned property.
2. Multiple-Choice
Question: Which coverage form is used for a commercial property policy insuring a
building and its contents?
A) Businessowners Policy (BOP)
B) Building and Personal Property Coverage Form (CP 00 10)
C) Business Income Coverage Form (CP 00 30)
D) Equipment Breakdown Form
Answer: B) Building and Personal Property Coverage Form (CP 00 10)
Rationale: The CP 00 10 form insures buildings and business personal property against
covered perils.
3. Multiple-Choice
Question: Under a CGL policy, which coverage applies to slander or libel claims?
A) Coverage A – Bodily Injury and Property Damage
B) Coverage B – Personal and Advertising Injury
C) Coverage C – Medical Payments
D) Coverage D – Products-Completed Operations
Answer: B) Coverage B – Personal and Advertising Injury
Rationale: Coverage B addresses claims like slander, libel, or false advertising causing
personal or advertising injury.
4. Multiple-Choice
Question: What is the purpose of the Business Auto Policy (BAP) Symbol 7?
A) Covers any auto
B) Covers specifically described autos only
C) Covers hired autos only
D) Covers non-owned autos only
, Answer: B) Covers specifically described autos only
Rationale: Symbol 7 provides coverage for vehicles listed in the policy declarations.
5. Multiple-Choice
Question: Which type of loss is covered under a Workers’ Compensation policy?
A) Property damage to business equipment
B) Employee medical expenses from a work-related injury
C) Liability for customer injuries
D) Business income loss
Answer: B) Employee medical expenses from a work-related injury
Rationale: Workers’ Compensation covers medical expenses and lost wages for work-
related employee injuries.
6. Multiple-Choice
Question: What is the function of an Umbrella Liability policy?
A) Replaces primary insurance policies
B) Provides excess coverage over underlying policies
C) Covers employee benefits
D) Insures owned property
Answer: B) Provides excess coverage over underlying policies
Rationale: An Umbrella policy provides additional liability coverage above primary
policies like CGL and BAP.
7. Multiple-Choice
Question: A business experiences a fire causing $50,000 in damage to its inventory. The
commercial property policy has a $5,000 deductible. How much will the insurer pay?
A) $50,000
B) $45,000
C) $55,000
D) $0
Answer: B) $45,000
Rationale: The insurer pays the loss amount minus the deductible: $50,000 - $5,000 =
$45,000.
8. Multiple-Choice
Question: Which peril is excluded under a standard commercial property policy?
A) Fire
B) Theft
C) Earthquake
D) Vandalism
Answer: C) Earthquake
Rationale: Earthquake is typically excluded unless added by endorsement.
9. Multiple-Choice
Question: What is the purpose of the Additional Insured endorsement in a CGL policy?
A) Increases policy limits
B) Extends coverage to another party
C) Reduces premium costs
D) Excludes specific perils
Answer: B) Extends coverage to another party
– Verified Questions and 100% Correct
Coverage Answers
1. Multiple-Choice
Question: What is the primary purpose of a Commercial General Liability (CGL) policy?
A) Cover employee injuries
B) Protect against property damage to owned buildings
C) Provide coverage for third-party bodily injury and property damage
D) Insure business vehicles
Answer: C) Provide coverage for third-party bodily injury and property damage
Rationale: A CGL policy covers liability for bodily injury and property damage to third
parties arising from business operations, not employee injuries or owned property.
2. Multiple-Choice
Question: Which coverage form is used for a commercial property policy insuring a
building and its contents?
A) Businessowners Policy (BOP)
B) Building and Personal Property Coverage Form (CP 00 10)
C) Business Income Coverage Form (CP 00 30)
D) Equipment Breakdown Form
Answer: B) Building and Personal Property Coverage Form (CP 00 10)
Rationale: The CP 00 10 form insures buildings and business personal property against
covered perils.
3. Multiple-Choice
Question: Under a CGL policy, which coverage applies to slander or libel claims?
A) Coverage A – Bodily Injury and Property Damage
B) Coverage B – Personal and Advertising Injury
C) Coverage C – Medical Payments
D) Coverage D – Products-Completed Operations
Answer: B) Coverage B – Personal and Advertising Injury
Rationale: Coverage B addresses claims like slander, libel, or false advertising causing
personal or advertising injury.
4. Multiple-Choice
Question: What is the purpose of the Business Auto Policy (BAP) Symbol 7?
A) Covers any auto
B) Covers specifically described autos only
C) Covers hired autos only
D) Covers non-owned autos only
, Answer: B) Covers specifically described autos only
Rationale: Symbol 7 provides coverage for vehicles listed in the policy declarations.
5. Multiple-Choice
Question: Which type of loss is covered under a Workers’ Compensation policy?
A) Property damage to business equipment
B) Employee medical expenses from a work-related injury
C) Liability for customer injuries
D) Business income loss
Answer: B) Employee medical expenses from a work-related injury
Rationale: Workers’ Compensation covers medical expenses and lost wages for work-
related employee injuries.
6. Multiple-Choice
Question: What is the function of an Umbrella Liability policy?
A) Replaces primary insurance policies
B) Provides excess coverage over underlying policies
C) Covers employee benefits
D) Insures owned property
Answer: B) Provides excess coverage over underlying policies
Rationale: An Umbrella policy provides additional liability coverage above primary
policies like CGL and BAP.
7. Multiple-Choice
Question: A business experiences a fire causing $50,000 in damage to its inventory. The
commercial property policy has a $5,000 deductible. How much will the insurer pay?
A) $50,000
B) $45,000
C) $55,000
D) $0
Answer: B) $45,000
Rationale: The insurer pays the loss amount minus the deductible: $50,000 - $5,000 =
$45,000.
8. Multiple-Choice
Question: Which peril is excluded under a standard commercial property policy?
A) Fire
B) Theft
C) Earthquake
D) Vandalism
Answer: C) Earthquake
Rationale: Earthquake is typically excluded unless added by endorsement.
9. Multiple-Choice
Question: What is the purpose of the Additional Insured endorsement in a CGL policy?
A) Increases policy limits
B) Extends coverage to another party
C) Reduces premium costs
D) Excludes specific perils
Answer: B) Extends coverage to another party
