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CPCU 552 Questions and Correct Answers
The Commercial General Liability (CGL) Coverage Form defines
the term "occurrence" as
Select one:
A. An incident, sudden and accidental in nature, causing bodily
injury or property damage.
B. An accident, including continuous or repeated exposure to
substantially the same general harmful conditions.
C. An accident, causing bodily injury or property damage, that
occurs suddenly.
D. An incident resulting from repeated exposure to substantially
the same general harmful conditions. Ans: B. An accident,
including continuous or repeated exposure to substantially the
same general harmful conditions.
The Commercial General Liability (CGL) Coverage Form defines the
term "occurrence" as an accident, including continuous or repeated
exposure to substantially the same general harmful conditions.
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Sullivan Construction Company (SCC) is an excavation contractor
specializing in digging foundations for homes. It has five dump
trucks, each of which is fitted with a tow hitch. Each vehicle tows a
trailer used to move excavation equipment to and from job sites as
well as to haul dirt. SCC's president, Bill Sullivan, drives a sport
utility vehicle owned and insured by SCC. The company has one
outside salesman and 10 construction employees, all of whom
drive their own vehicles to work and on company business. SCC's
equipment includes four backhoes used to dig building
foundations and one bulldozer. Among other insurance, SCC has
an unendorsed Business Auto Coverage Form (BACF).
Select one:
A. Symbol 1—any auto
B. Symbol 2—owned autos only
C. Symbol 3—owned private passenger autos only
D. Symbol 4—owned autos other than private passenger autos only
Ans: B. Symbol 2—owned autos only
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SCC should select Symbol 2—owned autos only for physical
damage coverage under its BACF.
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?
A. Paul is covered because employees are considered insureds for
any auto.
B. Paul is covered because Matthew has given permission for Paul
to drive his own truck.
C. Paul is not covered because employees are not insured while
using their own autos in the named insured's business.
D. Paul is not covered because employees are not insureds for any
use of any auto. Ans: C. Paul is not covered because employees
are not insured while using their own autos in the named insured's
business.
© 2025 All rights reserved
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C is correct — Paul is not insured because he's using his own truck
in the business, and the unendorsed BACF excludes this scenario.
The specified causes of loss coverage of the business auto policy
includes coverage for which one of the following?
Select one:
A. Glass breakage whether caused by collision or some other
cause.
B. Direct and accidental loss or damage resulting from overturn.
C. Derailment of a conveyance transporting the insured vehicle.
D. Towing and labor costs resulting from disablement. Ans: C.
Derailment of a conveyance transporting the insured vehicle.
Correct Answer: C — Derailment of a conveyance transporting the
insured vehicle
This is one of the named perils under Specified Causes of Loss in
the Business Auto Policy.
Emily has just accepted a new position with Argot Industries
(Argot). She is a sales representative and will be expected to call on
current and prospective customers in her territory. Emily will use
© 2025 All rights reserved
CPCU 552 Questions and Correct Answers
The Commercial General Liability (CGL) Coverage Form defines
the term "occurrence" as
Select one:
A. An incident, sudden and accidental in nature, causing bodily
injury or property damage.
B. An accident, including continuous or repeated exposure to
substantially the same general harmful conditions.
C. An accident, causing bodily injury or property damage, that
occurs suddenly.
D. An incident resulting from repeated exposure to substantially
the same general harmful conditions. Ans: B. An accident,
including continuous or repeated exposure to substantially the
same general harmful conditions.
The Commercial General Liability (CGL) Coverage Form defines the
term "occurrence" as an accident, including continuous or repeated
exposure to substantially the same general harmful conditions.
© 2025 All rights reserved
, 2 | Page
Sullivan Construction Company (SCC) is an excavation contractor
specializing in digging foundations for homes. It has five dump
trucks, each of which is fitted with a tow hitch. Each vehicle tows a
trailer used to move excavation equipment to and from job sites as
well as to haul dirt. SCC's president, Bill Sullivan, drives a sport
utility vehicle owned and insured by SCC. The company has one
outside salesman and 10 construction employees, all of whom
drive their own vehicles to work and on company business. SCC's
equipment includes four backhoes used to dig building
foundations and one bulldozer. Among other insurance, SCC has
an unendorsed Business Auto Coverage Form (BACF).
Select one:
A. Symbol 1—any auto
B. Symbol 2—owned autos only
C. Symbol 3—owned private passenger autos only
D. Symbol 4—owned autos other than private passenger autos only
Ans: B. Symbol 2—owned autos only
© 2025 All rights reserved
, 3 | Page
SCC should select Symbol 2—owned autos only for physical
damage coverage under its BACF.
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?
A. Paul is covered because employees are considered insureds for
any auto.
B. Paul is covered because Matthew has given permission for Paul
to drive his own truck.
C. Paul is not covered because employees are not insured while
using their own autos in the named insured's business.
D. Paul is not covered because employees are not insureds for any
use of any auto. Ans: C. Paul is not covered because employees
are not insured while using their own autos in the named insured's
business.
© 2025 All rights reserved
, 4 | Page
C is correct — Paul is not insured because he's using his own truck
in the business, and the unendorsed BACF excludes this scenario.
The specified causes of loss coverage of the business auto policy
includes coverage for which one of the following?
Select one:
A. Glass breakage whether caused by collision or some other
cause.
B. Direct and accidental loss or damage resulting from overturn.
C. Derailment of a conveyance transporting the insured vehicle.
D. Towing and labor costs resulting from disablement. Ans: C.
Derailment of a conveyance transporting the insured vehicle.
Correct Answer: C — Derailment of a conveyance transporting the
insured vehicle
This is one of the named perils under Specified Causes of Loss in
the Business Auto Policy.
Emily has just accepted a new position with Argot Industries
(Argot). She is a sales representative and will be expected to call on
current and prospective customers in her territory. Emily will use
© 2025 All rights reserved
