Maryland Casualty Insurance Exam With
Actual Questions & Verified
Answers,Explained Rationales/Expert Verified
For Guaranteed Pass 2026/Latest
Update/Instant Download Pdf
1. What is the primary purpose of casualty insurance?
A. To cover damage to crops
B. To cover liability for injury or damage to others
C. To cover employee retirement benefits
D. To cover marine cargo losses
Answer: B. To cover liability for injury or damage to others
Rationale: Casualty insurance primarily protects against legal
liability for bodily injury or property damage to third parties.
2. Which policy covers a business’s liability for bodily injury and
property damage?
A. Personal Auto Policy
B. Workers Compensation Policy
C. Commercial General Liability (CGL) Policy
D. Builders Risk Policy
Answer: C. Commercial General Liability (CGL) Policy
Rationale: A CGL policy provides broad liability coverage for
businesses.
3. Workers Compensation insurance primarily covers:
A. Employee theft
B. Employer’s property damage
C. Work-related employee injuries
D. Professional negligence
, Answer: C. Work-related employee injuries
Rationale: Workers compensation provides medical and wage
benefits for job-related injuries or illness.
4. Which of the following is NOT covered under a CGL policy?
A. Bodily injury
B. Property damage
C. Professional errors
D. Personal and advertising injury
Answer: C. Professional errors
Rationale: Professional errors require professional liability
insurance, not CGL.
5. What does liability insurance primarily protect against?
A. Loss of income
B. Legal responsibility for damages
C. Damage to owned property
D. Employee benefits
Answer: B. Legal responsibility for damages
Rationale: Liability insurance covers financial losses due to legal
responsibility for harm to others.
6. An occurrence policy covers claims:
A. Only reported during policy period
B. Occurring during policy period regardless of reporting time
C. Only after policy expiration
D. Only if renewed
Answer: B. Occurring during policy period regardless of reporting
time
Rationale: Occurrence policies cover incidents that happen
during the policy term.
, 7. A claims-made policy covers claims:
A. Only when injury occurs
B. Only during policy period
C. When both occurrence and claim are within policy period
D. Only after expiration
Answer: C. When both occurrence and claim are within policy
period
Rationale: Claims-made policies require both the incident and
claim to occur during the policy period (or extended reporting).
8. What is the purpose of an exclusion in an insurance policy?
A. To expand coverage
B. To limit or remove coverage
C. To increase premiums
D. To guarantee payment
Answer: B. To limit or remove coverage
Rationale: Exclusions define what is not covered under a policy.
9. Which coverage protects against lawsuits alleging libel or slander?
A. Property damage coverage
B. Personal and advertising injury
C. Workers compensation
D. Inland marine coverage
Answer: B. Personal and advertising injury
Rationale: This includes offenses like libel, slander, and
defamation.
10. What does “premium” mean?
A. Insurance contract
B. Payment for insurance coverage
C. Claim payment
D. Policy exclusion
Actual Questions & Verified
Answers,Explained Rationales/Expert Verified
For Guaranteed Pass 2026/Latest
Update/Instant Download Pdf
1. What is the primary purpose of casualty insurance?
A. To cover damage to crops
B. To cover liability for injury or damage to others
C. To cover employee retirement benefits
D. To cover marine cargo losses
Answer: B. To cover liability for injury or damage to others
Rationale: Casualty insurance primarily protects against legal
liability for bodily injury or property damage to third parties.
2. Which policy covers a business’s liability for bodily injury and
property damage?
A. Personal Auto Policy
B. Workers Compensation Policy
C. Commercial General Liability (CGL) Policy
D. Builders Risk Policy
Answer: C. Commercial General Liability (CGL) Policy
Rationale: A CGL policy provides broad liability coverage for
businesses.
3. Workers Compensation insurance primarily covers:
A. Employee theft
B. Employer’s property damage
C. Work-related employee injuries
D. Professional negligence
, Answer: C. Work-related employee injuries
Rationale: Workers compensation provides medical and wage
benefits for job-related injuries or illness.
4. Which of the following is NOT covered under a CGL policy?
A. Bodily injury
B. Property damage
C. Professional errors
D. Personal and advertising injury
Answer: C. Professional errors
Rationale: Professional errors require professional liability
insurance, not CGL.
5. What does liability insurance primarily protect against?
A. Loss of income
B. Legal responsibility for damages
C. Damage to owned property
D. Employee benefits
Answer: B. Legal responsibility for damages
Rationale: Liability insurance covers financial losses due to legal
responsibility for harm to others.
6. An occurrence policy covers claims:
A. Only reported during policy period
B. Occurring during policy period regardless of reporting time
C. Only after policy expiration
D. Only if renewed
Answer: B. Occurring during policy period regardless of reporting
time
Rationale: Occurrence policies cover incidents that happen
during the policy term.
, 7. A claims-made policy covers claims:
A. Only when injury occurs
B. Only during policy period
C. When both occurrence and claim are within policy period
D. Only after expiration
Answer: C. When both occurrence and claim are within policy
period
Rationale: Claims-made policies require both the incident and
claim to occur during the policy period (or extended reporting).
8. What is the purpose of an exclusion in an insurance policy?
A. To expand coverage
B. To limit or remove coverage
C. To increase premiums
D. To guarantee payment
Answer: B. To limit or remove coverage
Rationale: Exclusions define what is not covered under a policy.
9. Which coverage protects against lawsuits alleging libel or slander?
A. Property damage coverage
B. Personal and advertising injury
C. Workers compensation
D. Inland marine coverage
Answer: B. Personal and advertising injury
Rationale: This includes offenses like libel, slander, and
defamation.
10. What does “premium” mean?
A. Insurance contract
B. Payment for insurance coverage
C. Claim payment
D. Policy exclusion
