CIC COMMERCIAL MULTILINE EXAM
QUESTIONS WITH CORRECT ANSWERS
Extortion Threat (LO6) - Answer-a threat to
-perpetrate a cyber incident
- disseminate, divulge info or weakness
- destroy, corrupt, or prevent access
- inflict ransomware
- publish personal information
Extra Expense does not include (LO6) - Answer-1.Upgrading, maintaining, repairing, re
mediating or improving a computer system as a result of a cyber incidents or extortion
threat
2. Expenses covered un insurance agreement agreement 2 - extortion threat.
Security Breach - Answer-- does not include confidential corporation information in the
CCC of the insured
- person not authorized has access to personal information
- authorized person uses personal information in an unauthorized way
Identify and apply the limits of insurance provision under the ISP commercial cyber
insurance policy to a loss. (LO7) - Answer-Policy Aggregate Limit of Insurance
The most paid is the limit shown on deceleration page.
The insurer's obligation or liability of any kind ends when the policy aggregate limit of
insurance has been exhausted
Aggregate Sublimit(s) of Insurance
Subject to policy add grease limit of insurance
Sublimit(s) shown in the dec page are not in addition to the policy aggregate limit of
insurance
The insurer's obligation of liability of any kind ends when the aggregate Sublimit has
been exhausted
Identify and apply the deductibles of insurance provision under the ISP commercial
cyber insurance policy to a loss. (LO7) - Answer-Insurance Agreement 1, 2, 3, and 5
pays only the amount of loss in excess of the policy deductible amount shown in the
declarations
Under insuring agreement 4 business income and extra expense pays only the amount
of loss that exceeds the greater of the deductible show or the amount of loss incurred
the time deductible
Underinsuring agreement 5 security breach liability pays only the amount of loss and
defense expense in excess of policy deductible amount shown in the declarations
Only the highest deductible amount applies in the even a loss is covered under more
than one insuring agreement.
,Identify and apply the defense and settlement provision under the ISO commercial
cyber insurance policy (LO8) - Answer-Only applies to insuring agreement 6 Security
Breach Liability
Insurer has the right and duty to defend
No coverage no defense
Defense expenses are payable within and not in addition to the limits
Identify and apply the exclusions under the ISO commercial cyber insurance policy. -
Answer-Exclusions are numerous and vary by insurer
Lighting earthquake, hail, volcanic action or other acts of nature,
War warlike action or insurrection
Patogenic biological or chemical materials nuclear radiation
Bodily injury or physical damage to or destruction of tangible property including loss of
use
Unexplained or indeterminable failure malfunction or slowdown of the computer system
or inability to access electronic data
Any disruption due to insufficient capacity to process transaction or due to an overload
of activity on computer system or network other than a cyber incident.
Any disruption of internet service or external telecommunication network
Failure of reduction in or surge power
Violation of RICO and its amendments of similar law
Malfunction or failure of any atelier
Oral of written material published with knowledge of falsity
Contractual liability*****
Patent or trade secret violations
Pollutions or pollution related h
Prior or pending claims
Employment practices related liability
Awareness that any insured had prior to the effective date of the policy
conditions found in cyber policies by the insured and insurer before, during, and after a
claim or loss - Answer-- subrogation
- representations (must be correct)
- changes in exposure (acquisitions or creation of organization, acquisition of named
insured, cessation of subsidiaries)
- other insurance (may be excess coverage)
- separation of insureds (2 named insureds for ex)
- duties in the event of claim or loss
- valuation (USD)
- confidentiality (cannot say you have extortion coverage)
- territory (worldwide, limited worldwide, universe)
Identify and describe the sources of liability that can result in an employee not-related
practices claim. (LO1) - Answer-A. Workplace Torts
, - Workplace torts may be based on negligence(reasonable person: foreseeability) or
intentional torts
- Preserves full right of action if a federal case falters
- Too many think it is only a federal issue and "right-to-work" protect them in certain
states
B. Breach of Contract
- Written contacts (including employment contract and collective bargaining
agreements)
- Implied contracts (job offer letter, employee manual, oral promises, evaluations,
tenure)
C. Violation of Statutes Regarding Employment Practices
- some small businesses are exempt
Examples of workplace torts (LO1) - Answer-- Bullying, humiliation or other types of
infliction of emotional distress
- Invasion of privacy
- Coercion
- Libel, slander, defamation of character
- Negligent hiring practices
- Negligent supervision
- Retaliation
- Wrongful or negligent evaluations, criticism, demotions, discipline
- Wrongful detention or imprisonment
- Wrongful termination
Determine whether a person or organization qualifies as an insured person in the event
of a claim situation and whether an exclusion or limitation applies (LO2) - Answer-
Named Insured Organization indicated on the declarations
Insured Persons
Directors, officers trustees of the organization
Employees
Volunteer or an intern
Independent contractors
Identify the key elements in an employment practices liability insurance policy insuring
agreement. (LO3) - Answer-1. Pays sums the insured becomes legally obligated to pay
as damages
2. Resulting from a "wrongful act"
3. Right and duty to defend any "suit" seeking damages for wrongful act
4. Consent to settle
Describe the insurance protection that may be provided for liability to third parties under
and EPLI policy. (LO4) - Answer-1. EPLI policies are typically written to provide
coverage for claims filed by employees.
QUESTIONS WITH CORRECT ANSWERS
Extortion Threat (LO6) - Answer-a threat to
-perpetrate a cyber incident
- disseminate, divulge info or weakness
- destroy, corrupt, or prevent access
- inflict ransomware
- publish personal information
Extra Expense does not include (LO6) - Answer-1.Upgrading, maintaining, repairing, re
mediating or improving a computer system as a result of a cyber incidents or extortion
threat
2. Expenses covered un insurance agreement agreement 2 - extortion threat.
Security Breach - Answer-- does not include confidential corporation information in the
CCC of the insured
- person not authorized has access to personal information
- authorized person uses personal information in an unauthorized way
Identify and apply the limits of insurance provision under the ISP commercial cyber
insurance policy to a loss. (LO7) - Answer-Policy Aggregate Limit of Insurance
The most paid is the limit shown on deceleration page.
The insurer's obligation or liability of any kind ends when the policy aggregate limit of
insurance has been exhausted
Aggregate Sublimit(s) of Insurance
Subject to policy add grease limit of insurance
Sublimit(s) shown in the dec page are not in addition to the policy aggregate limit of
insurance
The insurer's obligation of liability of any kind ends when the aggregate Sublimit has
been exhausted
Identify and apply the deductibles of insurance provision under the ISP commercial
cyber insurance policy to a loss. (LO7) - Answer-Insurance Agreement 1, 2, 3, and 5
pays only the amount of loss in excess of the policy deductible amount shown in the
declarations
Under insuring agreement 4 business income and extra expense pays only the amount
of loss that exceeds the greater of the deductible show or the amount of loss incurred
the time deductible
Underinsuring agreement 5 security breach liability pays only the amount of loss and
defense expense in excess of policy deductible amount shown in the declarations
Only the highest deductible amount applies in the even a loss is covered under more
than one insuring agreement.
,Identify and apply the defense and settlement provision under the ISO commercial
cyber insurance policy (LO8) - Answer-Only applies to insuring agreement 6 Security
Breach Liability
Insurer has the right and duty to defend
No coverage no defense
Defense expenses are payable within and not in addition to the limits
Identify and apply the exclusions under the ISO commercial cyber insurance policy. -
Answer-Exclusions are numerous and vary by insurer
Lighting earthquake, hail, volcanic action or other acts of nature,
War warlike action or insurrection
Patogenic biological or chemical materials nuclear radiation
Bodily injury or physical damage to or destruction of tangible property including loss of
use
Unexplained or indeterminable failure malfunction or slowdown of the computer system
or inability to access electronic data
Any disruption due to insufficient capacity to process transaction or due to an overload
of activity on computer system or network other than a cyber incident.
Any disruption of internet service or external telecommunication network
Failure of reduction in or surge power
Violation of RICO and its amendments of similar law
Malfunction or failure of any atelier
Oral of written material published with knowledge of falsity
Contractual liability*****
Patent or trade secret violations
Pollutions or pollution related h
Prior or pending claims
Employment practices related liability
Awareness that any insured had prior to the effective date of the policy
conditions found in cyber policies by the insured and insurer before, during, and after a
claim or loss - Answer-- subrogation
- representations (must be correct)
- changes in exposure (acquisitions or creation of organization, acquisition of named
insured, cessation of subsidiaries)
- other insurance (may be excess coverage)
- separation of insureds (2 named insureds for ex)
- duties in the event of claim or loss
- valuation (USD)
- confidentiality (cannot say you have extortion coverage)
- territory (worldwide, limited worldwide, universe)
Identify and describe the sources of liability that can result in an employee not-related
practices claim. (LO1) - Answer-A. Workplace Torts
, - Workplace torts may be based on negligence(reasonable person: foreseeability) or
intentional torts
- Preserves full right of action if a federal case falters
- Too many think it is only a federal issue and "right-to-work" protect them in certain
states
B. Breach of Contract
- Written contacts (including employment contract and collective bargaining
agreements)
- Implied contracts (job offer letter, employee manual, oral promises, evaluations,
tenure)
C. Violation of Statutes Regarding Employment Practices
- some small businesses are exempt
Examples of workplace torts (LO1) - Answer-- Bullying, humiliation or other types of
infliction of emotional distress
- Invasion of privacy
- Coercion
- Libel, slander, defamation of character
- Negligent hiring practices
- Negligent supervision
- Retaliation
- Wrongful or negligent evaluations, criticism, demotions, discipline
- Wrongful detention or imprisonment
- Wrongful termination
Determine whether a person or organization qualifies as an insured person in the event
of a claim situation and whether an exclusion or limitation applies (LO2) - Answer-
Named Insured Organization indicated on the declarations
Insured Persons
Directors, officers trustees of the organization
Employees
Volunteer or an intern
Independent contractors
Identify the key elements in an employment practices liability insurance policy insuring
agreement. (LO3) - Answer-1. Pays sums the insured becomes legally obligated to pay
as damages
2. Resulting from a "wrongful act"
3. Right and duty to defend any "suit" seeking damages for wrongful act
4. Consent to settle
Describe the insurance protection that may be provided for liability to third parties under
and EPLI policy. (LO4) - Answer-1. EPLI policies are typically written to provide
coverage for claims filed by employees.
