CISR Commercial Casualty II Exam
Questions with All Correct
Answers
The Care, Custody, Or Control Exclusion eliminates___________________ for damage
to property that belongs to the insured, is being transported by the insured, or that the
insured has in her/his custody, care, or control. - Answer-Liability Coverage
The Limit of Insurance shown in the Declarations is the most that would be paid for any
one ________, regardless of the number of covered autos involved, insureds, or claims
made. - Answer-Accident
Under the Physical Damage Limits of Insurance, the BAP will pay the lesser of the
______________________ or the _________________________________ the
damaged or stolen property at the time of a loss. - Answer-Actual Cash Value, Cost to
repair or replace
A "covered pollution cost or expense" includes costs or expenses arising from the
actual, alleged, or threatened release of "pollutants" in the course of transit by the
insured. T/F - Answer-False; There is no coverage for costs or expenses related to
actual, alleged, or threatened release of "pollutants."
If the BAP provides liability coverage, it extends liability coverage automatically to a
non-owned auto being used as a temporary substitute for an owned auto that is out of
service because of breakdown, repair, servicing, loss, or destruction. T/F - Answer-True
The BAP considers anyone other than the insured using a covered auto with the
permission of the insured to be an insured, with some exceptions. T/F - Answer-True
The BAP extends coverage as an insured to persons or organizations that are held
liable for the conduct of the insured. T/F - Answer-True
In addition to paying what it is legally obligated to pay on behalf of an insured, the
insurer agrees to pay all court costs and post-judgment interest. T/F - Answer-True
The Business Auto Coverage Form has 15 liability exclusions, and others may be
added by endorsement. T/F - Answer-False; There are 13 liability exclusions
, The Fellow Employee Exclusion removes coverage for liability of one insured employee
negligently injuring another insured employee. T/F - Answer-True
The Movement Of Property By A Mechanical Device Exclusion removes coverage if
loading or unloading of vehicles is performed using a mechanical device other than a
hand truck. T/F - Answer-True
One condition of the BAP is that the insured must notify the insurer of a loss within the
policy period if the insurer is to meet its promise to defend and pay. T/F - Answer-False;
The insured must notify both the insurer and the police promptly.
Name the four parts of negligence. - Answer-A duty is owed to others, That duty is
breached, Injury or damage results, The breach of duty is the proximate cause of an
injury or damage
List the three main types of physical damage coverage. - Answer-Comprehensive
coverage, specified causes of loss coverage, collision coverage
Identify the three functions of a Commercial Umbrella Policy. - Answer-To provide
excess limits above underlying liability insurance limits, To replace underlying insurance
limits as aggregate limits are exhausted, To provide broader insurance protection than
the underlying insurance.
Define the term "buffer layer," as it applies to an insured. - Answer-A buffer layer is an
amount of insurance above underlying insurance and beneath other excess insurance.
A buffer layer could be $5,000,000 of liability insurance in excess of $1,000,000, and
also underlying a layer of $5,000,000 above it.
Describe how the underlying insurance requirement works and the dangers of non-
concurrent policies. - Answer-The Excess/Umbrella Policy will perform, assuming the
underlying policies are maintained. When the underlying policies are not concurrent with
the Excess/Umbrella Policy, serious coverage gaps can arise.
The coverage territory of an Umbrella Policy is typically broader than the territory in an
underlying policy. T/F - Answer-True
Umbrella Policies may change the definitions in underlying policies. T/F - Answer-True
A "true" Umbrella Policy tends to be more restrictive than Excess Liability Policies. T/F -
Answer-False; A "true" umbrella typically has broader coverage with fewer exclusions.
A Follow Form Excess Policy provides the same coverage as the underlying policies but
at higher limits. T/F - Answer-True
Questions with All Correct
Answers
The Care, Custody, Or Control Exclusion eliminates___________________ for damage
to property that belongs to the insured, is being transported by the insured, or that the
insured has in her/his custody, care, or control. - Answer-Liability Coverage
The Limit of Insurance shown in the Declarations is the most that would be paid for any
one ________, regardless of the number of covered autos involved, insureds, or claims
made. - Answer-Accident
Under the Physical Damage Limits of Insurance, the BAP will pay the lesser of the
______________________ or the _________________________________ the
damaged or stolen property at the time of a loss. - Answer-Actual Cash Value, Cost to
repair or replace
A "covered pollution cost or expense" includes costs or expenses arising from the
actual, alleged, or threatened release of "pollutants" in the course of transit by the
insured. T/F - Answer-False; There is no coverage for costs or expenses related to
actual, alleged, or threatened release of "pollutants."
If the BAP provides liability coverage, it extends liability coverage automatically to a
non-owned auto being used as a temporary substitute for an owned auto that is out of
service because of breakdown, repair, servicing, loss, or destruction. T/F - Answer-True
The BAP considers anyone other than the insured using a covered auto with the
permission of the insured to be an insured, with some exceptions. T/F - Answer-True
The BAP extends coverage as an insured to persons or organizations that are held
liable for the conduct of the insured. T/F - Answer-True
In addition to paying what it is legally obligated to pay on behalf of an insured, the
insurer agrees to pay all court costs and post-judgment interest. T/F - Answer-True
The Business Auto Coverage Form has 15 liability exclusions, and others may be
added by endorsement. T/F - Answer-False; There are 13 liability exclusions
, The Fellow Employee Exclusion removes coverage for liability of one insured employee
negligently injuring another insured employee. T/F - Answer-True
The Movement Of Property By A Mechanical Device Exclusion removes coverage if
loading or unloading of vehicles is performed using a mechanical device other than a
hand truck. T/F - Answer-True
One condition of the BAP is that the insured must notify the insurer of a loss within the
policy period if the insurer is to meet its promise to defend and pay. T/F - Answer-False;
The insured must notify both the insurer and the police promptly.
Name the four parts of negligence. - Answer-A duty is owed to others, That duty is
breached, Injury or damage results, The breach of duty is the proximate cause of an
injury or damage
List the three main types of physical damage coverage. - Answer-Comprehensive
coverage, specified causes of loss coverage, collision coverage
Identify the three functions of a Commercial Umbrella Policy. - Answer-To provide
excess limits above underlying liability insurance limits, To replace underlying insurance
limits as aggregate limits are exhausted, To provide broader insurance protection than
the underlying insurance.
Define the term "buffer layer," as it applies to an insured. - Answer-A buffer layer is an
amount of insurance above underlying insurance and beneath other excess insurance.
A buffer layer could be $5,000,000 of liability insurance in excess of $1,000,000, and
also underlying a layer of $5,000,000 above it.
Describe how the underlying insurance requirement works and the dangers of non-
concurrent policies. - Answer-The Excess/Umbrella Policy will perform, assuming the
underlying policies are maintained. When the underlying policies are not concurrent with
the Excess/Umbrella Policy, serious coverage gaps can arise.
The coverage territory of an Umbrella Policy is typically broader than the territory in an
underlying policy. T/F - Answer-True
Umbrella Policies may change the definitions in underlying policies. T/F - Answer-True
A "true" Umbrella Policy tends to be more restrictive than Excess Liability Policies. T/F -
Answer-False; A "true" umbrella typically has broader coverage with fewer exclusions.
A Follow Form Excess Policy provides the same coverage as the underlying policies but
at higher limits. T/F - Answer-True
