CISR Commercial Casualty 1 Exam Review
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Define Liability - CORRECT ANSWER - The state of being bound or obliged in law to
do, pay, or make something good. Legal responsibility
Common Law - CORRECT ANSWER - Set of legal rules used in the US to resolve civil
(not criminal) disputes in court.
EX) a customer slipping and falling on wet floor not marked with a sign. This would be a civil
dispute in court
Business Liabilities - CORRECT ANSWER - Obligations carried by a business at any one
time
Premises Liability - CORRECT ANSWER - Liability tied to a specific location.
Businesses are liable if someone is injured on their property
Operations Liability - CORRECT ANSWER - Exposures that typically occur away from
the premises. These exposures are typically from activities such as performing construction,
processing, or providing services on someone else's property
Products Liability - CORRECT ANSWER - Exposures caused by defects in a products
design, manufacturing, or failure to explain the safe use to customers.
EX) A manufacturer forgetting to put a choking hazard sticker on a small toy
Completed Operations Liability - CORRECT ANSWER - Exposure arising from
injury/damage caused by defective or improper workmanship after the job has been completed.
EX) An oil change company not putting the correct oil in a customer's car, resulting in the car
being damaged
, Automobile Liability - CORRECT ANSWER - Exposure arising out of injury/damage due
to the ownership, maintenance, or use of an auto.
EX) if an employee causes a wreck driving a company car, both the employer and the employee
will be held liable for the damages
Conveyance Liability - CORRECT ANSWER - Exposure arising from the use of mobile
equipment. This could be from a company using a barge to transport products, machinery
moving gravel, etc. and causing damage/injury
Employment Liability - CORRECT ANSWER - Liability arising from having employees.
This could be for many reasons including: a onetime work-related injury, workplace harassment,
repetitive movement resulting in injury due to work, etc.
Liquor Liability - CORRECT ANSWER - Liability arising out of the selling, serving,
and/or consumption of alcohol. This could be a bar that serves alcohol as part of their operations,
or even a company Christmas party where alcohol is available to employees
Environmental Impairment Liability - CORRECT ANSWER - Liability arising when the
operations or products of a business cause environmental harm.
EX) A gas tank leaking gas into the soil
Pollutant - CORRECT ANSWER - Any material that is not where it is supposed to be
Professional Liability - CORRECT ANSWER - Liability arising out of services provided
by an industry professional.
EX) An accountant providing false advice to a customer, resulting in the customer having IRS
fines
Bailee Liability - CORRECT ANSWER - Liability arising from being in possession of
another's property.
EX) A jewelry store keeps a customer's watch overnight, and it is stolen from the store. The
jewelry store will be held liable
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Define Liability - CORRECT ANSWER - The state of being bound or obliged in law to
do, pay, or make something good. Legal responsibility
Common Law - CORRECT ANSWER - Set of legal rules used in the US to resolve civil
(not criminal) disputes in court.
EX) a customer slipping and falling on wet floor not marked with a sign. This would be a civil
dispute in court
Business Liabilities - CORRECT ANSWER - Obligations carried by a business at any one
time
Premises Liability - CORRECT ANSWER - Liability tied to a specific location.
Businesses are liable if someone is injured on their property
Operations Liability - CORRECT ANSWER - Exposures that typically occur away from
the premises. These exposures are typically from activities such as performing construction,
processing, or providing services on someone else's property
Products Liability - CORRECT ANSWER - Exposures caused by defects in a products
design, manufacturing, or failure to explain the safe use to customers.
EX) A manufacturer forgetting to put a choking hazard sticker on a small toy
Completed Operations Liability - CORRECT ANSWER - Exposure arising from
injury/damage caused by defective or improper workmanship after the job has been completed.
EX) An oil change company not putting the correct oil in a customer's car, resulting in the car
being damaged
, Automobile Liability - CORRECT ANSWER - Exposure arising out of injury/damage due
to the ownership, maintenance, or use of an auto.
EX) if an employee causes a wreck driving a company car, both the employer and the employee
will be held liable for the damages
Conveyance Liability - CORRECT ANSWER - Exposure arising from the use of mobile
equipment. This could be from a company using a barge to transport products, machinery
moving gravel, etc. and causing damage/injury
Employment Liability - CORRECT ANSWER - Liability arising from having employees.
This could be for many reasons including: a onetime work-related injury, workplace harassment,
repetitive movement resulting in injury due to work, etc.
Liquor Liability - CORRECT ANSWER - Liability arising out of the selling, serving,
and/or consumption of alcohol. This could be a bar that serves alcohol as part of their operations,
or even a company Christmas party where alcohol is available to employees
Environmental Impairment Liability - CORRECT ANSWER - Liability arising when the
operations or products of a business cause environmental harm.
EX) A gas tank leaking gas into the soil
Pollutant - CORRECT ANSWER - Any material that is not where it is supposed to be
Professional Liability - CORRECT ANSWER - Liability arising out of services provided
by an industry professional.
EX) An accountant providing false advice to a customer, resulting in the customer having IRS
fines
Bailee Liability - CORRECT ANSWER - Liability arising from being in possession of
another's property.
EX) A jewelry store keeps a customer's watch overnight, and it is stolen from the store. The
jewelry store will be held liable
