CISR Commercial Casualty 2 Exam
UPDATED Questions and CORRECT
Answers
Which of the following states is not a workers' compensation monopolistic state?
a. Wyoming
b. Texas
c. North Dakota
d. Ohio - CORRECT ANSWER - b. Texas
The Business Auto Coverage Form defines "auto" and "mobile equipment." All of the following
are considered autos rather than mobile equipment as defined in the Business Auto Coverage
Form except:
a. road scraping equipment built on crawler treads
b. a self-propelled vehicle equipped with well servicing equipment
c. a cherry picker mounted on a truck chassis
d. a self-propelled vehicle designed primarily for snow removal - CORRECT ANSWER -
a. road scraping equipment built on crawler treads
Which of the following is not a reason liability coverage will automatically be extended for a
non-owned auto being used as a temporary substitute for a covered "auto" the named insured
owns but cannot be used?
a. "Loss" or destruction
b. Breakdown
c. Service or repair
d. Insufficient towing capacity - CORRECT ANSWER - d. Insufficient towing capacity
Your insured has an unendorsed Business Auto Coverage Form in which Liability is written
using Symbol 1 (Any "Auto"). An employee who is using his personal vehicle on behalf of the
business has an at-fault accident. Who is an insured under your insured's policy
,a. Both the named insured and the employee
b. Only the named insured
c. Neither the named insured nor the employee
d. Only the employee - CORRECT ANSWER - b. Only the named insured
Which of the following is not covered under Comprehensive coverage provided by a Business
Auto Coverage Form?
a. Vandalism to the service truck
b. Hail damage to the three sales vehicles parked in the parking lot over the weekend
c. Damage to the business-owned pickup truck when the vehicle overturns
d. The damage caused by a tree branch that falls on the roof of the delivery van - CORRECT
ANSWER - c. Damage to the business-owned pickup truck when the vehicle overturns
George drove the scheduled delivery truck to the client's home to deliver a new refrigerator.
While moving the appliance with the dolly (hand truck) into the home, it fell and damaged the
flooring. Which coverage form, if any, would provide coverage for customer's floor?
a. Commercial General Liability Form
b. Business Auto Coverage Form
c. Both the Commercial General Liability and the Business Auto Coverage, equally
d. Neither policy since the damage was caused by the dolly (hand truck) - CORRECT
ANSWER - b. Business Auto Coverage Form
Which of the following statements is not true about workers' compensation statutes?
a. Death benefits can include weekly income benefits for the employee's eligible dependents.
b. Most states impose a dollar limit on medical expenses.
c. Most states have rehabilitation benefits written into their law.
d. Lost wage benefits are paid to replace the loss of income suffered by an injured or sick
employee. - CORRECT ANSWER - b. Most states impose a dollar limit on medical
expenses.
,Most workers' compensation statutes provide four types of benefits. Which of the following is
not one of those benefits?
a. Payments made to an employee to replace the loss of income suffered as a result of a work-
related injury
b. Medical expenses incurred for injuries sustained by an employee
c. Payments made toward physical rehabilitation following an injury
d. Medical expenses paid to family members following an employee's sickness - CORRECT
ANSWER - d. Medical expenses paid to family members following an employee's
sickness
Which of the following coverages is not provided by monopolistic state funds?
a. Lost wages due to work-related sickness or injury
b. Employers' liability insurance
c. Rehabilitation benefits
d. Medical expenses for work-related injuries - CORRECT ANSWER - b. Employers'
liability insurance
The Information Page in the Workers' Compensation and Employers' Liability Policy uses Item
3.A. to do which of the following?
a. Trigger workers' compensation coverage in monopolistic states only
b. Trigger Other States' Insurance coverage
c. Trigger workers' compensation coverage in listed states
d. Trigger employers' liability coverage in all states - CORRECT ANSWER - c. Trigger
workers' compensation coverage in listed states
When working with your client to select the coverages needed for his Workers' Compensation
and Employers' Liability Insurance Policy, you come to Item 3.B. of the Information Page.
Which statement best explains what this section triggers and how?
a. It triggers employers' liability coverage for only those states listed in 3.B.
b. It triggers workers' compensation and employers' liability coverage for all states listed in 3.B.
, c. It triggers employers' liability coverage for those states listed in 3.A. for the limits that are
shown for bodily injury by accident for each accident, bodily injury by disease with a policy
limit, and bodily injury by disease for each employee.
d. It triggers workers' compensation benefits in the states listed in 3.A. and sets the limits for
medical expenses, rehabilitation expenses, and death/funeral expenses. - CORRECT
ANSWER - c. It triggers employers' liability coverage for those states listed in 3.A. for the
limits that are shown for bodily injury by accident for each accident, bodily injury by disease
with a policy limit, and bodily injury by disease for each employee.
Your insured buys a Workers' Compensation Policy for coverage in New York with NY listed in
Item 3.A. Three months after the policy effective date, your insured also begins work in New
Jersey. New Jersey is listed in Item 3.C. Which statement below is true about your insured's
workers' compensation coverage?
a. Your insured has coverage in New Jersey only after they notify the insurer.
b. Your insured has no coverage in New Jersey since the state is not listed in item 3.A. of the
Information Page.
c. Your insured has automatic coverage in New Jersey for 90 days.
d. Your insured has automatic coverage in New Jersey as long as the insurer is notified "at once"
that work has begun there - CORRECT ANSWER - d. Your insured has automatic
coverage in New Jersey as long as the insurer is notified "at once" that work has begun there
As you review his insurance needs, your client asks you about the primary functions of an
Umbrella Liability Policy. Which of the following would not be used to answer his question?
a. It provides excess limits over underlying insurance.
b. It provides broader insurance protection than that provided by underlying policies.
c. It replaces underlying insurance when aggregate limits have been exhausted.
d. It replaces claims expenses incurred by the insured. - CORRECT ANSWER - d. It
replaces claims expenses incurred by the insured.
A self-insured retention can be explained to your client using which of the following statements?
a. It applies only if coverage is provided by the Umbrella Liability Policy but not by underlying
policies, and it does not apply when coverage is in excess of the underlying policy.
UPDATED Questions and CORRECT
Answers
Which of the following states is not a workers' compensation monopolistic state?
a. Wyoming
b. Texas
c. North Dakota
d. Ohio - CORRECT ANSWER - b. Texas
The Business Auto Coverage Form defines "auto" and "mobile equipment." All of the following
are considered autos rather than mobile equipment as defined in the Business Auto Coverage
Form except:
a. road scraping equipment built on crawler treads
b. a self-propelled vehicle equipped with well servicing equipment
c. a cherry picker mounted on a truck chassis
d. a self-propelled vehicle designed primarily for snow removal - CORRECT ANSWER -
a. road scraping equipment built on crawler treads
Which of the following is not a reason liability coverage will automatically be extended for a
non-owned auto being used as a temporary substitute for a covered "auto" the named insured
owns but cannot be used?
a. "Loss" or destruction
b. Breakdown
c. Service or repair
d. Insufficient towing capacity - CORRECT ANSWER - d. Insufficient towing capacity
Your insured has an unendorsed Business Auto Coverage Form in which Liability is written
using Symbol 1 (Any "Auto"). An employee who is using his personal vehicle on behalf of the
business has an at-fault accident. Who is an insured under your insured's policy
,a. Both the named insured and the employee
b. Only the named insured
c. Neither the named insured nor the employee
d. Only the employee - CORRECT ANSWER - b. Only the named insured
Which of the following is not covered under Comprehensive coverage provided by a Business
Auto Coverage Form?
a. Vandalism to the service truck
b. Hail damage to the three sales vehicles parked in the parking lot over the weekend
c. Damage to the business-owned pickup truck when the vehicle overturns
d. The damage caused by a tree branch that falls on the roof of the delivery van - CORRECT
ANSWER - c. Damage to the business-owned pickup truck when the vehicle overturns
George drove the scheduled delivery truck to the client's home to deliver a new refrigerator.
While moving the appliance with the dolly (hand truck) into the home, it fell and damaged the
flooring. Which coverage form, if any, would provide coverage for customer's floor?
a. Commercial General Liability Form
b. Business Auto Coverage Form
c. Both the Commercial General Liability and the Business Auto Coverage, equally
d. Neither policy since the damage was caused by the dolly (hand truck) - CORRECT
ANSWER - b. Business Auto Coverage Form
Which of the following statements is not true about workers' compensation statutes?
a. Death benefits can include weekly income benefits for the employee's eligible dependents.
b. Most states impose a dollar limit on medical expenses.
c. Most states have rehabilitation benefits written into their law.
d. Lost wage benefits are paid to replace the loss of income suffered by an injured or sick
employee. - CORRECT ANSWER - b. Most states impose a dollar limit on medical
expenses.
,Most workers' compensation statutes provide four types of benefits. Which of the following is
not one of those benefits?
a. Payments made to an employee to replace the loss of income suffered as a result of a work-
related injury
b. Medical expenses incurred for injuries sustained by an employee
c. Payments made toward physical rehabilitation following an injury
d. Medical expenses paid to family members following an employee's sickness - CORRECT
ANSWER - d. Medical expenses paid to family members following an employee's
sickness
Which of the following coverages is not provided by monopolistic state funds?
a. Lost wages due to work-related sickness or injury
b. Employers' liability insurance
c. Rehabilitation benefits
d. Medical expenses for work-related injuries - CORRECT ANSWER - b. Employers'
liability insurance
The Information Page in the Workers' Compensation and Employers' Liability Policy uses Item
3.A. to do which of the following?
a. Trigger workers' compensation coverage in monopolistic states only
b. Trigger Other States' Insurance coverage
c. Trigger workers' compensation coverage in listed states
d. Trigger employers' liability coverage in all states - CORRECT ANSWER - c. Trigger
workers' compensation coverage in listed states
When working with your client to select the coverages needed for his Workers' Compensation
and Employers' Liability Insurance Policy, you come to Item 3.B. of the Information Page.
Which statement best explains what this section triggers and how?
a. It triggers employers' liability coverage for only those states listed in 3.B.
b. It triggers workers' compensation and employers' liability coverage for all states listed in 3.B.
, c. It triggers employers' liability coverage for those states listed in 3.A. for the limits that are
shown for bodily injury by accident for each accident, bodily injury by disease with a policy
limit, and bodily injury by disease for each employee.
d. It triggers workers' compensation benefits in the states listed in 3.A. and sets the limits for
medical expenses, rehabilitation expenses, and death/funeral expenses. - CORRECT
ANSWER - c. It triggers employers' liability coverage for those states listed in 3.A. for the
limits that are shown for bodily injury by accident for each accident, bodily injury by disease
with a policy limit, and bodily injury by disease for each employee.
Your insured buys a Workers' Compensation Policy for coverage in New York with NY listed in
Item 3.A. Three months after the policy effective date, your insured also begins work in New
Jersey. New Jersey is listed in Item 3.C. Which statement below is true about your insured's
workers' compensation coverage?
a. Your insured has coverage in New Jersey only after they notify the insurer.
b. Your insured has no coverage in New Jersey since the state is not listed in item 3.A. of the
Information Page.
c. Your insured has automatic coverage in New Jersey for 90 days.
d. Your insured has automatic coverage in New Jersey as long as the insurer is notified "at once"
that work has begun there - CORRECT ANSWER - d. Your insured has automatic
coverage in New Jersey as long as the insurer is notified "at once" that work has begun there
As you review his insurance needs, your client asks you about the primary functions of an
Umbrella Liability Policy. Which of the following would not be used to answer his question?
a. It provides excess limits over underlying insurance.
b. It provides broader insurance protection than that provided by underlying policies.
c. It replaces underlying insurance when aggregate limits have been exhausted.
d. It replaces claims expenses incurred by the insured. - CORRECT ANSWER - d. It
replaces claims expenses incurred by the insured.
A self-insured retention can be explained to your client using which of the following statements?
a. It applies only if coverage is provided by the Umbrella Liability Policy but not by underlying
policies, and it does not apply when coverage is in excess of the underlying policy.
