CIC - Commercial Casualty Institute
Exam Questions & Answers18
Identify the Specific Rights & Responsibilities of the First Named Insured (Objective #1) -
ANSWERS-1- Cancel Policy
2- Receive Notice of Cancellation
3- Make Changes to Policy (with Insurer Consent)
4- Payment of Premiums
5- Payee for Returned Premium
Compare and Contrast the Occurrence Form with the Claims Made Form, as to what activates
coverage (Learning Objective #2) - ANSWERS-Occurrence Form:
- BI/PD must occur during the policy period
- P/Adv committed during policy period
- The policy in force when the injury or damage takes place is the one that responds
Claims Made Form:
- BI/PD must occur on or after the Retro Date shown in Declarations
- P/Adv must have been committed on or after the Retro Date
- AND, Claim must be made during the policy period or Extended Reporting Period
- NO COVERAGE if before the Retro Date
Identify various Liability Exposures (8 total) in the CGL Coverage Form ( Part of Learning
Objective #3) - ANSWERS-1- Premises Liability
2- Business Operations Liability
3- Products Liability
,4- Completed Operations Liability
5- Contractual Liability
6- Contingent Liability
7- Personal Injury Liability
8- Advertising Liability
Premises Liability - ANSWERS-Applies to:
- Owners, Landlords, Tenants
- Arises out of the ownership, maintenance or use of the insured's premises
ONLY applies to designated
- Premises
- Project
- Operation
Business Operations Liability - ANSWERS-Arises from activities involved in the operation of an
organization, while the activity is being conducted
Products Liability - ANSWERS-- Arises out of the sale, distribution or manufacture of the product
- Coverage begins when the product has left the NI's premises and is no longer in the NI's
possession
Completed Operations Liability - ANSWERS--Arises from activities involved in the operation of
an organization, after the activity has been concluded
- When the business operation is completed
, - Includes: work that may need service, maintenance, correction, repair or replacement, but
which is otherwise complete, will be treated as completed
Contractual Liability - ANSWERS-- Arises from one party assuming responsibility of another
party
- Liability that arises from an "Insured Contract"
- Ex: Lease Agreements, Construction Contracts, etc...
Contingent Liability - ANSWERS-- Arises out of work performed for the NI by someone else
-Ex: Can protect a NI from negligent acts of an independent contractor
Personal Injury Liability - ANSWERS-- Arising from intentional torts (libel, slander, wrongful
eviction)
- Applies to named offenses as defined by the CGL
Advertising Liability - ANSWERS-- Liability caused by harm such as misappropriation of
Advertising Ideas, Style of Doing Business or Infringement of Copyright
- Applies to Named Offenses, in the course of advertising the NI's goods, products or services
Who qualifies as an Insured under the CGL when the NI is an Individual? - ANSWERS-The
Individual and Spouse
Exam Questions & Answers18
Identify the Specific Rights & Responsibilities of the First Named Insured (Objective #1) -
ANSWERS-1- Cancel Policy
2- Receive Notice of Cancellation
3- Make Changes to Policy (with Insurer Consent)
4- Payment of Premiums
5- Payee for Returned Premium
Compare and Contrast the Occurrence Form with the Claims Made Form, as to what activates
coverage (Learning Objective #2) - ANSWERS-Occurrence Form:
- BI/PD must occur during the policy period
- P/Adv committed during policy period
- The policy in force when the injury or damage takes place is the one that responds
Claims Made Form:
- BI/PD must occur on or after the Retro Date shown in Declarations
- P/Adv must have been committed on or after the Retro Date
- AND, Claim must be made during the policy period or Extended Reporting Period
- NO COVERAGE if before the Retro Date
Identify various Liability Exposures (8 total) in the CGL Coverage Form ( Part of Learning
Objective #3) - ANSWERS-1- Premises Liability
2- Business Operations Liability
3- Products Liability
,4- Completed Operations Liability
5- Contractual Liability
6- Contingent Liability
7- Personal Injury Liability
8- Advertising Liability
Premises Liability - ANSWERS-Applies to:
- Owners, Landlords, Tenants
- Arises out of the ownership, maintenance or use of the insured's premises
ONLY applies to designated
- Premises
- Project
- Operation
Business Operations Liability - ANSWERS-Arises from activities involved in the operation of an
organization, while the activity is being conducted
Products Liability - ANSWERS-- Arises out of the sale, distribution or manufacture of the product
- Coverage begins when the product has left the NI's premises and is no longer in the NI's
possession
Completed Operations Liability - ANSWERS--Arises from activities involved in the operation of
an organization, after the activity has been concluded
- When the business operation is completed
, - Includes: work that may need service, maintenance, correction, repair or replacement, but
which is otherwise complete, will be treated as completed
Contractual Liability - ANSWERS-- Arises from one party assuming responsibility of another
party
- Liability that arises from an "Insured Contract"
- Ex: Lease Agreements, Construction Contracts, etc...
Contingent Liability - ANSWERS-- Arises out of work performed for the NI by someone else
-Ex: Can protect a NI from negligent acts of an independent contractor
Personal Injury Liability - ANSWERS-- Arising from intentional torts (libel, slander, wrongful
eviction)
- Applies to named offenses as defined by the CGL
Advertising Liability - ANSWERS-- Liability caused by harm such as misappropriation of
Advertising Ideas, Style of Doing Business or Infringement of Copyright
- Applies to Named Offenses, in the course of advertising the NI's goods, products or services
Who qualifies as an Insured under the CGL when the NI is an Individual? - ANSWERS-The
Individual and Spouse
