CPCL California Property and Casualty license exam - Set 5 - Part 1

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: Coverage A of a Commercial General Liability policy responds to which of the following?

Employee work injuries

The insured's own property

Third-party bodily injury or property damage

Professional errors

Question 2: Coverage B of the Commercial General Liability policy, personal and advertising injury, responds to which of the following?

Libel, slander, and false arrest

Fire damage to the building

Employee medical bills

Auto collision damage

Question 3: Coverage C of the Commercial General Liability policy, medical payments, pays an injured third party's expenses on which basis?

Only if the insured is at fault

Only to employees

Only after a lawsuit

Regardless of fault, within one year

Question 4: Under the Commercial General Liability policy, defense costs are handled in which manner?

They reduce the policy limit

Are paid in addition to the limit

Are paid by the insured

Are never provided

Question 5: The products-completed operations hazard under the CGL covers which of the following?

Injury on the insured's premises

Employee theft

Injury away from premises by the product

Damage to the insured's tools

Question 6: An occurrence form of liability coverage is triggered by which of the following?

The injury occurs during the policy period

The claim is filed during the period

The policy is renewed

The premium is paid

Question 7: A claims-made liability form is triggered when which of the following is true?

Only the injury date matters

Only the renewal date matters

The premium date controls

Claim made in period, after retroactive date

Question 8: An extended reporting period, or tail, on a claims-made policy does which of the following?

Extends the policy term

Lets claims be reported after expiration

Increases the policy limit

Waives the deductible

Question 9: Claims-made forms are most commonly used for which of the following coverages?

Professional liability and directors and officers

Homeowners property

Personal auto physical damage

Workers' compensation

Question 10: The retroactive date in a claims-made policy is best described as which of the following?

The date the policy expires

The date the claim is filed

How far back coverage reaches

The premium due date

Question 11: The general aggregate limit of a Commercial General Liability policy does which of the following?

Includes all losses including products

Has no limit

Resets weekly

Excludes products-completed operations losses

Question 12: Although the CGL excludes contractual liability, which of the following is treated as an insured contract?

A premises lease is an insured contract

All contracts are excluded

Only oral agreements

Employment contracts

Question 13: Which of the following correctly describes supplementary bail bond payments under the Commercial General Liability policy?

The CGL covers the insured's property

Defense reduces the limit

CGL bail bonds are a small amount

There are no supplementary payments

Question 14: Which of the following describes the coverage territory of the Commercial General Liability policy?

Worldwide everywhere

Only California

The United States only

United States, Puerto Rico, and Canada

Question 15: Which of the following is treated as an auto rather than mobile equipment, placing it under commercial auto coverage?

A bulldozer at a job site

A cherry picker on a truck chassis

A forklift used only on premises

A farm tractor in a field

Question 16: The CGL liquor liability exclusion removes coverage for which of the following?

A tavern's liability for serving alcohol

A slip-and-fall on the premises

A product defect claim

Damage to a customer's coat

Question 17: Under the CGL, the care, custody, and control exclusion is partly offset by which of the following?

The exclusion bars all liability

It covers the insured's property

Fire legal liability restores fire-damage coverage

There is no exception

Question 18: Professional liability is excluded from the Commercial General Liability policy mainly for which reason?

Because professionals cannot be sued

Because the CGL has no exclusions

Because it covers only intentional acts

Economic loss and a heightened care standard

Question 19: Compared with the CGL, professional liability and errors and omissions policies typically handle defense costs in which way?

Defense costs erode the policy limit

Defense is paid outside the limit

There is no defense

It is always occurrence-based

Question 20: Side A of a directors and officers policy provides which of the following?

Side A covers the building

Side A covers non-indemnified individuals

Side A is workers' compensation

Side A covers product recalls

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