CIC - COMMERCIAL
CASUALTY INSTITUTE EXAM AND
PRACTICE EXAM 2024-2025 WITH
ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|FREQUENTLY TESTED QUESTIONS
AND SOLUTIONS |ALREADY GRADED
A+|NEWEST|GUARANTEED
PASS|LATEST UPDATE
1.1) If you are designated in the declarations as an organization other than partnership, joint venture, or
LLC, who else is an insured?
You, your officers, and directors, but only with respect to the business Stockholders are also insureds,
but only in respect to their duties as stockholders
1.1) If you are designated in the declarations as a trust, who else is an insured?
You and your trustees but only in respect to the business
1.1) Aside from owners, officers, or managers, who else is automatically insureds as well?
Volunteer Workers (while preforming duties related to the conduct of the business) and Employees
(only in the scope of their employment) Real Estate Managers
1.1) Volunteer Workers and Employees are automatically insureds. Which type(s) of employees are NOT
automatic insureds?
Temporary or leased workers. They are excluded
1.1) Employees and volunteer workers are not considered automatic insureds when they cause...
1|Page
,- BI/PD to a named insured
- Injury to the family of a coworker
- BI/AI when providing professional health care services
- Property damage owned by, or in the CCC of a named insured
1.1) Newly acquired organizations are automatic insureds for what period of time?
90 days, excludes claims that occurred prior to acquisition of new organization.
1.1) If you are designated in the declarations as an individual, who else is an insured?
You AND your spouse, but only with respect to the business
1.1) If you are designated in the declarations as a partnership or joint venture , who else is an insured?
You are an insured, your members, partners, and their spouses are also insureds, but only with respect
to the business
1.1) If you are designated in the declarations as an LLC, who else is an insured?
You, your members, but only in respect to the business. Your managers are insureds, but only in respect
to their duties as managers
1.2) What are the two promises found in paragraph 'a.' of the insuring agreement?
Indemnity and Defense. (Pays sum the insured becomes legally obligated to pay as damages because of
BI/PD and the defense costs)
1.2) Define BI and PD
- BI: sickness or disease, injury, or death
- PD: Physical injury or loss of use to tangible property
1.2) Where must the 'occurrence' take place for coverage to be active?
The coverage territory
1.2) What is the coverage territory?
US, it's territories and possessions, Puerto Rico and Canada
1.2) is international airspace part of the coverage territory?
Yes, but only when flying between locations in the coverage territory
1.2) Under what circumstances is the coverage territory worldwide?
- Product is made or sold in territory described in coverage territory
- Temporary business travel
2|Page
,- Personal or advertising injury occurs on the web
- SUIT MUST BE BROUGHT IN THE US
1.2) Is previously known injury or damage a covered loss?
No.
1.3) Does coverage A apply to expected or intended injury?
No. Expected or intended injury is an exclusion from Coverage A
1.3) What is Contractual Liability?
Arises from one party assuming responsibility of another party (Tenant - Landlord, Sub - GC, Lessee -
Lessor)
1.3) What is considered an 'Insured Contract'? (LEASEPlus)
- Lease of Premises
- Easement or license agreement (unless within 50 feet of a railroad)
- An obligation to indemnify a municipality or required by ordinance except when working for a
municipality)
- Sidetrack Agreement
- Elevator maintenance agreement
- Plus any other contract which the named insured assumes tort liability of another party to pay BI/PD to
a third party
1.3) What is NOT considered an 'Insured Contract' (Three things)
- A railroad indemnity agreement
- Architect, engineer, or surveyor indemnity agreement
- Professional Liability for any of the above things
1.3) Is liquor liability excluded from Coverage A?
Yes, however host liquor coverage is provided if the named insured is not in the business of producing,
selling or distributing liquor/alcohol
1.3) Does Coverage A apply to Workers Comp Laws?
No. Excluded
1.3) Is Employers Liability a provided coverage under Coverage A?
No. Excluded
1.3) Pollution is excluded from Coverage A, however there are three exceptions. What are they?
- BI if sustained within a building and caused by smoke, fumes, vapor or soot originating from a
equipment used to heat, cool, or dehumidify the building, or heat/cool water.
- If you are a contractor and the owner of the site/location has been added as an additional insured with
3|Page
, respect tothe contractors ongoing operations
- BI/PD resulting from heat, smoke or fumes from a hostile fire
1.3) If pollutants are brought to the site, and contractors are using them, then pollution is excluded. If
pollutants were already on site and not being used, but a contractor spilled them, it would be covered.
True. Idk. Needed to remember that.
1.3) Exclusions to Coverage A, that would be covered on other policy types are...
- Workers Compensation related claims
- Aircraft, Auto, and Watercraft
- Mobile Equipment (unless while in use for liability)
- Property (owned by named insured)
1.3.) Other exclusions to Coverage A...
Typical exclusions, War, Pollution, 'Your Work' (Can be endorsed back), Liquor, Employers Liability,
aircraft/auto/watercraft, etc.
1.4) What is Personal and Advertising Injury?
- False Arrest
- Malicious Persecution
- Wrongful Eviction
- Libel/Slander
- Advertising theft of ideas
- Copyright Infringement IN AN ADVERSTISMENT
1.4) What are the two promises in the Coverage B Insuring Agreement and when do they end?
Indemnity and Defense, and the duty to defend ends when the limit of insurance is used to the
maximum
1.4) Typical Exclusions to Coverage B...
- Pollution
- War
- Criminal Acts
1.4) Unique exclusions to Coverage B...
- Knowingly violating rights of another
- Material published with knowledge of falsity
- Material Published prior to policy period
- Wrong Description of Prices
- Copyright Infringement
- Insureds in Media type businesses (except false arrest, malicious prosecution, and wrongful eviction)
- Disclosure of confidential or personal information
1.5) Coverage C - Medical Payments, offers what two insuring promises?
4|Page
