2024 CPCU 552 REAL EXAM WITH ALL

2024 CPCU 552 REAL EXAM WITH ALL

100 QUESTIONS AND CORRECT

DETAILED ANSWERS (GUARANTEED

PASS!!)

Assuming the policy is written on an occurrence basis, how much of the general aggregate limit, if any, remains if the following claims have been paid under the policy?-a premises/operations liability claim of $600,000 -a products liability claim of $1,200,000 $3,000 of medical expenses to a customer injured on the premises.-a personal and advertising injury liability claim of $300,000

A) $200,000

B) $1,097,000

C) $1,397,000

• The aggregate limit has been exhausted because the total claims exceed

$2,000,000. - ANSWER-B

EXPLANATION: The general aggregate is reduced by any amounts paid under

Coverages A, B, and C, except for those that arise out of products/completed operations. Therefore, the general aggregate limit is reduced by $600,000 + $3,000

• $300,000 = $903,000. This leaves $1,097,000 of the general aggregate limit

remaining.

A plumbing contractor has a commercial general liability (CGL) policy that contains no endorsements. Which one of the following claims would be covered by the CGL? 1 / 4

• An improperly installed pipe was damaged when tested for leaks by an

employee of the plumbing contractor.

• An employee of the plumbing contractor damaged a building while installing a

waterline.

• An employee of the plumbing contractor was injured while installing a hot

water heater.

• An employee of the plumbing contractor damaged a building with the

contractor's auto - ANSWER-B

The ISO commercial general liability program includes specialty coverage forms that address special liability situations. One of those coverage forms, the Railroad

Protective Liability Coverage Form, is meant to:

• Insure railroad operators against liability from accidents, similar to how

commercial auto insurance protects businesses from liability arising from auto accidents.

• Protect a railroad owner against liability arising out of work done by contractors

on the railroad's property.

• Provide employee benefits liability coverage for railroad service companies

subject to the federal Railway Workers Act.

• Provide products and completed operations coverage for architects and

engineers engaged in the construction of railway bridges and overpasses. -

ANSWER-B

The Coverage B—Personal and Advertising Injury Liability of the Commercial General Liability (CGL) Coverage Form parallels the Coverage A insuring

agreement, but personal and advertising injury applies to an:

• Accident arising from the insured's business. 2 / 4

• Occurrence arising out the named insured's business.
• Offense arising out of the named insured's business.
• Physical injury arising from the insured's business. - ANSWER-C

The term "you" is used throughout the Commercial General Liability Coverage

Form. "You" is defined to include:

• The named insured shown in the declarations.
• The named insured shown in the declarations and any employees of the named

insured.

• The named insured and any officers or directors of the named insured's

organization.

• All persons or entities who have any type of liability protection under the

policy. - ANSWER-A

Smart Endeavors, a retail clothing store, hired ABC Contractors to install a new air conditioning system in one of its stores. ABC misrouted some wires during the installation process, which caused the wires to overheat and caused a fire. The air conditioning unit had to be rewired, which cost $1,000. Smart Endeavors' building sustained $30,000 worth of damage and $40,000 worth of inventory was damaged by smoke. Smart Endeavors was closed for two weeks and lost $10,000 in profits during that period. ABC has liability insurance under a standard Commercial General Liability (CGL) Coverage Form with $1,000,000 per occurrence limits.Which one of the following statements concerning coverage for damages under Coverage A of the CGL is most accurate?

• ABC will pay $81,000 for all of the physical damage to the building and

inventory, the air conditioning rewiring costs, and Smart Endeavors' lost profits.

• ABC will pay - ANSWER-C 3 / 4

EXPLANATION: ABC will pay $80,000 for the fire damage to the building and

inventory as well as the lost profits, but the CGL excludes the cost of work that was incorrectly performed, so the $1,000 rewiring costs are excluded.

Which one of the following statements concerning the Damage to Your Product and Damage to Your Work exclusions in Coverage A of the Commercial General Liability Coverage Form is most correct?

• These exclusions only apply to products or work that are in the care, custody

and control of the named insured at the premises location listed in the declarations page.

• There are two exceptions to this exclusion which are meant to provide limited

property damage coverage for minor claims that would fall below the deductible of the named insured's property insurance policy.

• The exclusions only apply to work or products that were damaged by

subcontractors or outside parties who are expected to have their own insurance coverage, but the exclusions do not apply to damage done by the named insured.

• These exclusions only apply to damage to the work or product itself, but do not

apply to any subsequent damage or injury - ANSWER-D

For which one of these would the Damage to Your Product and Damage to Your Work exclusion eliminate coverage?

• A product that the insured incorrectly designed
• Property damage caused by an insured's defectively produced product
• Property damage caused by work performed on behalf of the insured by a

subcontractor

• Property damage caused by an insured's incorrectly designed product -

ANSWER-A

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