Home / Study topics / Property and Casualty / CGL Exclusions

CGL Exclusions

Practice questions on cgl exclusions for the casualty exam, each with an answer and explanation.

Loading practice test... If it does not open, reload this page.

Study questions and answers

Try each question first, then tap to check your answer.

1. A store security guard uses reasonable force to stop a shoplifter from attacking a clerk, and the shoplifter is injured. How does the CGL expected or intended injury exclusion treat this?

  1. It excludes the loss because the guard acted on purpose
  2. It does not apply, because the exclusion makes an exception for reasonable force to protect persons or property
  3. It applies only if the guard was off duty
  4. It excludes the loss unless the shoplifter is convicted
Show answer
B. It does not apply, because the exclusion makes an exception for reasonable force to protect persons or property
The expected or intended injury exclusion does not apply to bodily injury resulting from the use of reasonable force to protect persons or property.

2. The CGL contractual liability exclusion does NOT apply to liability the insured assumes under:

  1. Any oral agreement
  2. A warranty of fitness for its products
  3. An insured contract, such as a lease of premises
  4. A contract signed after the loss
Show answer
C. An insured contract, such as a lease of premises
Liability assumed under an insured contract, such as a lease or an easement agreement, is covered despite the contractual liability exclusion.

3. The CGL liquor liability exclusion applies to an insured that:

  1. Serves wine at its annual holiday party
  2. Is in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages
  3. Has employees who drink after work
  4. Rents its hall to a group that brings its own beer
Show answer
B. Is in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages
The exclusion applies only to insureds in the liquor business. A business that occasionally serves alcohol as a host is still covered.

4. Why does the CGL exclude bodily injury to the insured's own employees arising out of their employment?

  1. Employees cannot sue for injuries
  2. Employee injuries are covered by workers compensation and employers liability insurance
  3. Employee injuries are covered under Coverage B
  4. The exclusion applies only to part-time employees
Show answer
B. Employee injuries are covered by workers compensation and employers liability insurance
Work injuries to employees are handled by workers compensation and employers liability coverage, not the CGL.

5. The CGL aircraft, auto, or watercraft exclusion does NOT apply to:

  1. An auto owned by the named insured and driven by an employee
  2. A rented aircraft used to fly clients
  3. Parking a customer's auto on or next to premises the insured owns or rents
  4. A 40-foot yacht owned by the named insured
Show answer
C. Parking a customer's auto on or next to premises the insured owns or rents
Parking autos on or next to the insured's premises, if the auto is not owned by or rented to the insured, is an exception to the exclusion.

6. A manufacturer must recall and replace thousands of defective toasters it has sold. The cost of the recall is:

  1. Covered under Coverage A
  2. Covered under Coverage C
  3. Covered under supplementary payments
  4. Excluded under the recall of products, work, or impaired property exclusion
Show answer
D. Excluded under the recall of products, work, or impaired property exclusion
The CGL excludes the cost of recalling, withdrawing, or replacing the insured's product. Separate product recall coverage is needed.

7. A contractor builds an office building, and a subcontractor's faulty wiring later starts a fire that damages the building. Under the damage to your work exclusion, the loss is:

  1. Covered, because the exclusion does not apply when the damaged work or the work that caused the damage was performed by a subcontractor
  2. Excluded in all cases
  3. Covered only under Coverage B
  4. Covered only if the contractor was on site
Show answer
A. Covered, because the exclusion does not apply when the damaged work or the work that caused the damage was performed by a subcontractor
The damage to your work exclusion has an exception for work performed on the insured's behalf by a subcontractor.

8. Which of the following is excluded under CGL Coverage B, personal and advertising injury?

  1. Libel in the insured's advertisement
  2. Malicious prosecution
  3. Wrongful entry into a room a person occupies
  4. Material the insured knew was false when it was published
Show answer
D. Material the insured knew was false when it was published
Coverage B excludes injury from material published with knowledge of its falsity, as well as knowing violations of another's rights.

9. Property the insured rents, occupies, or has in its care, custody, or control is generally excluded under CGL Coverage A because:

  1. It belongs to the insured and should be covered by property insurance or a bailee coverage
  2. It is covered under Coverage C
  3. The CGL covers only bodily injury
  4. The insured always has unlimited liability for it
Show answer
A. It belongs to the insured and should be covered by property insurance or a bailee coverage
Liability insurance covers damage to the property of others. Property in the insured's care should be insured by property or inland marine coverage.
Next topic: Claims-Made Coverage Full casualty practice test Flashcards for this topic