FREE Property & Casualty Practice Questions + CGL Cheat Sheet

pandcpacademy
a few seconds ago
5 min read

If you’re studying for the Property & Casualty Insurance Exam, chances are you’ve seen questions like the ones we’re about to break down below. A student recently asked me a simple question about a burger as a follow-up to a CGL video on our YouTube channel, and as I started answering, it hit me:

With just a small change in wording, the same question can have multiple completely different answers. Almost immediately, I could think of five different ways this same concept could be tested on the exam—each one leading to a different answer. Yikes. It's no wonder 50% of people fail this exam.

Just when you think you understand a topic, you’re introduced to another concept that sounds almost identical to the last one. Suddenly, you’re back at square one, feeling like you understand nothing at all. Before you know it, you’re frustrated and second-guessing everything you thought you had figured out. This is exactly how the Property & Casualty exam trips people up. The wording may change only slightly from one question to the next, are those subtle differences are enough to completely change what the question is actually asking.

Full Practice Exam & Explanations

What You’ll Learn from These Property & Casualty Practice Questions: CGL Coverages Explained

We’re going to break down Commercial General Liability (CGL) Coverages, I am going to tell you everything you need to know about the coverages and we'll walk through five different exam-style example questions to show how one slight tweak in wording can completely change the answer.

Quick Takeaways for the P&C Exam:

Food is only a product if it’s consumed
Slip & fall on premises = Premises Liability
Injuries caused by operations on premises= Medical Payments
Employee injuries = Workers’ Compensation

P&CP writes a blog and practice exam on CGL Policies and how one word can completely change the question on the Property and Casualty Insurance Exam

Understanding CGL Coverages (A & C) – Premises and Products: Property & Casualty Practice Questions to Follow

A Commercial General Liability (CGL) policy has Coverages A, B, C, and D. For this example question, we are going to focus on Coverage A and C.

Coverage A – Bodily Injury & Property Damage

This is where you’ll see:

Premises & Operations
Products & Completed Operations

Coverage C – Medical Payments

Covers third party injuries (Customers hurt on the insured's premises as the result of the insured or as a result of the insured's operations.

Now let’s break those down even further—because the exam lives in the details. These Property & Casualty Practice Exam Questions are your key to pass the insurance exam.

Premises, Products, and Medical Payments Explained Simply

Premises Liability

Covers third-party (customer) injuries occurring on the insured’s premises. (NOT employee injuries)

Think:

Slip & falls
Customer is injured inside the business

✔️ More to come in questions below!

Products Liability

Covers injuries caused by products sold by the insured. Food and beverages are also considered products.

🚨Important exam tip: Food & beverages that are consumed!

✔️ More to come in questions below!

Medical Payments

Covers medical expenses for third-party injuries CAUSED BY the insured or the insured’s operations, regardless of fault. (NOT employee injuries)

✔️ More to come in questions below!

👉 Ready to study smarter and pass with confidence?

Let’s break it down the right way—the way the exam expects you to understand it.

Practice Exam: CGL Questions & Answers

Joe slipped on a burger at a restaurant. Which CGL coverage applies?

A. Products Liability
B. Premises Liability
C. Workers Compensation
D. Contingent Liability

✅ See the Correct Answer & Exam Breakdown

Correct Answer: ✅ Premises Liability

Why? Joe was injured on the insured’s premises. What he slipped on is mostly irrelevant—it’s still a slip & fall.

💡 Important: When you see Food/Beverage; PAUSE & think, was it consumed?

If YES = Products Liability
If NO, above applies, if the injury involved a slip and fall on site = Premises Liability

John ate a Burger at JBL Restaurant & got food poisoning. Which CGL coverage applies?

A. Premises Liability
B. Workers Compensation
C. Medical Coverage
D. Products Liability

✅ See the Correct Answer & Exam Breakdown

Correct Answer: ✅ Products Liability

Why? Joe was injured BY consuming the PRODUCT
💡 Important: When you see Food/Beverage; PAUSE & think, was it consumed?
- If YES = Products Liability, that's our answer!

Kevin, while cleaning up at his Restaurant BBT, bumped into a customer, causing her to slip and fall on a burger. Which CGL coverage applies?

A. Medical Payments
B. Products Liability
C. Premises Liability
D. Contingent Liability

✅ See the Correct Answer & Exam Breakdown

Correct Answer: ✅Medical Payments

Why? This one differs from question 1. The injury happened to the customer because Kevin bumped into her causing her to fall.

💡 Medical Payments: Only pays for premises injuries that are caused by the insured or its operations

Kelly slipped on a burger at a restaurant that wasn’t clean properly. The burger is considered which of the following terms?

A. Hazard
B. Loss
C. Premises Liability
D. Products Liability

✅ See the Correct Answer & Exam Breakdown

Correct Answer: ✅Hazard

Why? This question is slightly different from the others. They are asking what the burger represents, not so much which coverage it falls under. This is a hazard as the burger being on the floor increased the likelihood of Kelly falling

Jorge works at MACBurger and slipped on a burger as he was serving his tables. Which coverage applies?

A. Medical Payments
B. Workers Compensation
C. Hazard
D. Premises Liability

✅ See the Correct Answer & Exam Breakdown

Correct Answer: ✅Workers Compensation

💡 Huge Exam Trap! Be on the lookout for these! Employee injuries are ALWAYS Workers Comp! AND I can assure you Premises Liability will be an answer choice! Don't let it trick you!

Why This Question Is a Perfect Example of How Tricky the Property and Casualty Insurance Exam Is

These five questions all revolve around a burger on the floor—it shouldn’t be that difficult. I mean, come on… we’re talking about a burger. Yet somehow, every single answer is different.

That’s not an accident.

The Property and Casualty Insurance Exam is not just testing your ability to memorize information. It’s testing your ability to read carefully, interpret the question being asked, and apply the correct coverage based on subtle wording changes.