This Is the Perfect Example of What Makes the Property & Casualty Insurance Exam So Hard

pandcpacademy
10 minutes ago
5 min read

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

If a customer slips on a burger that wasn’t cleaned up properly—What Commercial General Liability (CGL) Coverage Applies?

A. Products Liability

B. Premises Liability

C. Workers Compensation

D. Medical Coverage

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

With just one small wording change, this same question could have several different correct answers. Almost immediately, I could think of five different ways it could be asked. This is exactly how the exam questions get you—the wording may only slightly change from the last one, yet each version leads to a completely different answer.

👉 And that’s exactly what makes the Property and Casualty Insurance Exam so hard.

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.

👉 A single word can completely change a definition—And that’s exactly what we’re going to cover in this blog.

We’re going to break down Commercial General Liability (CGL) coverages and walk through five different exam-style example questions to show how one slight tweak in wording can completely change the correct answer.

Quick Takeaways for the P&C Exam:

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

By the end of this, you’ll walk away feeling confident in your understanding of CGL—and ready to keep building on it.

This is exactly how we teach inside our On-Demand Course. Every lesson is designed to:

✔️ Break down confusing concepts

✔️ Show you how one word changes the answer

✔️ Teach you how the exam writers think

👉 Ready to study smarter and pass with confidence?

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

Understanding CGL Coverages (Coverages A and C) - Premises and Products

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.

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!

Question 1 - Pretty Basic

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

✅ 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

Question 2

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

✅ 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!

Question 3

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?

✅ 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

Question 4

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

✅ 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

Question 5

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

✅ Answer: Workers Compensation

💡 Huge Exam Trap! Be on the lookout for these! Employee injuries are ALWAYS Workers Comp! AND I can assure you Premises 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.