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Practice test · 25 questions
General Liability and Negligence Practice Test (Part 1 of 2)
Liability adjusting starts with negligence law: duty, breach, causation and damages, and the defenses that reduce or bar recovery. On top of that sits the Commercial General Liability policy (CG 00 01), the most widely used business liability form in the country.
These questions test both: comparative negligence scenarios, vicarious and strict liability, CGL Coverages A, B and C, the limits structure, and how claims-made policies use retroactive dates and extended reporting periods.
Questions
25
Suggested time
30 min
Difficulty mix
7 / 14 / 4
Passing target
70%
What these questions cover
Elements of negligence, standards of care and legal defenses
Compensatory and punitive damages, special and general damages
CGL Coverage A, B and C, exclusions and supplementary payments
Limits of insurance and who is an insured
Occurrence and claims-made triggers, umbrella and excess liability
Marcus runs a stop sign and swerves toward a pedestrian, Priya, who jumps back onto the curb unharmed. No one is hurt and no property is damaged. If Priya sues Marcus for negligence, which element of her claim is missing?
Show answer and explanation
Correct answer: C. Actual harm or damages
Negligence requires a legal duty, a breach of that duty, causation (including proximate cause), and actual harm or damages. Marcus owed pedestrians a duty of reasonable care and breached it by running the stop sign, and his conduct created a foreseeable risk. But Priya suffered no injury or property damage, so there is nothing to compensate. Careless conduct alone, without resulting harm, does not support a negligence recovery.
A state law bars parking on highway shoulders except in emergencies. With no emergency, Lucia parks her truck on a shoulder at night, and a passing motorist strikes it. If the court treats Lucia's unexcused violation of the law as automatically establishing a breach of duty, which doctrine is it applying?
Show answer and explanation
Correct answer: A. Negligence per se
Under negligence per se, an unexcused violation of a statute designed to protect a class of people against a particular type of harm establishes breach of duty. The motorist is within the protected class and a collision is the harm the law targets, though the plaintiff must still prove causation and damages. Strict liability is different: it imposes liability without fault for activities such as blasting or for defective products.
While Hannah sits in a hotel lobby, a heavy light fixture falls from the ceiling and injures her. The hotel alone installed and maintained the fixture, and Hannah did nothing to contribute. She cannot identify exactly what the hotel did wrong. Which doctrine may let her establish negligence through circumstantial evidence?
Show answer and explanation
Correct answer: D. Res ipsa loquitur
Res ipsa loquitur ('the thing speaks for itself') creates an inference of negligence when the event ordinarily does not happen without negligence, the instrumentality was in the defendant's exclusive control, and the plaintiff did not contribute to the cause. All three conditions fit here. Negligence per se requires a statute violation, which is not described. Last clear chance and assumption of risk deal with the plaintiff's own conduct, not proof of the defendant's fault.
Kofi keeps an unfenced backyard pond near an elementary school, and he knows neighborhood children often cut through his yard. A 7-year-old trespasser falls into the pond and is seriously injured. Which doctrine most directly allows the child to recover even though the child was trespassing?
Show answer and explanation
Correct answer: B. Attractive nuisance
The attractive nuisance doctrine requires a landowner to use reasonable care toward trespassing children when the owner knows children are likely to trespass, the condition poses an unreasonable risk of serious harm, and children are unlikely to appreciate the danger. Ordinarily a landowner owes trespassers only a limited duty, but young children receive this added protection. Respondeat superior concerns an employer's liability for its employees' acts.
Rosa, a delivery driver employed by Lakeside Florist, rear-ends another car while delivering an arrangement to a customer. The injured driver sues Lakeside Florist, even though the company was not careless in hiring or supervising Rosa. Under which doctrine can Lakeside Florist be held liable?
Show answer and explanation
Correct answer: C. Respondeat superior
Respondeat superior is a form of vicarious liability: an employer is liable for an employee's wrongful acts committed within the scope of employment, even if the employer itself was not at fault. Rosa was making a delivery for her employer, so she was acting within the scope of her employment. The doctrine generally does not apply to independent contractors. Joint and several liability concerns how a judgment is collected from multiple wrongdoers.
Which activity is most likely to be subject to strict liability, making the actor responsible for resulting harm even if every reasonable precaution was taken?
Show answer and explanation
Correct answer: A. Blasting with explosives near homes
Strict liability imposes responsibility without proof of fault. It applies to abnormally dangerous activities such as blasting, to keeping wild animals, and to injuries caused by defective products. Because the activity itself is so hazardous, using reasonable care is not a defense. Driving, running a store, and providing professional services are judged under ordinary negligence, so the injured party must prove a failure to use reasonable care.
A store security guard suspects Tomas of shoplifting but has no reasonable basis for it. The guard locks Tomas in a back office for three hours, refuses to let him leave, and never calls police. No one touches or threatens Tomas. Which intentional tort has most clearly occurred?
Show answer and explanation
Correct answer: D. False imprisonment
False imprisonment is the intentional confinement of a person within a bounded area without consent or legal authority; a locked door is enough, and no physical contact is needed. Battery requires harmful or offensive contact, and assault requires causing reasonable apprehension of imminent contact, neither of which happened. Malicious prosecution requires starting baseless legal proceedings. A shopkeeper's privilege allows only a reasonable detention based on reasonable suspicion, which is missing here.
In defamation law, what is the main difference between libel and slander?
Show answer and explanation
Correct answer: B. Libel is written or recorded; slander is spoken
Defamation is a false statement that harms the reputation of a person or organization. Libel is defamation in written or otherwise recorded form, such as an online post or newspaper article, while slander is spoken. Truth is generally a complete defense. Under the CGL, both are covered offenses under Coverage B (personal and advertising injury), not Coverage A.
In a state that follows pure contributory negligence, a jury finds a plaintiff 10% at fault for her own injuries and the defendant 90% at fault. How much of her damages may she recover?
Show answer and explanation
Correct answer: A. Nothing
Under the traditional contributory negligence rule, any fault by the plaintiff, even a small percentage, bars recovery entirely. Only a handful of jurisdictions still follow it, including Alabama, Maryland, North Carolina, and Virginia. Under pure comparative negligence, the same plaintiff would recover 90% of her damages, and under either modified comparative rule she would also recover 90%.
In a pure comparative negligence state, a jury finds Grace's damages total $200,000. It assigns 70% of the fault to Grace and 30% to the defendant. How much can Grace recover?
Show answer and explanation
Correct answer: C. $60,000
Pure comparative negligence reduces a plaintiff's recovery by her own percentage of fault but never bars recovery completely: $200,000 x 30% = $60,000. A plaintiff could recover something even if 99% at fault. $140,000 is Grace's own share of fault, not her recovery. Under a modified comparative rule (50% or 51% bar), or under contributory negligence, Grace's 70% share of fault would bar recovery entirely.
A jury finds Andre 50% responsible for a collision and the other driver 50% responsible. Andre's damages are $120,000. How much would Andre recover under Texas proportionate responsibility law, and how much in a state using a 50% bar rule?
Show answer and explanation
Correct answer: B. $60,000 in Texas; $0 in the 50% bar state
Texas bars a claimant only if his responsibility is greater than 50% (a 51% bar rule) and otherwise reduces damages by his percentage: $120,000 x 50% = $60,000. Under a 50% bar rule, a plaintiff who is 50% or more at fault recovers nothing, so Andre would be barred. The two modified comparative rules produce different results only when the plaintiff is exactly 50% at fault.
Before a whitewater rafting trip, Nadia signs a valid waiver acknowledging the risk of being thrown from the raft. During the trip she is thrown into the water and injured, with no reckless conduct by the guide. Which is the outfitter's best defense?
Show answer and explanation
Correct answer: D. Express assumption of risk
Assumption of risk applies when a plaintiff knows of a specific risk and voluntarily accepts it. When that acceptance is put in writing, such as a signed waiver, it is express assumption of risk, which generally bars recovery for harm within that risk unless the waiver violates public policy. Contributory negligence involves careless conduct by the plaintiff, which is not described. Res ipsa loquitur is a way of proving negligence, not a defense.
Which doctrine allows a negligent plaintiff to recover from a defendant who had the final opportunity to avoid the accident but failed to take it?
Show answer and explanation
Correct answer: C. Last clear chance
The last clear chance doctrine asks which party had the last opportunity to avoid the harm. If the defendant had that final chance and failed to use it, the plaintiff's earlier negligence does not bar recovery, which softens the harsh contributory negligence rule. Comparative negligence also lets a negligent plaintiff recover, but it works by apportioning damages by percentage of fault, not by asking who had the final opportunity.
Three defendants are held jointly and severally liable for a $300,000 judgment. Defendant A is 60% at fault, B is 30%, and C is 10%. B and C have no assets. Under traditional joint and several liability, what is the most the plaintiff can collect from A?
Show answer and explanation
Correct answer: A. $300,000
Under joint and several liability, each liable defendant is responsible for the full judgment, so the plaintiff may collect all $300,000 from A. A may then seek contribution from B and C for their shares ($90,000 and $30,000), but if they cannot pay, A bears that loss. Under purely several liability, A would owe only its own 60% share, or $180,000. Many states now limit joint and several liability by statute.
Damages: special, general, and punitive · Application
A jury awards Emeka $38,000 for medical bills, $12,000 for lost wages, $90,000 for pain and suffering, and $150,000 in punitive damages. What is the total of his special (economic) damages?
Show answer and explanation
Correct answer: D. $50,000
Special damages are economic losses that can be calculated, such as medical expenses and lost wages: $38,000 + $12,000 = $50,000. Pain and suffering ($90,000) is a general, non-economic damage; special and general damages together are compensatory damages ($140,000). Punitive damages are not compensatory at all; they punish particularly harmful, willful, or wanton conduct.
Which statement best describes the traditional collateral source rule in a bodily injury lawsuit?
Show answer and explanation
Correct answer: B. Payments from independent sources, such as health insurance, generally do not reduce the damages owed
The collateral source rule generally prevents a defendant from introducing evidence that the plaintiff was compensated by sources independent of the wrongdoer, such as her own health insurance, so the award is not reduced by those payments. The idea is that a wrongdoer should not benefit from protection the injured person arranged or paid for. Many states have modified the rule by statute, so local law should be checked.
Under the ISO Commercial General Liability Coverage Form (CG 00 01 04 13), how is an 'occurrence' defined?
Show answer and explanation
Correct answer: A. An accident, including continuous or repeated exposure to substantially the same general harmful conditions
The CGL defines occurrence as an accident, including continuous or repeated exposure to substantially the same general harmful conditions, so gradual injury can qualify and the event need not be sudden. Coverage A applies when bodily injury or property damage is caused by an occurrence and happens during the policy period. A claim first made during the policy period is the trigger of a claims-made form, not part of this definition.
CGL definitions: property damage and loss of use · Application
A contractor's scaffold collapses onto a neighboring restaurant's entrance, damaging the doors. The restaurant cannot use its premises for two weeks while repairs are made. Under the CG 00 01 04 13 definition of 'property damage', the restaurant's loss of use during repairs is:
Show answer and explanation
Correct answer: C. Included as loss of use of physically injured property
The CGL defines property damage as physical injury to tangible property, including all resulting loss of use of that property, and also as loss of use of tangible property that is not physically injured. Because the doors were physically damaged, the resulting loss of use is part of the property damage. Coverage A pays the damages the contractor is legally obligated to pay because of it, subject to the exclusions.
CGL Coverage A exclusions: expected or intended injury · Application
A hardware store employee, acting within the scope of his job, uses reasonable force to stop a customer who is assaulting another shopper, and the attacker is injured. The attacker sues. How does the expected or intended injury exclusion of CG 00 01 04 13 apply?
Show answer and explanation
Correct answer: B. It does not apply, because the injury resulted from reasonable force to protect persons
Coverage A excludes bodily injury or property damage expected or intended from the standpoint of the insured, but the exclusion expressly does not apply to bodily injury resulting from the use of reasonable force to protect persons or property. Employees are insureds for acts within the scope of employment, so the exception preserves coverage for the attacker's claim, subject to the policy's other terms.
CGL contractual liability and insured contract · Recall
Under CG 00 01 04 13, which of the following is included in the definition of an 'insured contract'?
Show answer and explanation
Correct answer: D. A contract for a lease of premises
Insured contracts include a lease of premises (except the part indemnifying for fire damage to rented premises), a sidetrack agreement, an easement or license agreement, an ordinance-required indemnity of a municipality, an elevator maintenance agreement, and any business contract in which the insured assumes another party's tort liability for third-party bodily injury or property damage. Indemnifying an architect for faulty drawings is specifically carved out.
The Rusty Anchor tavern keeps serving drinks to a visibly intoxicated patron, who then drives away and injures a pedestrian. The pedestrian sues the tavern under the state's dram shop law. How does the tavern's CGL (CG 00 01 04 13) respond?
Show answer and explanation
Correct answer: A. The liquor liability exclusion applies because the tavern is in the business of selling alcohol
Dram shop laws can make businesses that sell alcohol liable for harm caused by visibly intoxicated or underage patrons they served. The CGL liquor liability exclusion removes these claims, but only if the insured is in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages, so the tavern needs a separate liquor liability policy. The auto exclusion does not apply because the patron's car is not owned, operated, rented, or loaned to an insured.
CGL Coverage A exclusions: employer's liability · Application
An employee of Brightway Roofing is injured in a fall while working on a customer's roof. His spouse later sues Brightway for loss of consortium resulting from his injury. Under CG 00 01 04 13, the spouse's claim is:
Show answer and explanation
Correct answer: C. Excluded by the employer's liability exclusion
Coverage A's employer's liability exclusion removes bodily injury to an employee arising out of and in the course of employment, and it also reaches the employee's spouse, child, parent, brother, or sister as a consequence of that injury. These exposures belong under workers compensation and employers liability insurance. The CGL's only exception is liability the insured assumed under an insured contract, which does not apply here.
CGL Coverage A exclusions: aircraft, auto, watercraft · Challenging
At a client outing, an employee of a marketing firm operates a rented 22-foot pontoon boat that is not being used to carry persons or property for a charge, and he injures a swimmer. Under the firm's unendorsed CGL (CG 00 01 04 13), which statement is correct?
Show answer and explanation
Correct answer: D. The exclusion does not apply because the boat is non-owned and under 26 feet
Exclusion g. removes injury arising out of aircraft, autos, or watercraft owned, operated by, rented, or loaned to an insured, but it has exceptions. One restores coverage for a watercraft the named insured does not own that is less than 26 feet long and is not being used to carry persons or property for a charge. A rented 22-foot pontoon boat fits that exception. A watercraft ashore on premises the insured owns or rents is a separate exception.
Under CG 00 01 04 13, each of the following is considered 'mobile equipment' EXCEPT:
Show answer and explanation
Correct answer: B. A self-propelled truck with a permanently attached snowplow
Mobile equipment includes bulldozers, farm machinery, forklifts, and other vehicles designed for use principally off public roads, vehicles used solely on or next to premises the insured owns or rents, and vehicles that travel on crawler treads. However, self-propelled vehicles with permanently attached snow removal, road maintenance, or street cleaning equipment are treated as autos. Auto liability is excluded under the CGL and belongs on an auto policy.
CGL Coverage A exclusions: damage to your work · Challenging
Hillcrest Builders, a general contractor, finishes a house and turns it over to the owner. Eight months later, faulty wiring installed by Hillcrest's electrical subcontractor causes a fire that damages framing and drywall installed by Hillcrest's own crews. Under CG 00 01 04 13, how does the damage to your work exclusion apply to that damage?
Show answer and explanation
Correct answer: C. It does not apply, because the damage arose out of a subcontractor's work
Exclusion l. removes property damage to 'your work' arising out of it and included in the products-completed operations hazard. However, it does not apply if the damaged work, or the work out of which the damage arises, was performed on the insured's behalf by a subcontractor. The fire arose out of the subcontractor's wiring, so the exception preserves coverage for Hillcrest's completed work, subject to the other terms. A house is real property, so it is not 'your product'.
Pick an answer and the correct choice appears with an explanation and the policy form, statute or FEMA document it comes from. Difficulty is labeled on each question: recall items test a definition, application items put the rule into a short claim scenario, and challenging items combine two rules or require a calculation.
Aim for at least 80% before moving on, since the real exam mixes these topics with state law under time pressure. When you are consistently above that line, take a full timed exam or the version for your state: Texas or Florida 6-20.