Quiz 9 - General Liability
The CGL's Coverage C Medical Payments requires the claim to be incurred and reported within _____ year(s) of the date of accident.
1 year
Employment Related Practices Liability offers _____ year(s) of extended reporting period by endorsement.
3 years
The insurer may inspect books and records during the policy period and for_____ year(s) thereafter.
3 years
TRUE/FALSE: Excess liability and Umbrella coverage are for the rich and famous only.
False
TRUE/FALSE: Claims expenses are part of the liability limits in the Lawyers Professional Liability coverage form not in addition to them.
True
TRUE/FALSE: The CGL includes a common policy condition for inspection and surveys at the company's discretion.
True
The CGL's Coverage C Medical Payments coverage is a _________ coverage or a coverage not required by law.
Voluntary
A claim has been filed against your insured for $10,000 due to an intentional and malicious publication made by your insured. What is the maximum amount the policy would "indemnify" the insured for their legal liability in this claim? a) $0 b) $5,000 c) $9,500 d) $10,000
a) $0
A medical payments claim was filed two years after the date of accident in the amount of $4,500. What is the maximum amount the policy would pay the injured party for? a) $0 b) $5,000 c) $300,000 d) $600,000
a) $0
A claim has been filed against your insured for $200,000 and the insurance company has incurred $200,000 in legal defense of the insured. How much coverage is available to pay the damaged third party if a verdict is rendered against the named insured and the insured has already incurred $500,000 of paid liability claims in the policy period? a) $100,000 b) $300,000 c) $400,000 d) $100,000
a) $100,000
The CGL's Coverage C Medical Payments coverage is a _________ or "non-legal" liability. a) Voluntary b) Involuntary c) Necessary d) Liability
a) Voluntary
The CGL coverage is limited to: (a) coverage is limited to "occurrences" defined as _________ (b) accidents are sudden, unexpected, and accidental events including _________ to harmful conditions; and (c) accidents include exposures to _________ conditions. a) Harmful b) Accidents c) Exposures
b) Accidents c) Exposures a) Harmful
This Miscellaneous Medical Professions coverage form is defined as an act or omission related to blood donations... a) Optometrists b) Blood Banks c) Medical or X-Ray Laboratories d) Veterinarians
b) Blood Banks
Retroactive dates in the "claims-made" CGL policy form can be? (select as many as apply) a) Can be denied b) Can be the same as inception c) Can be a specified earlier date d) Can be "not listed" or blank
b) Can be the same as inception c) Can be a specified earlier date d) Can be "not listed" or blank
The Employment Related Practices Liability policy form includes a: a) Affordable Care Act b) Co-payment provision c) Franchise Deductible d) Self-Insured Retention
b) Co-payment provision
The CGL considers an insured to be all BUT which of the following: a) Employees b) Customers c) Stockholders d) Officers
b) Customers
The CGL considers an insured to be all BUT which of the following? a) Executive Officers b) Customers c) Stockholders d) Employees
b) Customers
This type of excess liability provides coverage in excess of underlying limits applying the exact same coverages, conditions, provisions, and exclusions as the underlying policy... a) Stand Alone b) Follow Form c) Both are correct d) Neither is correct
b) Follow Form
Which, if any, of the following statements are true? Statement I. The Farm Liability coverage form includes liability for pollutants and injury to farm employees. Statement II. The Farm Liability coverage form covers personal and advertising injury. a) I only b) II only c) Both I and II are true d) Neither is true
b) II only
Retroactive dates are either: (a) same as _________, (b) specified _________ date, or (c) open, none, or _________. a) Earlier b) Inception c) Blank
b) Inception a) Earlier c) Blank
The Miscellaneous Medical Professions professional liability coverage form is defined as an act or omission related to clinical-pathological exams and X-ray services: a) Blood Banks b) Medical or X-Ray Laboratories c) Optometrists d) Veterinarians
b) Medical or X-Ray Laboratories
Bodily Injury and Property Damage are EXCLUDED by all BUT which of the following in the CGL? a) Product Recall b) Ordinary Negligence c) Intentional Injury d) Contractual
b) Ordinary Negligence
This CGL coverage form provides a monoline form solely for the Products/Completed Operation's exposure... a) Owners and Contractors Protective Liability Form (OCP) b) Products/Completed Operations Coverage Form c) Liquor Liability Coverage Form d) Pollution Liability Coverage Form
b) Products/Completed Operations Coverage Form
This CGL coverage form provides a monoline form solely for the Products/Completed Operation's exposure: a) Owners and Contractors Protective Liability Form (OCP) b) Products/Completed Operations Coverage Form c) Liquor Liability Coverage Form d) Pollution Liability Coverage Form
b) Products/Completed Operations Coverage Form
Mr. Brown, your CGL insured, is a sole proprietor and wants to know how the CGL policy's language addresses coverage for his spouse. You advise Mr. Brown... a) The CGL's language excludes her if she is not named on the Declaration's page b) The CGL's language includes her as an insured c) The CGL does not address this issue and you advise your client to form a corporation d) None of these are correct
b) The CGL's language includes her as an insured
How may the insured transfer their CGL policy to another party? (select as many as apply) a) Transfers are not permitted b) Transfers must be done in writing c) Transfers must be agreed to by the insurance company d) Transfer can be done unilaterally (either the insured or insurance company can transfer to any third party)
b) Transfers must be done in writing c) Transfers must be agreed to by the insurance company
A claim has been filed against your insured for $200,000 and the insurance company has incurred $200,000 in legal defense cost defending the insured. How much coverage is available to pay the damaged third party if a verdict is rendered against the named insured? a) $100,000 (the per occurrence limit less defense cost) b) $400,000 (the aggregate limit less defense cost) c) $300,000 (the per occurrence limit) d) $600,000 (the aggregate limit)
c) $300,000 (the per occurrence limit)
Your CGL insured has filed a CGL claim and the claims investigation has revealed that the claim is based upon an assumed contract. Will the CGL pay the insured's claim? a) Yes, the contract meets the criteria for acceptable leases not subject to exclusion b) Yes, if the insured would be legally liable anyway c) Both statements are correct d) Neither is correct
c) Both statements are correct
Your insured wants to make a change to her CGL policy you advise her that... a) Changes cannot be made during the policy term b) Changes cannot be made ever and she will have to take out another policy c) Changes can be made by endorsement and must be agreed to by the insurance company d) None of these statements are correct
c) Changes can be made by endorsement and must be agreed to by the insurance company
Physicians, Surgeons, and Dentist professional liability insurance covers legal liability resulting from... a) Automobile accident b) Employee injury c) Medical incidents d) All are correct
c) Medical incidents
Which of the following "litigation" related expenses are covered under the CGL's Supplementary Payments? a) Court Cost b) Interest on Judgement c) Pre-judgement d) All are correct
d) All are correct
The Liquor Liability Coverage From provides coverage for those who are in the _________ of manufacturing, distributing, selling, _________ or furnishing _________ beverages for having caused or contributed to a person's _________, or furnishing to _________ or in violation of statute. a) Intoxication b) Minors c) Alcoholic d) Serving e) Business
e) Business d) Serving c) Alcoholic a) Intoxication b) Minors
The CGL's Supplemental Payments provide up to $_____ per day for loss of earning for time taken off of work in the investigation or defense of an insured's claim.
$250
The CGL's Supplemental Extended Reporting Period must be requested in writing with _____ days after policy expiration.
60 days
The CGL's Supplemental Extended Reporting Period must be requested in writing with[in] _____ days after policy expiration.
60 days
A claim has been filed against your insured for $1,500,000 due to a roof collapsing on a structure your insured built. What is the maximum amount the policy would "indemnify" the insured for their legal liability in this claim? a) $500,000 b) $1,000,000 c) $1,500,000
a) $500,000
In the CGL BERP covers gaps caused by... a) Cancelled or non-renewed policies b) Policies renewed with retroactive dates earlier than the date stated in the prior year's Declarations c) Policy renewed with a claims made policy d) None of these are correct
a) Cancelled or non-renewed policies
Which of the following "litigation" related expenses are covered under the CGL's Supplementary Payments? (select as many as apply) a) Court Cost b) Losses on Stocks and Bonds c) Prejudgment Interest d) Interest on Judgements
a) Court Cost c) Prejudgment Interest d) Interest on Judgements
Commercial Excess Liability... a) Does not include broadened coverage b) Does include broadened coverage c) Can be endorsed with the Broadened Coverage Endorsement d) None of these are correct
a) Does not include broadened coverage
Physicians, Surgeons, and Dentist professional liability insurance covers legal liability resulting from... a) Medical Incidents b) Egregious Billing c) Automobile Accidents d) Employee Injuries
a) Medical Incidents
This Miscellaneous Medical Professions coverage form is defined as an act or omission in the rendering of optometric services... a) Optometrists b) Blood Banks c) Medical or X-Ray Laboratories d) Veterinarians
a) Optometrists
This CGL coverage form protects owners and contractors against claims for bodily injury and property damage arising out of work performed by an independent contractor on the insured's behalf... a) Owners and Contractors Protective Liability Form (OCP) b) Products/Completed Operations Coverage Form c) Liquor Liability Coverage Form d) Pollution Liability Coverage Form
a) Owners and Contractors Protective Liability Form (OCP)
You are explaining CGL coverages with your insured. You tell her that Coverage B covers... a) Personal and Advertising Injury b) Bodily Injury and Property Damage c) Product Liability d) Medical Payments
a) Personal and Advertising Injury
This type of excess liability provides coverage in excess of underlying limits but does not apply the same conditions, provisions, or exclusions as the underlying policy... a) Stand Alone b) Follow Form c) Both are correct d) Neither is correct
a) Stand Alone
What Farm Policy coverage protects a Farmer for injuries sustained by farm employees? a) The Farm Employers' Liability/Medical Payments coverage b) Workers Compensation c) Commercial General Liability d) Farm Employee Injury Fund
a) The Farm Employers' Liability/Medical Payments coverage
The coverage territory for EPL policy is? (select all that apply) a) United States b) Puerto Rico c) Mexico and Canada d) All parts of the world if suit is brought in the U.S.
a) United States b) Puerto Rico d) All parts of the world if suit is brought in the U.S.
An insured has the following limits: General Aggregate Limit $2,000,000 Products-Completed Operations Limit $2,000,000 Personal and Advertising Injury Limit $1,000,000 Per Occurrence Limit $1,000,000 Fire Damage/Fire Legal $300,000 Medical Payments Limit $5,000 A claim has been filed against your insured for $1,500,000 due to roof collapsing on a structure your insured built. What is the maximum amount the policy would "indemnify" the insured for their legal liability in this claim? a) $300,000 b) $1,000,000 c) $2,000,000 d) $3,000,000
b) $1,000,000
This type of excess liability provides coverage in excess of underlying limits applying the exact same coverages, conditions, provisions, and exclusions as the underlying policy: a) Stand Alone b) Follow Form c) Both are correct d) Neither is correct
b) Follow Form
The CGL condition which treats each insured independently and separate from all other insureds is: a) Individual Insured condition b) Separation of Insureds conditions c) Coverage of Insureds condition d) None of the above
b) Separation of Insureds conditions
Employment Related Practices Liability excludes... a) Legal defense b) Sexual harassment by the perpetrator c) Strikes and Lockouts d) Retaliatory action against whistle blowers
b) Sexual harassment by the perpetrator c) Strikes and Lockouts d) Retaliatory action against whistle blowers
Employment Related Practices Liability excludes: a) Covers retaliatory action against whistle blowers b) Sexual harassment of perpetrator c) Both are correct d) Neither is correct
b) Sexual harassment of perpetrator
The "other insurance" condition in the CGL... a) States that claims-made forms are primary over any policy that is not claims-made b) States all policies not defined as Excess are Primary c) Both statements are correct d) Neither is correct
b) States all policies not defined as Excess are Primary
In the CGL policy form the insurer may inspect books and records during the policy period and for _____ year(s) thereafter. a) 1 b) 2 c) 3 d)4
c) 3
The CGL's Coverage C Medical Payments covers members of the public who are injured... (select as many as apply) a) Only if the insured is statutorily responsible b) Only if the insured is legally responsible (i.e. negligence) c) Because of the insured's operations d) On or next to the insured's owned or rented premises
c) Because of the insured's operations d) On or next to the insured's owned or rented premises
Which, if any, of the following statements are true? Statement I. The Custom Farming Endorsement covers liability for the insured's paid farming operation for another farm operation. Statemen II. The Farm Liability coverage form covers personal and advertising injury. a) I only b) II only c) Both I and II are true d) Neither is true
c) Both I and II are true
The CGL's Coverage B covers? a) Advertising Injury only b) Personal Injury only c) Both Personal and Advertising Injury d) Neither Personal or Advertising Injury
c) Both Personal and Advertising Injury
The CGL states that the policy coverage is "primary" unless? a) The insured has other available liability insurance which also states it is primary b) The policy is a claims made policy and any and all other available policies are on an occurrence basis c) Both statements are correct d) Neither is correct
c) Both statements are correct
This CGL form provides coverage for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages for having caused or contributed to a person's intoxication... a) Owners and Contractors Protective Liability Form (OCP) b) Products/Completed Operations Coverage Form c) Liquor Liability Coverage Form d) Pollution Liability Coverage Form
c) Liquor Liability Coverage Form
This CGL form provides coverage for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages for having caused or contributed to a person's intoxication? a) Owners and Contractors Protective Liability Form (OCP) b) Products/Completed Operations Coverage Form c) Liquor Liability Coverage Form d) Pollution Liability Coverage Form
c) Liquor Liability Coverage Form
A business invitee has come to the insured location to transact business. As the invitee walked across the insured's parking lot, she tripped. No obstructions were found to contribute to the fall and the injured party has conceded that she tripped due to her lack of attention. Her medical expenses have eclipsed $10,000. Under what coverage is she likely to receive compensation? a) Personal and Advertising Injury b) Fire Legal c) Medical Payments only due to the lack of legal responsibility for the fall d) Products - Completed Operations
c) Medical Payments only due to the lack of legal responsibility for the fall
Hospital Professional Liability insurance covers legal liability resulting from: a) Automobile accident b) Employee injury c) Medical incidents d) All of the above
c) Medical incidents
This Miscellaneous Medical Professions professional liability coverage form is defined as an act or omission related to clinical-pathological exams and X-ray services... a) Optometrists b) Blood Banks c) Medical or X-Ray Laboratories d) Veterinarians
c) Medical or X-Ray Laboratories
The Owners and Contractors Protective Liability Form (OCP): a) Provides a workers compensation type coverage b) Provides coverage for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages c) Protects owners and contractors against claims for bodily injury and property damage arising out of work performed by an independent contractor on the insured's behalf
c) Protects owners and contractors against claims for bodily injury and property damage arising out of work performed by an independent contractor on the insured's behalf
The CGL condition which treats each insured independently and separate from all other insureds is? a) Coverage of Insureds condition b) Individual Insured condition c) Separation of Insureds condition d) None of these are correct
c) Separation of Insureds condition
Shelby Tassitino, your CGL insured, is a sole proprietor and wants to know how the CGL policy's language addresses coverage for her estate if she were to fortuitously expire. You advise Shelby... a) The CGL does not address this issue and you advise her to form a corporation b) The CGL expires when a sole proprietor expires c) The CGL's language provides that the legal custodian of the business becomes the insured for the purposes of winding down the business d) None of these are correct
c) The CGL's language provides that the legal custodian of the business becomes the insured for the purposes of winding down the business
Who must pay premiums and is also the party who receives and return or refundable premium? a) Any Named Insured b) Any Loss Payee or Mortgage c) The First Named Insured d) The Lessor if the policy is subject to a lease
c) The First Named Insured
Acme Manufacturing Company has advised you that Jack Jones a lines foreman tripped over his own shoe laces and broke his arm. The insured would like to file a Medical Payments claim under their CGL. How will you advise the insured? a) You advise the insured that the Medical Payments deductible is probably higher that the amount of loss and dissuade the insured from filing the claim b) You file the claim and acknowledge that Medical Payments coverage under the CGL will pay the claim c) You advise the insured that the Medical Payments coverage excludes injury to employees d) None of these are correct
c) You advise the insured that the Medical Payments coverage excludes injury to employees
You have an insured farmer who wants to cover his employee if injured. You endorse his policy with the Farm Employer's Liability/Medical Payments Endorsement... a) The Custom Farming endorsement is the correct endorsement for this exposure b) There is no endorsement to cover Farm Employees c) You have properly insured the exposure d) None of these are correct
c) You have properly insured the exposure
the CGL's Medical Payments coverage _________ "injuries to employees". a) Eliminates b) Requires c) Includes d) Excludes
d) Excludes
Which of the following are exclusions in the Commercial General Liability policy? a) Stretch Endorsement b) Insured Contracts c) Negligence d) Intentional Injuries
d) Intentional Injuries
All of the following are EXCLUDED for BI and PD claims in the CGL EXCEPT? a) Delay b) Pollution c) Product Recall d) Ordinary Negligence
d) Ordinary Negligence
Who must pay the policy premiums and which party is eligible to receive a policy refund? a) The Lessor if the policy is subject to a lease b) Any Named Insured c) Any Loss Payee or Mortgagee d) The First Named Insured
d) The First Named Insured
How can an insured cover their liquor liability as part of their ongoing operations (i.e. a bar)? a) There is no available insurance coverage for the exposure to liquor liability b) The insured can take out a Beer, Wine, and Distilled Spirits endorsement to the CGL c) The CGL already covers liquor liability in the policy form d) The insured can take out a Liquor Liability Coverage form/policy
d) The insured can take out a Liquor Liability Coverage form/policy
