Chapter 9
The Commercial Property policy applies a limit of what dollar amount for business personal property temporarily away from the premises?
$10,000
An insured's Commercial General Liability policy has a products-completed operations aggregate limit of $100,00, with a $20,000 each occurrence limit. Following claims for two separate occurrences in the amounts of $35,000 and $25,000, how much of the aggregate remains for all other products and competed operations claims in the policy period?
$60,000
A Commercial General Liability policy has a general aggregate limit of $1 million and an each occurrence limit of $100,000. The policy pays a claim for a $500,000 loss, and subsequently pays a second claim for a $300,000 loss. How much of the General aggregate limits remains to apply to further covered occurrences?
$800,000
Under the Valuation condition on the Building and Personal Property Coverage Form, which of the following losses would the form pay on a replacement cost basis?
A $2,500 loss to a covered building
When an insured has a business that experiences an increase in business personal property during a designated period, they might consider purchasing
A Peak Season Endorsement
Choose the false statement about the CGL policy
A Products and Completed Operations Liability claim will reduce the General Aggregate Limit of the Commercial General Liability Coverage Part
Which of the following is not an example of personal and advertising injury, as understood by the CGL?
A broken leg
Under the Commercial General Liability coverage part, which of the following injuries would NOT be covered under Coverage C - Medical Payments?
A child accidentally overdosed on cough medication taken from a parent's medicine cabinet
An insured has a Commercial General Liability policy written on the Claims-Made form. All of the following statements about the Claims-Made Form are correct, except
A claim occurring 60 days prior to the retroactive date would be covered
Which injury would be covered by a CGL policy?
A customer injured while standing in an area marked as being for employees only
Which of the following is not a Common Policy Condition on a Commercial Package policy?
Abandonment
Under the Building and Personal Property Coverage Form on a Commercial Package policy, all of the following are eligible for coverage, except
Accounts, bills, money, or securities
Under commercial property policies, debris removal and fire department service charge coverages are examples of
Additional Coverages
Under a Commercial General Liability policy, which of the following is not an insured contract?
Advertising contract
Which of the following would be not considered an insured under a Commercial General Liability policy?
An LLC employee's spouse assisting in cleaning the office so they can leave for vacation more quickly
As defined by a Commercial General Liability policy, an insured contract includes all of the following, except
An indemnification agreement regarding property damage as rising out of demolition operations affecting a railroad crossing
Which of the following conditions would be found in Section IV of the CGL?
An insured's insolvency relieves the insurer of any obligations under the policy
As defined by the CGL, personal and advertising injury includes all of the following, except
Bodily injury from eviction
Which of the following is not one of the limits of liability provided by Commercial General Liability policies?
Bodily injury limit
Which of the following is covered by Coverage C - Medical Payments under a Commercial General Liability policy?
Bodily injury to the insured's customer while shopping on the insured's business premises
Is not covered by the CGL Coverage B - Personal and Advertising Injury
Breach of contract
Which of the following is excluded under both the Limited Pollution Liability coverage form and Pollution Extension endorsement?
Clean up costs
ABC Industries contracts with municipal governments to build bridges, viaducts, and similar engineering projects. If a bridge competed in the prior year by ABC Industries were to collapse, the company would be exposed to which kind of legal liability exposure?
Completed operations liability
Which of the following insurance forms is designed for the person who has the potential for a liability exposure caused by the negligent acts of the contractor or subcontractor he hires to make repairs, construction, or alterations?
Contingent Liability Insurance
All of the following statements about medical payments coverage under a Commercial General Liability policy are correct, except
Coverage applied to the names insured's injuries
Choose the false statement regarding the application of coverage under the Products Exposure Liability Coverage
Coverage applies to damage to the product itself
Which of the following is correct regarding products liability under the CGL?
Coverage applies to the bodily injury (BI) and property damage (PD) the product causes, but not to the product itself
Which of the following would be found in Section I of a Commercial General Liability policy?
Coverage for bodily injury and property damage liability
Under a Commercial General Liability policy, all of the following statements regarding the insured's competed operations liability exposure are correct, except
Coverage includes replacement of the work that cause the loss
Under a Commercial General Liability policy, all of the following statements regarding the insured's completed operations liability exposure are correct, except:
Coverage includes replacement of the work that caused the loss
Choose the false statement about the CGL policy.
Coverage is automatically provided for watercraft liability
Why is bodily injury to an employee excluded in Commercial General Liability Insurance?
Coverage is provided under Workers' Compensation
Under a Commercial General Liability policy, which of the following would cause the insured's legal liability associated with a product to be excluded from policy coverage?
Expected or intended injury
Under a Commercial General Liability policy, all of the following are considered a type of personal and advertising injury, except
Extortion
Which of the following would be included in the definition of business personal property under the Building and Personal Property Coverage Form?
Furniture and machinery owned by the insured
Under a Commercial General Liability policy, which of the following is considered an insured's product?
Goods sold by the insured at a trade show
What is the term for tangible property that cannot be used because it contains the insured's product or work that is defective, inadequate, deficient, or dangerous?
Impaired property
Which of the following is not a condition found in Section IV of the Commercial General Liability Coverage Form?
Inspection and Surveys
Endorsements that coordinate Commercial Package policy coverage parts to avoid duplication are called:
Interline
Which of the following regarding the value reporting form is true?
Late reporting or under-reporting will result in a penalty in the event of a loss
The CGL's general aggregate limit does not cover which of the following?
Liability associated with a recalled produect
The each occurrence limit of a Commercial General Liability policy would apply to amounts paid for which of the following?
Medical payments
Under the Commercial General Liability coverage part of a Commercial Package policy, all of the following are automatically considered an insured, except
Members of a past partnership who are not shown as a named insured in the Declarations
Medical payments coverage under the Commercial Liability coverage part includes reasonable medical expenses incurred and reported within
One year of the accident
Which statement is false regarding Supplementary Payments under the Commercial General Liability policy?
Payments made under this section reduce the limits of the policy
A commercial property is insured on a Commercial Package policy. When considering the insurability of the property for renewal, the insurer can use
Physical inspection
A chemical manufacturer requires protection for pollution liability and clean up costs. Which of the following pollution liability coverages should the business purchase?
Pollution Liability Coverage Form
Choose the false statement about the coverage under the Businessowners policy
Products and completed operations coverage under the Commercial General Liability Coverage Forms will cover damage to the insured's products
Which of the following is automatically considered an insured under a Commercial General Liability policy?
Spouse of a partner
Under a Commercial General policy, which of following is NOT correct about supplementary payments coverage?
Supplementary payments apply to all Section I coverage
All of the following are true of the Building and Personal Property Coverage Form, except
Tenant's improvements that are not legally removable are included in the Personal Property of Others Coverage
All of the following are true in regard to commercial property coverage, except
The Basic Form insures against water damage
Which of the following conditions would not be found in a Commercial General Liability policy written on the Occurrence form?
The Insured's Right to Claim Information
An insured, who has a Commercial General Liability policy written on the Claims-Made Form, is considering adding a supplemental extended reporting period to their policy. All of the following statements about the SERP are correct, except
The SERP must be purchased at the beginning of the policy period
Which of the following is true regarding Completed Operations coverage?
The coverage will pay for bodily injury and/or property damage caused by negligent or faulty work by the insured, but not for the cost of replacing the work that caused the loss
Under a Commercial General Liability policy, all of the following statements about the supplemental extended reporting period are correct, except
The insurer may cancel the SERP after the insured pays the premium
A joint venture is insured on a Commercial General Liability policy written on the Claims-Made form. Which of the following would NOT reduce the policy's general aggregate limit?
The insurer pays a claimant injured by a product made by the insured
Which of the following is false regarding the Building and Personal Property Coverage Form?
The policy covers vehicles licensed for road use
Which of the following is true concerning the Premium Audit condition of the Commercial General Coverage part?
The premium audit determines what the earned premium will be at the end of the policy period
Under a Commercial General Liability policy written on the Occurrence Form, all of the following are correct, except
The retroactive date will be determined by the insurer and listed on the Declarations page
Which statement is false regarding the Building and Personal Property Coverage Form?
The standard deductible is $100
All of the following statements about supplementary payments provided by Commercial General Liability policies are correct, except
They reduce the limits of insurance
What are the territorial limits of the Commercial General Liability Coverage Part of the Commercial Package Policy?
United States, its territories and possessions, Puerto Rico and Canada
Under the Building and Personal Property coverage form, coverage applies to all of the following, except
Windstorm damage to outdoor signs not attached to the building
Which type of reporting period is provided automatically under the CGL written on a claims-made basis?
basic extended reporting period