Chapter 9
A CGL policy with a general aggregate limit of $300,000 and a per-occurrence limit of $100,000 would have how much remaining after paying a claim for a $200,000 loss, and subsequently a second claim for a $100,000 loss? A - $100,000 B - $300,000 C - $200,000 D - Zero
A - $100,000
Choose the false statement about the CGL policy. A - A Products and Completed Operations Liability claim will reduce the General Aggregate Limit B - The General Aggregate Limit will be reduced by a medical payment C - Changes to a CGL policy may be made only by endorsement issued by the insurer D - A bodily injury claim must be caused by an occurrence and it must have taken place in covered territory
A - A Products and Completed Operations Liability claim will reduce the General Aggregate Limit
Which of the following is not one of the liability exposures of the CGL? A - Advertising injury B - Premises and operations C - Products D - Completed operations
A - Advertising injury
Which of the following is not an insured contract under CGL? A - An advertising contract B - Lease for a new store location C - Sidetrack agreement D - Elevator maintenance agreement
A - An advertising contract
Which of the following is not a peril covered by personal injury? A - Breach of contract B - Malicious prosecution C - Libel D - Wrongful eviction
A - Breach of contract
Which of the following is not considered a product liability exposure? A - Goods stored on the insured premises B - Goods manufactured and sold to customers C - Product consumed by a person at a restaurant D - Product distributed to customers
A - Goods stored on the insured premises
Which of the following is NOT excluded under Part A of the CGL form? A - Operation of mobile equipment B - Product recall C - Discrimination D - Damage to insured's work
A - Operation of mobile equipment
Choose the false statement about the coverage under the Businessowners Policy. A - Products and completed operations coverage under the Commercial General Liability Coverage Forms will cover damage to the insured's products B - Product liability may be based either on negligence or on a warranty C - Premises and operation exposures pertain to a building owner or tenant who may be held legally liable in the event of bodily injury or property damage arising out of conditions on or away from premises D - Contractual liability policies cover liability assumed under designated contracts
A - Products and completed operations coverage under the Commercial General Liability Coverage Forms will cover damage to the insured's products
All of the following are true of Supplementary Payments under the Commercial General Liability Coverage Forms, except: A - Supplementary Payments apply to all Section I coverage B - Insurer's claim-related expenses are included C - They do not reduce the Limit of Liability D - The cost of bail bonds is included up to $250
A - Supplementary Payments apply to all Section I coverage
All of the following are true of the supplemental extended reporting period, except: A - The insurer may cancel it after the premium has been paid by the insured B - It is an optional extended reporting period of unlimited duration C - It must be purchased within 60 days after the end of the policy D - The one time premium may not exceed 200% of the annual premium for the coverage part
A - The insurer may cancel it after the premium has been paid by the insured
The most the insurer will pay during the policy period for medical expenses under Coverages A, B, and C is which of the following limits of liability? A - Personal and Advertising Injury Limit B - General Aggregate Limit C - Medical Expense Limit D - Per Occurrence Limit
B - General Aggregate Limit
Each of the following provides buy back coverage for the insured, except: A - Limited pollution liability coverage B - Modified pollution extension endorsement C - Pollution extension endorsement D - Pollution liability coverage for designated sites
B - Modified pollution extension endorsement
Which of the following legal liability exposures is covered if the employee of a business causes bodily injury to another person while working at the insured's business location? A - Contingent liability B - Premises and Operations C - Products D - Completed operations
B - Premises and Operations
Which of the following statements regarding Supplementary Payments under the CGL is false? A - Insurer claim related expenses are included B - Supplementary payments will reduce the limits of the policy C - Coverage only applies to losses under Coverages A and B D - The cost of bail bonds is included up to $250
B - Supplementary payments will reduce the limits of the policy
Which of the following is not included in the definition of an insured contract? A - Sidetrack agreement B - Tenant agreement C - Contract for lease of premises D - Easement agreement
B - Tenant agreement
Coverage B of the CGL would cover which of the following claims? A - A new business misappropriates the insured's slogan B - The insured was accused of causing a business associate to be falsely arrested C - A customer falls on the insured's premises and breaks his leg D - A competitor illegally uses the insured's copyright material
B - The insured was accused of causing a business associate to be falsely arrested
Choose the false statement about the CGL policy. A - Under the insuring agreement of the Commercial General Liability Coverage Part, a bodily injury claim must be caused by an occurrence and it must have taken place in covered territory B - Changes to a Commercial General Liability Coverage Part may be made only by endorsement issued by the insurer C - A Products and Completed Operations Liability claim will reduce the General Aggregate Limit of the Commercial General Liability Coverage Part D - Under the Commercial General Liability Coverage Part, the General Aggregate Limit will be reduced by a medical payment
C - A Products and Completed Operations Liability claim will reduce the General Aggregate Limit of the Commercial General Liability Coverage Part
Which of the following legal liability exposures is covered if bodily injury or property damage is caused by the insured's negligent or faulty work? A - Products B - Contingent liability C - Completed operations D - Premises and Operations
C - Completed operations
Choose the false statement regarding the application of coverage under the Products Exposure Liability Coverage. A - Coverage applies to bodily injury occurring away from premises the insured owns or rents B - Coverage applies to bodily injury the product causes C - Coverage applies to damage to the product itself D - Coverage applies to property damage the product causes
C - Coverage applies to damage to the product itself
All of the following are true of the Commercial General Liability Conditions (Section IV) under the Claims-Made Form, except: A - The insured cannot sue the insurer until all terms of the policy have been fully complied with B - Insurance applies as if each named insured were the only named insured, and separately to each insured against whom the claim is brought C - Insolvency of the insured relieves the insurer of any obligations under the policy D - The insured must maintain records necessary so the insurer may compute the premium
C - Insolvency of the insured relieves the insurer of any obligations under the policy
Which form provides coverage for a loss that takes place during the policy period and is not required to be reported within a certain time frame? A - Claims-Made Form B - Special Coverage Form C - Occurrence Form D - CGL
C - Occurrence Form
An insured contract includes all of the following, except: A - An elevator maintenance agreement B - A side track agreement C - Pollution liability D - A lease of premises
C - Pollution liability
All of the following are insured under the CGL, except: A - A partner B - A stockholder C - A volunteer worker acting on behalf of the insured D - A person participating in an athletic event
D - A person participating in an athletic event
Which of the following legal liability exposures is covered if a business employs an independent contractor? A- Products B - Completed operations C - Premises and Operations D - Contingent liability
D - Contingent liability
Which of the following is NOT an exclusion in the CGL policy? A - Insured's Work B - Impaired Products C - Insured's Product D - Host Liquor Liability for those with incidental exposure
D - Host Liquor Liability for those with incidental exposure
The Condition that states that the insurance applies separately to each insured is called __________________. A - Legal Action B - Other Insurance C - Insured's Right D - Severability
D - Severability
All of the following are true of the extended reporting period, except: A - Under the mini tail, the insurer must be notified of a claim within 60 days after the end of the policy period B - The extended reporting period does not increase the policy limits C - Under the supplemental extended reporting period, the insured must request coverage within 60 days after the end of the policy D - The supplemental extended reporting period must be purchased at the beginning of the policy period
D - The supplemental extended reporting period must be purchased at the beginning of the policy period