PNC CHAPTER 9 EXAM QUESTIONS

Reasonable medical expenses incurred and reported within how many years following an accident are covered under medical payments coverage of a Commercial General Liability policy? A 1 year B 3 years C 5 years D 2 years

A 1 year

Product liability would cover: A A restaurant customer who contracts food poisoning B Product recall C A vending machine that injured a customer's hand D Contractual liability

A A restaurant customer who contracts food poisoning

Medical payments coverage provided by Commercial General Liability policies would apply to which of the following injuries? A A volunteer worker injured while handing out flyers on the insured's premises B A child injured when dismantling a company's product and choking on one of the pieces C A company executive who was injured while playing golf in the company golf league D A tenant of a company's warehouse who was cut during the manufacturing process of the company's product

A A volunteer worker injured while handing out flyers on the insured's premises

Which of the following is covered by Coverage C - Medical Payments under a Commercial General Liability policy? A Bodily injury to the insured's customer while shopping on the insured's business premises B Bodily injury to a gym member that occurred while they played tennis C Bodily injury to the insured's employee D Bodily injury to a tenant who normally occupies the insured's premises

A Bodily injury to the insured's customer while shopping on the insured's business premises

Who is not an insured under the Commercial General Liability policy? A Members of a past partnership not listed in the Declarations B Executive officers, with respect to their duties as the insured's officers or directors C The spouse of a named insured D Employees other than executive officers, for acts within the scope of their employment

A Members of a past partnership not listed in the Declarations

Which Commercial General Liability policy form responds to covered losses that occur while the policy is in force, regardless of when the claim is made? A Occurrence Form B Claims-Made Form C Liability Form D Premises and Operations Form

A Occurrence Form

Which of the following statements is incorrect about Supplementary Payments under the CGL? A Supplementary payments apply to losses under all Section I coverages B Payments do not reduce the Limit of Liability C The insurer's claim-related expenses are included D The cost of bail bonds is included up to $250

A Supplementary payments apply to losses under all Section I coverages

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 limit remains to apply to further covered occurrances? A Zero B $800,000 C $1 million D $200,000

B $800,000

Which of the following is not an example of personal and advertising injury, as understood by the CGL? A Infringement of copyright B A broken leg C Misappropriation of a title or slogan D False imprisonment

B A broken leg

Which of the following would be considered an insured's product? A A remodeled building B Goods sold by the insured at a trade show C Goods shipped out to a retail location for sale D Merchandise held by the insured as inventory

B Goods sold by the insured at a trade show

Who is not an insured under the Commercial General Liability policy? A Executive officers, with respect to their duties as the insured's officers or directors B Members of a past partnership not listed in the Declarations C Employees other than executive officers, for acts within the scope of their employment D The spouse of a named insured

B Members of a past partnership not listed in the Declarations

Which of the following is the main difference between the Occurrence Form and the Claims-Made Form under a CGL policy? A The occurrence date B The coverage trigger C The per occurrence limit D The general aggregate limit

B The coverage trigger

___________ is not covered by the CGL Coverage B - Personal and Advertising Injury. A Malicious prosecution B Infringement of copyright C Breach of contract D Slander

C Breach of contract

Under a Commercial General Liability policy, all of the following statements about coverage provided for the insured's products liability are correct, except: A Coverage applies to bodily injury the product causes B Coverage applies to property damage the product causes C Coverage applies to damage to the product itself D Coverage applies to bodily injury occurring away from premises the insured owns or rents

C Coverage applies to damage to the product itself

All of the following statements about medical payments coverage under a Commercial General Liability policy are correct, except: A Coverage applies to expenses that are incurred and reported to the insurer within 1 year of the accident B Coverage applies to injuries that occur on the premises that the insured owns or rents C Coverage applies to the named insured's injuries D Coverage applies to injuries that occur because of the insured's operations

C Coverage applies to the named insured's injuries

Under the claims-made CGL, the supplemental extended reporting period: A Provides a 5 year Midi Tail period for a claim arising from an occurrence that took place before the end of the policy period, provided the insurer was notified of that occurrence B Provides an unlimited extension for making claims for losses that occurred during the policy period, this extension is provided automatically without any additional charge C Provides an unlimited extension for making claims for losses that occurred during the policy period, but the insured must pay an additional premium D Provides a 60 day Mini Tail period for the reporting of an incident that results from an occurrence that took place before the end of the policy period

C Provides an unlimited extension for making claims for losses that occurred during the policy period, but the insured must pay an additional premium

Under the claims-made Commercial General Liability coverage form, the first date that a loss may occur and still be covered under the policy is the: A Policy effective date B Reporting date C Retroactive date D Mini-tail date

C Retroactive date

Which of the following conditions would not be found in a Commercial General Liability policy written on the Occurrence form? A Representations B Duties in the Event of Occurrence, Claim, or Suit C The Insured's Right to Claim Information D Severability

C The Insured's Right to Claim Information

Under a Commercial General Liability policy, which of the following is not an insured contract? A Sidetrack agreement B Lease of premises C Elevator maintenance agreement D Advertising contract

D Advertising contract

Under a CGL, at what point in time is the earned premium determined by the premium audit? A At the time the premium deposit is made B Monthly C At the beginning of the policy period D At the end of the policy period

D At the end of the policy period

A contractor installs an air compressor system at a customers business. After the contractor leaves the premises the unit blows up causing injuries to their customers. The contractors liability would be covered under which of the following coverages? A Contractual liability B Products liability C Premises and operations D Completed operations

D Completed operations

Under a Commercial General Liability policy, which of the following is NOT excluded under Section I - Coverages? A Product recall B Discrimination C Expected or intended injury D Operation of mobile equipment

D Operation of mobile equipment

An insured who goes to client's offices and homes for appointments would need coverage for which liability exposure? A Contingent Liability B Products C Completed Operations D Premises and Operations

D Premises and Operations

A man becomes ill after eating a meal in a restaurant. The cost of treatment at a local hospital is $1,700. Which coverage section of the restaurant's Commercial General Liability policy will respond to the claim? A Med Pay B Operations C Contractual liability D Products

D Products

Which of the following is an insured under the CGL policy? A Trustee's spouse B Spouse of volunteer worker C Spouse of LLC members D Spouse of a partner

D Spouse of a partner

What is the difference between the Occurrence Form and Claims-Made Form available for Commercial General Liability policies? A The policy period B The types of occurrences they cover C The deductible D The coverage trigger point

D The coverage trigger point

Which of the following is true regarding Completed Operations coverage? A Coverage applies only during the period that the insured has custody and control of the work deemed faulty or inadequately performed B If faulty work causes damage to other property of the claimant, then coverage extends to include the faulty work C Bodily injury arising from negligent or faulty work of the insured is not covered if it occurs after the work is completed and turned over to its owner D 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

D 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

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: A The SERP does not increase the policy limits B The SERP must be purchased at the beginning of the policy period C The insured must request to add the SERP within 60 days after the end of the policy period D The SERP provides an unlimited period to report claims

The SERP must be purchased at the beginning of the policy period C

All of the following statements about supplementary payments provided by Commercial General Liability policies are correct, except: A They reduce the limits of insurance B They include the cost of bail bonds up to $250 C They pay claim-related expenses incurred by the insurer D They apply to costs incurred when a claim is made against the insured for their bodily injury and property damage liability

They reduce the limits of insurance