prop and cas state exam ch 9
Intrepid Industries carries a CGL with a General Aggregate Limit of $300,000 and an Occurrence Limit of $100,000. After an occurrence resulting in a $200,000 loss, followed by a second occurrence resulting a $100,000 loss, how much of the General Aggregate Limit remains available against future claims?
$100,000
An insured's CGL has a Products and Completed Operations Aggregate Limit of $100,000 with a $20,000 limit per occurrence. Following claims for two separate occurrences in the amounts of $35,000 and $25,000, how much of the aggregate remains for all other claims in the policy period?
$60,000
Reasonable medical expenses incurred and reported within how many years following an accident are covered under Medical Payments coverage of the CGL?
1
Which of the following injuries would not be covered under CGL Medical Payments? A A child accidentally overdoses on cough medication he drank from his parent's medicine cabinet B A carpet installer accidentally staples a customer's hand while installing carpet C A customer is injured by a flying lug nut while a mechanic is changing her flat tire D A retail customer slips and falls from a leaking pipe in the store's res
A child accidentally overdoses on cough medication he drank from his parent's medicine cabinet
Which injury would be covered by a CGL policy? A A leased worker injured on the production line B An employee injured by the transportation of mobile equipment during the manufacturing process C A customer injured while standing in an area marked 'For Employees Only' D The spouse of a sole proprietor injured carrying boxes into the shop
A customer injured while standing in an area marked 'For Employees Only'
Product liability would cover: A Product recall B A vending machine that injured a customer's hand C Contractual liability D A restaurant customer who contracts food poisoning
A restaurant customer who contracts food poisoning
Which of the following scenarios would be covered under Personal Injury coverage? A A customer at a grocery store is injured when a canned food display falls B A storeowner falsely detains a young child believing the child egged the store C An employee trips walking down the stairs at the office D An insured deeply cuts her hand opening a package with a box-cutter
A storeowner falsely detains a young child believing the child egged the store
Which of the following scenarios would be covered under Personal Injury coverage? An insured deeply cuts her hand opening a package with a box-cutter B A customer at a grocery store is injured when a canned food display falls C An employee trips walking down the stairs at the office D A storeowner falsely detains a young child believing the child egged the store
A storeowner falsely detains a young child believing the child egged the store
Which of the following is not one of the liability exposures of the CGL?
Advertising injury
Which of the following is not one of the liability exposures of the CGL? A Advertising injury B Completed operations C Premises and operations D Products
Advertising injury
Which of the following would not be covered under Coverage A of the CGL?
An insured's employee is injured when a bookcase in the office falls on her
Which of the following conditions would not be found in Section IV of the CGL? A The insured must maintain records necessary so the insurer may compute the premium B An insured's insolvency relieves the insurer of any obligations under the policy C The insured cannot sue the insurer until all terms of the policy have been fully complied with D Insurance applies as if each named insured were the only named insured, and separately to each insured against whom the claim is brought
An insured's insolvency relieves the insurer of any obligations under the policy
Personal Injury Liability Insurance covers all of the following, except: A Bodily Injury B False Arrest C Malicious prosecution D Libel and Slander
Bodily Injury
Personal injury liability insurance does not cover which of the following? A Libel and Slander B Bodily Injury C Malicious prosecution D False Arrest
Bodily Injury
Personal Injury includes all of the following, except: A Malicious prosecution B False Arrest C Bodily Injury from eviction D Libel and Slander
Bodily Injury from eviction
Which of the following is covered by Medical Payments under the CGL? A Bodily injury to a person hired to do work for the insured B Bodily injury to an insured that is injured while playing tennis C Bodily injury to an insured's customer while shopping on the insured's business premises D Bodily injury to a person on a part of the premises that the insured owns or rents and that the person normally occupies
Bodily injury to an insured's customer while shopping on the insured's business premises
Which of the following is covered by Medical Payments under the CGL? A Bodily injury to a person on a part of the premises that the insured owns or rents and that the person normally occupies B Bodily injury to an insured that is injured while playing tennis C Bodily injury to an insured's customer while shopping on the insured's business premises D Bodily injury to a person hired to do work for the insured
Bodily injury to an insured's customer while shopping on the insured's business premises
Which of the following is not covered under the Limited Pollution Liability coverage and Pollution Extension endorsement? A Escape of pollutants B Threatened discharge of pollutants C Clean up costs D Waste disposal leaks
Clean up costs
An insured who goes to client's offices and homes for appointments would need coverage for which liability exposure?
Completed Operations
ABC Industries contracts with municipal governments to build bridges, viaducts, and similar engineering projects. If a bridge completed in the prior year by ABC Industries were to collapse, which kind of liability exposure would this be an example of?
Completed operations
Which of the following insurance forms is designed for the person who has the potential for a liability exposure caused by negligent acts of the contractor or subcontractor he hires to make repairs, construction, or alterations? A Completed Operations Insurance B Contractors Liability Insurance C Contingent Liability Insurance D Contractual Liability Insurance
Contingent Liability Insurance
Which of the following is correct regarding products liability under the CGL? A Coverage applies to the bodily injury (BI) and property damage (PD) the product causes, but not to the product itself B Coverage applies to BI and PD caused by the product, and to damage to the product itself once in the purchaser's care, custody and control C Products liability coverage commences immediately upon sale of the product, before the purchaser leaves the insured's premises D Products liability coverage includes dram shop liability insurance
Coverage applies to the bodily injury (BI) and property damage (PD) the product causes, but not to the product itself
All of the following are true of medical payments under the Commercial General Liability Coverage Forms, 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 because of the insured's operations C Coverage applies to injuries that occur on the premises that the insured owns or rents D Coverage applies to the insured's injuries
Coverage applies to the insured's injuries
All of the following are true of medical payments under the Commercial General Liability Coverage Forms, except: Coverage applies to injuries that occur on the premises that the insured owns or rents B Coverage applies to expenses that are incurred and reported to the insurer within 1 year of the accident C Coverage applies to injuries that occur because of the insured's operations D Coverage applies to the insured's injuries
Coverage applies to the insured's injuries
Choose the false statement about the CGL policy. A Contingent Liability Policies are also called Owners and Contractors Protective Liability B The insurer's written consent is required for any transfer of rights and duties to another person C The insurer may examine the insured's books anytime during the policy period, or within 3 years after the policy ends D Coverage is automatically provided for watercraft liability
Coverage is automatically provided for watercraft liability
Choose the false statement about the CGL policy. A The insurer may examine the insured's books anytime during the policy period, or within 3 years after the policy ends B Coverage is automatically provided for watercraft liability C Contingent Liability Policies are also called Owners and Contractors Protective Liability D The insurer's written consent is required for any transfer of rights and duties to another person
Coverage is automatically provided for watercraft liability
Why is bodily injury to an employee excluded in Commercial General Liability Insurance? A The employee is considered an insured B It falls under the doctrine of assumption of risk C Coverage is provided under Workers' Compensation D It falls under the doctrine of contributory negligence
Coverage is provided under Workers' Compensation
Which of the following is false about the CGL's two coverage forms?
Coverage under the occurrence form is based on when the loss is reported
Which of the following is false about the CGL's two coverage forms? A The claims-made form covers losses that occur after the retroactive date and before the policy expiration date B The retroactive date is unique to the Claims-Made form C Coverage under the occurrence form is based on when the loss is reported D Coverage is triggered when an occurrence takes place during the policy period
Coverage under the occurrence form is based on when the loss is reported
All of the following about the CGL's products liability coverage are correct, except:
Damage to the product itself is covered
Under the CGL, which of the following would exclude from coverage the legal liability associated with a product? A Negligence B Strict liability C Expected or intended injury D Breach of warranty
Expected or intended injury
In commercial liability policies, the word 'tail' is synonymous with: A Retroactive date B Extended reporting period C Endorsement D Supplementary payments
Extended reporting period
Which of the following is considered an insured's product? A Merchandise held by the insured as inventory B Goods sold by the insured at a trade show C Remodeled building D Goods shipped to a retailer to be sold
Goods sold by the insured at a trade show
Which of the following is not a provision found in Section IV of the CGL? A Premium audit B Bankruptcy C Other insurance D Inspection and surveys
Inspection and surveys
Which country is not included in the CGL coverage territory?
Mexico
A CGL policy provides coverage for:
Operations Liability
An insured contract includes all of the following, except: A Pollution liability B A lease of premises C A side track agreement D An elevator maintenance agreement
Pollution liability
15 An insured who goes to client's offices and homes for appointments would need coverage for which liability exposure?
Premises and Operations
In addition to conducting accounting business in his own office, Tom also goes to client's offices for appointments, which represents which type of exposure?
Premises and Operations
Which of the following is not a contingent liability exposure? A Liability exposure of insured's sub-contractors B Premises liability exposure C Contractual liability exposure D Owners and Contractors Protective liability exposure
Premises liability exposure
Which of the following is not a contingent liability exposure? A Premises liability exposure B Contractual liability exposure C Liability exposure of insured's sub-contractors D Owners and Contractors Protective liability exposure
Premises liability exposure
Which of the following is not an example of contingent liability exposure? A Owners and Contractors Protective liability exposure B Contractual liability exposure C Premises liability exposure D Liability exposure of an insured's sub-contractors
Premises liability exposure
Which of the following is true concerning the Premium Audit condition of the Commercial General Coverage Part to the Commercial Package Policy? A Premium Audit is the comparison of the insured's premium with the average premium in the insured's rating classification B Premium audit determines what the earned premium will be at the end of the policy period C Premium Audit refers to the right of the insured to contest the premium after policy issuance D Premium Audit is the action taken by the insurer to see that the insured's rating is properly classified
Premium audit determines what the earned premium will be at the end of the policy period
Which of the following conditions would not be found in a CGL policy written on the occurrence form? A Severability B Representations C Duties in the Event of Occurrence, Claim, or Suit D The Insured's Right to Claim Information
The Insured's Right to Claim Information
What is the difference between the Commercial General Liability Occurrence and Claims-Made forms?
The coverage trigger point
Which of the following is true regarding Completed Operations coverage? A If faulty work causes damage to other property of the claimant, then coverage extends to include the faulty work B Coverage applies only during the period that the insured has custody and control of the work deemed faulty or inadequately performed 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
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
All of the following are true of the supplemental extended reporting period, except: A The one time premium may not exceed 200% of the annual premium for the coverage part B It is an optional extended reporting period of unlimited duration C The insurer may cancel it after the premium has been paid by the insured D It must be purchased within 60 days after the end of the policy
The insurer may cancel it after the premium has been paid by the insured
Which of the following is not true of the supplemental extended reporting period under the Claims-Made Form of the CGL? A It is an optional extended reporting period of unlimited duration B The one time premium may not exceed 200% of the annual premium for the coverage part C It must be purchased within 60 days after the end of the policy D The insurer may void it after the premium has been paid by the insure
The insurer may void it after the premium has been paid by the insured
Which of the following would not reduce the general aggregate limit under a CGL? A A customer is injured on premises and the insured calls an ambulance to take the injured party to the hospital for treatment B A small fire in the insured's office causes damage to the leased premises C The insured misappropriates the advertising slogan of a competitor D The insurer pays a claimant injured by a product made by the insured
The insurer pays a claimant injured by a product made by the insured
Which of the following would not reduce the general aggregate limit under a CGL? A The insurer pays a claimant injured by a product made by the insured B The insured misappropriates the advertising slogan of a competitor C A customer is injured on premises and the insured calls an ambulance to take the injured party to the hospital for treatment D A small fire in the insured's office causes damage to the leased premises
The insurer pays a claimant injured by a product made by the insured
All of the following are true of the Occurrence Form, except: A Supplementary payments are automatically included B For coverage to apply, the injury or damage must occur during the policy period C The length of the retroactive date will depend upon the insurer D As long as the injury or damage occurred during the policy period, the claim date is immaterial
The length of the retroactive date will depend upon the insurer
Which of the following is true regarding the Supplemental Extended Reporting Period? A The premium is a one-time charge B It covers occurrences that take place after the policy term, during the Supplemental Extended Reporting Period C The charge for the Supplemental Extended Reporting Period may not exceed the annual premium of the expiring policy D Cancellation by the insurer requires 90 days notice of cancellation
The premium is a one-time charge
Which of the following is true regarding the Supplemental Extended Reporting Period? A The premium is a one-time charge B The charge for the Supplemental Extended Reporting Period may not exceed the annual premium of the expiring policy C It covers occurrences that take place after the policy term, during the Supplemental Extended Reporting Period D Cancellation by the insurer requires 90 days notice of cancellation
The premium is a one-time charge
Which statement is correct regarding the Supplemental Extended Reporting Period? A It covers claims that take place after the policy term, during the Supplemental Extended Reporting Period B Cancellation by the insurer requires 90 days notice of cancellation C The premium is a one-time charge and fully earned at issuance D The charge for the Supplemental Extended Reporting Period shall not exceed the premium of the expiring policy
The premium is a one-time charge and fully earned at issuance
