Property And Casualty Chapter 9 Exam

Ordinance or Law

All of the following are considered liability assumed under insured contracts, except:

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?

Bodily Injury

Personal injury liability insurance does not cover which of the following?

A restaurant customer who contracts food poisoning

Product liability would cover:

At the end of the policy period

Under a CGL, at what point in time is the earned premium determined by the premium audit?

Breach of contract

___________ is not covered by the CGL Coverage B - Personal and Advertising Injury.

Pollution Liability Coverage Form

A chemical manufacturer requires protection for pollution liability and clean up costs. Which of the following pollution liability coverages should the business purchase?

Premises and operations

ABC Industries contracts with municipal governments to build bridges, viaducts, and similar engineering projects. If workers from ABC Industries cause damage to a taxicab while pouring the foundation for a new overpass, which kind of liability exposure would this be an example of?

They reduce the limits of insurance

All of the following are true of Supplementary Payments under the CGL, except:

Supplementary Payments apply to all Section I coverage

All of the following are true of Supplementary Payments under the Commercial General Liability Coverage Forms, except:

A claim occurring 60 days prior to the retroactive date would be covered

All of the following are true of the Claims-Made Form, except:

The supplemental extended reporting period must be purchased at the beginning of the policy period

All of the following are true of the extended reporting period, except:

The insurer may cancel it after the premium has been paid by the insured

All of the following are true of the supplemental extended reporting period, except:

Pollution liability

An insured contract includes all of the following, except:

$60,000

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?

A Products and Completed Operations Liability claim will reduce the General Aggregate Limit

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

Choose the false statement about the CGL policy.

Coverage is automatically provided for watercraft liability

Choose the false statement about the CGL policy.

Products and completed operations coverage under the Commercial General Liability Coverage Forms will cover damage to the insured's products

Choose the false statement about the coverage under the Businessowners Policy.

Professional malpractice

Damages from which of the following would apply to the per occurrence limit under a Commercial General Liability policy?

$100,000

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?

Bodily Injury

Personal Injury Liability Insurance covers all of the following, except:

Bodily Injury from eviction

Personal Injury includes all of the following, except:

1

Reasonable medical expenses incurred and reported within how many years following an accident are covered under Medical Payments coverage of the CGL?

At the end of the policy period

Under the CGL policy, the earned premium used in a premium audit to compute the final premium is determined at what point in time?

Expected or intended injury

Under the CGL, which of the following would exclude from coverage the legal liability associated with a product?

United States, its territories and possessions, Puerto Rico and Canada

What are the territorial limits of the Commercial General Liability Coverage Part of the Commercial Package Policy?

The Retroactive Date

What is the date after which an occurrence can take place and be covered under the claims-made form?

Mexico

Which country is not included in the CGL coverage territory?

A customer injured while standing in an area marked 'For Employees Only'

Which injury would be covered by a CGL policy?

A child accidentally overdoses on cough medication he drank from his parent's medicine cabinet

Which of the following injuries would not be covered under CGL Medical Payments?

Operation of mobile equipment

Which of the following is NOT excluded under Part A of the CGL form?

Goods sold by the insured at a trade show

Which of the following is considered an insured's product?

Clean up costs

Which of the following is excluded under both the Limited Pollution Liability coverage form and Pollution Extension endorsement?

The limits of the policy stated in the Declarations are the maximum amounts payable for the life of the policy

Which of the following is false about the CGL policy form?

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?

Inspection and surveys

Which of the following is not a provision found in Section IV of the CGL?

Premises liability exposure

Which of the following is not an example of contingent liability exposure?

A broken leg

Which of the following is not an example of personal injury?

An advertising contract

Which of the following is not an insured contract under CGL?

Extortion

Which of the following is not considered a type of advertising injury?

Clean up costs

Which of the following is not covered under the Limited Pollution Liability coverage and Pollution Extension endorsement?

Advertising injury

Which of the following is not one of the liability exposures of the CGL?

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

Which of the following is true regarding Completed Operations coverage?

The premium is a one-time charge

Which of the following is true regarding the Supplemental Extended Reporting Period?

Supplementary payments apply to losses under all Section I coverages

Which of the following statements is incorrect about Supplementary Payments under the CGL?

Spouse of a partner

Which of the following would be an insured under the CGL policy?

Goods sold by the insured at a trade show

Which of the following would be considered an insured's product?

An LLC employee's spouse assisting in cleaning the office so they can leave for vacation more quickly

Which of the following would not be considered an insured under a CGL?

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?

The premium is a one-time charge and fully earned at issuance

Which statement is correct regarding the Supplemental Extended Reporting Period?

Payments made under this section reduce the limits of the policy

Which statement is false regarding Supplementary Payments under the Commercial General Liability policy?

Coverage includes replacement of the work that caused the loss

Which statement is false regarding the completed operations exposure?

Coverage is provided under Workers' Compensation

Why is bodily injury to an employee excluded in Commercial General Liability Insurance?