Chapter 9- Commercial General Liability Coverage

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?

$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?

$100,000

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

Expected or intended injury

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

Extortion

An insured contract includes all of the following, except:

Pollution liability

An insured who goes to client's offices and homes for appointments would need coverage for which liability exposure?

Premises and Operations

What is the term for tangible property, that cannot be used because it is defective, inadequate, deficient, or dangerous

Impaired property

Which of the following is not a contingent liability exposure?

Premises liability exposure

The CGL's general aggregate limit does not cover which of the following?

Product recall

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

Coverage B of the CGL would cover which of the following claims?

The insured was accused of causing a business associate to be falsely arrested

Which of the following is not true of the supplemental extended reporting period under the Claims-Made Form of the CGL?

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?

The insurer pays a claimant injured by a product made by the insured

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

Medical payments coverage under the Commercial General Liability Coverage Forms includes reasonable medical expenses if they are incurred and reported within how many years following an accident?

1

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

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

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

Product liability would cover:

A restaurant customer who contracts food poisoning

Which of the following scenarios would be covered under Personal Injury coverage?

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 type of reporting period is provided automatically under the CGL written on a claims-made basis?

Basic Extended Reporting Period

Personal Injury Liability Insurance covers all of the following, except

Bodily Injury

Which of the following is not one of the limits of liability provided by the CGL?

Bodily injury limit

What type of insurance indemnifies the legal liability of an insured for the actions of the insured's subcontractors?

Contingent Liability Insurance

Which of the following would be found in Section I of a CGL?

Coverage for bodily injury and property damage

Who is not an insured under the Commercial General Liability policy?

Members of a past partnership not listed in the Declarations

Advertising Injury Coverage includes all of the following, except:

Wrongful entry

Choose the false statement about the CGL policy

Coverage is automatically provided for watercraft liability

All of the following about the CGL's products liability coverage are correct, except:

Damage to the product itself is covered

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

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

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

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

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

An advertising contract

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?

An insured's insolvency relieves the insurer of any obligations under the policy

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

At the end of the policy period

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

Clean up costs

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 is true regarding the Products exposure of 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 is correct regarding products liability under the CGL?

Coverage applies to the bodily injury and property damage 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:

Coverage applies to the insured's injuries

In commercial liability policies, the word 'tail' is synonymous with:

Extended reporting period

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

Goods sold by the insured at a trade show

All of the following are true of the Commercial General Liability Conditions (Section IV) under the Claims-Made Form, except:

Insolvency of the insured relieves the insurer of any obligations under the policy

Which country is not included in the CGL coverage territory?

Mexico

Which form responds to losses that occur while the policy is in force, regardless of when the claim is made?

Occurrence

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

Spouse of a partner

Which of the following statements regarding Supplementary Payments under the CGL is false?

Supplementary payments will reduce the limits of the policy

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

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

The premium is a one-time charge

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

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

All of the following are true about extended reporting periods, except

The supplemental tail requires an annual premium