Chapter 9

A bodily injury claim is made against the insured for an occurrence that took place during the policy period, but that has not been reported to the insurer. A Claims-Made Commercial General Liability policy with a basic extended reporting period would cover this claim if the claim is reported to the insurer within how many days after the policy expires?

60 days

Company Z's Commercial General Liability coverage part has a products-completed operations aggregate limit of $100,000, with a $20,000 limit for each occurrence. A product-related occurrence results in $25,000 in damages, and a second occurrence related to the insured's completed operations results in $15,000 in damages. How much of the product-completed operations aggregate limit remains available for completed operations losses?

65,000

The liquor liability exclusion included in a Commercial General Liability policy applies to all of the following businesses, except:

A building owner who leases a unit to a bar The liquor liability exclusion applies to a company's dram shop liability, which applies to those in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages. Owners of commercial buildings who lease space to a bar, or a businessowner who casually supplies alcohol for a fundraiser or similar event, do not have dram shop liability, and their CGL policy will provide coverage for their host liquor liability.

Under the Commercial General Liability coverage part, which of the following injuries would NOT be covered under Coverage C - Medical Payments?

A child accidentally overdoses on cough medication taken from a parent's medicine cabinet

Which injury would be covered by a CGL policy?

A customer injured while standing in an area marked as being for employees only

A Commercial General Liability policy would provide coverage for the insured's liability arising out of all of the following insured contracts, except:

A railroad indemnification agreement for damages arising out of construction operations for a tunnel Insured contracts include leases of premises, service contracts, hold harmless or indemnification agreements, easements, and sidetrack agreements. However, insured contracts do not include agreements that indemnify a railroad for bodily injury or property damage arising out of construction or demolition operations that affect a railroad bridge, tunnel, or crossing.

Under the CGL, a person hired by a business to help cover the increased workload during the holiday season would be considered:

A temporary worker

Which of the following is not a type of personal and advertising injury covered by a Commercial General Liability policy?

Breach of contract

Which Commercial General Liability coverage form helps insurers reduce the risk associated with long-tail reporting periods for claims made against the insured?

Claims-Made Form

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, the company would be exposed to which kind of legal liability exposure?

Completed operations liability

Under a Commercial General Liability policy, all of the following statements about coverage provided for the insured's products liability are correct, except:

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:

Coverage applies to the named insured's injuries Medical payments coverage provided by Coverage C is not available for any insured, except for volunteer workers.

Coverage A of a Commercial General Liability policy will exclude coverage for:

Employee's relatives injured as a consequence of the employee's work

Under a Commercial General Liability policy, all of the following are considered a type of personal and advertising injury, except:

Extortion Damages resulting from criminal acts, such as damages owed to others resulting from the insured extorting another party, are excluded from coverage under Coverage B.

Which of the following aggregate limits apply to coverage provided by Commercial General Liability policies?

General aggregate limit and products-completed operations aggregate limit

Under the Duties in the Event of Occurrence, Claim, or Suit condition of a Commercial General Liability policies, which of the following is NOT correct?

If the insured voluntarily assumes an obligation related to a claim without the insurer's consent, the insurer is still liable for the cost Other than first-aid expenses, if the insured voluntarily makes a payment, assumes an obligation, or incurs an expense without the insurer's consent, the insurer is not liable for the cost.

All of the following are conditions of the insurance provided by a Commercial General Liability policy written on the Claims-Made Form, except:

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

Which of the following is not a condition found in Section IV of the Commercial General Liability Coverage Form?

Inspection and Surveys The Inspections and Surveys condition is found in the Common Policy Conditions section of the Commercial Package policy, not in the Commercial General Liability Coverage Form specifically. Bankruptcy, Other Insurance, and Premium Audit are all contained in Section IV of the CGL.

An accounting firm has a Commercial Package policy with the Commercial General Liability coverage part. Which of the following exclusions would not apply?

Liquor Liability

In addition to conducting accounting business in their own office, T also goes to clients' offices for appointments. This represents which type of legal liability exposure?

Premises and operations

An insured has a Commercial General Liability policy written on the Claims-Made Form. Which of the following is correct regarding the supplemental extended reporting period?

The SERP's premium is a one-time charge

Which of the following is true concerning the Premium Audit condition of the Commercial General Coverage Part?

The premium audit determines what the earned premium will be at the end of the policy period

All of the following statements about supplementary payments provided by Commercial General Liability policies are correct, except:

They reduce the limits of insurance

Medical payments coverage under the Commercial General Liability coverage part includes reasonable medical expenses incurred and reported within:

one year of the accident