Insurance Licensing - Chapter 9: Commercial General Liability Coverage

Which of the following is not an example of personal injury? a. A broken leg b. False arrest c. Misappropriation of a title or slogan d. Infringement of copyright

a. A broken leg

All of the following are true of the Claims-Made Form, except: a. A claim occurring 60 days prior to the retroactive date would be covered b. Supplemental payments are automatically included c. For coverage to apply, the injury or damage must have occurred between the retroactive date and the policy termination d. The mini tail provides 60 days after the end of the policy period for reporting a claim

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

Which of the following is not included in the definition of an insured contract? a. Contract for lease of premises b. Sidetrack agreement c. Easement agreement d. Tenant agreement

d. Tenant agreement

Which of the following is false about the Occurrence Form? a. The injury or damage must occur during the policy period b. As long as the injury or damage occurred during the policy period, the claim date is immaterial c. Supplementary payments are automatically included d. The length of the retroactive date will depend upon the insurer

d. The length of the retroactive date will depend upon the insurer

All of the following are insured under the CGL, except: a. A person participating in an athletic event b. A volunteer worker acting on behalf of the insured c. A partner d. A stockholder

a. A person participating in an athletic event

Which of the following is not one of the liability exposures of the CGL? a. Advertising injury b. Products c. Premises and operations d. Completed operations

a. Advertising injury

Which of the following is excluded under both the Limited Pollution Liability coverage form and Pollution Extension endorsement? a. Clean up costs b. Waste disposal leaks c. Escape of pollutants d. Threatened discharge of pollutants

a. Clean up costs

All of the following are true of medical payments under the Commercial General Liability Coverage Forms, except: a. Coverage applies to the insured's injuries 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 injuries that occur on the premises that the insured owns or rents

a. Coverage applies to the insured's injuries

Under the CGL, which of the following would exclude from coverage the legal liability associated with a product? a. Expected or intended injury b. Breach of warranty c. Strict liability d. Negligence

a. Expected or intended injury

All of the following are true of the Commercial General Liability Conditions (Section IV) under the Claims-Made Form, except: a. Insolvency of the insured relieves the insurer of any obligations under the policy b. Insurance applies as if each named insured were the only named insured, and separately to each insured against whom the claim is brought c. The insured cannot sue the insurer until all terms of the policy have been fully complied with d. The insured must maintain records necessary so the insurer may compute the premium

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

Which form responds to losses that occur while the policy is in force, regardless of when the claim is made? a. Occurrence b. Claims-Made c. Products d. Premises and Operations

a. Occurrence

Which of the following is NOT excluded under Part A of the CGL form? a. Operation of mobile equipment b. Product recall c. Damage to insured's work d. Discrimination

a. Operation of mobile equipment

Which statement is false regarding Supplementary Payments under the Commercial General Liability policy? a. Payments made under this section reduce the limits of the policy b. Claim related expenses are included c. Coverage only applies to Coverages A and B d. The cost of bail bonds is included up to $250

a. Payments made under this section reduce the limits of the policy

An insured contract includes all of the following, except: a. Pollution liability b. A side track agreement c. An elevator maintenance agreement d. A lease of premises

a. Pollution liability

All of the following are true of Supplementary Payments under the CGL, except: a. They reduce the limits of insurance b. They apply to bodily injury and property damage liability as well as personal injury and advertising injury liability c. They pay defense costs incurred by the insurer d. They include the cost of bail bonds up to $250

a. They reduce the limits of insurance

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? a. 2 b. 1 c. 5 d. 3

b. 1

Which of the following injuries would not be covered under CGL Medical Payments? a. A retail customer slips and falls from a leaking pipe in the store's restroom b. A child accidentally overdoses on cough medication he drank from his parent's medicine cabinet c. A carpet installer accidentally staples a customer's hand while installing carpet d. A customer is injured by a flying lug nut while a mechanic is changing her flat tire

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

Which of the following is not a peril covered by personal injury? a. Wrongful eviction b. Breach of contract c. Malicious prosecution d. Libel

b. Breach of contract

Which of the following is considered an insured's product? a. Remodeled building b. Goods sold by the insured at a trade show c. Goods shipped to a retailer to be sold d. Merchandise held by the insured as inventory

b. Goods sold by the insured at a trade show

Which of the following is not considered a product liability exposure? a. Product distributed to customers b. Goods stored on the insured premises c. Product consumed by a person at a restaurant d. Goods manufactured and sold to customers

b. Goods stored on the insured premises

Which form provides coverage for a loss that takes place during the policy period and is not required to be reported within a certain time frame? a. Special Coverage Form b. Occurrence Form c. Claims-Made Form d. CGL

b. Occurrence Form

The Condition that states that the insurance applies separately to each insured is called __________________. a. Insured's Right b. Severability c. Legal Action d. Other Insurance

b. Severability

All of the following are true of Supplementary Payments under the Commercial General Liability Coverage Forms, except: a. They do not reduce the Limit of Liability b. Supplementary Payments apply to all Section I coverage c. Insurer's claim-related expenses are included d. The cost of bail bonds is included up to $250

b. Supplementary Payments apply to all Section I coverage

All of the following are true of the supplemental extended reporting period, except: a. It must be purchased within 60 days after the end of the policy b. The insurer may cancel it after the premium has been paid by the insured c. The one time premium may not exceed 200% of the annual premium for the coverage part d. It is an optional extended reporting period of unlimited duration

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

All of the following are true of the Occurrence Form, except: a. Supplementary payments are automatically included b. The length of the retroactive date will depend upon the insurer c. For coverage to apply, the injury or damage must occur during the policy period d. As long as the injury or damage occurred during the policy period, the claim date is immaterial

b. The length of the retroactive date will depend upon the insurer

Choose the false statement about the CGL policy. a. A bodily injury claim must be caused by an occurrence and it must have taken place in covered territory b. Changes to a CGL policy may be made only by endorsement issued by the insurer c. A Products and Completed Operations Liability claim will reduce the General Aggregate Limit d. The General Aggregate Limit will be reduced by a medical payment

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

Product liability would cover: a. Product recall b. Contractual liability c. A restaurant customer who contracts food poisoning d. A vending machine that injured a customer's hand

c. A restaurant customer who contracts food poisoning

Which of the following legal liability exposures is covered if bodily injury or property damage is caused by the insured's negligent or faulty work? a. Premises and Operations b. Products c. Completed operations d. Contingent liability

c. Completed operations

Which of the following would be found in Section I of a CGL? a. The policy definitions b. List of insureds under the policy c. Coverage for bodily injury and property damage d. The Commercial General Liability conditions

c. Coverage for bodily injury and property damage

The most the insurer will pay during the policy period for medical expenses under Coverages A, B, and C is which of the following limits of liability? a. Personal and Advertising Injury Limit b. Medical Expense Limit c. General Aggregate Limit d. Per Occurrence Limit

c. General Aggregate Limit

Each of the following provides buy back coverage for the insured, except: a. Pollution liability coverage for designated sites b. Limited pollution liability coverage c. Modified pollution extension endorsement d. Pollution extension endorsement

c. Modified pollution extension endorsement

All of the following are true about extended reporting periods, except: a. The basic extended reporting period allows a claim to be reported after the policy period for a specified number of days b. Under the supplemental tail, the insured must request coverage within 60 days after the end of the policy term c. The supplemental tail requires an annual premium d. The basic extended reporting period does not increase the policy limits

c. The supplemental tail requires an annual premium

Which of the following is not an insured contract under CGL? a. Elevator maintenance agreement b. Sidetrack agreement c. Lease for a new store location d. An advertising contract

d. An advertising contract

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

Which of the following is not a type of personal and advertising Injury under the CGL? a. Malicious prosecution b. Slander c. Infringement of copyright d. Breach of contract

d. Breach of contract

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? a. Products b. Premises and operations c. Contingent liability d. Completed operations

d. Completed operations

Which of the following legal liability exposures is covered if a business employs an independent contractor? a. Premises and Operations b. Products c. Completed operations d. Contingent liability

d. Contingent liability

Which statement is false regarding the completed operations exposure? a. It begins after the insured's operations are completed and the insured leaves the job site b. The exposure must occur away from the insured's premises c. It includes risks of defective installation, construction or repair d. Coverage includes replacement of the work that caused the loss

d. Coverage includes replacement of the work that caused the loss

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. It falls under the doctrine of contributory negligence d. Coverage is provided under Workers' Compensation

d. Coverage is provided under Workers' Compensation

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 is triggered when an occurrence takes place during the policy period d. Coverage under the occurrence form is based on when the loss is reported

d. Coverage under the occurrence form is based on when the loss is reported

Which of the following is NOT an exclusion in the CGL policy? a. Insured's Product b. Insured's Work c. Impaired Products d. Host Liquor Liability for those with incidental exposure

d. Host Liquor Liability for those with incidental exposure

Which country is not included in the CGL coverage territory? a. Puerto Rico b. Canada c. United States d. Mexico

d. Mexico

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

Which of the following is not a contingent liability exposure? a. Liability exposure of insured's sub-contractors b. Contractual liability exposure c. Owners and Contractors Protective liability exposure d. Premises liability exposure

d. Premises liability exposure

Which of the following would be an insured under the CGL policy? a. Trustee's spouse b. Spouse of an LLC member c. Spouse of volunteer worker d. Spouse of a partner

d. Spouse of a partner