Exam Fx Chapter 13 Commercial General Liability Flashcards
According to the common policy conditions for a commercial package policy, if the insured dies, the policy rights and duties
Automatically transfer to a legal representative.
Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own. Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general liability policy cover the claim?
No, because the claim results from copyright infringement and is not in an advertisement.
The commercial property declarations page contains which of the following information?
Description of the property insured
All of the following are true statements regarding the supplementary payments of a Commercial General Liability policy EXCEPT
They pay defense costs even after the aggregate limit has been reached.
The Occurrence form trigger is based on which of the following?
The date when injury or damage occurs
If an insured bakery is sued because its marketing states that the products of another bakery may not be safe, which coverage of a commercial general liability will defend the suit?
Personal and advertising injury liability
The Claims-Made Trigger is based on which of the following?
The date the claim is first made in writing against an insured for injury or damage that occurred on or after the policy's retroactive date
When ABC Appliance's marketing stated that its mowing machine was the only safe mower available for purchase in town, ABC was sued by XYZ Lawn and Garden. ABC's coverage would come from which part of its general liability coverage?
Personal and advertising injury liability
Crunchy Flakes Cereal Company shipped some of its product in faulty containers that caused spoilage. This resulted in some consumers becoming ill. If the company is sued for this event, it would be an example of a
Product liability claim.
In a commercial package policy, who may cancel the policy in writing and make changes to the policy with the consent of the insurer?
First named insured
A commercial package policy (CPP) allows the insured to select the coverage needed and customize the policy to meet the needs of the insured's business. In a CPP, the business owner may select from all of the following types of coverage EXCEPT
Workers compensation coverage
Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?
Directors and officers liability
Which of the following would be covered by a commercial general liability coverage part?
Accidental bodily injury to a customer on the premises
A date stipulated on the declaration page of a claims-made liability form as the first date on which an incident may occur and be covered by the policy is called
Retroactive date.
The common policy condition is a modular part combined with other parts to create the contract. The "common policy condition" section contains provisions that are applicable to all lines of coverage that may be included in the policy. Which of the following provisions would be found in the common policy conditions section of the policy?
The first named insured may cancel the policy at any time by giving written notice to the insurer.
B&B Market was sued when an employee detained a person he believed to be a shoplifter, but the person turned out to be the meter reader. Which coverage would apply to this suit?
Personal and advertising injury liability
In liability insurance policies, supplementary payments are made
In addition to the limit of liability.
A professional liability policy will provide coverage for loss in all of the following cases, except, when the insured doctor was shown to be
Criminally negligent.
All of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPT
The injury or damage must occur within 90 days after the insured's work is completed.
A plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and hurts someone because he did not do the job correctly?
Completed operations
CGL Coverage B (Personal Injury and Advertising Injury) will cover
Inadvertent injury to others caused in the course of advertising the insured's product.
Which of the following statements is true regarding the commercial general liability policy's Coverage C - Medical Payments?
The coverage is considered "good will" because payments are made without regard to fault.
A specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean?
There is no coverage.
Retroactive dates in claims made CGL policies apply to
Both BI and PD and PIL and Advertising Liability.
All of the following are essential elements of a commercial package policy (CPP) EXCEPT
Valuations and/or settlement provisions
Druggist Liability insurance automatically provides professional liability coverage for a pharmacist when the pharmacist is
The owner of the business.
Under the coverage of which of the following liability policies may an insured require the insurer to defend a claim?
Professional liability
Which of the following statements would be an example of a product liability claim?
Faulty packaging of a cereal caused spoilage that resulted in someone getting sick.
A claim is considered to have been "made"
When notice is received and recorded by any insured or the insurer, whichever comes first.
Under which type of coverage does the insurer agree to pay for bodily injury or property damage liability which the insured has agreed to assume under a written contractual agreement?
Contractual liability policy
Under the claims-made CGL the supplemental extended reporting period
Provides an unlimited extension for making claims for losses that occurred during the policy period, but the insured must pay an additional premium.
What must a retail drug store, insured under a Druggist Liability policy, that hires pharmacists as employees of the business, do in order to have protection for possible claims arising out of the acts of the hired pharmacists?
Add the employed pharmacists to the policy
Which of the following is NOT found in a commercial package policy?
Certificate of authority
All of the following statements concerning liability coverage are true EXCEPT
The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met.
All of the following are supplemental payments found in liability policies EXCEPT
Costs the insured incurred in hiring an attorney.
An insured that plans to cancel his/her claim-made insurance policy can protect themselves against potential claims that may arise from an occurrence that happened during the policy period, but is reported after the cancellation by purchasing
Supplemental Extended Reporting Period.
Which of the following lines of insurance is NOT included in the commercial package policy?
Ocean marine
In the event of a claim under a commercial general liability policy, the insured has all the following duties to the insurer EXCEPT
Submitting to a medical exam when requested.
Supplementary payments on a CGL provide all the following EXCEPT
Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds.
Employment practices liability insurance (EPLI) would NOT cover claims arising from
Deliberate law violation.
A provision found in most claims-made liability policy forms that provide a specified period of time following the policy expiration, during which claims arising out of occurrences during the policy period may be made against the policy at no extra cost, is called
Basic extended reporting period.
Which of the following liability policies is usually written on a "claims-made" form?
Professional liability insurance
Which of the following is NOT considered an insured contract under the Commercial General Liability Policy?
An written agreement which indemnifies a person for fire damage to the premises rented to the insured
A specialized type of insurance that guarantees the faithful performance of a trustee of employee benefit plans is called
Fiduciary liability insurance.
When does a business need to purchase a liquor liability policy?
When it is in the business of manufacturing, distributing, serving, or furnishing alcoholic beverages
The Commercial General Liability Coverage form excludes bodily injury or property damage that the insured has assumed under any contract or agreement. However, the exclusion does not apply to certain types of contracts, as long as the injury or damage occurs
After the execution of the contract.
Who is not considered an employee in a CGL?
Temporary worker