AIC AIC Workers Compensation & Liability Claims 2

Question 1

What is 'general liability' insurance designed to cover?

Accepted Answer

Third-party bodily injury and property damage claims arising from the insured's business operations

Answer

Commercial general liability (CGL) insurance protects businesses against third-party claims of bodily injury, property damage, personal injury, and advertising injury.

Question 2

What is 'products liability' in the context of general liability claims?

Accepted Answer

Legal liability arising from injuries or damages caused by a defective product the insured manufactured, distributed, or sold

Answer

Products liability claims arise when a defective or unreasonably dangerous product causes bodily injury or property damage to a consumer or third party.

Question 3

In liability claims, what is the difference between 'negligence' and 'strict liability'?

Accepted Answer

Negligence requires proof of fault, while strict liability holds a party responsible regardless of fault or intent

Answer

Under strict liability, a defendant is held responsible for damages caused by their product or activity without the need to prove they acted negligently.

Question 4

What is the 'completed operations' hazard in a CGL policy?

Accepted Answer

Liability for bodily injury or property damage occurring after the insured's work is completed and released for use

Answer

The completed operations hazard covers claims that arise after the insured finishes a job, such as a building defect that causes injury after construction is complete.

Question 5

What is 'premises liability' in the context of liability insurance?

Accepted Answer

Liability for injuries or damages that occur on the insured's property due to conditions the insured controls

Answer

Premises liability holds property owners or occupiers responsible for injuries occurring on their property when they fail to maintain reasonably safe conditions.

AIC - Associate in Claims Practice Test

AIC - Associate in Claims Practice Test

AIC AIC Workers Compensation & Liability Claims 2