DC Business Insurance 2

Question 1

A DC business has employment practices liability insurance (EPLI). Which claim would this policy cover?

Accepted Answer

An employee alleging wrongful termination or workplace discrimination

Answer

EPLI covers claims by employees (or prospective employees) alleging wrongful termination, discrimination, harassment, or other employment-related wrongful acts.

Question 2

Which DC business insurance provision ensures the insurer pays defense costs in addition to (not within) the policy limits?

Accepted Answer

Defense outside the limits (supplementary payments)

Answer

When defense costs are 'outside the limits,' also called supplementary payments, defense costs are paid in addition to the liability limit, so the limit is reserved for judgments and settlements.

Question 3

A DC general contractor requires all subcontractors to add them as an 'additional insured' on their CGL policies. What does this provide?

Accepted Answer

The general contractor has coverage under the subcontractor's policy for claims arising from the subcontractor's work

Answer

Additional insured status extends the subcontractor's CGL policy to cover the general contractor for claims arising from the subcontractor's operations.

Question 4

What is a 'waiver of subrogation' endorsement in a DC commercial policy?

Accepted Answer

The insurer agrees not to seek recovery from a specified third party (e.g., a general contractor) after paying a claim

Answer

A waiver of subrogation endorsement prevents the insurer from pursuing a specified third party (often required by contract) for reimbursement after paying the insured's claim.

Question 5

A DC restaurant owner's liquor liability coverage would respond to which of the following claims?

Accepted Answer

A customer suing the restaurant for serving alcohol to a visibly intoxicated patron who then caused a car accident

Answer

Liquor liability (Dram Shop) insurance covers claims arising from the insured's sale or service of alcohol to an intoxicated patron who then causes injury to a third party.

DC - District of Columbia Insurance Practice Test

DC - District of Columbia Insurance Practice Test

DC Business Insurance 2