DC General Liability Insurance 2

Question 1

The aggregate limit in a CGL policy represents:

Accepted Answer

The total maximum the insurer will pay for all covered losses during the entire policy period

Answer

The maximum amount paid for claims at any single covered location

Answer

The maximum amount paid for any single occurrence

Answer

The deductible amount the insured pays before coverage applies

Question 2

Medical payments coverage under a CGL policy:

Accepted Answer

Pays reasonable medical expenses for third-party injuries on the insured's premises without requiring proof of fault

Answer

Requires proof of the insured's legal liability before any payment is made

Answer

Covers only named employees of the insured who are injured during business hours

Answer

Has no separate sublimit and shares the per occurrence limit dollar for dollar

Question 3

A 'claims-made' CGL policy form is triggered when:

Accepted Answer

The claim is first made against the insured during the policy period

Answer

The bodily injury or property damage occurs during the policy period

Answer

The insured first becomes aware of a potential claim situation

Answer

The court enters judgment against the insured during the policy period

Question 4

The retroactive date in a claims-made CGL policy:

Accepted Answer

Establishes the earliest date from which covered occurrences will be recognized

Answer

Is the last date by which a claim must be reported to the insurer

Answer

Is always automatically set to the very first date any insurance was purchased

Answer

Determines when the policy's aggregate limit is reset to full value

Question 5

An extended reporting period (tail coverage) endorsement on a claims-made CGL policy:

Accepted Answer

Allows the insured to report claims after the policy ends for occurrences that happened during the policy period

Answer

Extends the policy to cover future occurrences that happen after cancellation

Answer

Automatically increases the per occurrence limit for an additional premium

Answer

Converts the claims-made policy into an occurrence-based policy

Question 6

The insurer's 'duty to defend' under a CGL policy means:

Accepted Answer

The insurer must defend the insured against covered claims even if the allegations are groundless or fraudulent

Answer

The insurer pays defense costs only after the insured is found legally liable

Answer

The insured must retain and pay for counsel before the insurer will reimburse costs

Answer

The duty terminates automatically once the per occurrence limit has been paid out

Question 7

Fire damage to premises rented by the insured is handled under a standard CGL policy by:

Accepted Answer

Providing coverage subject to a specific 'damage to premises rented to you' sublimit

Answer

Being fully excluded as the landlord's responsibility under property law

Answer

Being covered only under a separate commercial property policy

Answer

Having no coverage available under any general liability policy form