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 aggregate limit is the ceiling on all payments made under the policy over the entire policy period, applying across all occurrences combined.

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

Medical payments coverage is a no-fault benefit that pays medical expenses for injured third parties without requiring the insured to be found legally liable.

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

Under a claims-made form, it is the date the claim is first made against the insured—not when the injury occurred—that determines whether coverage applies.

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

The retroactive date sets the historical boundary; occurrences taking place before that date are not covered, even if the claim is first made during the policy period.

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

Tail coverage gives the insured an additional window to report claims after a claims-made policy is cancelled or non-renewed, as long as the underlying occurrence took place while the policy was in force.

DC - District of Columbia Insurance Practice Test

DC - District of Columbia Insurance Practice Test

DC General Liability Insurance 2