DC General Liability Insurance 3

Question 1

Intentional acts committed by the insured are treated under a CGL policy by:

Accepted Answer

Being excluded because insurance is designed to cover accidental, not deliberate, losses

Answer

Being covered if the insured had no prior knowledge the act would cause harm

Answer

Being covered under the personal and advertising injury section of the policy

Answer

Being covered if the injured party consented to the insured's conduct

Question 2

The pollution exclusion in a standard CGL policy generally:

Accepted Answer

Excludes bodily injury and property damage arising from the discharge, dispersal, or escape of pollutants

Answer

Applies only to outdoor environmental pollution events

Answer

Preserves coverage for all sudden and accidental releases without exception

Answer

Restricts exclusion only to industrial manufacturing pollutants

Question 3

An 'additional insured' endorsement to a CGL policy:

Accepted Answer

Extends coverage under the named insured's policy to another party for specified purposes

Answer

Creates a completely separate standalone insurance policy for the added party

Answer

Substitutes the added party for the named insured when the named insured is unavailable

Answer

Reduces the named insured's premium by distributing the risk to the additional party

Question 4

Under the contractual liability exclusion in a CGL policy, coverage for liability assumed by contract:

Accepted Answer

Is still available for liability assumed under 'insured contracts,' such as certain indemnification agreements

Answer

Is entirely excluded with absolutely no exceptions under any circumstances

Answer

Is available only for government or municipal contracts

Answer

Is permitted only for oral agreements; written contracts are always excluded

Question 5

Umbrella liability insurance relates to a CGL policy in that it:

Accepted Answer

Provides excess coverage that applies after the underlying CGL limits are exhausted

Answer

Replaces the CGL policy entirely once its aggregate limit is exhausted

Answer

Covers only professional liability losses absent from the CGL policy

Answer

Converts the insured's occurrence-based CGL coverage to claims-made form

Question 6

In the District of Columbia, certain licensed businesses such as contractors may be required to:

Accepted Answer

Carry general liability insurance as a condition of obtaining or renewing a DC business license

Answer

Carry a federal minimum of $1 million in general liability coverage under U.S. Code

Answer

Self-insure all liability risks and post a cash reserve with the DC government

Answer

Obtain a surety bond instead of purchasing general liability insurance

Question 7

Under DC Department of Insurance, Securities and Banking (DISB) regulations, liability insurers are required to:

Accepted Answer

Acknowledge receipt of claims within 10 working days and render a coverage decision within 45 days

Answer

Resolve all disputed claims through mandatory binding arbitration panels

Answer

Refund all unearned premiums within 5 business days of any policy cancellation

Answer

Pay all submitted claims in full within 15 days regardless of investigation status