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

Intentional acts are excluded from CGL coverage because the fundamental purpose of liability insurance is to protect against fortuitous, accidental events, not deliberate wrongdoing.

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

The absolute pollution exclusion broadly bars coverage for losses caused by the release or escape of pollutants, helping insurers avoid open-ended environmental liability.

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

An additional insured endorsement adds another party—such as a property owner or general contractor—to the named insured's policy so they share in its liability protection for specified operations.

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

While the contractual liability exclusion bars coverage for most assumed liability, 'insured contracts'—including leases, easements, and hold-harmless agreements covering the insured's tort liability—are carved back in.

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

Umbrella liability insurance sits above primary policies like CGL, auto, and employers' liability, paying covered losses that exceed those policies' limits.

DC - District of Columbia Insurance Practice Test

DC - District of Columbia Insurance Practice Test

DC General Liability Insurance 3