EXAMFX - Exam FX Insurance Commercial General Liability Questions and Answers

Question 1

A customer in a retail store is injured when an employee accidentally drops a box on the customer's foot.
The customer requires medical attention and threatens to sue for pain and suffering.
Which coverage part of the store's Commercial General Liability (CGL) policy will primarily respond to this claim?

Accepted Answer

Coverage A - Bodily Injury and Property Damage

Answer

Coverage B - Personal and Advertising Injury

Answer

Coverage C - Medical Payments

Answer

Products-Completed Operations Hazard

Question 2

A small marketing firm is sued by a competitor for using a slogan in a new advertising campaign that is nearly identical to the competitor's trademarked slogan. Which section of the firm's CGL policy would provide defense and potential coverage for this type of lawsuit?

Accepted Answer

Coverage B - Personal and Advertising Injury

Answer

Coverage A - Bodily Injury and Property Damage

Answer

Supplementary Payments

Answer

Errors and Omissions Coverage

Question 3

What is the primary function of the 'retroactive date' found in a claims-made Commercial General Liability policy?

Accepted Answer

It specifies the earliest date an injury or damage can occur for a claim to be potentially covered.

Answer

It is the date after which a claim must be reported to the insurer.

Answer

It marks the final day of the Extended Reporting Period (tail coverage).

Answer

It is the effective date of the policy's cancellation.

Question 4

A visitor to an office building trips on a crack in the sidewalk and incurs minor medical expenses. To avoid a lawsuit and maintain goodwill, the building owner wants to pay for the visitor's emergency room visit promptly. Which CGL coverage is designed to pay these types of small, third-party medical claims without the need to establish legal fault?

Accepted Answer

Coverage C - Medical Payments

Answer

Coverage A - Bodily Injury and Property Damage

Answer

Supplementary Payments

Answer

The General Aggregate Limit

Question 5

A CGL policy has a General Aggregate Limit of $2,000,000 and a Per Occurrence Limit of $1,000,000. During the policy year, the insurer pays $500,000 for one covered claim and $800,000 for a second, unrelated covered claim. How much is still available under the General Aggregate Limit for any future claims during that policy period?

Accepted Answer

$700,000

Answer

$1,200,000

Answer

$1,000,000

Answer

$2,000,000

Question 6

All of the following are typically excluded from coverage under a standard Commercial General Liability (CGL) policy EXCEPT:

Accepted Answer

Bodily injury to a customer who slips and falls on the insured's premises.

Answer

Property damage to the insured's own work or product.

Answer

Bodily injury to an employee of the insured.

Answer

Liability resulting from the discharge of pollutants.