Commercial General Liability Flashcards
7 cards from real EXAMFX practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Commercial General Liability flashcards as text
A CGL policy with a claims-made trigger requires that a claim be made during the policy period. What additional feature extends coverage for incidents reported after the policy expires?
Answer: Extended Reporting Period (tail coverage)
An Extended Reporting Period (ERP), or 'tail,' allows the insured to report claims after a claims-made policy expires for occurrences that happened before expiration.
Under the CGL, which condition allows the insurer to recover payments it made on behalf of the insured from a negligent third party?
Answer: Transfer of Rights of Recovery (Subrogation)
The Transfer of Rights of Recovery condition (subrogation) lets the insurer step into the insured's shoes and pursue a negligent third party after paying a covered claim.
An insured operates a swimming pool at their business premises. A visitor drowns. The Medical Payments limit is $5,000 and the Coverage A per-occurrence limit is $1,000,000. The family sues for $500,000. How does the CGL respond?
Answer: Pays $5,000 under Medical Payments and defends and potentially pays up to $1,000,000 under Coverage A
Medical Payments pays first-party medical expenses without regard to fault, while Coverage A responds if the insured is found legally liable, up to the per-occurrence limit.
Which statement best describes the 'other insurance' condition in a CGL policy when two CGL policies cover the same loss?
Answer: Policies share the loss on a pro-rata or excess basis as specified
The other insurance condition dictates that when multiple policies cover the same claim, they share on a pro-rata basis or one is excess over the other, depending on policy language.
A real estate developer is sued for discrimination in the rental of units. The claimant alleges the developer violated fair housing laws. Under Coverage B of the CGL, is this covered?
Answer: No, because discrimination is not among the enumerated offenses in Coverage B
Coverage B covers only specifically listed offenses (e.g., libel, slander, false arrest), and housing discrimination is not an enumerated offense in the standard ISO CGL form.
Under the standard CGL, which of the following parties qualifies as a 'Named Insured'?
Answer: The entity specifically identified in the declarations page
The Named Insured is the person or organization specifically identified in the declarations, distinguishing them from additional insureds and other insured persons.
A CGL policy's 'products-completed operations aggregate' limit is separate from the general aggregate. Why does this matter to a contractor?
Answer: It provides a dedicated pool of coverage for post-job liability that is not eroded by premises claims
A separate products-completed operations aggregate ensures that premises and operations losses do not erode the coverage available for post-job injury or damage claims.