EXAMFX Commercial General Liability 2

Question 1

Under a CGL policy, which coverage part pays for damage to a third party's property caused by the insured's operations?

Accepted Answer

Coverage A – Bodily Injury and Property Damage Liability

Answer

Coverage A of the CGL covers third-party property damage arising from the insured's operations or premises.

Question 2

A customer trips over a display in a retail store and breaks her wrist. Which CGL insuring agreement would cover her medical bills without requiring a lawsuit?

Accepted Answer

Coverage C – Medical Payments

Answer

Coverage C – Medical Payments covers reasonable medical expenses for third parties injured on the premises, regardless of fault, without litigation.

Question 3

The CGL 'occurrence' trigger requires that bodily injury or property damage occur during the policy period. Which scenario would NOT trigger coverage under an occurrence-based CGL?

Accepted Answer

A lawsuit filed during the policy period for an injury that occurred before the policy

Answer

An occurrence CGL triggers on when the injury or damage occurs, not when the lawsuit is filed; an injury that occurred before the policy period is not covered.

Question 4

Which exclusion in a standard CGL policy eliminates coverage for damage to property the insured is currently working on?

Accepted Answer

Your Work exclusion

Answer

The 'Your Work' exclusion bars coverage for property damage to the specific work the insured is performing at the time of the loss.

Question 5

A general contractor assumes the tort liability of a subcontractor in a written contract. The subcontractor causes property damage. Under the CGL, this liability is covered under which provision?

Accepted Answer

Contractual Liability coverage

Answer

Contractual Liability coverage allows the CGL to respond when the insured has assumed another party's tort liability in an 'insured contract.'

(EXAMFX) Exam FX Insurance Practice Test

(EXAMFX) Exam FX Insurance Practice Test

EXAMFX Commercial General Liability 2