EXAMFX Commercial General Liability 3

Question 1

A products liability claim is filed after a consumer is injured by a defective product the insured manufactured and sold. Which section of the CGL covers this claim?

Accepted Answer

Coverage A – Products-Completed Operations Hazard

Answer

Coverage B – Personal and Advertising Injury

Answer

Coverage C – Medical Payments

Answer

Coverage A – Premises and Operations Hazard

Question 2

Under the CGL, which condition requires the insured to notify the insurer as soon as practicable after an occurrence?

Accepted Answer

Duties in the event of occurrence, offense, claim, or suit

Answer

Subrogation condition

Answer

Premium audit condition

Answer

Separation of insureds condition

Question 3

Which CGL exclusion eliminates coverage for bodily injury or property damage expected or intended from the standpoint of the insured?

Accepted Answer

Expected or Intended Injury exclusion

Answer

War exclusion

Answer

Pollution exclusion

Answer

Employer's Liability exclusion

Question 4

An insured's employee is injured on the job. The employee files a claim against the insured employer under the CGL. How does the standard CGL respond?

Accepted Answer

Excludes the claim under the Employer's Liability exclusion

Answer

Covers the claim under Coverage A

Answer

Covers the claim under Coverage C – Medical Payments only

Answer

Covers the claim under Coverage B

Question 5

A CGL policy has a $1,000,000 per occurrence limit and a $2,000,000 general aggregate limit. Three separate covered occurrences each result in $900,000 in losses. What is the total the insurer pays?

Accepted Answer

$2,000,000

Answer

$2,700,000

Answer

$3,000,000

Answer

$1,000,000

Question 6

Under the CGL's 'separation of insureds' condition, how does coverage apply when one insured sues another insured?

Accepted Answer

Coverage applies separately to each insured as if each were the only insured

Answer

Coverage is denied because both are insureds

Answer

The policy pays only 50% of the claim

Answer

The insured who files suit forfeits coverage

Question 7

A CGL policy's 'fire legal liability' provision specifically addresses which situation?

Accepted Answer

Insured's legal liability for fire damage to premises they rent from others

Answer

Fire damage to the insured's own building

Answer

Employee injury caused by a fire on the premises

Answer

Fire damage to goods in the insured's care, custody, or control