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

Products liability falls under the Products-Completed Operations Hazard within Coverage A, which applies after the product leaves the insured's control.

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

The 'Duties in the Event of Occurrence, Offense, Claim, or Suit' condition obligates the insured to promptly notify the insurer of any covered occurrence.

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

The Expected or Intended Injury exclusion removes coverage for harm that the insured deliberately caused or knew was substantially certain to result.

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

The Employer's Liability exclusion bars CGL coverage for bodily injury to employees arising out of and in the course of employment.

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

The general aggregate acts as the overall cap; after paying $900,000 + $900,000 = $1,800,000 for two occurrences, only $200,000 remains, so the insurer pays $2,000,000 total.

(EXAMFX) Exam FX Insurance Practice Test

(EXAMFX) Exam FX Insurance Practice Test

EXAMFX Commercial General Liability 3