EXAMFX Commercial General Liability 4

Question 1

Which of the following best describes the 'completed operations' hazard under a CGL policy?

Accepted Answer

Liability arising after the insured's work has been completed or abandoned

Answer

Completed operations hazard covers liability for bodily injury or property damage that occurs after the insured's work has been completed or abandoned.

Question 2

Under the absolute pollution exclusion in the CGL, which of the following losses is most likely to be EXCLUDED?

Accepted Answer

Third-party bodily injury from chemicals released during the insured's operations

Answer

The absolute pollution exclusion typically bars coverage for bodily injury or property damage caused by the dispersal or release of pollutants such as chemicals.

Question 3

An additional insured is added to a CGL policy via endorsement. Which statement about additional insureds is TRUE?

Accepted Answer

They are covered only for liability arising out of the named insured's acts or omissions

Answer

Additional insureds are typically covered only for liability that arises out of the named insured's operations or premises, not for their own independent negligence.

Question 4

A liquor store sells alcohol to a visibly intoxicated patron who later injures a third party. The liquor store seeks CGL coverage. What exclusion would likely apply?

Accepted Answer

Liquor Liability exclusion

Answer

The Liquor Liability exclusion bars CGL coverage for businesses that manufacture, sell, or serve alcoholic beverages as part of their operations.

Question 5

Under a CGL policy, 'supplementary payments' cover which of the following costs?

Accepted Answer

Defense attorney fees and court costs in addition to the per-occurrence limit

Answer

Supplementary payments cover defense costs, bail bonds, and other expenses the insurer incurs in defending the insured, generally in addition to the policy's liability limits.

(EXAMFX) Exam FX Insurance Practice Test

(EXAMFX) Exam FX Insurance Practice Test

EXAMFX Commercial General Liability 4