P&C Casualty Insurance and Liability 2

Question 1

Under a standard Commercial General Liability (CGL) policy, which coverage part pays for bodily injury claims made by third parties on the insured's premises?

Accepted Answer

Coverage A – Bodily Injury and Property Damage Liability

Answer

Coverage B – Personal and Advertising Injury

Answer

Coverage C – Medical Payments

Answer

Coverage D – Premises Legal Liability

Question 2

Which legal doctrine holds an employer liable for the negligent acts of an employee committed within the scope of employment?

Accepted Answer

Respondeat superior

Answer

Res ipsa loquitur

Answer

Contributory negligence

Answer

Assumption of risk

Question 3

An occurrence-based liability policy covers claims for injuries that:

Accepted Answer

Occur during the policy period regardless of when they are reported

Answer

Are reported during the policy period regardless of when they occurred

Answer

Are filed in court during the policy period

Answer

Involve a named insured exclusively

Question 4

The 'other insurance' clause in a liability policy is designed to:

Accepted Answer

Coordinate payment when multiple policies cover the same loss

Answer

Eliminate the need for an umbrella policy

Answer

Increase the policy limits automatically

Answer

Exclude coverage for intentional acts

Question 5

Under the doctrine of strict liability, a defendant can be held liable even if:

Accepted Answer

They exercised reasonable care

Answer

They acted with malicious intent

Answer

The plaintiff was also negligent

Answer

The injury occurred off the defendant's premises

Question 6

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

Accepted Answer

Coverage for bodily injury or property damage arising from work that has been completed

Answer

Coverage for damage caused while work is still in progress

Answer

Coverage for the insured's own products stored on-site

Answer

Coverage for professional errors in project design