CPCU 552, CHAPTER 3 EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS
The Coverage B—Personal and Advertising Injury Liability of the Commercial
General Liability (CGL) Coverage Form parallels the Coverage A insuring
agreement, but personal and advertising injury applies to an
Bodily injury and property damage liability is parallel to personal and advertising injury
liability, but personal and advertising injury applies to an offense arising out of the
named insured's business.
ABC Emporium is a malt shop and novelty store with a large teenaged clientele.
Fred, an employee at ABC, noticed a teenage patron acting suspiciously.
Suspecting shoplifting, Fred followed the teen out the front door down the street.
When the teen noticed Fred following her, she bolted towards a parked car,
whereupon Fred tackled her from behind, knocking her to the pavement.
Unfortunately, the teenager that Fred tackled had not shoplifted anything and was
merely startled by Fred's bizarre antics. Her parents, both attorneys, immediately
filed a lawsuit against ABC seeking $550,000 in damages. The lawsuit asked for
$2,000 for direct medical expenses from the emergency room visit following the
incident and another $48,000 for counseling for the teenager, who was
traumatized by the incident; and $500,000 for the pain and suffering of the
parents who were exposed to ridicule in their community because of the
shoplifting allegations that lead to their daughter's injuries. ABC has a standard
, Commercial General Liability (CGL) Coverage Form with the following limits:
Each occurrence
$1,000,000
Damage to rented premises (each occurrence)
$100,000
Medical expense (any one person)
$5,000
Personal and advertising injury (any one person or organization)
$1,000,000
WITH COMPLETE SOLUTIONS
The Coverage B—Personal and Advertising Injury Liability of the Commercial
General Liability (CGL) Coverage Form parallels the Coverage A insuring
agreement, but personal and advertising injury applies to an
Bodily injury and property damage liability is parallel to personal and advertising injury
liability, but personal and advertising injury applies to an offense arising out of the
named insured's business.
ABC Emporium is a malt shop and novelty store with a large teenaged clientele.
Fred, an employee at ABC, noticed a teenage patron acting suspiciously.
Suspecting shoplifting, Fred followed the teen out the front door down the street.
When the teen noticed Fred following her, she bolted towards a parked car,
whereupon Fred tackled her from behind, knocking her to the pavement.
Unfortunately, the teenager that Fred tackled had not shoplifted anything and was
merely startled by Fred's bizarre antics. Her parents, both attorneys, immediately
filed a lawsuit against ABC seeking $550,000 in damages. The lawsuit asked for
$2,000 for direct medical expenses from the emergency room visit following the
incident and another $48,000 for counseling for the teenager, who was
traumatized by the incident; and $500,000 for the pain and suffering of the
parents who were exposed to ridicule in their community because of the
shoplifting allegations that lead to their daughter's injuries. ABC has a standard
, Commercial General Liability (CGL) Coverage Form with the following limits:
Each occurrence
$1,000,000
Damage to rented premises (each occurrence)
$100,000
Medical expense (any one person)
$5,000
Personal and advertising injury (any one person or organization)
$1,000,000
