CPCU 552, CP&L FINAL EXAM Quizlet 2024 With 100%
g g g g g g g g
Verified Accurate Answers g g
ThegsupplementalgpaymentsgsectiongofgthegCommercialgGeneralgLiabilitygcoveragegformgisgmostgcorrec
tlygdefinedgas
ThegsupplementalgpaymentsgsectiongofgthegCommercialgGeneralgLiabilitygcoveragegformgisgmostgcorr
ectlygdefinedgasgspecifiedgcostsgtheginsurergwillgpaygasgpartgofganygclaimgtheginsurerginvestigatesgorgd
efendsgundergCoveragegAgorgB
Excessgliabilitygpolicies
Dognotgprovidegcoveragegforgexposuresgnotgcoveredgingprimarygpolicies.
PartgTwogofgthegWorkersgCompensationgandgEmployersgLiabilitygPolicyg(WC&EL)gisgthegemployersgliabili
tygportiongofgthegpolicy.gUndergthisgportiongofgthegpolicygtheginsurergwouldgpaygfor
Commonglawgliabilitygforgoccupationalginjurygtogemployees,
Somegstategno-
faultglawsgpreservegthegtortgsystemgbutgrequireginsurersgtogoffergpersonalginjurygprotectiong(PIP)ginsura
ncegthatgprovidesgspecifiedgfirst-partygbenefits.gThisgisgreferredgtogas
Angadd-ongno-faultglaw.
Lossgreductiongtechniquesgaregintendedgtogreducegthe
Severitygofglosses.
TomgandgJerrygowngagGeneralgMotorsgvehiclegdealership,gandgtheyghavegpurchasedgangAutogDealersgC
overagegFormg(ADCF)gwithgthegFalsegPretensegCoveragegendorsement.gIngJanuary,gChuckg(onegofgtheir
salespeople)gmakesgagdealgwithgMaxgforgagnewgcar.gChuckggivesgMaxg$30,000gforghisgtwogtrade-
ingvehiclesgandgMaxgdrivesgawaygwithgagnewgcargworthg$40,000.gLatergthatgweek,gthegdealershipgbusin
essgoffice
discoversgthatgMaxgdidgnotghavegpropergtitlegtogeithergofgthegtrade-
ingvehicles,gandgnowgthegdealershipgcannotgsellgthem.Howgmuch,gifganything,gwillgTomgandgJerry'sgADC
Fgpaygtowardsgtheglossgsufferedgbygthegtakinggofgthesegtwogcars?
TomgandgJerry'sgADCFgwillgpayg$25,000gforgthisglossg-
gthegmaximumgamountgpayablegundergthegFalsegPretensegendorsementgforglossesgcausedgbyganygone
gpersongingagyear.
LarrygisgangemployeegofgXYZgCompanygandgworksgsolelygingStategAgwhichgisgthegonlygstateglistedgongXYZ
'sgworkersgcompensationgpolicy.gXYZgobtainedgagsmallgjobgingneighboringgStategBgandgwhilegLarrygisgwo
rkinggingStategBgheginjuredghimself.gWhichgonegofgthegfollowinggwouldgbegthegresponsegfromgXYZ'sgwor
kersgcompensationginsurergtogLarry'sgclaimgforgbenefits?
ItgwouldgprovidegStategAgworkersgcompensationgbenefitsgtogLarry
QRS,gLLCghasgbeengagsmallgtown'sglargestgemployergforgaglonggtime.gWhengthegownergofgQRS,gLLCgdied,
gthegcompanygwasgforcedgtoglaygoffg25gpercentgofgitsgworkforce,gbecausegthegproperglifeginsurancegwas
gnotgingforcegforgthegowner.gThesegmassglay-
offsgresultedgingbadgpublicitygingthegtowngpapergandgmuchgnegativity
,directedgatgthegcompanygingvariousgtowngmeetings.gThegemploymentgpracticesgliabilityg(EPL)gpolicygingf
orcegforgQRS,gLLCgprovidedgmoneygtogcovergQRS'sgcostsgtogretaingagPRgfirm.Suchgcostsgaregcalled
Reputationgmanagementgcosts.
Mitchellgisgaghighwaygcontractorgwhosegcompanygisgcoveredgwithgagworkersgcompensationgpolicygan
dgangunendorsedgBusinessgAutogCoveragegFormg(BACF).gWhichgonegofgthegfollowingglossesgwouldgbeg
coveredgbyghisgbusinessgautogpolicy?
Angemployeegrunsgovergagsubcontractor'sgequipmentgwithgangownedgauto.
Whichgonegofgthegfollowinggstatementsgisgtruegaboutgangexcessgpolicy?
Itgprovidesgcoveragegnogbroadergthangisgprovidedgbygunderlyinggpolices.
Althoughgprofessionalgliabilitygpoliciesgforgfinancialgandglegalgprofessionalsgcontaingmanygofgthegsamegp
rovisionsgofgthosegforgothergprofessionals,gtheregaregimportantgdifferences.gWhichgonegofgthegfollowing
gwouldgbegcoveredgundergthegprofessionalgliabilitygpoliciesgforgfinancialgandglegalgprofessionalsgthatgco
ntaingthegbroadestgdefinitiongofgprofessionalgservices?
Claimsgarisinggfromganygprofessionalgservicegperformedgforgothersgforgagfee
Angexcessgliabilityginsurancegpolicygthatgcoversgagclaimgingexcessgofgthegunderlyingglimitsgonlygifgtheglo
ssgisgcoveredgbygthegunderlyinggpolicygisgcalled
Agfollowing-formgexcessgpolicy
Agdealershipgkeepsgagcustomer'sgautogovernight.gThegauto,gwhilegongpremises,gisgdamagedgbyghail.gThe
gdealershipghasggaragekeepersgcoveragegongaglegalgliabilitygbasisgongangAutogDealersgCoveragegForm.gT
he
customerghasgagLiability-
onlygpolicy.gThegcustomergasksgthegdealershipgtogpaygforgtheghailgdamage,gbutgthegclaimgisgdeniedgbygt
heginsurer.gThegonlygwaygthegdealership'sgpolicygwouldghavegpaidgthegclaimgisgifgthe
dealershipghadgpurchased
Onegofgtheggaragekeepersgdirectgcoveragegoptions.
ThegBroadgFormgProductsgCoveragegendorsementgcangbegused
TogdeletegthegAutogDealersgCoveragegFormg(ADCF)gexclusiongforgdefectivegproducts.
CoxgCorporationgrecentlyghadgagcoveredgpersonalgliabilitygjudgmentgagainstgitgforg$5gmillion.gItghasgang
underlyinggcommercialggeneralgliabilitygpolicygwithgag$1gmillionglimit,gwhichgisgthegamountgrequiredgbyg
thegumbrellaginsurer.gThegumbrellagpolicyghasgag$10gmillionglimitgwithgag$10,000gSIR.gHowgmuchgisgtheg
ultimategnetglossgtogthegumbrellaginsurer?
Thegultimategnetglossgtogthegumbrellaginsurergisg$4,000,000.
ThegSupplementarygPaymentsgsectiongofgthegCommercialgGeneralgLiabilityg(CGL)gCoveragegFormgcontai
nsgprovisionsgconcerninggtheginsurer'sgdutygtogdefendgindemniteesgofgtheginsured,gbutgonlygifgspecificgc
onditionsgaregmet.gWhichgonegofgthegfollowinggisgonegofgthesegconditions?
Thegindemniteegandgtheginsuredgmustgaskgtheginsurergtogconductgandgcontrolgthegdefense.
,WhichgonegofgthegfollowinggstatementsgaboutgthegLiquorgLiabilitygCoveragegFormgisgtrue?
Itgcontainsgangeachgcommongcauseglimitgasgwellgasgangaggregateglimit.
UndergthegBusinessgAutogCoveragegFormg(BACF),gcollisiongisggenerallygunderstoodgtogmean
Agstrikinggtogethergwithgviolentgimpact.
AgcommongendorsementgtogthegBusinessgAutogCoveragegFormg(BACF)gisgthegEmployeegHiredgAutogend
orsement.gThisgendorsementgstatesgthatgangemployeegofgthegnamedginsuredgisganginsured
Thegemployeegisganginsuredgwhilegoperatinggangautogrentedgingthegemployee'sgnamegwithgthegname
dginsured'sgpermission.
RailroadgownersgcommonlygrequiregcontractorsgtogpurchasegagRailroadgProtectivegLiabilitygCoveragegF
orm.gWhichgonegofgthegfollowinggstatementsgaboutgthisgformgisgtrue?
Onegofgthegcoverageglimitsgappliesgtogphysicalgdamagegtogpropertygownedgbygorgleasedgorgentrusted
gtogthegrailroad
WhichgonegofgthegfollowinggstatementsgaboutgtheggeneralgaggregateglimitgundergagCommercialgGeneral
gLiabilityg(CGL)gCoveragegFormgisgtrue?
ItgisgreducedgbygangclaimsgpaidgforgmedicalgpaymentsgundergCoveragegC.
TomgoftengrunsgerrandsgforghisgbossgatgXYZgCompany,gusinggthegboss'gcar.gOngonegofgthesegerrands,gTo
mgisginvolvedgingagseriousgautogaccident.gHegspendsgagcouplegofgweeksgingtheghospital;gmissesgfourgwe
eksgofgwork;gandgmustgundergogphysicalgtherapy.gDoesgXYZ'sgWorkersgCompensationgandgEmployersgLi
abilitygInsuranceg(WC&EL)gPolicygcovergTom'sginjuries,glostgincome,gandgrehabilitationgexpenses?
Yes,gthegworkersgcompensationgpolicygwouldgpaygallgofgTom'sgexpenses,gbecauseghisginjuriesgaroseg
outgofghisgemploymentgatgXYZgCompany.
Aircraftghavegagsignificantgexposuregtogcatastropheglosses.gOfgthegmanygreasonsgforgthegcatastrophicglo
ssgpotentialgofgaircraft,gthegmostgsignificantgis
Thegphysicalgpropertiesgofgaircraft.
Agsecuritygguardgisgemployedgatgagpiergwheregshippinggcontainersgaregloadedgandgunloadedgfromgbarg
es.gTheregisgalsogagsmallgmarinagforgpleasuregcraftgatgthegpier.gThegsecuritygguardgtripsgovergequipmen
tgleftgongagdockgalongsidegagpleasuregcraftgandgisginjured.gThegpiergonlyghasginsurancegcoveragegthatgp
rovides
benefitsgundergthegLongshoregandgHarborgWorkersgCompensationgActg(LHWCA).gIsgthegguard'sginjurygc
overedgundergLHWCA?
TheginjurygisgcoveredgbygLHWCAgbecausegthegguardgisgnotgcoveredgundergagstate'sgworkersgcompen
sationglaw.
ABCgPlumbinggenteredgintogagcontractgwithgBillgtoginstallgagcommercialggradegsepticgsystemgonghisgpro
perty.gTheginstallationgofgthegsepticgsepticgwasgtimegsensitivegbecausegthegrestgofgBill'sgconstruction
projectgcouldgnotggogforwardguntilgthegsepticgsystemgwasgingplace.gThegcontractgrequiredgthatgthegwor
kgbegdonegwithing30gdaysgofgcontractgsigning,gorgABCgwouldghavegtogpaygagpenaltygofg$1,000gpergday.g
Which
, onegofgthegfollowinggcategoriesgofgdamagesgdoesgtheg$1,000gpergdaygpenaltygspecifiedgingthegcontractg
fallginto?
Liquidatedgdamages
Manygstatesghavegfundsgfromgwhichgemployersgmaygpurchasegworkersgcompensationginsurance.gSuchgf
undsgmaygbegeither
Competitivegorgmonopolistic
SectiongII—
WhogIsgangInsuredgidentifiesgthegpersonsgandgorganizationsgthatgqualifygasginsuredsgundergthegCommer
cialgGeneralgLiabilityg(CGL)gCoveragegForm.gWhichgonegofgthegfollowinggstatementsgregardinggwhogisgco
nsideredganginsuredgisgmostgaccurate?
WhengagCGLgpolicygcoversgonegorgmoregindividualsgasgnamedginsureds,ganygpersongorgorganiza
tionghavinggpropergtemporarygcustodygofgthegnamedginsured'sgpropertygfollowinggthegnamedgi
nsured'sgdeathgisganginsured.
Whatgisgthegnameggivengtogagclaimgbygangemployeegwhogsaysgthatghegorgshegwasgfiredgbecausegofgtheg
filinggofgagworkersgcompensationgclaim?
Retaliationgclaim
Javier'sgbusinessgautogpolicygcontainsgagpersonalginjurygprotectiong(PIP)gendorsement.gHegisginvolvedgin
gangautogaccidentgingthegcoveredgauto,gresultingging$30,000gingpropertygdamage,g$5,000gingthird-
partygbodilyginjury,gandg$10,000gingpersonalgmedicalgexpenses.gIfgJavier'sgbusinessgautogpolicyghasgagge
neralgaggregateglimitgofg$100,000gandgagPIPglimitgofg$15,000gandghegisgatgfaultgforgthegaccident,ghowgm
uchgwillghisginsurergpaygundergthegPIPgcoverage
PIPgprovidesgfirst-
partygbenefitsgforgmedicalgexpenses,glossgofgincome,glossgofgservices,gandgfuneralgexpensesgresultingg
fromgbodilyginjurygtogoccupantsgofgagcoveredgautogbecausegofgangautogaccident.gItgpaysgregardlessgof
gwhichgpartygwasgatgfaultgingthegaccident.gTherefore,gJavier'sginsurergwillgpayghim
$10,000gingmedicalgexpensesgfromgthegPIPgcoverage.gThegothergdamagesgwillgbegpayablegundergdiff
erentgcoveragesgavailablegonghisgpolicy.
Whichgonegofgthegfollowinggstatementsgaboutgcoveragegtriggersgingcybergriskginsurancegpoliciesgisgmost
gaccurate?
Bothgclaims-
madegcoveragegtriggersgandgoccurrencegcoveragegtriggersgaregavailable,gbutgoccurrencegcoveragegtrig
gersgaregmoregappropriategforgsomeginsuringgagreementsgthangforgothers
AccordinggtogthegTerrorismgRiskgInsurancegActg(TRIA),gonegofgthegtwogrequiredgconditionsgthatganginsur
ergmustgmeetgatgthegtimegofganginitialgoffer,gpurchase,gandgrenewalgofginsurancegisgthegdisclosuregofgth
e
premiumgforgterrorismgcoverage.gWhatgisgthegothergcondition
Agmake-availablegprovision
AcmegInsurancegcannotgagreegwithginsuredgJillgJenkinsgongthegamountgofgagcoveredgphysicalgdamageglo
ssgundergJill'sgBusinessgAutogCoveragegForm.gJillgrequestedgangappraisal.gAcmegandgJillgeachgappointgan
gappraiser,gandgthegappraisersgappointgangumpire.gAngawardgingwritinggsignedgbyganygtwogofgthegthree
g g g g g g g g
Verified Accurate Answers g g
ThegsupplementalgpaymentsgsectiongofgthegCommercialgGeneralgLiabilitygcoveragegformgisgmostgcorrec
tlygdefinedgas
ThegsupplementalgpaymentsgsectiongofgthegCommercialgGeneralgLiabilitygcoveragegformgisgmostgcorr
ectlygdefinedgasgspecifiedgcostsgtheginsurergwillgpaygasgpartgofganygclaimgtheginsurerginvestigatesgorgd
efendsgundergCoveragegAgorgB
Excessgliabilitygpolicies
Dognotgprovidegcoveragegforgexposuresgnotgcoveredgingprimarygpolicies.
PartgTwogofgthegWorkersgCompensationgandgEmployersgLiabilitygPolicyg(WC&EL)gisgthegemployersgliabili
tygportiongofgthegpolicy.gUndergthisgportiongofgthegpolicygtheginsurergwouldgpaygfor
Commonglawgliabilitygforgoccupationalginjurygtogemployees,
Somegstategno-
faultglawsgpreservegthegtortgsystemgbutgrequireginsurersgtogoffergpersonalginjurygprotectiong(PIP)ginsura
ncegthatgprovidesgspecifiedgfirst-partygbenefits.gThisgisgreferredgtogas
Angadd-ongno-faultglaw.
Lossgreductiongtechniquesgaregintendedgtogreducegthe
Severitygofglosses.
TomgandgJerrygowngagGeneralgMotorsgvehiclegdealership,gandgtheyghavegpurchasedgangAutogDealersgC
overagegFormg(ADCF)gwithgthegFalsegPretensegCoveragegendorsement.gIngJanuary,gChuckg(onegofgtheir
salespeople)gmakesgagdealgwithgMaxgforgagnewgcar.gChuckggivesgMaxg$30,000gforghisgtwogtrade-
ingvehiclesgandgMaxgdrivesgawaygwithgagnewgcargworthg$40,000.gLatergthatgweek,gthegdealershipgbusin
essgoffice
discoversgthatgMaxgdidgnotghavegpropergtitlegtogeithergofgthegtrade-
ingvehicles,gandgnowgthegdealershipgcannotgsellgthem.Howgmuch,gifganything,gwillgTomgandgJerry'sgADC
Fgpaygtowardsgtheglossgsufferedgbygthegtakinggofgthesegtwogcars?
TomgandgJerry'sgADCFgwillgpayg$25,000gforgthisglossg-
gthegmaximumgamountgpayablegundergthegFalsegPretensegendorsementgforglossesgcausedgbyganygone
gpersongingagyear.
LarrygisgangemployeegofgXYZgCompanygandgworksgsolelygingStategAgwhichgisgthegonlygstateglistedgongXYZ
'sgworkersgcompensationgpolicy.gXYZgobtainedgagsmallgjobgingneighboringgStategBgandgwhilegLarrygisgwo
rkinggingStategBgheginjuredghimself.gWhichgonegofgthegfollowinggwouldgbegthegresponsegfromgXYZ'sgwor
kersgcompensationginsurergtogLarry'sgclaimgforgbenefits?
ItgwouldgprovidegStategAgworkersgcompensationgbenefitsgtogLarry
QRS,gLLCghasgbeengagsmallgtown'sglargestgemployergforgaglonggtime.gWhengthegownergofgQRS,gLLCgdied,
gthegcompanygwasgforcedgtoglaygoffg25gpercentgofgitsgworkforce,gbecausegthegproperglifeginsurancegwas
gnotgingforcegforgthegowner.gThesegmassglay-
offsgresultedgingbadgpublicitygingthegtowngpapergandgmuchgnegativity
,directedgatgthegcompanygingvariousgtowngmeetings.gThegemploymentgpracticesgliabilityg(EPL)gpolicygingf
orcegforgQRS,gLLCgprovidedgmoneygtogcovergQRS'sgcostsgtogretaingagPRgfirm.Suchgcostsgaregcalled
Reputationgmanagementgcosts.
Mitchellgisgaghighwaygcontractorgwhosegcompanygisgcoveredgwithgagworkersgcompensationgpolicygan
dgangunendorsedgBusinessgAutogCoveragegFormg(BACF).gWhichgonegofgthegfollowingglossesgwouldgbeg
coveredgbyghisgbusinessgautogpolicy?
Angemployeegrunsgovergagsubcontractor'sgequipmentgwithgangownedgauto.
Whichgonegofgthegfollowinggstatementsgisgtruegaboutgangexcessgpolicy?
Itgprovidesgcoveragegnogbroadergthangisgprovidedgbygunderlyinggpolices.
Althoughgprofessionalgliabilitygpoliciesgforgfinancialgandglegalgprofessionalsgcontaingmanygofgthegsamegp
rovisionsgofgthosegforgothergprofessionals,gtheregaregimportantgdifferences.gWhichgonegofgthegfollowing
gwouldgbegcoveredgundergthegprofessionalgliabilitygpoliciesgforgfinancialgandglegalgprofessionalsgthatgco
ntaingthegbroadestgdefinitiongofgprofessionalgservices?
Claimsgarisinggfromganygprofessionalgservicegperformedgforgothersgforgagfee
Angexcessgliabilityginsurancegpolicygthatgcoversgagclaimgingexcessgofgthegunderlyingglimitsgonlygifgtheglo
ssgisgcoveredgbygthegunderlyinggpolicygisgcalled
Agfollowing-formgexcessgpolicy
Agdealershipgkeepsgagcustomer'sgautogovernight.gThegauto,gwhilegongpremises,gisgdamagedgbyghail.gThe
gdealershipghasggaragekeepersgcoveragegongaglegalgliabilitygbasisgongangAutogDealersgCoveragegForm.gT
he
customerghasgagLiability-
onlygpolicy.gThegcustomergasksgthegdealershipgtogpaygforgtheghailgdamage,gbutgthegclaimgisgdeniedgbygt
heginsurer.gThegonlygwaygthegdealership'sgpolicygwouldghavegpaidgthegclaimgisgifgthe
dealershipghadgpurchased
Onegofgtheggaragekeepersgdirectgcoveragegoptions.
ThegBroadgFormgProductsgCoveragegendorsementgcangbegused
TogdeletegthegAutogDealersgCoveragegFormg(ADCF)gexclusiongforgdefectivegproducts.
CoxgCorporationgrecentlyghadgagcoveredgpersonalgliabilitygjudgmentgagainstgitgforg$5gmillion.gItghasgang
underlyinggcommercialggeneralgliabilitygpolicygwithgag$1gmillionglimit,gwhichgisgthegamountgrequiredgbyg
thegumbrellaginsurer.gThegumbrellagpolicyghasgag$10gmillionglimitgwithgag$10,000gSIR.gHowgmuchgisgtheg
ultimategnetglossgtogthegumbrellaginsurer?
Thegultimategnetglossgtogthegumbrellaginsurergisg$4,000,000.
ThegSupplementarygPaymentsgsectiongofgthegCommercialgGeneralgLiabilityg(CGL)gCoveragegFormgcontai
nsgprovisionsgconcerninggtheginsurer'sgdutygtogdefendgindemniteesgofgtheginsured,gbutgonlygifgspecificgc
onditionsgaregmet.gWhichgonegofgthegfollowinggisgonegofgthesegconditions?
Thegindemniteegandgtheginsuredgmustgaskgtheginsurergtogconductgandgcontrolgthegdefense.
,WhichgonegofgthegfollowinggstatementsgaboutgthegLiquorgLiabilitygCoveragegFormgisgtrue?
Itgcontainsgangeachgcommongcauseglimitgasgwellgasgangaggregateglimit.
UndergthegBusinessgAutogCoveragegFormg(BACF),gcollisiongisggenerallygunderstoodgtogmean
Agstrikinggtogethergwithgviolentgimpact.
AgcommongendorsementgtogthegBusinessgAutogCoveragegFormg(BACF)gisgthegEmployeegHiredgAutogend
orsement.gThisgendorsementgstatesgthatgangemployeegofgthegnamedginsuredgisganginsured
Thegemployeegisganginsuredgwhilegoperatinggangautogrentedgingthegemployee'sgnamegwithgthegname
dginsured'sgpermission.
RailroadgownersgcommonlygrequiregcontractorsgtogpurchasegagRailroadgProtectivegLiabilitygCoveragegF
orm.gWhichgonegofgthegfollowinggstatementsgaboutgthisgformgisgtrue?
Onegofgthegcoverageglimitsgappliesgtogphysicalgdamagegtogpropertygownedgbygorgleasedgorgentrusted
gtogthegrailroad
WhichgonegofgthegfollowinggstatementsgaboutgtheggeneralgaggregateglimitgundergagCommercialgGeneral
gLiabilityg(CGL)gCoveragegFormgisgtrue?
ItgisgreducedgbygangclaimsgpaidgforgmedicalgpaymentsgundergCoveragegC.
TomgoftengrunsgerrandsgforghisgbossgatgXYZgCompany,gusinggthegboss'gcar.gOngonegofgthesegerrands,gTo
mgisginvolvedgingagseriousgautogaccident.gHegspendsgagcouplegofgweeksgingtheghospital;gmissesgfourgwe
eksgofgwork;gandgmustgundergogphysicalgtherapy.gDoesgXYZ'sgWorkersgCompensationgandgEmployersgLi
abilitygInsuranceg(WC&EL)gPolicygcovergTom'sginjuries,glostgincome,gandgrehabilitationgexpenses?
Yes,gthegworkersgcompensationgpolicygwouldgpaygallgofgTom'sgexpenses,gbecauseghisginjuriesgaroseg
outgofghisgemploymentgatgXYZgCompany.
Aircraftghavegagsignificantgexposuregtogcatastropheglosses.gOfgthegmanygreasonsgforgthegcatastrophicglo
ssgpotentialgofgaircraft,gthegmostgsignificantgis
Thegphysicalgpropertiesgofgaircraft.
Agsecuritygguardgisgemployedgatgagpiergwheregshippinggcontainersgaregloadedgandgunloadedgfromgbarg
es.gTheregisgalsogagsmallgmarinagforgpleasuregcraftgatgthegpier.gThegsecuritygguardgtripsgovergequipmen
tgleftgongagdockgalongsidegagpleasuregcraftgandgisginjured.gThegpiergonlyghasginsurancegcoveragegthatgp
rovides
benefitsgundergthegLongshoregandgHarborgWorkersgCompensationgActg(LHWCA).gIsgthegguard'sginjurygc
overedgundergLHWCA?
TheginjurygisgcoveredgbygLHWCAgbecausegthegguardgisgnotgcoveredgundergagstate'sgworkersgcompen
sationglaw.
ABCgPlumbinggenteredgintogagcontractgwithgBillgtoginstallgagcommercialggradegsepticgsystemgonghisgpro
perty.gTheginstallationgofgthegsepticgsepticgwasgtimegsensitivegbecausegthegrestgofgBill'sgconstruction
projectgcouldgnotggogforwardguntilgthegsepticgsystemgwasgingplace.gThegcontractgrequiredgthatgthegwor
kgbegdonegwithing30gdaysgofgcontractgsigning,gorgABCgwouldghavegtogpaygagpenaltygofg$1,000gpergday.g
Which
, onegofgthegfollowinggcategoriesgofgdamagesgdoesgtheg$1,000gpergdaygpenaltygspecifiedgingthegcontractg
fallginto?
Liquidatedgdamages
Manygstatesghavegfundsgfromgwhichgemployersgmaygpurchasegworkersgcompensationginsurance.gSuchgf
undsgmaygbegeither
Competitivegorgmonopolistic
SectiongII—
WhogIsgangInsuredgidentifiesgthegpersonsgandgorganizationsgthatgqualifygasginsuredsgundergthegCommer
cialgGeneralgLiabilityg(CGL)gCoveragegForm.gWhichgonegofgthegfollowinggstatementsgregardinggwhogisgco
nsideredganginsuredgisgmostgaccurate?
WhengagCGLgpolicygcoversgonegorgmoregindividualsgasgnamedginsureds,ganygpersongorgorganiza
tionghavinggpropergtemporarygcustodygofgthegnamedginsured'sgpropertygfollowinggthegnamedgi
nsured'sgdeathgisganginsured.
Whatgisgthegnameggivengtogagclaimgbygangemployeegwhogsaysgthatghegorgshegwasgfiredgbecausegofgtheg
filinggofgagworkersgcompensationgclaim?
Retaliationgclaim
Javier'sgbusinessgautogpolicygcontainsgagpersonalginjurygprotectiong(PIP)gendorsement.gHegisginvolvedgin
gangautogaccidentgingthegcoveredgauto,gresultingging$30,000gingpropertygdamage,g$5,000gingthird-
partygbodilyginjury,gandg$10,000gingpersonalgmedicalgexpenses.gIfgJavier'sgbusinessgautogpolicyghasgagge
neralgaggregateglimitgofg$100,000gandgagPIPglimitgofg$15,000gandghegisgatgfaultgforgthegaccident,ghowgm
uchgwillghisginsurergpaygundergthegPIPgcoverage
PIPgprovidesgfirst-
partygbenefitsgforgmedicalgexpenses,glossgofgincome,glossgofgservices,gandgfuneralgexpensesgresultingg
fromgbodilyginjurygtogoccupantsgofgagcoveredgautogbecausegofgangautogaccident.gItgpaysgregardlessgof
gwhichgpartygwasgatgfaultgingthegaccident.gTherefore,gJavier'sginsurergwillgpayghim
$10,000gingmedicalgexpensesgfromgthegPIPgcoverage.gThegothergdamagesgwillgbegpayablegundergdiff
erentgcoveragesgavailablegonghisgpolicy.
Whichgonegofgthegfollowinggstatementsgaboutgcoveragegtriggersgingcybergriskginsurancegpoliciesgisgmost
gaccurate?
Bothgclaims-
madegcoveragegtriggersgandgoccurrencegcoveragegtriggersgaregavailable,gbutgoccurrencegcoveragegtrig
gersgaregmoregappropriategforgsomeginsuringgagreementsgthangforgothers
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