Chapter 13 Commercial General Liability
1. A date stipulated on the declaration page of a claims-made liability form as the first date
on which an incident may occur and be covered by the policyis called: Retroactive date.
2. The common policy condition is a modular part combined with other parts to create the
contract. The "common policy condition" section containsprovisions that are applicable to all
lines of coverage that may be included inthe policy. Which of the following provisions would
be found in the common policy conditions section of the policy?: The first named insured may
cancel thepolicy at any time by giving written notice to the insurer.
3. B&B Market was sued when an employee detained a person he believedto be a shoplifter,
but the person turned out to be the meter reader. Which coverage would apply to this suit?:
Personal and advertising injury liability
4. In liability insurance policies, supplementary payments are made: In addi-tion to the limit
of liability.
5. A professional liability policy will provide coverage for loss in all of the following cases,
except, when the insured doctor was shown to be: Criminallynegligent.
6. All of the following conditions must exist for injury or damage to be included in the
products and completed operations hazard of a commercial
general liability policy EXCEPT: The injury or damage must occur within 90 daysafter the
insured's work is completed.
7. A plasterer has finished a job. What kind of liability coverage would protecthim if the
plaster falls and hurts someone because he did not do the job correctly?: Completed
operations
8. CGL Coverage B (Personal Injury and Advertising Injury) will cover: Inad-vertent injury
to others caused in the course of advertising the insured's product.
9. Which of the following statements is true regarding the commercial gener- al liability
policy's Coverage C - Medical Payments?: The coverage is considered "good will" because
payments are made without regard to fault.
10. A specific coverage part is listed on the commercial package policy dec- larations page,
but there is no premium shown. What does that mean?: Thereis no coverage.
11. Retroactive dates in claims made CGL policies apply to: Both BI and PD andPIL and
Advertising Liability.
12. All of the following are essential elements of a commercial package policy(CPP)
EXCEPT: Valuations and/or settlement provisions
13. Druggist Liability insurance automatically provides professional liability coverage for a
pharmacist when the pharmacist is: The owner of the business.
14. Under the coverage of which of the following liability policies may aninsured require the
insurer to defend a claim?: Professional liability
, 15. Which of the following statements would be an example of a product liability claim?:
Faulty packaging of a cereal caused spoilage that resulted insomeone getting sick.
16. A claim is considered to have been "made": When notice is received andrecorded by any
insured or the insurer, whichever comes first.
17. According to the common policy conditions for a commercial package policy, if the
insured dies, the policy rights and duties: Automatically transferto a legal representative.
18. Directors and officers liability insurance defends actions against a corpo- ration or its
officers and directors alleging wrongful acts. With regard to the coverage provided, wrongful
acts include any of the following, EXCEPT: Em-bezzlement.
19. Super Value Store has a commercial general liability policy written with a general
aggregate limit of $300,000 and an occurrence limit of $100,000. A customer injured on the
premises was awarded $45,000 for medical expensesand loss of earnings, and $60,000 for pain
and suffering. The court costs andattorney fees were $15,000. How much will the CGL policy
pay?: $115,000
20. Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes
made by Erroneous were to rename the title and chapters, put a different cover on it, and
distribute it as its own. Angels Inc. files a claim against Erroneous and seeks damages. Will a
commercial general liability policy cover the claim?: No, because the claim results from
copyright infringementand is not in an advertisement.
21. The commercial property declarations page contains which of the followinginformation?:
Description of the property insured
22. All of the following are true statements regarding the supplementary pay-ments of a
Commercial General Liability policy EXCEPT: They pay defense costs even after the
aggregate limit has been reached.
23. The Occurrence form trigger is based on which of the following?: The datewhen injury
or damage occurs
24. If an insured bakery is sued because its marketing states that the productsof another
bakery may not be safe, which coverage of a commercial general liability will defend the
suit?: Personal and advertising injury liability
25. The Claims-Made Trigger is based on which of the following?: The date the claim is first
made in writing against an insured for injury or damage that occurred on or after the policy's
retroactive date
26. When ABC Appliance's marketing stated that its mowing machine was the only safe
mower available for purchase in town, ABC was sued by XYZ Lawn and Garden. ABC's
coverage would come from which part of its generalliability coverage?: Personal and
advertising injury liability
27. Crunchy Flakes Cereal Company shipped some of its product in faulty containers that
caused spoilage. This resulted in some consumers becomingill. If the company is sued for this
event, it would be an example of a: Productliability claim.
1. A date stipulated on the declaration page of a claims-made liability form as the first date
on which an incident may occur and be covered by the policyis called: Retroactive date.
2. The common policy condition is a modular part combined with other parts to create the
contract. The "common policy condition" section containsprovisions that are applicable to all
lines of coverage that may be included inthe policy. Which of the following provisions would
be found in the common policy conditions section of the policy?: The first named insured may
cancel thepolicy at any time by giving written notice to the insurer.
3. B&B Market was sued when an employee detained a person he believedto be a shoplifter,
but the person turned out to be the meter reader. Which coverage would apply to this suit?:
Personal and advertising injury liability
4. In liability insurance policies, supplementary payments are made: In addi-tion to the limit
of liability.
5. A professional liability policy will provide coverage for loss in all of the following cases,
except, when the insured doctor was shown to be: Criminallynegligent.
6. All of the following conditions must exist for injury or damage to be included in the
products and completed operations hazard of a commercial
general liability policy EXCEPT: The injury or damage must occur within 90 daysafter the
insured's work is completed.
7. A plasterer has finished a job. What kind of liability coverage would protecthim if the
plaster falls and hurts someone because he did not do the job correctly?: Completed
operations
8. CGL Coverage B (Personal Injury and Advertising Injury) will cover: Inad-vertent injury
to others caused in the course of advertising the insured's product.
9. Which of the following statements is true regarding the commercial gener- al liability
policy's Coverage C - Medical Payments?: The coverage is considered "good will" because
payments are made without regard to fault.
10. A specific coverage part is listed on the commercial package policy dec- larations page,
but there is no premium shown. What does that mean?: Thereis no coverage.
11. Retroactive dates in claims made CGL policies apply to: Both BI and PD andPIL and
Advertising Liability.
12. All of the following are essential elements of a commercial package policy(CPP)
EXCEPT: Valuations and/or settlement provisions
13. Druggist Liability insurance automatically provides professional liability coverage for a
pharmacist when the pharmacist is: The owner of the business.
14. Under the coverage of which of the following liability policies may aninsured require the
insurer to defend a claim?: Professional liability
, 15. Which of the following statements would be an example of a product liability claim?:
Faulty packaging of a cereal caused spoilage that resulted insomeone getting sick.
16. A claim is considered to have been "made": When notice is received andrecorded by any
insured or the insurer, whichever comes first.
17. According to the common policy conditions for a commercial package policy, if the
insured dies, the policy rights and duties: Automatically transferto a legal representative.
18. Directors and officers liability insurance defends actions against a corpo- ration or its
officers and directors alleging wrongful acts. With regard to the coverage provided, wrongful
acts include any of the following, EXCEPT: Em-bezzlement.
19. Super Value Store has a commercial general liability policy written with a general
aggregate limit of $300,000 and an occurrence limit of $100,000. A customer injured on the
premises was awarded $45,000 for medical expensesand loss of earnings, and $60,000 for pain
and suffering. The court costs andattorney fees were $15,000. How much will the CGL policy
pay?: $115,000
20. Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes
made by Erroneous were to rename the title and chapters, put a different cover on it, and
distribute it as its own. Angels Inc. files a claim against Erroneous and seeks damages. Will a
commercial general liability policy cover the claim?: No, because the claim results from
copyright infringementand is not in an advertisement.
21. The commercial property declarations page contains which of the followinginformation?:
Description of the property insured
22. All of the following are true statements regarding the supplementary pay-ments of a
Commercial General Liability policy EXCEPT: They pay defense costs even after the
aggregate limit has been reached.
23. The Occurrence form trigger is based on which of the following?: The datewhen injury
or damage occurs
24. If an insured bakery is sued because its marketing states that the productsof another
bakery may not be safe, which coverage of a commercial general liability will defend the
suit?: Personal and advertising injury liability
25. The Claims-Made Trigger is based on which of the following?: The date the claim is first
made in writing against an insured for injury or damage that occurred on or after the policy's
retroactive date
26. When ABC Appliance's marketing stated that its mowing machine was the only safe
mower available for purchase in town, ABC was sued by XYZ Lawn and Garden. ABC's
coverage would come from which part of its generalliability coverage?: Personal and
advertising injury liability
27. Crunchy Flakes Cereal Company shipped some of its product in faulty containers that
caused spoilage. This resulted in some consumers becomingill. If the company is sued for this
event, it would be an example of a: Productliability claim.
