Objective 3 : CGL Coverage A—Exclusions

Question 1

Contractual Liability exclusion

Answer 1

applies only if the liability would not have existed in the absence of the contract.

Question 2

Liquor Liability exclusion

Answer 2

applies only if the named insured is “in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages.”

Question 3

Pollution exclusion

Answer 3

applies to bodily injury, property damage, and cleanup costs resulting from pollution incidents.

Exception :
(1)Bodily injury or property damage caused by heat, smoke, or fumes from a hostile fire

(2)Bodily injury or property damage resulting from the escape of operating fluids needed to perform the normal functions of mobile equipmen

Question 4

Aircraft, Auto, or Watercraft

Answer 4

Exception :

(1) Parking an auto on or next to the insured’s premises if the auto is not owned by, rented to, or loaned to any insured ( Valet )
(2) Watercraft while ashore on the insured’s premises
(3) A watercraft that the named insured does not own and that is less than twenty-six feet long and not being used to carry persons or property for a fee

Question 5

Damage to Property

Answer 5

eliminates coverage for damage to any of these:

(1) Property owned, rented, or occupied by the named
insured
(2) Premises the named insured has sold, given away,
or abandoned if the damage arises out of any part
of such premises
(4) Personal property in the care, custody, or control of
an insured

Question 6

Insured’s Products and Work

Answer 6

exclusion that relates directly to the insured’s products and work ( not if done by subcontrator) .

Question 7

Electronic Data

Answer 7

The definition of property damage in the CGL is limited to tangible property, and the definition states that electronic data are not considered tangible property.