Week 3 Exam Flashcards
Employees are not insureds for damage to certain types of property. Which one of the following is not an example of this type of property?
a. Property that the named insured owns or uses
b. Property that a customer brings on to the name insured’s premises
c. Property that belongs to a partner in the insured partnership
d. Property that is in the care, custody, or control of a co-employee
B. Property that a customer brings on to the named insured’s premises
Which of the following statements is false?
a. The “other insurance” condition applies only to coverages A and B, but not C
b. Excess insurance pays for the claim with the primary insurer declines coverage
c. The General Contractor’s CGL form is excess over the builder’s risk policy he purchased if a loss caused by subcontractor damages the building being built
d. In order to activate the clause, the Other Insurance has to be valid and collectible
B. Excess Insurance pays for the claim when the primary insurer declines coverage
What is the purpose of the employer’s liability exclusion? a. to complement the workers compensation exclusion and prevent coverage for Bodily Injury to employees of the named insured under the CGL form
b. To make sure the CGL form provides liability coverage for the insured in case leased workers are injured on the job
c. To prevent the name insured form being liable for damages suffered by a customer’s employee if he is injured on the premises of the named insured
d. to make sure that the CGL coverage is excess over the name insured’s workers compensation coverage
A. to complement the workers compensation exclusion and prevent coverage for Bodily Injury to employees of the named insured under the CGL form
What particular item stands out when contrasting coverage C with coverages A and B?
a. coverage C requires fault on the part of the insured in order to apply
b. Coverage C cannot be deleted from the CGL form through the use of an endorsement
c. coverages A and B have exclusions that apply, whereas coverage C has no exclusions
d. Coverage C is of a no-fault nature, whereas coverages A and B require that the insured be legally liable to pay damages
D. Coverage C is of a no-fault nature, whereas coverages A and B require that the insured be legally liable to pay damages
Which one of the following is not specifically listed in the definition of pollutant on the CGL form?
a. smoke
b. soot
c. paint
d. alkalis
C. paint
What is an exception to the Aircraft, Auto and Watercraft exclusion on the CGL form?
a. Bodily injury caused by the named insured’s use of an employee’s car
b. watercraft owned by the named insured if the craft is 30 feet or longer
c. parking an auto on the ways next to premises owned by the named insured
d. assuming liability under an insured contract for the use of an auto
C. parking an auto on the ways next to premises owned by the named insured
Coverage B under the CGL form is subject to what limits?
a. General aggregate limits and reinsurance limits
b. Supplemental limits and limits agreed to by the insured and the insurer
c. General aggregate limits and the personal and advertising injury limit
d. The personal injury aggregate limit and the advertising injury aggregate limit
C. General aggregate limits and the personal and advertising injury limit
Under the CGL form, all of the following items except one are specifically within the Recall of Products (exclusion n):
a. the product of the named insured
b. the work of the named insured
c. impaired property
d. All items listed are within the Recall of Products exclusion
D. All items listed are within the Recall of Products exclusion
The exclusion of any property damage to a premises the named insure sells, gives away, or abandons is commonly referred to as:
a. the care, custody or control exclusion
b. the impaired property damage exclusion
c. the alienated premises exclusion
d. the broad form property damage exclusion
C. the alienated premises exclusion
What is a “sidetrack agreement”?
a. A contract between a business and a railroad wherein the railroad builds a track on the business property to facilitate shipping, and the business then agrees to release the railroad from liability due to the track
b. A contract between a business and a railroad where in the business agrees to hold the railroad harmless for BI or PD arising out of construction or demolition operations within 50 feet of a railroad property
c. A contract between an insured and a motor truck cargo company where the cargo company agrees to delivery all supplies to the insured via the railroad
d. A contract between the named insured and a construction company to build a railroad track onto the named insured’s premises
A. A contract between a business and a railroad wherein the railroad builds a track on the business property to facilitate shipping, and the business then agrees to release the railroad from liability due to the track
In the context of insured contracts, what is Tort Liability?
a. Liability of the named insured imposed through a contractual agreement to pay monetary damages for the failure to deliver on a business promise
b. Liability that would be imposed by law in the absence of any contract or agreement to pay damages for bodily injury and/or property damage
c. Liability that the insured accepts after consulting with the insurer
d. Liability between a primary carrier and an excess carrier established through a reinsurance arrangment
b. Liability that would be imposed by law in the absence of any contract or agreement to pay damages for bodily injury and/or property damage
In the CGL form, what is an “occurrence trigger”?
a. Coverage triggered by bodily injury or property damage that occurs during the policy period, regardless of when the claim is reported
b. Coverage triggered when the claim is reported to the insurer
c. Coverage triggered when the insurer agrees to hire an attorney to defend the insured and the attorney contacts the insured
d. Coverage triggered when the insured and the insurer agree that the occurrence is a covered event
a. Coverage triggered by bodily injury or property damage that occurs during the policy period, regardless of when the claim is reported
What is a “claims-made trigger”?
a. Coverage triggered by bodily injury that occurs during the policy period no matter when the claim is reported
b. Coverage triggered by BI or PD that occurs during the policy period if the claim is first made during the policy period
c. Coverage is triggered when the bodily injury claims amount to $1,000,000
d. Coverage is triggered when the insurer should have become aware of the claims made against the insured
b. Coverage triggered by BI or PD that occurs during the policy period if the claim is first made during the policy period
When does the insurer’s “duty to defend” end?
a. When the policy limits have been used up in the payment of judgments or settlements
b. When the insured agrees to settle with the claimant
c. When the policy period ends
d. When there is a conflict of interest between the insured and the insurer
a. When the policy limits have been used up in the payment of judgments or settlements
The Liquor Liability exclusion applies only under which of the following circumstances:
a. If the named insured is in the business of manufacturing, distributing, selling, servicing or furnishing alcohol
b. If the named insured is the owner of the premises where alcohol is sold
c. If the named insured has bought the liquor license from the appropriate state liquor control agency
d. If the named insured leases the premises to others for the purpose of manufacturing, but not selling alcohol
a. If the named insured is in the business of manufacturing, distributing, selling, servicing or furnishing alcohol
