Exam 26: Commercial Liability Insurance

Which of the following statements about the liability coverage of the Business Auto Coverage Form is (are)true? I.The insurer agrees to defend the insured and pay all legal defense costs arising out of an accident involving a covered auto. II.The insured is covered for property damage and bodily injury arising out of the use of a covered auto.

Jennifer was just asked to serve on the Board of an insurance company.Jennifer is concerned that if the company is mismanaged,the policyowners,stockholders,and employees might sue the management team.What type of liability insurance will protect Jennifer from such claims if she accepts a position on the insurance company's Board?

All of the following are coverage options under the physical damage coverage in the Business Auto Coverage Form EXCEPT

An employee of Nelson Manufacturing was injured by a defective machine Nelson purchased from Clark Corporation.The employee's tort action against Clark was successful.Clark,in turn,sued Nelson,alleging that Nelson failed to provide proper operating instructions to the employee.This claim (Clark vs.Nelson)is covered under Part Two of Nelson's worker compensation and employer liability policy.Such claims are called

A-1 Electrical Service is an electrical contractor that employs 14 electricians.A-1 faces many loss exposures.One general liability exposure arises out of faulty work that A-1 electricians may perform for customers at their homes or businesses.This liability exposure is known as

Which of the following statements concerning directors and officers liability insurance (D&O)is true? I.D&O policies usually cover the personal liability of directors and officers. II.D&O policies exclude coverage for claims brought by employees and by stockholders.

A provision included in a claims-made commercial general liability policy provides coverage for claims filed after the policy has expired.This provision is called a(n)

Which of the following exposures is covered under a Commercial General Liability Policy with no endorsements?

In addition to the named insured,all of the following are insureds under the Commercial General Liability Policy EXCEPT

Bay Gallery has a Commercial General Liability Policy with no endorsements.All of the following claims would be covered under the policy EXCEPT

Which of the following statements about errors and omissions insurance is (are)true? I.It is purchased by professionals to protect against claims arising for negligent acts,errors,and omissions. II.It is designed to meet the needs of stock brokers,attorneys,engineers,architects and other professionals who give advice to clients.

Which of the following is (are)covered under a claims-made policy? I.Claims arising out of occurrences which take place during the policy period,regardless of when the claim is made II.Claims first reported during the policy period,provided the event occurred after any retroactive date stated in the policy

All of the following statements about liability coverage under the Businessowners Policy are true EXCEPT

Which of the following statements about workers compensation insurance is (are)true? I.Under the workers compensation part of the policy,the insurer agrees to pay the benefits required by the workers compensation law of any state listed in the policy declarations. II.The employers liability part of the policy provides workers compensation benefits when employees are working in states other than those listed in the policy declarations.

Liability arising out of work performed by independent contractors is referred to as

Which of the following losses would be covered under a Commercial General Liability Policy that has no endorsements? I.The named insured rented a building and an employee of the named insured negligently started a fire at the rented building. II.The cost to recall defective products

The phrase "general liability" is used to refer to the legal liability of a business arising from all of the following EXCEPT

Holiday DeCor Company is insured by a commercial general liability policy (CGL).Holiday DeCor rented a storage facility for one month to store some excess inventory.While visiting the storage facility,a Holiday DeCor employee discarded a cigarette.The resulting fire severely damaged the storage facility.Which statement is true regarding coverage of this damage under the CGL?

Which of the following statements about physicians,surgeons,and dentists liability insurance is true?

Which of the following statements about the typical commercial umbrella policy is (are)true? I.The policy is designed to cover only those loss exposures specifically excluded by the underlying insurance contracts. II.The policy is excess over the required underlying coverages.