Exam 26: Commercial Liability Insurance

A customer was injured when a furnace exploded following its faulty installation by a heating and cooling business.For the heating and cooling business,this is an example of

Which of the following is covered under an unendorsed Commercial General Liability Policy? I.False arrest of a customer wrongly accused of shoplifting. II.Publication of material which violates an individual's right to privacy.

Ted Thomas is risk manager of XYZ Company.He is concerned his company might be sued by current or former employees alleging wrongful termination,failure to promote,racial or gender discrimination,or sexual harassment.What type of liability insurance can Ted purchase to cover these types of claims?

ABC Company purchased an ISO Commercial General Liability Policy.The agent who sold ABC the coverage noted that the coverage trigger in this policy was different from the trigger in the previous policy.The new policy covers only those claims which are first reported during the policy period,provided the event occurred after a retroactive date.This type of policy is known as

HRC Company purchased an unendorsed ISO Commercial General Liability (CGL)policy.All of the following claims would be covered under the CGL policy EXCEPT

The purpose of adding garagekeepers legal liability coverage to the Garage Coverage Form is to

All of the following are reasons for an employer to purchase employers liability insurance EXCEPT

Section I of the Commercial General Liability (CGL)Policy provides coverage for all of the following exposures EXCEPT

Jenkins Company purchased a commercial umbrella policy with a $10 million limit and a $100,000 self-insured retention.The insurer required Jenkins Company to carry a $1 million per-occurrence limit on its general liability policy and a $1 million per-occurrence limit on its business auto policy.Jenkins purchased these required limits.A Jenkins driver was negligent while operating a company vehicle and killed another motorist.The court ruled that Jenkins must pay $5 million.How much of this amount will be paid by the umbrella policy?

Which of the following statements is (are)true concerning the self-insured retention (SIR)under a commercial umbrella liability policy? I.The SIR applies to claims covered by the umbrella policy but not by any underlying insurance. II.The SIR only applies to those claims for which the underlying policy has paid first,and the umbrella policy is paying on an excess basis.

Which of the following statements is (are)true with respect to the treatment of legal defense costs under the ISO Commercial General Liability policy? I.Legal defense costs usually are counted against the policy limit. II.Once the insurer has paid out the applicable limit of liability,the insurer's duty to defend ends.

Which of the following losses is generally covered under a commercial umbrella policy?

Executives of a Fortune 500 firm blocked an acquisition attempt by a larger company.When the stockholders learned they could have made large profits had the acquisition not been blocked,they filed a lawsuit against the executives of the firm.What type of liability insurance protects the executives of the organization against such suits?

All of the following are covered under the liability coverage of a businessowners policy EXCEPT

David Florrell started a public accounting firm.David is concerned that accountants on his staff may give incorrect accounting advice,and the accounting firm may be sued.What type of liability insurance should David purchase to protect against such claims?

Medical malpractice insurance written on a claims-made basis can leave a surgeon vulnerable to malpractice claims if the surgeon retires,changes insurers,or drops coverage.A provision can be added to the claims-made form that protects the surgeon for future claims arising from incidents that occurred while the claims-made policy was in force.This provision is called a(n)

Which of the following statements is true concerning the ISO employment-related practices liability form?

All of the following statements about aviation insurance are true EXCEPT