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 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.

The auto dealers coverage form includes coverage for violating odometer (mileage)disclosure laws and selling a vehicle where there was a title defect.Which coverage under the auto dealers coverage form would respond to such claims?

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

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?

Ted 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?

The auto dealers coverage form pays for damages that the insured is legally obligated to pay because of damage to a customer's auto left in the insured's car while it is being serviced or repaired.This coverage is called

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 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.

Which of the following statements regarding employer liability insurance under the workers compensation insurance coverage form is (are)true? I.Employer liability insurance covers an employee injury that occurs on the job but may not be considered work-related. II.If an injured employee sues a negligent third-party,and the third-party sues the employer for contributory negligence,the lawsuit is covered under employer liability insurance.

Some directors and officers (D&O)liability policies include an insuring agreement that covers the legal liability of a corporation arising out of the wrongful acts of directors and officers.This coverage for the corporation is called

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

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?

Which of the following statements concerning directors and officers liability insurance (D&O)is (are)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.

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)

The employees of an industrial heating and cooling company spent four days installing a large gas furnace in a newly-constructed building.While testing the furnace one week later,an explosion occurred,damaging the building.Damage to the building was covered under the heating and cooling company's general liability insurance.When the heating and cooling company also sought reimbursement for the time its employees spent installing the furnace,the insurer denied coverage and noted a specific applicable exclusion.What exclusion denies coverage for such reimbursement?

The Commercial General Liability (CGL)Policy covers liability for which of the following loss exposures? I.Bodily injury of an employee of the insured arising out of and in the course of employment II.Bodily injury of a customer injured by a defective product manufactured by the insured

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

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.

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