Exam 26: Commercial Liability Insurance

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 about purchasing cyber liability insurance is true? I. The coverage can be obtained by adding the appropriate endorsement to the general liability coverage. II. The coverage can be obtained by purchasing stand-alone cyber liability coverage.

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?

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 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

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

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?

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

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

One general liability loss exposure develops as a result of a written or oral agreement to assume the legal liability of another party. A lease that specifies that the building owner is held harmless for liability arising out of use of the building is an example. This liability loss exposure is

All of the following statements about liability coverage under the businessowners policy are true EXCEPT

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

One physical damage coverage alternative under the Business Auto Policy provides coverage for losses caused by certain named perils, such as fire, lightning, or explosion; theft; windstorm, hail or earthquake; flood; vandalism or mischief; or the sinking, burning, collision or derailment of any conveyance transporting the covered auto. This physical damage coverage alternative is

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 statements about physicians, surgeons, and dentists liability insurance is true?

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 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.

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

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

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