Commercial General Liability Flashcards
7 cards from real EXAMFX practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Commercial General Liability flashcards as text
Under a CGL policy, which coverage part pays for damage to a third party's property caused by the insured's operations?
Answer: Coverage A – Bodily Injury and Property Damage Liability
Coverage A of the CGL covers third-party property damage arising from the insured's operations or premises.
A customer trips over a display in a retail store and breaks her wrist. Which CGL insuring agreement would cover her medical bills without requiring a lawsuit?
Answer: Coverage C – Medical Payments
Coverage C – Medical Payments covers reasonable medical expenses for third parties injured on the premises, regardless of fault, without litigation.
The CGL 'occurrence' trigger requires that bodily injury or property damage occur during the policy period. Which scenario would NOT trigger coverage under an occurrence-based CGL?
Answer: A lawsuit filed during the policy period for an injury that occurred before the policy
An occurrence CGL triggers on when the injury or damage occurs, not when the lawsuit is filed; an injury that occurred before the policy period is not covered.
Which exclusion in a standard CGL policy eliminates coverage for damage to property the insured is currently working on?
Answer: Your Work exclusion
The 'Your Work' exclusion bars coverage for property damage to the specific work the insured is performing at the time of the loss.
A general contractor assumes the tort liability of a subcontractor in a written contract. The subcontractor causes property damage. Under the CGL, this liability is covered under which provision?
Answer: Contractual Liability coverage
Contractual Liability coverage allows the CGL to respond when the insured has assumed another party's tort liability in an 'insured contract.'
Under a CGL policy, 'personal and advertising injury' coverage (Coverage B) covers which of the following?
Answer: False arrest, libel, slander, and copyright infringement in advertisements
Coverage B specifically lists offenses such as false arrest, malicious prosecution, libel, slander, and copyright infringement in advertisements.
The CGL policy defines 'bodily injury' to include sickness, disease, and death resulting therefrom. Which of the following would be considered bodily injury under the standard CGL definition?
Answer: A customer's broken arm caused by a falling shelf
A broken arm is a physical injury, which falls squarely within the CGL's definition of bodily injury.