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
A products liability claim is filed after a consumer is injured by a defective product the insured manufactured and sold. Which section of the CGL covers this claim?
Answer: Coverage A – Products-Completed Operations Hazard
Products liability falls under the Products-Completed Operations Hazard within Coverage A, which applies after the product leaves the insured's control.
Under the CGL, which condition requires the insured to notify the insurer as soon as practicable after an occurrence?
Answer: Duties in the event of occurrence, offense, claim, or suit
The 'Duties in the Event of Occurrence, Offense, Claim, or Suit' condition obligates the insured to promptly notify the insurer of any covered occurrence.
Which CGL exclusion eliminates coverage for bodily injury or property damage expected or intended from the standpoint of the insured?
Answer: Expected or Intended Injury exclusion
The Expected or Intended Injury exclusion removes coverage for harm that the insured deliberately caused or knew was substantially certain to result.
An insured's employee is injured on the job. The employee files a claim against the insured employer under the CGL. How does the standard CGL respond?
Answer: Excludes the claim under the Employer's Liability exclusion
The Employer's Liability exclusion bars CGL coverage for bodily injury to employees arising out of and in the course of employment.
A CGL policy has a $1,000,000 per occurrence limit and a $2,000,000 general aggregate limit. Three separate covered occurrences each result in $900,000 in losses. What is the total the insurer pays?
Answer: $2,000,000
The general aggregate acts as the overall cap; after paying $900,000 + $900,000 = $1,800,000 for two occurrences, only $200,000 remains, so the insurer pays $2,000,000 total.
Under the CGL's 'separation of insureds' condition, how does coverage apply when one insured sues another insured?
Answer: Coverage applies separately to each insured as if each were the only insured
The separation of insureds condition treats each insured independently, so the policy can respond to a claim by one insured against another.
A CGL policy's 'fire legal liability' provision specifically addresses which situation?
Answer: Insured's legal liability for fire damage to premises they rent from others
Fire Legal Liability is a sublimit within Coverage A that covers the insured's legal liability for fire damage to rented premises.