Casualty Insurance and Liability Flashcards

Under a standard Commercial General Liability (CGL) policy, which coverage part pays for bodily injury claims made by third parties on the insured's premises?

Answer: Coverage A – Bodily Injury and Property Damage Liability

Coverage A of the CGL policy provides protection for bodily injury and property damage liability arising out of the insured's operations or premises.

Which legal doctrine holds an employer liable for the negligent acts of an employee committed within the scope of employment?

Answer: Respondeat superior

Respondeat superior ('let the master answer') makes an employer vicariously liable for an employee's negligent acts performed during the course of employment.

An occurrence-based liability policy covers claims for injuries that:

Answer: Occur during the policy period regardless of when they are reported

Occurrence policies trigger coverage based on when the injury or damage takes place, not when the claim is reported or filed.

The 'other insurance' clause in a liability policy is designed to:

Answer: Coordinate payment when multiple policies cover the same loss

'Other insurance' clauses determine how a loss is shared when two or more policies apply to the same claim, preventing duplicate recovery above the actual loss.

Under the doctrine of strict liability, a defendant can be held liable even if:

Answer: They exercised reasonable care

Strict liability imposes responsibility regardless of fault or negligence; the mere act of engaging in the ultrahazardous activity or selling a defective product creates liability.

Which of the following best describes 'completed operations' coverage under a CGL policy?

Answer: Coverage for bodily injury or property damage arising from work that has been completed

Completed operations coverage responds to liability claims arising after the insured's work has been finished and the job site has been turned over to the customer.