Chapter 15 - Commercial General Liability Insurance

12 Questions | Total Attempts: 941

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Chapter 15 - Commercial General Liability Insurance - Quiz

For those unaware, liability insurance exists to protect those who purchase it from the risks of liabilities – or legal responsibilities - imposed by lawsuits and similar cases. What do you know about commercial general liability insurance? Take the following quiz and we’ll find out together!


Questions and Answers
  • 1. 
    Which of the following are true about the 60-day basic extended reporting period? Select all that apply.
    • A. 

      It becomes effective automatically if needed when a claims-made policy expires.

    • B. 

      The insured must request it in writing within 60 days after the policy expires.

    • C. 

      It does not require an additional premium.

    • D. 

      No separate endorsement is required to provide this extended reporting period.

  • 2. 
    What is the purpose of a retroactive date in the claims-made form?
    • A. 

      Extends the period of time in which a claim can be covered under the policy

    • B. 

      Stipulates a date as the first date on which an event can occur and be covered by the policy if a claim is filed

    • C. 

      Extends the policy period

    • D. 

      Stipulates a date after which any loss that occurs will not be covered

  • 3. 
    Which of the following is a personal and advertising injury?
    • A. 

      Broken leg

    • B. 

      Death

    • C. 

      Calling a client a cheat and a fraud

    • D. 

      Dog bite

  • 4. 
    Which of the following are usually excluded under Coverage A of the Commercial General Liability policy? Select all that apply.
    • A. 

      Property damage to property owned by the insured

    • B. 

      Property damage to property in the care, custody, or control of the insured

    • C. 

      Bodily injury sustained by an insured while using the insured's product

    • D. 

      Bodily injury to a customer who is injured in an accident on the insured's premises

  • 5. 
    All of the following reduce the CGL's General Aggregate Limit except which of the following?
    • A. 

      Medical Payments sublimit

    • B. 

      Personal and Advertising Injury limit

    • C. 

      Fire Damage limit

    • D. 

      Products-Completed Operations limit

  • 6. 
    A woman is injured when she breaks a tooth on a rock that mysteriously found its way into a box of cereal. This is an example of which of the following?
    • A. 

      Premises and operations exposure

    • B. 

      Products-completed operations exposure

    • C. 

      Contingent liability exposure

    • D. 

      Contractual liability exposure

  • 7. 
    Which of the following business liability exposures are either excluded altogether from the CGL or covered only in certain circumstances? Select all that apply.
    • A. 

      Premises and operations

    • B. 

      Indirect/contingent liability

    • C. 

      Pollution

    • D. 

      Work-related injuries to employees

  • 8. 
    Which one of the following is not required in a CGL coverage part?
    • A. 

      CGL declarations

    • B. 

      One or more CGL coverage forms

    • C. 

      Causes of Loss form

    • D. 

      Common Policy Conditions

  • 9. 
    Which of the following would be considered mobile equipment under the Commercial General Liability coverage form? Select all that apply.
    • A. 

      Truck used to transport personnel to construction sites

    • B. 

      Road construction grader

    • C. 

      Bulldozer

    • D. 

      Self-propelled vehicles designed for snow removal

  • 10. 
    Which of the following are excluded under Coverage A of the CGL?
    • A. 

      Damage the insured causes intentionally

    • B. 

      Pollution losses caused by the insured

    • C. 

      Liquor liability for those in the business of serving liquor

    • D. 

      All of the above

  • 11. 
    Which of the following would be excluded under Coverage C of the CGL? Select all that apply.
    • A. 

      A shopper is injured in the insured's retail store when a box falls on him from an overhead shelf.

    • B. 

      The insured sponsors a foot race on the land surrounding his retail store. A participant is injured during the race.

    • C. 

      An individual hired by the insured to paint her business office falls off a ladder and is injured.

    • D. 

      One of the insured's employees is injured while on the job.

  • 12. 
    If an insurer decides to not renew the CGL policy, how many days notice of nonrenewal must be provided to the first named insured?
    • A. 

      10 days

    • B. 

      7 days

    • C. 

      20 days

    • D. 

      30 days

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