ADJUSTER PRO UPDATED END OF COURSE QUESTIONS
AND SOLUTIONS RATED A+
✔✔Rise & Shine Light Bulb Co. has a claims-made & reported policy that is about to
expire, but a customer just filed a liability claim against the company. If Rise & Shine
wants to have insurance pay for the damages, it must do which of the following? -
✔✔Rise & Shine must report the claim before its policy expires.
✔✔Ark Inc. purchases a CGL policy to protect the company against lawsuits for which
they might be found legally liable. Which would NOT be covered by their CGL? - ✔✔An
employee drives a forklift into a wall of Ark Inc.'s owned factory, causing it to collapse.
✔✔Greg owns a construction business and has been really swamped lately. His friend
Chuck is looking to become a claims adjuster, but doesn't have very much construction
experience, so Chuck offers to help Greg on the weekends for free. This way Chuck
gains his experience, while Greg catches up on work without the additional cost of hiring
someone. According to the definitions in Greg's CGL policy, which of the following best
describes Chuck? - ✔✔Volunteer Worker
✔✔The Commercial General Liability (CGL) could classify all of the following as an
"occurrence" except:
A. A set of aftermarket brakes fail, leading to a serious automobile accident.
B. A baseball bat cracks in half and injures a Little League player.
C. A cell phone battery explodes, causing 3rd degree burns to the owner.
A customer returning a defective bicyle is not considered an "occurrence" under a CGL.
An occurrence is an accident, including continuous or repeated exposure to
substantially the same general harmful conditions.
D. A customer returns a defective bicycle. - ✔✔D
✔✔Josh is driving through town in the company truck when he misses his turn. He
decides just to make a U-turn and double back. Unfortunately, he doesn't see the car
coming up alongside of him and the two collide. Josh files a claim with the company's
CGL, but the claim is denied because: - ✔✔a CGL does not cover auto accidents.
✔✔A CGL can protect businesses from claims arising out of all of the following,
EXCEPT:
A. personal injury.
B. damage to a rented premise.
C. auto accidents.
D. damages caused by contractors. - ✔✔auto accidents
,✔✔Tom needs some extra hands to help him lay a concrete foundation. He contacts
XYZ Labor to hire some experienced concrete workers who can help him complete the
job. Tom will pay XYZ Labor directly and let them handle payroll, taxes, etc. Once they
finish with the foundation, Tom won't need their services any longer and XYZ will move
on to the next client. Under Tom's CGL policy, which of the following best describes the
type of worker Tom is looking for? - ✔✔Leased Workers
✔✔Lance slips and falls in the icy parking lot of XYZ Consulting. Under which part of
Coverage A in XYZ Consulting's CGL policy would this claim be covered? -
✔✔Premises Liability
✔✔Jim owns a small boutique. Jim forgot to turn off the automatic lawn sprinklers
during the frigid winter weather, and when they came on last night, they created a thick
layer of ice on his sidewalk. Before he could put salt on the ice, a customer came to the
shop, slipped on the ice, and broke her hip. Which type of commercial general liability
coverage would provide coverage in this situation? - ✔✔Premises Liability
✔✔James runs a window washing business and services a lot of the city's large
skyscrapers. While out on a job, James accidentally knocks the wash bucket off his
scaffold from seven stories up. It lands on a parked car, injuring no one, but causing
$12,000 in damage to the vehicle. What type of coverage in James' Commercial
General Liability policy would a claim for this damage fall under? - ✔✔Operations
Liability
✔✔James is expecting a very important client to arrive in an hour so he decides to
sweep and wash the floor. James finishes the job in time and goes to look over his bid
for the contract one more time. James comes back out to the lobby to find his potential
client laid out on the floor, having slipped and fallen. Which type of commercial general
liability coverage would indemnify James' client for his injuries? - ✔✔Premises Liability
✔✔In a CGL policy, the Premises Liability hazard applies to claims arising from an
occurrence on: - ✔✔the premises owned or rented by the insured.
✔✔In order for a statement to qualify as libel or slander, which of the following
conditions must be met? - ✔✔The statement must be made about a third party.
✔✔All of the following would fall under the definition of a "personal injury" in a
Commercial General Liability policy, EXCEPT:
A. A prominent businessman sues his competitor for slandering him in a TV
commercial.
B. A woman sues a company, claiming that they sued her for no reason.
C. A man is justly fired and files for unemployment benefits from his previous employer.
, D. A woman sues her landlord for wrongful entry after being evicted from her apartment.
- ✔✔C
✔✔Coverage B - Personal and Advertising Injury in a CGL policy will cover all of the
following, EXCEPT:
A. A professional advertising firm knowingly publishes untrue statements about a
company.
B. A shop owner accuses an innocent person of shoplifting.
C. A landlord uses improper means to repossess an apartment from a tenant.
Knowingly publishing, disseminating, or spreading false information to the public is
excluded from coverage in a CGL.
D. A children's clothing manufacturer uses the image of a popular cartoon character in
its advertisements without permission - ✔✔A professional advertising firm knowingly
publishes untrue statements about a company.
✔✔Which of the following situations would be covered by a standard CGL insurance
policy with no endorsements?
A. A company is sued for copyright infringement in their advertisement.
B. An employee is injured in the stockroom by a falling package.
The CGL does not cover injuries of employees performing work related duties, recall of
products, or liquor liability.
C. A tavern over serves alcohol to a customer, who then goes out and causes a fatal
car accident.
D. A defective product is shipped en masse to the public and must be recalled. - ✔✔A
company is sued for copyright infringement in their advertisement.
✔✔Which type of CGL coverage would indemnify an insured party for damages
resulting from a libel claim? - ✔✔Personal and Advertising Injury coverage
✔✔All of the following would fall under the definition of a "personal injury" in a
Commercial General Liability policy, EXCEPT:
A. A prominent businessman sues his competitor for slandering him in a TV
commercial.
B. A woman sues a company, claiming that they sued her for no reason.
C. A man is justly fired and files for unemployment benefits from his previous employer.
D. A woman sues her landlord for wrongful entry after being evicted from her apartment.
- ✔✔(Personal injury refers to an insured's wrongful actions that violate the rights of a
third party, or otherwise produce injury other than bodily injury. An employer firing an
employee for just cause does not fall under this definition.)
✔✔Which of these claims would NOT be covered by Personal and Advertising Injury
coverage in a Commercial General Liability policy?
AND SOLUTIONS RATED A+
✔✔Rise & Shine Light Bulb Co. has a claims-made & reported policy that is about to
expire, but a customer just filed a liability claim against the company. If Rise & Shine
wants to have insurance pay for the damages, it must do which of the following? -
✔✔Rise & Shine must report the claim before its policy expires.
✔✔Ark Inc. purchases a CGL policy to protect the company against lawsuits for which
they might be found legally liable. Which would NOT be covered by their CGL? - ✔✔An
employee drives a forklift into a wall of Ark Inc.'s owned factory, causing it to collapse.
✔✔Greg owns a construction business and has been really swamped lately. His friend
Chuck is looking to become a claims adjuster, but doesn't have very much construction
experience, so Chuck offers to help Greg on the weekends for free. This way Chuck
gains his experience, while Greg catches up on work without the additional cost of hiring
someone. According to the definitions in Greg's CGL policy, which of the following best
describes Chuck? - ✔✔Volunteer Worker
✔✔The Commercial General Liability (CGL) could classify all of the following as an
"occurrence" except:
A. A set of aftermarket brakes fail, leading to a serious automobile accident.
B. A baseball bat cracks in half and injures a Little League player.
C. A cell phone battery explodes, causing 3rd degree burns to the owner.
A customer returning a defective bicyle is not considered an "occurrence" under a CGL.
An occurrence is an accident, including continuous or repeated exposure to
substantially the same general harmful conditions.
D. A customer returns a defective bicycle. - ✔✔D
✔✔Josh is driving through town in the company truck when he misses his turn. He
decides just to make a U-turn and double back. Unfortunately, he doesn't see the car
coming up alongside of him and the two collide. Josh files a claim with the company's
CGL, but the claim is denied because: - ✔✔a CGL does not cover auto accidents.
✔✔A CGL can protect businesses from claims arising out of all of the following,
EXCEPT:
A. personal injury.
B. damage to a rented premise.
C. auto accidents.
D. damages caused by contractors. - ✔✔auto accidents
,✔✔Tom needs some extra hands to help him lay a concrete foundation. He contacts
XYZ Labor to hire some experienced concrete workers who can help him complete the
job. Tom will pay XYZ Labor directly and let them handle payroll, taxes, etc. Once they
finish with the foundation, Tom won't need their services any longer and XYZ will move
on to the next client. Under Tom's CGL policy, which of the following best describes the
type of worker Tom is looking for? - ✔✔Leased Workers
✔✔Lance slips and falls in the icy parking lot of XYZ Consulting. Under which part of
Coverage A in XYZ Consulting's CGL policy would this claim be covered? -
✔✔Premises Liability
✔✔Jim owns a small boutique. Jim forgot to turn off the automatic lawn sprinklers
during the frigid winter weather, and when they came on last night, they created a thick
layer of ice on his sidewalk. Before he could put salt on the ice, a customer came to the
shop, slipped on the ice, and broke her hip. Which type of commercial general liability
coverage would provide coverage in this situation? - ✔✔Premises Liability
✔✔James runs a window washing business and services a lot of the city's large
skyscrapers. While out on a job, James accidentally knocks the wash bucket off his
scaffold from seven stories up. It lands on a parked car, injuring no one, but causing
$12,000 in damage to the vehicle. What type of coverage in James' Commercial
General Liability policy would a claim for this damage fall under? - ✔✔Operations
Liability
✔✔James is expecting a very important client to arrive in an hour so he decides to
sweep and wash the floor. James finishes the job in time and goes to look over his bid
for the contract one more time. James comes back out to the lobby to find his potential
client laid out on the floor, having slipped and fallen. Which type of commercial general
liability coverage would indemnify James' client for his injuries? - ✔✔Premises Liability
✔✔In a CGL policy, the Premises Liability hazard applies to claims arising from an
occurrence on: - ✔✔the premises owned or rented by the insured.
✔✔In order for a statement to qualify as libel or slander, which of the following
conditions must be met? - ✔✔The statement must be made about a third party.
✔✔All of the following would fall under the definition of a "personal injury" in a
Commercial General Liability policy, EXCEPT:
A. A prominent businessman sues his competitor for slandering him in a TV
commercial.
B. A woman sues a company, claiming that they sued her for no reason.
C. A man is justly fired and files for unemployment benefits from his previous employer.
, D. A woman sues her landlord for wrongful entry after being evicted from her apartment.
- ✔✔C
✔✔Coverage B - Personal and Advertising Injury in a CGL policy will cover all of the
following, EXCEPT:
A. A professional advertising firm knowingly publishes untrue statements about a
company.
B. A shop owner accuses an innocent person of shoplifting.
C. A landlord uses improper means to repossess an apartment from a tenant.
Knowingly publishing, disseminating, or spreading false information to the public is
excluded from coverage in a CGL.
D. A children's clothing manufacturer uses the image of a popular cartoon character in
its advertisements without permission - ✔✔A professional advertising firm knowingly
publishes untrue statements about a company.
✔✔Which of the following situations would be covered by a standard CGL insurance
policy with no endorsements?
A. A company is sued for copyright infringement in their advertisement.
B. An employee is injured in the stockroom by a falling package.
The CGL does not cover injuries of employees performing work related duties, recall of
products, or liquor liability.
C. A tavern over serves alcohol to a customer, who then goes out and causes a fatal
car accident.
D. A defective product is shipped en masse to the public and must be recalled. - ✔✔A
company is sued for copyright infringement in their advertisement.
✔✔Which type of CGL coverage would indemnify an insured party for damages
resulting from a libel claim? - ✔✔Personal and Advertising Injury coverage
✔✔All of the following would fall under the definition of a "personal injury" in a
Commercial General Liability policy, EXCEPT:
A. A prominent businessman sues his competitor for slandering him in a TV
commercial.
B. A woman sues a company, claiming that they sued her for no reason.
C. A man is justly fired and files for unemployment benefits from his previous employer.
D. A woman sues her landlord for wrongful entry after being evicted from her apartment.
- ✔✔(Personal injury refers to an insured's wrongful actions that violate the rights of a
third party, or otherwise produce injury other than bodily injury. An employer firing an
employee for just cause does not fall under this definition.)
✔✔Which of these claims would NOT be covered by Personal and Advertising Injury
coverage in a Commercial General Liability policy?
