CIC COMMERCIAL GENERAL LIABILITY
PART 4 EXAM QUESTION WITH
COMPLETE SOLUTIONS
What is the damage to your work exclusion in the CGL policy? - Answer-Excludes
property damage to the named insured's work and included in the product‐completed
operations hazard
What is the exception for damage to your work exclusion? - Answer-If the work is
damaged or the work out of is damaged by a subcontractor that is working for you.
Is the following excluded by the damage to your work exclusion. PD to the named
insured's work resulting from the named insured's own work ? - Answer-Yes this is
excluded
Is the following excluded by the damage to your work exclusion?PD to a subcontractor's
work when the damage results from the named insured's work? - Answer-covered
Is the following excluded by the damage to your work exclusion? PD to a
subcontractor's work when the damage results from that sub's work - Answer-covered
Is the following excluded by the damage to your work exclusion? PD to a
subcontractor's work when the damage results from the work of another subcontractor -
Answer-covered
Is the following excluded by the damage to your work exclusion? PD to named insured's
work when the damage results from the named insured's subcontractor's work -
Answer-covered
What are the endorsements that can be added to the damage to your work exclusion
and what do the do? - Answer-a) CG 22 94 Exclusion - Damage To Work Performed By
Subcontractors On Your Behalf -
Removes the exception for subcontractors
b) CG 22 95 Exclusion Damage To Work Performed By Subcontractors On Your Behalf
Designated Sites Or Operations -
Removes the exception for work performed by subcontractors at the sites or operations
described in the endorsement schedule
c) CG 21 34 Exclusion Designated Work - Excludes coverage for the named insured's
work described in the endorsement schedule
, What is the damaged to impaired property or property not physically injured exclusion? -
Answer-This excluison applies to property damage only but it:
1) Excludes PD arising out of a defect, deficiency, inadequacy or dangerous condition in
the named insured's product or the named insured's work"; or
2) Excludes PD arising out of a delay or to perform according to the terms of a contract
or agreement
Example: You have a forklift but there is a known defect in the forklift. Until it actually
malfunctions and causes property damage, there is not coverage. CGL is not designed
to be a warranty policy. Now if the forklift started a fire that was deemed to be caused
by the defective part, then there would be coverage to the forklift but not to the defective
part.
what is the exception to the damage to impaired property or property not physically
injured? - Answer-There is an exception for loss of use of other property arising out of
sudden and accidental physical injury to "your product" or "your work" after the impaired
property has been put to its intended use.
Example: company that manufacturers part of the fork lift and then gives the other
company the part to finish it. If that part does not work correctly then the whole machine
is ruined. The other party can bring a suit against the part manufacturer until they can
get delivery of replacement part from another manufacturer.
What is the definition of impaired property? - Answer-o 1. Incorporates named insured's
product/work that is known/thought to be defective, deficient
o 2. Can be restored to use by repair/replacement of named insured's work/product.
What is the recall on products, work or impaired property exclusion? - Answer-CGL
policy does not cover expenses incurred in withdrawing products, damages claimed for
loss of use recalled products, and expenses incurred by a supplier of components in
withdrawing products that incorporate supplier's products already in the hands of the
purchaser.
This would be a first party loss rather than a liability loss.
How can a CGL policy provide coverage for the recall on products, work or impaired
property exclusion? - Answer-with the CG 04 36 Limited Product Withdrawal Expense
Endorsement - this provides limited coverage for the expenses related to withdrawing a
product but only under limited circumstances.
What is the personal and advertising injury exclusion under Coverage A of the CGL? -
Answer-No coverage for BI injury from Personal and Advertising injury because it picks
it up under coverage B.
PART 4 EXAM QUESTION WITH
COMPLETE SOLUTIONS
What is the damage to your work exclusion in the CGL policy? - Answer-Excludes
property damage to the named insured's work and included in the product‐completed
operations hazard
What is the exception for damage to your work exclusion? - Answer-If the work is
damaged or the work out of is damaged by a subcontractor that is working for you.
Is the following excluded by the damage to your work exclusion. PD to the named
insured's work resulting from the named insured's own work ? - Answer-Yes this is
excluded
Is the following excluded by the damage to your work exclusion?PD to a subcontractor's
work when the damage results from the named insured's work? - Answer-covered
Is the following excluded by the damage to your work exclusion? PD to a
subcontractor's work when the damage results from that sub's work - Answer-covered
Is the following excluded by the damage to your work exclusion? PD to a
subcontractor's work when the damage results from the work of another subcontractor -
Answer-covered
Is the following excluded by the damage to your work exclusion? PD to named insured's
work when the damage results from the named insured's subcontractor's work -
Answer-covered
What are the endorsements that can be added to the damage to your work exclusion
and what do the do? - Answer-a) CG 22 94 Exclusion - Damage To Work Performed By
Subcontractors On Your Behalf -
Removes the exception for subcontractors
b) CG 22 95 Exclusion Damage To Work Performed By Subcontractors On Your Behalf
Designated Sites Or Operations -
Removes the exception for work performed by subcontractors at the sites or operations
described in the endorsement schedule
c) CG 21 34 Exclusion Designated Work - Excludes coverage for the named insured's
work described in the endorsement schedule
, What is the damaged to impaired property or property not physically injured exclusion? -
Answer-This excluison applies to property damage only but it:
1) Excludes PD arising out of a defect, deficiency, inadequacy or dangerous condition in
the named insured's product or the named insured's work"; or
2) Excludes PD arising out of a delay or to perform according to the terms of a contract
or agreement
Example: You have a forklift but there is a known defect in the forklift. Until it actually
malfunctions and causes property damage, there is not coverage. CGL is not designed
to be a warranty policy. Now if the forklift started a fire that was deemed to be caused
by the defective part, then there would be coverage to the forklift but not to the defective
part.
what is the exception to the damage to impaired property or property not physically
injured? - Answer-There is an exception for loss of use of other property arising out of
sudden and accidental physical injury to "your product" or "your work" after the impaired
property has been put to its intended use.
Example: company that manufacturers part of the fork lift and then gives the other
company the part to finish it. If that part does not work correctly then the whole machine
is ruined. The other party can bring a suit against the part manufacturer until they can
get delivery of replacement part from another manufacturer.
What is the definition of impaired property? - Answer-o 1. Incorporates named insured's
product/work that is known/thought to be defective, deficient
o 2. Can be restored to use by repair/replacement of named insured's work/product.
What is the recall on products, work or impaired property exclusion? - Answer-CGL
policy does not cover expenses incurred in withdrawing products, damages claimed for
loss of use recalled products, and expenses incurred by a supplier of components in
withdrawing products that incorporate supplier's products already in the hands of the
purchaser.
This would be a first party loss rather than a liability loss.
How can a CGL policy provide coverage for the recall on products, work or impaired
property exclusion? - Answer-with the CG 04 36 Limited Product Withdrawal Expense
Endorsement - this provides limited coverage for the expenses related to withdrawing a
product but only under limited circumstances.
What is the personal and advertising injury exclusion under Coverage A of the CGL? -
Answer-No coverage for BI injury from Personal and Advertising injury because it picks
it up under coverage B.
