Commercial Casualty I - Questions With Correct
Solutions
Two weeks after repairing a water leak, the pipe joint separates due to poor
workmanship, causing property damage to a customer's house. This is an
example of: Right Ans - completed operations exposure
Which of the following is true about punitive damages? Right Ans - since
punitive damages punish a wrongdoer, states can prohibit or restrict
insurance liability policies from paying punitive damages
A can falls from the top shelf in a retail location and injures a customer. This is
an example of: Right Ans - premises exposure
In liability, the money awarded in a suit or claim is referred to as damages.
Compensatory damages are sums of money that compensate actual loss.
Which of the following is true about compensatory damages? Right Ans -
loss of use is a type of special damage
A defective drill bit that fragments and injures a customer's hand is an
example of: Right Ans - products exposure
An employee rupturing a customer's underground sprinkler system while
digging a hole is an example of: Right Ans - operations exposure
Give an example of absolute liability Right Ans - a neighbor's child is
injured by a pet lion
Give an example of negligence Right Ans - a driver runs a red light and
causes vehicle damage to another vehicle in an auto accident
Give an example of an intentional act Right Ans - a landlord allegedly
enters the premises of a tenant without permission
Give an example of strict liability Right Ans - a toaster does not shut off and
starts a fire in the kitchen
List compensatory damage examples Right Ans - pain and suffering
, lost income
medical bills
repair or replacement of property
List punitive damage examples Right Ans - compensation in excess of
actual damages
compensation for malicious conduct
punishes the defendant
Which of the following best describes "property damage" as defined in the
CGL Policy? Right Ans - damage to the tangible property of others and the
loss of use of that property
A defective manufacturing process causes automobile tire treads to separate,
resulting in collisions and bodily injuries. This is an example of: Right Ans -
product liability
While painting a house, the insured accidentally sprays paint onto their
customer's autos. This is an example of: Right Ans - operations liability
Which of the following is considered part of the "coverage territory" as
defined in the CGL Policy? Right Ans - canadian cities with an international
bridge to the US
A customer trips over an electrical extension cord used in a retail store and
injures his back. This is an example of: Right Ans - premises liability
Which of the following is not considered "mobile equipment"? Right Ans - a
pick-up truck with a permanently mounted cherry picker
Which of the following is considered part of the "coverage territory" as
defined in the CGL Policy? Right Ans - the insured makes a product in the
US, sells it in Mexico, and a product liability suit is filed in the US
Mobile equipment is an important definition in the CGL Policy and the BAP.
The definition is the same for both policies. Which of the following vehicles is
not considered "mobile equipment"? Right Ans - a street sweeper used by
city street maintenance department
Solutions
Two weeks after repairing a water leak, the pipe joint separates due to poor
workmanship, causing property damage to a customer's house. This is an
example of: Right Ans - completed operations exposure
Which of the following is true about punitive damages? Right Ans - since
punitive damages punish a wrongdoer, states can prohibit or restrict
insurance liability policies from paying punitive damages
A can falls from the top shelf in a retail location and injures a customer. This is
an example of: Right Ans - premises exposure
In liability, the money awarded in a suit or claim is referred to as damages.
Compensatory damages are sums of money that compensate actual loss.
Which of the following is true about compensatory damages? Right Ans -
loss of use is a type of special damage
A defective drill bit that fragments and injures a customer's hand is an
example of: Right Ans - products exposure
An employee rupturing a customer's underground sprinkler system while
digging a hole is an example of: Right Ans - operations exposure
Give an example of absolute liability Right Ans - a neighbor's child is
injured by a pet lion
Give an example of negligence Right Ans - a driver runs a red light and
causes vehicle damage to another vehicle in an auto accident
Give an example of an intentional act Right Ans - a landlord allegedly
enters the premises of a tenant without permission
Give an example of strict liability Right Ans - a toaster does not shut off and
starts a fire in the kitchen
List compensatory damage examples Right Ans - pain and suffering
, lost income
medical bills
repair or replacement of property
List punitive damage examples Right Ans - compensation in excess of
actual damages
compensation for malicious conduct
punishes the defendant
Which of the following best describes "property damage" as defined in the
CGL Policy? Right Ans - damage to the tangible property of others and the
loss of use of that property
A defective manufacturing process causes automobile tire treads to separate,
resulting in collisions and bodily injuries. This is an example of: Right Ans -
product liability
While painting a house, the insured accidentally sprays paint onto their
customer's autos. This is an example of: Right Ans - operations liability
Which of the following is considered part of the "coverage territory" as
defined in the CGL Policy? Right Ans - canadian cities with an international
bridge to the US
A customer trips over an electrical extension cord used in a retail store and
injures his back. This is an example of: Right Ans - premises liability
Which of the following is not considered "mobile equipment"? Right Ans - a
pick-up truck with a permanently mounted cherry picker
Which of the following is considered part of the "coverage territory" as
defined in the CGL Policy? Right Ans - the insured makes a product in the
US, sells it in Mexico, and a product liability suit is filed in the US
Mobile equipment is an important definition in the CGL Policy and the BAP.
The definition is the same for both policies. Which of the following vehicles is
not considered "mobile equipment"? Right Ans - a street sweeper used by
city street maintenance department
