CRIS EXAM PREP TEST BANK VERIFIED
QUESTIONS AND CORRECT ANSWERS
●● Marvelous Mansions, a luxury home builder, is insured under a
commercial general liability policy. As a result, Marvelous has coverage
for:
Answer: Damages awarded to a third party because of injury or damage
for which Marvelous Mansions is legally responsible, as well as defense
costs associated with the suit.
●● Bogle Construction Company, which employs fewer than 100
people, has a general liability policy in which only Bogle Construction
Company is listed as the named insured. Bogle's foreman asks the firm's
insurance broker whether this policy provides any coverage for his
employees. The broker correctly tells him that the employees:
Answer: Are insureds only to the extent their liability arises out of their
work for Bogle Construction.
●● The general aggregate limit of a CGL policy is:
Answer: The most the insurer will pay for all claims, other than losses
that fall under the "products-completed operations hazard," for the entire
policy period.
●● Gerry's General Contracting has been hired to construct a minor
league baseball stadium. Gerry intends to use various trade
,subcontractors to perform some of the work. The construction contract
requires Gerry's General Contracting to "indemnify and hold harmless"
the stadium owner. This means that:
Answer: Gerry will bear responsibility for the owner's liability for injury
or damage to third parties in connection with the work performed under
the contract.
●● During a business meeting in Japan, Bob Blue, who lives in
Honolulu and is employed as the marketing vice president of the
Hawaii-based Blue Pipeline Company, accidentally trips Joan, another
company's representative. Joan is a resident of Anchorage, Alaska. Joan
sues Blue Pipeline for her medical expenses and disability income loss.
Blue Pipeline refers the claim to its CGL insurer. What is the impact of
the coverage territory provisions on coverage for this claim?
Answer: The insurer will respond to the claim because Bob is a U.S.
resident who was only out of the United States for a short time on
business.
●● Armadillo Tanks changes its CGL policy from First Insurance, which
provided coverage from February 1, 2009 to February 1, 2010, to
Second Insurance, which provides coverage from February 1, 2010 to
February 1, 2011. On October 15, 2009, Armadillo receives notice of a
claim for an injury that occurred on November 22, 2008. The claim is
ultimately settled on April 15, 2010. If both CGL policies have an
occurrence trigger, which policy is triggered for this claim?
Answer: Neither policy is triggered by this claim.
, ●● Barnes Builders has a CGL policy that covers injury or damage only
if it occurs during the policy period. What type of coverage trigger does
the policy have?
Answer: Occurrence.
●● The CGL definition of "bodily injury" includes all of the following
except:
Answer: Wrongful imprisonment.
●● Gencon purchases a CGL policy and is almost immediately sued by a
pedestrian who was injured when a load of bricks fell on him as he
walked past a construction site. Under the Coverage A insuring
agreement, the answer to the which of the following questions influences
whether the policy is triggered for this claim?
Answer: When did the injury occur?
●● Sally is an employee of the Times Company, which creates custom-
designed signs for businesses. She is on a ladder installing a Greek
Restaurant sign when the ladder slides out from under her. Times owns
the ladder, which landed on a bystander. Both Sally and the bystander
were injured. Times has not signed a hold harmless agreement with
Greek Restaurant, which owns the sign. Which of the following would
be covered under Times' CGL policy?
Answer: The injured bystander files a claim against Times.
QUESTIONS AND CORRECT ANSWERS
●● Marvelous Mansions, a luxury home builder, is insured under a
commercial general liability policy. As a result, Marvelous has coverage
for:
Answer: Damages awarded to a third party because of injury or damage
for which Marvelous Mansions is legally responsible, as well as defense
costs associated with the suit.
●● Bogle Construction Company, which employs fewer than 100
people, has a general liability policy in which only Bogle Construction
Company is listed as the named insured. Bogle's foreman asks the firm's
insurance broker whether this policy provides any coverage for his
employees. The broker correctly tells him that the employees:
Answer: Are insureds only to the extent their liability arises out of their
work for Bogle Construction.
●● The general aggregate limit of a CGL policy is:
Answer: The most the insurer will pay for all claims, other than losses
that fall under the "products-completed operations hazard," for the entire
policy period.
●● Gerry's General Contracting has been hired to construct a minor
league baseball stadium. Gerry intends to use various trade
,subcontractors to perform some of the work. The construction contract
requires Gerry's General Contracting to "indemnify and hold harmless"
the stadium owner. This means that:
Answer: Gerry will bear responsibility for the owner's liability for injury
or damage to third parties in connection with the work performed under
the contract.
●● During a business meeting in Japan, Bob Blue, who lives in
Honolulu and is employed as the marketing vice president of the
Hawaii-based Blue Pipeline Company, accidentally trips Joan, another
company's representative. Joan is a resident of Anchorage, Alaska. Joan
sues Blue Pipeline for her medical expenses and disability income loss.
Blue Pipeline refers the claim to its CGL insurer. What is the impact of
the coverage territory provisions on coverage for this claim?
Answer: The insurer will respond to the claim because Bob is a U.S.
resident who was only out of the United States for a short time on
business.
●● Armadillo Tanks changes its CGL policy from First Insurance, which
provided coverage from February 1, 2009 to February 1, 2010, to
Second Insurance, which provides coverage from February 1, 2010 to
February 1, 2011. On October 15, 2009, Armadillo receives notice of a
claim for an injury that occurred on November 22, 2008. The claim is
ultimately settled on April 15, 2010. If both CGL policies have an
occurrence trigger, which policy is triggered for this claim?
Answer: Neither policy is triggered by this claim.
, ●● Barnes Builders has a CGL policy that covers injury or damage only
if it occurs during the policy period. What type of coverage trigger does
the policy have?
Answer: Occurrence.
●● The CGL definition of "bodily injury" includes all of the following
except:
Answer: Wrongful imprisonment.
●● Gencon purchases a CGL policy and is almost immediately sued by a
pedestrian who was injured when a load of bricks fell on him as he
walked past a construction site. Under the Coverage A insuring
agreement, the answer to the which of the following questions influences
whether the policy is triggered for this claim?
Answer: When did the injury occur?
●● Sally is an employee of the Times Company, which creates custom-
designed signs for businesses. She is on a ladder installing a Greek
Restaurant sign when the ladder slides out from under her. Times owns
the ladder, which landed on a bystander. Both Sally and the bystander
were injured. Times has not signed a hold harmless agreement with
Greek Restaurant, which owns the sign. Which of the following would
be covered under Times' CGL policy?
Answer: The injured bystander files a claim against Times.
