AINS 23 Unit 6 Commercial General Liability Insurance
With complete solu on NEWEST 2025/2026
Tort law - Correct Answers The branch civil law that deals with civil wrongs other than
breaches of contract.
Prejudgment interest - Correct Answers Interest that may accrue on damages before a
judgment has been rendered.
Postjudgment interest - Correct Answers Interest that may accrue on damages a er a
judgment has been entered in a court and before the money is paid.
The most widely used general liability form: - Correct Answers The Insurance Services Office
(ISO) Commercial General Liability (CGL) Coverage Form
The two broad/major categories of liability losses insured under Coverage A and Coverage B of
the CGL form are: - Correct Answers 1. Bodily injury and property damage liability
2. Personal and adver-sing injury liability
The CGL form also includes medical payments coverage, which pays for ______, regardless of
whether the insured is legally liable. - Correct Answers The medical expenses of persons
injured on the insured's premises or because of the insured's ac-vi-es
The par-cular general liability coverage forms and endorsements that an insured selects are
combined into a _____ that can be included in a commercial package policy (CPP) or issued as a
monoline policy. - Correct Answers general liability coverage part
,The primary type of liability loss covered by general liability forms is covered under the _____. -
Correct Answers Coverage A - Bodily Injury and Property Damage Liability insuring
agreements of the CGL form
CGL Coverage A - The Premises and Opera-ons Liability exposure: - Correct Answers The
possibility that an organiza-on will be held liable because of bodily injury or property damage
caused by an accident that either occurs on the organiza-on's premises or arises out of the
organiza-on's ongoing (as opposed to completed) opera-ons on or off the premises.
An organiza-on's liability for accidents associated with the premises and opera-ons liability
hazard is usually based on ______. - Correct Answers negligence
Negligence: - Correct Answers The organiza-on ( or a person for whose ac-ons the
organiza-on is legally responsible) failed to exercise the appropriate degree of care owed to a
person under the circumstances, and the person suffered injury as the direct result of the
organiza-on's failure to exercise due care.
The premium for a CGL policy is typically calculated by _____. - Correct Answers Applying a
premises and opera-ons rate and a products and completed opera-ons rate to the appropriate
exposure base for each.
Although the Coverage A - Bodily Injury and Property Damage Liability insuring agreement is
subject to many exclusions, it covers the insured's liability for ______. - Correct Answers
bodily injury and property damage arising out of a wide range of sources
Tradi-onally, the sources of bodily injury and property damage liability have been categorized,
for premium development purposes, as ______. - Correct Answers 1. The premises and
opera-ons hazard
2. The products and completed opera-ons hazard
,Examples of accidents that could result in premises and opera-ons liability claims: - Correct
Answers 1. A customer inside a food store is injured when he slips and falls on a wet floor that
has just been mopped by a store employee who failed to put up a warning sign.
2. A passerby at a contractor's job site is injured when an employee of the contractor
accidentally drops a tool while working on a ladder above the sidewalk.
Contractual liability for bodily injury or property damage is o en considered to be part of the
______. - Correct Answers premises and opera-ons liability exposure
Although premises and opera-ons liability includes bodily injury or property damage arising
out of the use of mobile equipment (such as a bulldozer or crane) as defined in the CGL form,
bodily injury or property damage arising out of the use of aircra , autos (as defined in the CGL
form), or watercra is _______ in almost all instances. - Correct Answers excluded
Premises and opera-ons liability excludes: - Correct Answers 1. Bodily injury or property
damage arising out of the use of aircra , autos (as defined in the CGL form), or watercra
2. Liability for injury or illness of the organiza-on's employees
The CGL Coverage A - The Products and Completed Opera-ons Liability exposure: - Correct
Answers The possibility that an organiza-on will be held liable because of bodily injury or
property damage caused by an accident arising out of products manufactured, sold, or
distributed by the organiza-on and occurring a er the products are no longer on the
organiza-on's premises or in the organiza-on's physical possession; or by an accident arising
out of the organiza-on's completed work, including defec-ve parts or materials furnished with
the work.
An organiza-on's liability for products or completed opera-ons can, depending on the
circumstances of the claim and the jurisdic-on in which the claim is made, be based on _____. -
Correct Answers A variety of recovery theories, including (but not limited to) negligence, strict
liability in tort, misrepresenta-on, fraud, and breach of warranty.
, Examples of accidents that could result in products and completed opera-ons claims: - Correct
Answers 1. A consumer dies because of impuri-es in a medicine sold by a pharmaceu-cal
firm.
2. The tenants of an apartment building are injured by smoke inhala-on, and their personal
property is destroyed by a fire that resulted from faulty electrical work completed by a
contractor several hours earlier.
CGL Coverage B - Personal and Adver-sing Injury Liability: - Correct Answers 1.Covers the
insured's liability for "personal and adver-sing injury." The form defines this phrase to mean any
kind of injury (such as loss of reputa-on, humilia-on, economic loss, or even consequen-al
bodily injury) arising out of any of several listed offenses.
2. It is a common exposure that it is an integral part of the CGL form, but it can be omi=ed if the
insured does not want to buy it.
Examples of the listed personal and adver-sing injury liability offenses covered by the CGL form
include: - Correct Answers 1. False arrest
2. Wrongful evic-on
3. Libel
4. Slander
5. Infringing upon another's copyright in the insured's adver-sement.
CGL Coverage C - Medical Payments: - Correct Answers 1. Pays medical expenses of others in
certain circumstances.
2. Does not require the insured to be legally liable and, therefore, is not technically liability
insurance.
3. To be covered, the medical expenses (as defined in the form) must result from bodily injury
because of an accident occurring on the insured's premises or arising out of the insured's
opera-ons (other than completed opera-ons) anywhere in the coverage territory.
4. Its role is to pay small bodily injury claims without having to establish liability, perhaps
reducing the likelihood that an accident vic-m will sue the insured.
With complete solu on NEWEST 2025/2026
Tort law - Correct Answers The branch civil law that deals with civil wrongs other than
breaches of contract.
Prejudgment interest - Correct Answers Interest that may accrue on damages before a
judgment has been rendered.
Postjudgment interest - Correct Answers Interest that may accrue on damages a er a
judgment has been entered in a court and before the money is paid.
The most widely used general liability form: - Correct Answers The Insurance Services Office
(ISO) Commercial General Liability (CGL) Coverage Form
The two broad/major categories of liability losses insured under Coverage A and Coverage B of
the CGL form are: - Correct Answers 1. Bodily injury and property damage liability
2. Personal and adver-sing injury liability
The CGL form also includes medical payments coverage, which pays for ______, regardless of
whether the insured is legally liable. - Correct Answers The medical expenses of persons
injured on the insured's premises or because of the insured's ac-vi-es
The par-cular general liability coverage forms and endorsements that an insured selects are
combined into a _____ that can be included in a commercial package policy (CPP) or issued as a
monoline policy. - Correct Answers general liability coverage part
,The primary type of liability loss covered by general liability forms is covered under the _____. -
Correct Answers Coverage A - Bodily Injury and Property Damage Liability insuring
agreements of the CGL form
CGL Coverage A - The Premises and Opera-ons Liability exposure: - Correct Answers The
possibility that an organiza-on will be held liable because of bodily injury or property damage
caused by an accident that either occurs on the organiza-on's premises or arises out of the
organiza-on's ongoing (as opposed to completed) opera-ons on or off the premises.
An organiza-on's liability for accidents associated with the premises and opera-ons liability
hazard is usually based on ______. - Correct Answers negligence
Negligence: - Correct Answers The organiza-on ( or a person for whose ac-ons the
organiza-on is legally responsible) failed to exercise the appropriate degree of care owed to a
person under the circumstances, and the person suffered injury as the direct result of the
organiza-on's failure to exercise due care.
The premium for a CGL policy is typically calculated by _____. - Correct Answers Applying a
premises and opera-ons rate and a products and completed opera-ons rate to the appropriate
exposure base for each.
Although the Coverage A - Bodily Injury and Property Damage Liability insuring agreement is
subject to many exclusions, it covers the insured's liability for ______. - Correct Answers
bodily injury and property damage arising out of a wide range of sources
Tradi-onally, the sources of bodily injury and property damage liability have been categorized,
for premium development purposes, as ______. - Correct Answers 1. The premises and
opera-ons hazard
2. The products and completed opera-ons hazard
,Examples of accidents that could result in premises and opera-ons liability claims: - Correct
Answers 1. A customer inside a food store is injured when he slips and falls on a wet floor that
has just been mopped by a store employee who failed to put up a warning sign.
2. A passerby at a contractor's job site is injured when an employee of the contractor
accidentally drops a tool while working on a ladder above the sidewalk.
Contractual liability for bodily injury or property damage is o en considered to be part of the
______. - Correct Answers premises and opera-ons liability exposure
Although premises and opera-ons liability includes bodily injury or property damage arising
out of the use of mobile equipment (such as a bulldozer or crane) as defined in the CGL form,
bodily injury or property damage arising out of the use of aircra , autos (as defined in the CGL
form), or watercra is _______ in almost all instances. - Correct Answers excluded
Premises and opera-ons liability excludes: - Correct Answers 1. Bodily injury or property
damage arising out of the use of aircra , autos (as defined in the CGL form), or watercra
2. Liability for injury or illness of the organiza-on's employees
The CGL Coverage A - The Products and Completed Opera-ons Liability exposure: - Correct
Answers The possibility that an organiza-on will be held liable because of bodily injury or
property damage caused by an accident arising out of products manufactured, sold, or
distributed by the organiza-on and occurring a er the products are no longer on the
organiza-on's premises or in the organiza-on's physical possession; or by an accident arising
out of the organiza-on's completed work, including defec-ve parts or materials furnished with
the work.
An organiza-on's liability for products or completed opera-ons can, depending on the
circumstances of the claim and the jurisdic-on in which the claim is made, be based on _____. -
Correct Answers A variety of recovery theories, including (but not limited to) negligence, strict
liability in tort, misrepresenta-on, fraud, and breach of warranty.
, Examples of accidents that could result in products and completed opera-ons claims: - Correct
Answers 1. A consumer dies because of impuri-es in a medicine sold by a pharmaceu-cal
firm.
2. The tenants of an apartment building are injured by smoke inhala-on, and their personal
property is destroyed by a fire that resulted from faulty electrical work completed by a
contractor several hours earlier.
CGL Coverage B - Personal and Adver-sing Injury Liability: - Correct Answers 1.Covers the
insured's liability for "personal and adver-sing injury." The form defines this phrase to mean any
kind of injury (such as loss of reputa-on, humilia-on, economic loss, or even consequen-al
bodily injury) arising out of any of several listed offenses.
2. It is a common exposure that it is an integral part of the CGL form, but it can be omi=ed if the
insured does not want to buy it.
Examples of the listed personal and adver-sing injury liability offenses covered by the CGL form
include: - Correct Answers 1. False arrest
2. Wrongful evic-on
3. Libel
4. Slander
5. Infringing upon another's copyright in the insured's adver-sement.
CGL Coverage C - Medical Payments: - Correct Answers 1. Pays medical expenses of others in
certain circumstances.
2. Does not require the insured to be legally liable and, therefore, is not technically liability
insurance.
3. To be covered, the medical expenses (as defined in the form) must result from bodily injury
because of an accident occurring on the insured's premises or arising out of the insured's
opera-ons (other than completed opera-ons) anywhere in the coverage territory.
4. Its role is to pay small bodily injury claims without having to establish liability, perhaps
reducing the likelihood that an accident vic-m will sue the insured.
