AD Banker AL P&C CH 9 Commercial General Liability Coverage Test Questions Answered Correctly Latest Update

AD Banker AL P&C CH 9 Commercial General Liability Coverage Test Questions Answered Correctly Latest Update When replacing a CGL Claims Mode policy with a new policy, when should you set the retroactive date so that there is no loss in coverage? A. One year after the prior policy retroactive date B. The same as the prior policy retroactive date C. 60 days earlier than the new policy effective date D. One year earlier than the prior policy retroactive date - Answers B. When replacing a Claims-Made policy you should always establish the coverage timeline identical as the replacing policy to cover all incidents that may result in a claim. A contractor installs an air compressor system at a customers business. After the contractor leaves the premises the unit blows up causing injuries to their customers. The contractors liability would be covered under which of the following coverages? A. Completed operations B. Contractual liability C. Products liability D. Premises and operations - Answers A. Completed operations covers the contractor once the job is completed and the contractor is no longer at the location. Operations covers the contractor while on site doing the work in case they are liable for damages caused by their operation. Products liability covers manufacturers of products and Premises covers the business liability. Under the claims-made Commercial General Liability coverage form, the first date that a loss may occur and still be covered under the policy is the: A. Mini-tale date B. Reporting date C. Retroactive date D. Policy effective date - Answers C. The retroactive date is a date in the past; anything that occurred before that date will not be covered. It serves as a way to back date the policy to cover any claims that may have occurred after the retroactive date and during the policy period or an extended reporting period provided. The Commercial General Liability claims-made coverage form may contain a retroactive date. This is the date: A. Before which the claims-made form will not cover a claim B. That will automatically backdate a policy to any date in the past in order to cover an incident that occurs C. All of the answers listed D. That the insured may request to backdate the policy and the insurer must comply - Answers A. Under the claims-made CGL form, the retroactive date is a date in the Declarations as the first date on which an event may occur and be covered by the policy. It will not cover a claim at any date in the past and the insurer is not required to accept the request to include this provision. The retroactive date will be included only at the insurers discretion. The Commercial General Liability coverage part can be used to insure against all of the following exposures, except: A. Completed Operations Liability B. Liquor Liability C. Premises Liability D. Products Liability - Answers B. The Commercial General Liability policy covers a business's liability for premises and operations exposure and products-completed operations exposure. Liquor Liability is for those that sell liquor and is always excluded unless added by endorsement. Under the CGL, the products-completed operations hazard limit is subject to: A. A product-completed operations aggregate limit B. A per occurrence limit C. Both answers D. Neither answer - Answers C. The products-completed operations hazard has its own aggregate limit. It is not included in the policy general aggregate limit at all. It is also subject to a per occurrence limit. Under the claims-made CGL, the supplemental extended reporting period: A. Provides an unlimited extension for making claims for losses that occurred during the policy period, but the insured must pay an additional premium B. Provides an unlimited extension for making claims for losses that occurred during the policy period, this extension is provided automatically without any additional charge C. Provides a 60 day Mini Tail period for the reporting of an incident that results from an occurrence that took place before the end of the policy period D. Provides a 5 year Midi Tail period for a claim arising from an occurrence that took place