Insurance Paper 6

1

ABC Corporation is insured under a Business and Personal Property Coverage Form that specifies a $4 million limit of insurance on the building and a $500,000 limit on business personal property at the building’s address. The policy has a $10,000 deductible. A $4.4 million loss to the building and a $400,000 loss to business personal property result from a covered cause of loss. Two trees also are destroyed, resulting in a $1,000 loss fully covered by BPP Coverage Form’s Outdoor Property coverage extension. Assuming no coinsurance penalty applies, what is the amount payable after consideration of the deductible and policy limits?






2

Which of the following is true regarding the “No Benefit to Bailee” condition used in commercial property forms?






3

Which of the following statements concerning the Agreed Value optional coverage available for purchasers of the Business and Personal Property Coverage Form is NOT true?






4

Which of the following factors does NOT result in higher premiums on commercial property insurance?






5

The most widely used general liability insurance form is the Insurance Services Office, Inc. (ISO) Commercial General Liability (CGL) policy. Which of the following statements about the CGL are true?
I. It can be written to cover the insured’s legal liability arising from premises and operations.
II. It can be written to cover the insured’s legal liability arising from products and completed operations.
III. It can be included in a Commercial Package Policy that provides coverage for both property and liability losses.






6

The most widely used general liability insurance form is the Insurance Services Office, Inc. (ISO) Commercial General Liability (CGL) policy. Which of the following is NOT covered by the CGL with respect to the insured’s legal liability?






7

Which of the following are paid by the Commercial General Liability form’s Coverage C – Medical Payments?
I. Only medical expenses for which the insured is legally liable.
II. Medical expenses arising from injuries resulting from an accident occurring on the insured’s premises.
III. Medical expenses from injuries arising out of the insured’s completed operations.






8

Which of the following statements regarding certain supplementary payments under Coverages A and B of the Commercial General Liability policy are true? I. Such payments are in addition to the policy limits. II. Such payments are used to pay for court costs. III. Such payments are used to pay for prejudgment interest on amounts awarded to the plaintiff.






9

Chip is a volunteer worker at his church’s mid-week adult day care facility. He accidentally spilled hot coffee on one of the elderly participants, Mary. After being treated for third-degree burns, Mary sued both the church and Chip for damages resulting from her injury. The church is insured under the Commercial General Liability (CGL) policy. Which one of the following statements is true?






10

The owner, who also is the landlord, of an office building has Premises and Operations coverage under a Commercial General Liability (CGL) policy with a general aggregate limit of $5 million. The policy does not contain a Products and Completed Operations aggregate limit. Which of the following is true regarding any damages caused by products and completed operations for which the insured is liable?






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