CAIB 3 - Chapter 2

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Questions and Answers

Which of the following is a condition under which a watercraft is not excluded from Coverage A?

The watercraft is used only for recreational activities.

The watercraft is less than 8 meters long and used for carrying passengers for hire.

The watercraft is ashore on premises you own or rent. (correct)

The watercraft is owned by you.

Bodily Injury or property damage arising from the use of aircraft is excluded under Coverage A.

True

What type of property damage is excluded in relation to premises sold, given away, or abandoned?

Property damage that arises out of any part of those premises.

The CGL policy excludes damage to property in the care, custody, and control of the __________.

insured Signup and view all the answers

Which of the following is NOT a form of property that is excluded under the CGL policy?

Real property that you are not working on Signup and view all the answers

The policy will cover resultant damage caused by faulty workmanship.

True Signup and view all the answers

What is the limitation regarding properties that need restoring, repairing, or replacement under Coverage A?

They are excluded from coverage. Signup and view all the answers

What type of property damage is excluded from coverage under the CGL policy?

Damage to property owned by the insured Signup and view all the answers

The CGL policy provides coverage for workmanship guarantees.

False Signup and view all the answers

What happens if the defective work was performed by a subcontractor hired by the insured?

Coverage may apply. Signup and view all the answers

The CGL policy will not cover property damage due to a defect in your __________.

product Signup and view all the answers

Which situation is considered an exception to the CGL policy exclusions?

Work performed by a subcontractor hired by the insured Signup and view all the answers

Costs incurred for inspection of defective products are covered under the CGL policy.

True Signup and view all the answers

Costs for __________ or removing defective products are covered under certain conditions.

recall Signup and view all the answers

What does the insurance provided by the Commercial General Liability (CGL) do in terms of separation of insureds?

Each insured has separate coverage Signup and view all the answers

The policy can be transferred to another party without the insurer's agreement.

False Signup and view all the answers

What is the term used for goods sold by the insured under the CGL policy?

Your Products Signup and view all the answers

A person who performed work can be sued if the work is defective and causes injury or damage due to ________ operations.

completed Signup and view all the answers

Which of the following is NOT included in the definition of 'Your Products'?

Real property Signup and view all the answers

The CGL policy ensures warranties made about a product's quality are included in 'Your Products'.

True Signup and view all the answers

What does the term 'Insured’s Work' refer to?

Work done by the insured or on their behalf Signup and view all the answers

What must a plaintiff demonstrate in a false arrest claim?

Lawful justification was absent Signup and view all the answers

A landlord can evict a tenant for any reason without legal grounds.

False Signup and view all the answers

What type of personal injury involves false arrest?

False Arrest Signup and view all the answers

A statement that causes unjustified injury to the reputation of another person is called __________.

defamation Signup and view all the answers

Which of the following is a valid defense against a defamation claim?

The truth Signup and view all the answers

What can a tenant sue for if a landlord enters their premises without permission?

Negligence Signup and view all the answers

Slander is a form of written defamation.

False Signup and view all the answers

What is covered under the insurer's cost in a CGL policy?

Costs to reconstruct or prepare a legal defense Signup and view all the answers

Reasonable expenses incurred for investigation or defense do not include loss of earnings if the insured has to miss work.

False Signup and view all the answers

What is the premium percentage for Tenants Legal Liability under a CGL policy?

35% Signup and view all the answers

The insurer will pay for the reasonable expenses incurred during the investigation or defense, including travel, accommodation, and ______.

gas Signup and view all the answers

Which of the following represents a type of loss covered under the CGL policy?

Costs taxed against the insured Signup and view all the answers

What is the daily amount paid for loss of earnings due to court-related absences under the CGL policy?

$100 Signup and view all the answers

Coverage B in the CGL policy pertains to ________ liability.

personal injury Signup and view all the answers

Study Notes

Exclusions in Coverage A

Excludes bodily injury or property damage related to watercraft ownership, maintenance, or use, with specific exceptions for certain conditions.
Exceptions for watercraft include:
- Watercraft ashore on owned or rented premises.
- Watercraft under 8 meters, not used for passenger hire.
- Bodily injury to uninsured employees.
Excludes claims related to any aircraft or air cushion vehicle (hovercraft), and any airport operations tied to bodily injury or property damage.

Property Damage Exclusions

Covers exclusions related to property damage to:
- Property owned, rented, or occupied by the insured.
- Premises sold, given away, or abandoned.
- Loaned property and personal property under the care of the insured.
- Real property under construction or repair by the insured or subcontractor.
- Property needing restoration, repair, or replacement.
General liability does not cover property in the care, custody, or control of the insured, including damages from defective workmanship.

Impaired Property Exclusions

Excludes damage to impaired property or property not physically injured due to:
- Deficiencies in products or work.
- Failure to perform contractual obligations.
Covers sudden and accidental losses.

Cost of Product Recall

If a defect is known and a product is withdrawn from the market, the policy covers costs associated with:
- Withdrawal, recall, inspection, repair, or replacement.

CGL Policy Conditions

Insurers are separated, protecting each from the breach of another's policy.
The insurance allows for subrogation rights.
Policy is non-transferable unless agreed by the insurer.

Definitions

Products Liability: Goods sold deemed safe for consumer use; includes products manufactured or handled by the insured or associated entities.
Completed Operations: Refers to work performed by the insured that may cause injury or damage if defective.
Personal Injury: Covers non-bodily injury claims like false arrest, malicious prosecution, wrongful eviction, defamation (libel and slander), and violations of privacy.

Excludes claims related to false arrest, malicious prosecution, wrongful eviction, defamation, and violation of privacy.
Defamation requires proof of negligence, with truth as a defense.

War Risks and Supplementary Payments

Excludes losses related to war.
Supplementary Payments under CGL include costs for legal defense, bonds to release assets, and reasonable expenses for investigation or court appearance.

Determination of Premium

Pricing for Coverage A based on:
- Building size, occupancy, payroll, and location.
No additional costs for Coverage B (personal injury) and Coverage C (medical payments) are included in the total CGL premium.
Coverage D for tenants' legal liability typically costs 35% of the building's actual rate.

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Description

Test your understanding of exclusions in Coverage A related to bodily injury and property damage, specifically concerning watercraft. This quiz covers exceptions and specific conditions under which coverage may apply or be excluded. Perfect for insurance students and professionals.

CAIB 3 - Chapter 2

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Questions and Answers

Which of the following is a condition under which a watercraft is not excluded from Coverage A?

Bodily Injury or property damage arising from the use of aircraft is excluded under Coverage A.

What type of property damage is excluded in relation to premises sold, given away, or abandoned?

The CGL policy excludes damage to property in the care, custody, and control of the __________.

Which of the following is NOT a form of property that is excluded under the CGL policy?

The policy will cover resultant damage caused by faulty workmanship.

What is the limitation regarding properties that need restoring, repairing, or replacement under Coverage A?

What type of property damage is excluded from coverage under the CGL policy?

The CGL policy provides coverage for workmanship guarantees.

What happens if the defective work was performed by a subcontractor hired by the insured?

The CGL policy will not cover property damage due to a defect in your __________.

Which situation is considered an exception to the CGL policy exclusions?

Costs incurred for inspection of defective products are covered under the CGL policy.

Costs for __________ or removing defective products are covered under certain conditions.

What does the insurance provided by the Commercial General Liability (CGL) do in terms of separation of insureds?

The policy can be transferred to another party without the insurer's agreement.

What is the term used for goods sold by the insured under the CGL policy?

A person who performed work can be sued if the work is defective and causes injury or damage due to ________ operations.

Which of the following is NOT included in the definition of 'Your Products'?

The CGL policy ensures warranties made about a product's quality are included in 'Your Products'.

What does the term 'Insured’s Work' refer to?

What must a plaintiff demonstrate in a false arrest claim?

A landlord can evict a tenant for any reason without legal grounds.

What type of personal injury involves false arrest?

A statement that causes unjustified injury to the reputation of another person is called __________.

Which of the following is a valid defense against a defamation claim?

What can a tenant sue for if a landlord enters their premises without permission?

Slander is a form of written defamation.

What is covered under the insurer's cost in a CGL policy?

Reasonable expenses incurred for investigation or defense do not include loss of earnings if the insured has to miss work.

What is the premium percentage for Tenants Legal Liability under a CGL policy?

The insurer will pay for the reasonable expenses incurred during the investigation or defense, including travel, accommodation, and ______.

Which of the following represents a type of loss covered under the CGL policy?

What is the daily amount paid for loss of earnings due to court-related absences under the CGL policy?

Coverage B in the CGL policy pertains to ________ liability.

Study Notes

Exclusions in Coverage A

Property Damage Exclusions

Impaired Property Exclusions

Cost of Product Recall

CGL Policy Conditions

Definitions

Exclusions Related to Personal Injury

War Risks and Supplementary Payments

Determination of Premium

Studying That Suits You

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