COMP 444 ELABORATED QUESTIONS AND ANSWERS

COMP 444 ELABORATED QUESTIONS AND ANSWERS A - CORRECT ANSWER-The Workers Compensation and Employers Liability policy (a) provides workers compensation coverage without a maximum limit. (b) covers both workers compensation and employers liability with a $100,000 limit. (c) covers workers compensation and employers liability without a maximum limit. (d) automatically covers benefits payable under any state workers compensation law. D - CORRECT ANSWER-Although workers compensation was originally considered to be an exclusive remedy for injured workers, there has been an increase in suits against employers based on (a) the doctrine of dual capacity. (b) third-party over suits. (c) suits by an injured worker's spouse or family. (d) all of the above C - CORRECT ANSWER-The Other States Insurance insuring agreement of the Workers Compensation and Employers Liability policy is designed to cover workers compensation benefits (a) in states with monopolistic state funds. (b) for workers for whom workers compensation coverage is not mandatory. (c) when a worker employed in one state makes claim for benefits in the other state. (d) of his or her home state when the injury occurs in another state A - CORRECT ANSWER-Commercial general liability exposures include all of the following except: (a) liability arising out of automobiles. (b) liability arising out of the ownership and maintenance of premises (c) products liability (d) contractual liability. D - CORRECT ANSWER-Which of the following is not a basis under which liability may be imposed on a manufacturer because of injury or damage caused by its products? (a) the principle of negligence. (b) breach of warranty. (c) strict liability. (d) the period of repose doctrine A - CORRECT ANSWER-The Commercial General Liability policy contains an exclusion of (a) liability arising out of automobiles. (b) liability arising out of all types of mobile equipment. (c) liability arising out of the acts of independent contractors. (d) all of the above. C - CORRECT ANSWER-The decision by insurers to introduce a claims-made general liability policy in the 1980s was prompted by court decisions involving claims (a) under the doctrine of dual capacity. (b) involving the period of repose doctrine. (c) latent injuries. (d) concurrent causation A - CORRECT ANSWER-The coverage trigger in the Commercial General Liability (CGL) claims-made form is roughly analogous to (a) the fidelity discovery form. (b) the fidelity loss sustained form. (c) the CGL occurrence form. (d) ocean marine protection and indemnity coverage. D - CORRECT ANSWER-For which of the following is coverage not included in the Commercial General Liability policy? (a) premises and operations. (b) products and completed operations. (c) independent contractors. (d) directors and officers liability. B - CORRECT ANSWER-For which of the following is coverage automatically included in the Commercial General Liability policy? (a) officers and directors errors and omissions insurance. (b) contractual liability coverage. (c) liquor liability coverage. (d) pension fiduciary liability coverage D - CORRECT ANSWER-A major exposure facing businesses that is not covered by the CGL and for which separate liability coverage may be required is (a) contractual liability. (b) product liability. (c) liability for the acts of independent contractors. (d) employment practices liability. D - CORRECT ANSWER-The form of insurance designed to provide liability coverage to firms that sell liquor by the drink is called: (a) owners and contractors protective.