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AINS 103: CHAPTER #3 QUIZ QUESTIONS WITH CORRECT ANSWERS
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AINS 103: CHAPTER #3 QUIZ QUESTIONS WITH CORRECT ANSWERS
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AINS 103: CHAPTER #3 QUIZQUESTIONS WITH CORRECT ANSWERS
What does a commercial general liability coverage form protect? - Answer-An
organization against financial losses stemming from liability for damages to people or
property.
Jenny owns a convenience store. A customer slipped and fell in an aisle but only
required minor medical care at a local clinic. What coverage might apply for this
occurrence? - Answer-Coverage C might apply, because Coverage C-Medical
Payments, pays medical expenses of others in certain circumstances.
Sean entered a bookstore and asked for a book on the highest shelf. The bookstore's
worker got a ladder to retrieve the book, but the ladder fell and hit Sean. Sean required
hospitalization and overnight observation. What coverage would apply for the
bookstore? - Answer-Coverage A might apply, because Coverage A-Bodily Injury and
Property Damage Liability covers bodily injury or property damage, such as when a
customer is injured in a store.
Occurrence: - Answer-An accident or event that leads to a claim being filed.
Bodily Injury: - Answer-Any physical injury to a person, including sickness, disease, and
death.
Property Damage: - Answer-The injury to, destruction of, or loss of use of tangible
property.
Conditions of CGL Coverage A: - Answer-1. Insured must be legally liable for the
damages.
2. Requires the damages to result from bodily injury or property damage as defined in
the policy.
3. Intentional events, such as assault, are not covered.
Jimmy owns an auto body shop in AZ that is insured under an unendorsed CGL form.
He took a trip to Europe, offered to repair his host's car and accidently damaged the
vehicle. If his host sues, would Jimmy's CGL form cover the claim? - Answer-No,
because the event happened outside the policy coverage zone.
Taylor slipped on a puddle in a deli and was hospitalized, but was unable to file a claim
for 2 years. The store's CGL policy was in effect when the accident occurred. Would
Taylor's damages be covered? - Answer-Yes, because the damages occurred within the
time period the policy was in effect.
For the purposes of the CGL form, what can the term "injury" include? - Answer-Mental
anguish, mental injury, fright, shock, humiliation, and loss of reputation.
, The CGL Coverage B insuring agreement states that the insurer will pay any damages
assessed against the insured for several specific offenses, such as: - Answer-False
imprisonment, malicious prosecution, wrongful eviction, libel, slander, infringement on
copyright.
CGL Coverage B Exclusions: - Answer-Intentional acts, breaching a contract, as well as
limitations on occurrences that take place on or in internet chat rooms and discussion
boards.
Why does Coverage C provide a modest amount of insurance for settling minor injury
cases without requiring determination of liability? - Answer-Because it is meant to make
quick settlements in the hopes of avoiding larger liability claims.
Paul owns a gas station. Janet stopped for gas and slipped on an oil patch. She was
taken to the ER and released the same day in satisfactory condition. A week later, Janet
filed a claim against the gas station. Would Janet's claim be covered under Paul's CGL
Coverage C? - Answer-Yes.
Exclusions under Coverage C: - Answer-Coverage is excluded for bodily injury to any
insured, anyone hired to work for an insured, a tenant, a person entitled to workers
comp, or a person injured while taking part in exercises or games.
Insuring Agreement: - Answer-An agreement where the insurer agrees to pay medical
expenses, including funeral expenses, for bodily injury caused by an accident. Medical
expenses must also be incurred and reported within one year and must agree to
examination by a physician designated by the insurer.
Michael is a general liability claims adjuster for Goshen Mutual. He wants to see if an
insured has any endorsements that apply to its general liability policy. Which section of
the coverage form would provide this information for Michael? - Answer-Declarations.
A customer filed a suit against Patsy's Market, claiming that she was injured when she
slipped and fell in the produce section. The customer claimed that she broke her elbow,
had to have surgery, and missed a week of work. The owner of Patsy's Market told its
commercial general liability (CGL) insurer that the produce area was always clean and
that the claim was suspicious. After reviewing the medical bills and video footage from
the market, the insurer concluded that Patsy's Market was probably liable for the
customer's injury. The CGL insurer will most likely attempt to do which one of the
following? - Answer-Negotiate an out of court settlement.
Dollar Donut Shop (DDS) is located in a shopping center with a number of other retail
businesses. One day a grease fire started at DDS, and spread to Tony's Restaurant
next door. Both locations were damaged and a number of individuals were injured
during the evacuation process. Assuming that DDS is found to be liable for the fire, what
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