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Exam (elaborations)

AU 62: Chapter 2 Exam Questions and Answers

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  • 2024/2025
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  • 2024/2025

AU 62: Chapter 2 Exam Questions and Answers A contractor was hired by a railroad to work on a bridge adjacent to railroad tracks. Which one of the following types of insurance coverage would best respond to claims against the railroad arising out of the contractor's work? Select one: A. A Com...

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  • October 16, 2024
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  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • 2024/2025
  • 2024/2025
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EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024




AU 62: Chapter 2 Exam Questions and
Answers

A contractor was hired by a railroad to work on a bridge adjacent to railroad tracks. Which one

of the following types of insurance coverage would best respond to claims against the railroad

arising out of the contractor's work?


Select one:


A. A Commercial General liability (CGL) Coverage Form covering the contractor


B. A Commercial General liability (CGL) Coverage Form covering the railroad


C. A Railroad Protective Liability Coverage Form purchased by the contractor


D. An Owners and Contractors Protective Liability Coverage Form purchased by the railroad -

Answer✔✔-C. A Railroad Protective Liability Coverage Form purchased by the contractor


XYZ contractor, covered under an unendorsed Commercial General Liability (CGL) Coverage

Form, is installing kitchen cabinets in a customer's home. The contractor manufactured the

cabinets. While the contractor is fastening a cabinet, it falls and injures the customer. Which one

of the following best explains how coverage under the contractor's CGL Coverage Form applies

in this case?


Select one:


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,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024


A. Premises and operations liability applies because the contractor was in the process of

installing the cabinets.


B. Premises and operations liability applies because the contractor was working at the

customer's premises.


C. Products and completed operations liability applies because the contractor was installing

cabinets it manufactured.


D. Products and completed operations liability applies because the contractor was completing

the work. - Answer✔✔-A. Premises and operations liability applies because the contractor was

in the process of installing the cabinets.


Which one of the following is an example of injury or damage arising from an occurrence that

would be covered by the products and completed operations liability portion of the Commercial

General Liability (CGL) Coverage Form?


Select one:


A. A customer's house is set on fire while the insured is doing plumbing work.


B. A dissatisfied customer sues an insured for slander.


C. A defective gas range manufactured by the insured explodes causing injury.


D. A customer is injured when she slips on a wet floor in a store. - Answer✔✔-C. A defective gas

range manufactured by the insured explodes causing injury.




Page 2/18

, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024


Which one of the following statements about owners and contractors protective liability

coverage is true?


Select one:


A. It is issued in the contractor's name.


B. It protects the contractor from liability for normal business operations.


C. It is purchased by the owner of property to protect contractors.


D. It covers the property owner for damage arising from the contractor's operations. -

Answer✔✔-D. It covers the property owner for damage arising from the contractor's

operations.


Pedestrian Wilma was injured as a result of a contractor's negligence when the contractor failed

to adequately warn the public of a hazard when paving a road. Any resulting liability claim by

Wilma against the contractor would be considered to have arisen from the contractor's


Select one:


A. Products and completed operations liability exposure.


B. Premises and operations liability exposure.


C. Personal liability exposure.


D. Absolute liability exposure. - Answer✔✔-B. Premises and operations liability exposure.


The five classifications the Commercial Lines Manual (CLM) uses to refine the general liability

classification process include all of the following, EXCEPT:

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