Exam (elaborations)
AU 62_ Chapter 2 (1)
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- CLM 023 AbilityOne
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- CLM 023 AbilityOne
AU 62_ Chapter 2 (1)
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AU 62: Chapter 2C. A Railroad Protective Liability Coverage Form purchased by the contractor - ANS-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
A. Premises and operations liability applies because the contractor was in the process of
installing the cabinets. - ANS-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:
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.
C. A defective gas range manufactured by the insured explodes causing injury. - ANS-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.
D. It covers the property owner for damage arising from the contractor's operations. -
ANS-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.
B. Premises and operations liability exposure. - ANS-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.
D. Not-for-profit - ANS-The five classifications the Commercial Lines Manual (CLM) uses to
refine the general liability classification process include all of the following, EXCEPT:
Select one:
A. Manufacturing or process
B. Building or premises
C. Contracting or servicing
D. Not-for-profit
B. If a manufacturer sells its own products through its own retail operations, classify and rate
only the manufacturing operations. - ANS-When classifying and pricing manufacturing or
processing operations, underwriters should follow all of the following guidelines, EXCEPT:
Select one:
A. For pricing purposes, exclude the value of any transfers of component parts or interim
processes within the operations of the same named insured.
B. If a manufacturer sells its own products through its own retail operations, classify and rate
only the manufacturing operations.
C. Base classification on the final product, not on component parts or interim processes.
D. If an application lists more than one named insured, classify each named insured separately.
C. Building or premises - ANS-Weaver Brothers owns three buildings in Boston. Each building
contains eight apartment units that are rented out to college students. Which one of the
following major business groups found in the Commercial Lines Manual (CLM) would apply for
Weaver Brothers' operations?
Select one:
A. Manufacturing or processing
B. Contracting or servicing
C. Building or premises
D. Mercantile
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