Insurance Coverage and Liability Flashcard

Front

Which situation is excluded under Coverage A for Bodily Injury and Property Damage liability in a commercial general liability insurance policy?

Back

Liability arising out of expected or intentional injury

Answer explanation

Liability arising out of expected or intentional injury is excluded under Coverage A, as it does not cover injuries that are intentionally caused, unlike accidental injuries which are covered.

Front

Maya owns a bar and purchases insurance for her business. Which type of liability is specifically excluded from her coverage because she is in the beverage business?

Back

Liquor liability

Answer explanation

Maya's insurance excludes liquor liability because she operates a bar, where the sale of alcohol poses specific risks that standard policies often do not cover.

Front

Which coverage form should Henry consider to ensure his insurance policy will cover clean-up costs for accidental pollutant spills on his property?

Back

Pollution liability coverage form

Answer explanation

Henry should consider the Pollution liability coverage form, as it specifically covers clean-up costs associated with pollutants, ensuring he is protected in case of an accidental spill on his property.

Front

Purpose of Fire Legal Liability when a business owner causes a fire?

Back

To cover property damage caused by fire due to negligence

Answer explanation

Fire Legal Liability specifically covers property damage caused by fire due to negligence, which applies to Liam's situation of accidentally causing a fire that damages a neighboring property.

Front

Which situation is considered a Personal Injury offense under Coverage B? Options: Fire damage, Pollution, Copyright infringement, Libel

Back

Libel

Answer explanation

Libel is considered a Personal Injury offense under Coverage B, as it involves defamation and harm to a person's reputation. Fire damage and pollution are not classified as personal injuries, and copyright infringement falls under intellectual property issues.

Front

What situation is not covered under Coverage B for Personal Injury and Advertising Injury liability in a business insurance policy? Options: Negligent slander, Unintentional libel, Accidental copyright infringement, Knowingly violating another’s rights.

Back

Knowingly violating another’s rights

Answer explanation

Coverage B excludes situations where a party knowingly violates another’s rights. This means that if Aria is aware of infringing on someone else's rights, it won't be covered, unlike unintentional acts.

Front

Which act's violation is excluded under both Coverage A and B in the company's insurance policy?

Back

Telephone Consumer Protection Act

Answer explanation

The Telephone Consumer Protection Act is specifically excluded under both Coverage A and B, making it the correct choice. The other acts listed do not share this exclusion.

Front

What cost is not covered by a Pollution liability coverage extension endorsement after a chemical spill? Options: Environmental damage, Property damage due to pollution, Bodily injury due to pollution, Cost of pollutant clean-up.

Back

Cost of pollutant clean-up

Answer explanation

The endorsement typically covers environmental damage, property damage, and bodily injury due to pollution. However, the cost of pollutant clean-up is often excluded, making it the correct answer.

Front

What must occur for Fire Legal Liability coverage to apply when renting a commercial space?

Back

Damage must be caused by fire

Answer explanation

Fire Legal Liability coverage specifically applies when damage is caused by fire. Other causes like vandalism, theft, or water do not trigger this particular coverage.

Front

Liability exclusion for war or warlike acts in an insurance policy applies to which coverage?

Back

Both Coverage A and B

Answer explanation

The exclusion for liability arising from war applies to both Coverage A and B, as these coverages typically include various types of liability. Therefore, the correct answer is 'Both Coverage A and B'.