Commercial General Liability Policy Flashcard

Front

Which part of Oliver's insurance policy covers medical expenses for a guest's injury on the insured's premises?

Back

Necessary medical expenses due to bodily injury on the insured's premises

Answer explanation

The correct choice is 'Necessary medical expenses due to bodily injury on the insured's premises' as it directly addresses the medical costs incurred from the guest's injury while on Oliver's property.

Front

Which expense is NOT covered under Medical Payments in an accident? Options: Property damage, Hospital expenses, First aid when the accident occurs, Ambulance services.

Back

Property damage

Answer explanation

Medical Payments cover medical-related expenses like hospital bills, first aid, and ambulance services. However, property damage is not included, making it the correct choice for expenses NOT covered.

Front

Who is NOT eligible for medical expenses under Coverage C during a company event at James's office?

Back

A person injured while taking part in athletics

Answer explanation

A person injured while taking part in athletics is not eligible for medical expenses under Coverage C, as this coverage typically excludes injuries from athletic activities.

Front

Time limit for David to report medical expenses to the insurer after an accident?

Back

Within one year after the accident

Answer explanation

David must report his medical expenses to the insurer within one year after the accident. This time limit is crucial for ensuring that claims are processed in a timely manner.

Front

What is the purpose of Medical Payments coverage in a car accident?

Back

To allow prompt reaction to accidents without considering fault

Answer explanation

The purpose of Medical Payments coverage is to allow prompt reaction to accidents without considering fault, ensuring that medical expenses are covered quickly for those involved.

Front

Feature of Occurrence Form insurance policy for a business.

Back

Coverage is provided for occurrences during the policy period

Answer explanation

The correct choice, 'Coverage is provided for occurrences during the policy period', highlights that an Occurrence Form policy covers incidents that happen while the policy is active, regardless of when the claim is filed.

Front

What is the role of supplementary payments in Emma's liability policy when a customer slips and falls in her store?

Back

To cover costs associated with the investigation and resolution of claims

Answer explanation

Supplementary payments in Emma's liability policy cover costs related to the investigation and resolution of claims, such as legal fees and court costs, ensuring she is protected during the claims process.

Front

Which of the following is NOT a supplementary payment covered by a liability insurance policy? Options: Prejudgment interest, Expenses the insurance company incurs, Cost of bonds to release attachments, Attorney’s fees

Back

Attorney’s fees

Answer explanation

Attorney’s fees are typically not covered as supplementary payments in liability policies, while prejudgment interest, expenses incurred by the insurer, and costs for bonds are generally included.

Front

What is the purpose of the Retroactive Date in a Claims-Made Form insurance policy with a Retroactive Date of January 1, 2022?

Back

To specify a date before which losses are not covered

Answer explanation

The Retroactive Date specifies a date before which losses are not covered. In this case, claims arising from incidents before January 1, 2022, will not be covered by the policy.

Front

Difference between Occurrence Form and Claims-Made Form in insurance policies.

Back

Occurrence Form covers occurrences during the policy period.

Answer explanation

The Occurrence Form covers incidents that happen during the policy period, regardless of when the claim is made. In contrast, the Claims-Made Form only covers claims made during the policy period, making the Occurrence Form the correct choice.