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CPCU 552 Exam Update Latest | CPCU 552 Ch. #2 Ch. #3 Exam Questions and Correct Answers Rated A+
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CPCU 552 Exam Update Latest | CPCU 552 Ch. #2 Ch. #3 Exam Questions and Correct Answers Rated A+
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CPCU 552 Exam Update Latest | CPCU 552 Ch. #2 Ch. #3 Exam 2024 -2025 Questions and Correct Answers Rated A+ The term "you" is used throughout the Commercial General Liability Coverage Form. "You" is defined to include: A) The named insured shown in the declarations. B) The named insured shown in the declarations and any emplo yees of the named insured. C) The named insured and any officers or directors of the named insured's organization. D) All persons or entities who have any type of liability protection under the policy. -ANSWER -A Smart Endeavors, a retail clothing store, hired ABC Contractors to install a new air conditioning system in one of its stores. ABC misrouted some wires during the installation process, which caused the wires to overheat and caused a fire. The air conditioning unit had to be rewired, which cost $1, 000. Smart Endeavors' building sustained $30,000 worth of damage and $40,000 worth of inventory was damaged by smoke. Smart Endeavors was closed for two weeks and lost $10,000 in profits during that period. ABC has liability insurance under a standard Comm ercial General Liability (CGL) Coverage Form with $1,000,000 per occurrence limits. Which one of the following statements concerning coverage for damages under Coverage A of the CGL is most accurate? A) ABC will pay $81,000 for all of the physical damage to the building and inventory, the air conditioning rewiring costs, and Smart Endeavors' lost profits. B) ABC will pay -ANSWER -C EXPLANATION: ABC will pay $80,000 for the fire damage to the building and inventory as well as the lost profits, but the CGL excludes the cost of work that was incorrectly performed, so the $1,000 rewiring costs are excluded. Which one of the following statements concerning the Damage to Your Product and Damage to Your Work exclusions in Coverage A of the Commercial General Lia bility Coverage Form is most correct? A) These exclusions only apply to products or work that are in the care, custody and control of the named insured at the premises location listed in the declarations page. B) There are two exceptions to this exclusio n which are meant to provide limited property damage coverage for minor claims that would fall below the deductible of the named insured's property insurance policy. C) The exclusions only apply to work or products that were damaged by subcontractors or ou tside parties who are expected to have their own insurance coverage, but the exclusions do not apply to damage done by the named insured. D) These exclusions only apply to damage to the work or product itself, but do not apply to any subsequent damage or i njury th -ANSWER -D A plumbing contractor has a commercial general liability (CGL) policy that contains no endorsements. Which one of the following claims would be covered by the CGL? A) An improperly installed pipe was damaged when tested for leaks by an employee of the plumbing contractor. B) An employee of the plumbing contractor damaged a building while installing a waterline. C) An employee of the plumbing contractor was injured while installing a hot water heater. D) An employee of the plumbing cont ractor damaged a building with the contractor's auto -ANSWER -B For which one of these would the Damage to Your Product and Damage to Your Work exclusion eliminate coverage? A) A product that the insured incorrectly designed B) Property damage caused by an insured's defectively produced product C) Property damage caused by work performed on behalf of the insured by a subcontractor D) Property damage caused by an insured's incorrectly designed product -ANSWER -A Bodily injury was caused to customers by fu mes that escaped from heating equipment belonging to the Reynolds Corporation. Which one of the following statements describes the reason there would or would not be liability coverage for these injuries under the corporation's unendorsed Commercial Genera l Liability Coverage Form? A) Coverage would be excluded because of the pollution exclusion. B) There would be coverage because the pollution exclusion has an exception that applies to bodily injury caused by fumes from heating equipment. C) Coverage wo uld be excluded because of the impaired property exclusion. D) There would be coverage because the impaired property exclusion has an exception that applies to bodily injury caused by fumes from heating equipment. -ANSWER -B An employee of a manufacturing plant is injured by a defective blade manufactured by the employer. Although workers compensation is considered the exclusive remedy for an employee injured in the course of employment, the injured worker may be able to sue the employer under the: A) Oc cupational disease benefits law. B) Third -party -over action coverage. C) Contractual liability coverage. D) Dual -capacity doctrine. -ANSWER -D The insuring agreement in Coverage A of the standard Commercial General Liability (CGL) Coverage Form includes la nguage that addresses legal expenses for claims covered by the policy. Which one of the following statements regarding the insurer's legal defense obligations is most accurate? A) An insurer's duty to defend ends when the combined cost of legal expenses and damages reaches the applicable policy limits. B) An insurer's obligation to defend ends when the applicable limits of insurance have been exhausted. C) Legal expenses paid to outside, independent counsel end when the limits of insurance are exhausted, but the insurer's obligation to defend using in -house counsel continues without limit.
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