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Question 1
What is the definition of 'liability' in the context of property and casualty insurance?
Answer: Liability is a legal obligation to pay damages to another party due to bodily injury, property damage, or personal injury caused by the insured's negligence or wrongful acts.
Question 2
What are the two main triggers used to determine when a liability policy responds to a claim?
Answer: Occurrence-based policies cover claims arising from incidents that happen during the policy period, while claims-made policies cover claims that are first reported during the policy period.
Question 3
Under a Commercial General Liability (CGL) policy, what does Coverage A provide?
Answer: Coverage A provides protection for bodily injury and property damage liability arising from the insured's business operations.
Question 4
Under a Commercial General Liability (CGL) policy, what does Coverage B provide?
Answer: Coverage B provides personal and advertising injury liability, covering offenses such as libel, slander, false arrest, and copyright infringement in advertisements.
Question 5
What is the purpose of Coverage C under a Commercial General Liability (CGL) policy?
Answer: Coverage C provides medical payments to persons injured on the insured's premises or due to the insured's operations, regardless of fault or legal liability.