Difficulty: Hard

Average Score: 42%

Which one of the following is true concerning the limits of insurance of a Commercial General Liability Policy

Rationale

The products-completed operations coverage has a limit of insurance for each occurrence.

In a Commercial General Liability (CGL) Policy, the products-completed operations coverage indeed has a specified limit of insurance that applies to each occurrence, ensuring that claims related to completed operations are adequately covered up to that limit.

A (Only medical payments coverage has a limit of insurance) YOUR ANSWER

This statement is incorrect because while medical payments coverage does have a limit, it is not the only coverage with such a limit. Other coverages, including bodily injury, property damage, and products-completed operations, also have specific limits defined in the CGL policy.

B (Personal and advertising injury liability is not subject to limits of insurance) YOUR ANSWER

This choice is misleading as personal and advertising injury liability coverage does indeed have limits of insurance. These limits are outlined in the policy and apply to claims arising from personal injury or advertising injury, just like other types of liability coverage.

C (Fire damage liability has a limit of insurance for any one person) YOUR ANSWER

This option is incorrect. Fire damage liability coverage is subject to a limit, but it is not specifically limited to "any one person." Instead, it has a broader limit that applies per occurrence, consistent with other liability coverages in the CGL policy.

D (The products-completed operations coverage has a limit of insurance for each occurrence) CORRECT

This statement is accurate as each occurrence under products-completed operations coverage is subject to a specific limit, ensuring that the insurer's liability for claims related to these operations is capped at that amount.

Conclusion

The Commercial General Liability Policy outlines various limits of insurance for different types of coverage. Among these, the products-completed operations coverage is clearly defined to have a limit for each occurrence. Understanding these limits is crucial for policyholders to effectively manage their risks and ensure adequate protection against potential liabilities.

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