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A(n) _____ allows an insurer to specifically exclude insurance coverage from a claims-made CGL policy for a product with a spotty safety record.

A. Basic Extended Reporting Period
B. Laser Beam endorsement
C. Insured Contract
D. Contractual liability

1 Answer

5 votes

Final answer:

The correct answer is D. Contractual liability. A contractual liability allows an insurer to specifically exclude insurance coverage from a claims-made CGL policy for a product with a spotty safety record.

Step-by-step explanation:

The correct answer is D. Contractual liability.

A contractual liability allows an insurer to specifically exclude insurance coverage from a claims-made CGL policy for a product with a spotty safety record. It is a provision in an insurance policy that shifts the responsibility for certain types of liabilities from one party to another, usually from a contractor or subcontractor to the property owner or general contractor.

For example, if a product has a history of safety issues and the insurer wants to avoid covering liability claims related to that product, they may include a contractual liability endorsement in the policy, effectively excluding coverage for claims arising from that specific product.

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