Need Clarification

Need Clarification

by Scott Smith -
Number of replies: 1

I'm a little confused by an answer from one of the lessons.  The statement was made that covered territories include Canada, but the question excludes Canada from coverage.  Is there another reason that this is false? I didn't notice any other differences in this question from what the lesson stated.

Your answer : False

You got it wrong,  Sorry!

" Territory is expanded to include the entire world as to BI and PD caused by products made or sold by the insured in the defined territory and activities of the insured while away from the defined territory for a short time on business. If a suit results from such an injury, it must be filed within the more limited territory i.e. " The U.S. and its territories etc., etc.  " is the correct response to:

Is the "coverage territory" limited to the U.S. and its territories for products claims under Coverage A of a CGL Policy?

In reply to Scott Smith

Re: Need Clarification

by Jan Bradburn- -
Scott,

For a CGL policy the coverage territory is the U.S. and it's territories. This coverage is expanded to anywhere is the world for BI and PD claims that result from a completed product. if that product is made in the defined territory.

For example a child swallows and chokes on a toy in a kid's meal from a fast food restaurant. That toy was manufactured in the US and the child lives in London. Although that is not a covered territory under a CGL, since the claim involves bodily injury from a toy manufactured in the US, they can file a claim. However, the claim must be filed in the US or its' territories.

Jan