Unit 7 Quiz

Unit 7 Quiz

by Paola Alfau Pena -
Number of replies: 3

Hello, 

I need some assistance with two questions of the quiz. 

 

1- An appliance store sells a refrigerator to Mrs. Smith. The refrigerator is installed in Mrs. Smith's kitchen and after the installation had been completed, the refrigerator blows up catching fire and damaging the kitchen and injuring Mrs. Smith. The appliance store's Commercial General Liability policy covers? The correct answer is: Bodily Injury to Mrs. Smith and damage to the, kitchen but not the refrigerator...

Why not the refrigerator?

 

An insured is a restaurant operator who carries a Commercial General Liability policy. The insured's premises include a parking area used for valet parking of customer's cars. An employee of the insured, while parking a customer's automobile, hit another automobile in the parking lot. In addition to damaging to the automobile, a customer was injured while standing beside the damaged automobile. Which of the following describes how the insurer will respond? The correct answer is: Will pay injuries to injured customer...
Why not the vehicles damaged??

 

Thank you for your time!

 

P.A.

 

 

 

In reply to Paola Alfau Pena

Re: Unit 7 Quiz

by Jan Bradburn- -

Hi Paola, 

The Products and Completed Operations Exposure covers BI and PD occurring away from the premises as a result of the insured's work.  The insured installed the refrigerator, they did not build the refrigerator.  The manufacturer is responsible for the refrigerator.

Businesses that handle vehicles need a special coverage known as Garagekeepers coverage.  (Page 95 in state manual).  This coverage is for vehicles in the "care, custody and control" of someone who does not own the vehicle. It is used for valet parking, repair shops, etc.  Business vehicles are covered under the Business Auto Policy.

I hope this helps.  Please let me know if you have other questions.  

Jan

In reply to Paola Alfau Pena

Re: Unit 7 Quiz

by LYNNE LABOMBARD -

Thanks for posting the question.  I got both those answers wrong as well.  Cant understand why.

In reply to LYNNE LABOMBARD

Re: Unit 7 Quiz

by Jan Bradburn- -

Hi Lynne, 

Please let me know where you're still confused so I can try a better explanation. 

Jan