Which of the Following Losses Would Be Covered Under a Commercial

question 35

Multiple Choice

Which of the following losses would be covered under a Commercial General Liability Policy that has no endorsements?
I.The named insured rented a building and an employee of the named insured negligently started a fire at the rented building.
II.The cost to recall defective products

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Taxable Gain

The profit arising from the sale or exchange of an asset that is subject to income tax.

Charitable Contribution

Donations made to qualified organizations that may be tax-deductible for the donor.

Taxable Income

The amount of income that is subject to tax, after accounting for deductions and exemptions.

FMV

Fair Market Value; an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.