Exam DISC-IA Practice Question 800
Study guide: Exam DISC-IA
A warehouse company's occurrence CGL policy (ISO CG 00 01 04 13) incepts on July 1. In May, a forklift operator noticed that a slow leak from the company's chemical drums was staining a tenant's goods next door and mentioned it to a co-worker; neither is authorized to give or receive notice of occurrences or claims, and no one else at the company knew. The leak continues into August, when the tenant demands payment. Under the new policy, how does paragraph b(3) of the Coverage A insuring agreement, the known injury condition, treat this damage?
- A) It bars coverage, because an employee of the insured knew of the damage before the policy period
- B) It bars coverage, because the damage began before the policy period, whoever knew of it
- C) It does not bar coverage, because no listed insured or authorized employee knew of the damage before the policy period
- D) It does not bar coverage, because the tenant's demand was not made until after the policy began
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