Actuarial Notes

Exam DISC-IA Practice Question 801

Study guide: Exam DISC-IA

A U.S. manufacturer of space heaters sells them only through U.S. retailers. A buyer takes one to Spain, where it catches fire and injures her. She sues the manufacturer in a Spanish court and wins a judgment there, without the insurer agreeing to any settlement. Is the injury within the coverage territory of the manufacturer's ISO CGL (CG 00 01 04 13)?

  • A) No, because liability was not decided in a suit on the merits in the United States, Puerto Rico or Canada
  • B) No, because injury anywhere outside the United States, Puerto Rico and Canada is never within the coverage territory
  • C) Yes, because the heater that injured her was made and sold by the named insured within the United States
  • D) Yes, because the buyer's home is in the United States and she was away from it for only a short time

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