Exam DISC-IA Practice Question 823
Study guide: Exam DISC-IA
A diner's customer burns her hand on a coffee pot. The owner immediately applies first aid and, wanting to keep her goodwill, promises to pay her $5,000 for her trouble. The owner notifies the insurer the next day. Two months later the customer sues the diner and, in the same suit, names the diner's insurer as a defendant. Which statement is correct under the CGL conditions (CG 00 01 04 13)?
- A) The first aid voids coverage, because no insured may incur any expense without the insurer's consent
- B) The insurer must pay the $5,000 promised, because the owner gave prompt notice
- C) The customer may join the insurer in her suit against the diner, because the insurer will pay any damages
- D) The $5,000 promise is at the owner's own cost, and the customer may not join the insurer in the suit
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