Exam DISC-IA Practice Question 835
Study guide: Exam DISC-IA
A heating contractor's own crew installed a furnace in a customer's home last year. This year, during the contractor's occurrence CGL policy period, the furnace overheats and starts a fire that does $300,000 of damage to the house and $20,000 of damage to the furnace itself. The customer sues; the insurer spends $40,000 defending. The policy's each occurrence limit is $1,000,000 and its aggregates are unused. How much does the insurer pay toward the damages, excluding defense?
- A) $0
- B) $300,000
- C) $320,000
- D) $340,000
Answer this question and see the worked solution
Concepts tested
- Coverage Analysis
- CGL Coverage A Exclusions
- CGL Supplementary Payments
- Products and Completed Operations Liability
- Commercial General Liability