Actuarial Notes

Exam DISC-RM Practice Question 224

Study guide: Exam DISC-RM

A builder is building three houses on separate lots under one contract with a developer. The first house is finished and sold, and its buyer has moved in; the other two are still under construction. The buyer's guest is injured when a stair rail in the finished house gives way. How is the builder's work on the first house treated under the CGL?

  • A) As ongoing operations, because the contract as a whole is not finished
  • B) As ongoing operations, because the builder is still working on that job
  • C) As completed work, because that part of the work has been put to its intended use
  • D) As outside the CGL, because injury from defective work is a business risk

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