Florida Insurance Claims Adjuster License Practice Exam

If a guest injures someone at an Acme Toys party and the injured party sues, the CGL policy:

1. Will cover if the insured has Liquor Liability Coverage

2. Will not cover

3. Will cover if the insured has Legal Liability Coverage

4. Will cover the claim

The correct answer is: Will cover the claim

If a guest injures someone at an Acme Toys party and the injured party sues, the Commercial General Liability (CGL) policy will cover the claim. This is because CGL policies typically provide broad coverage for bodily injury and property damage resulting from the insured's operations. Option A, which refers to Liquor Liability Coverage, would only apply if the injury was caused by the consumption of alcohol at the party. Option B is incorrect since the question specifically mentions a party and a potential lawsuit. Option C, Legal Liability Coverage, is a redundant term as CGL policies provide coverage for legal liabilities. Therefore, the most appropriate option is D, as it directly addresses the situation presented in the question.