31. Which one of the following is true concerning the limits of insurance of a Commercial General Liability Policy
Answer: D
The products-completed operations coverage has a limit of insurance for each occurrence.
The products-completed operations coverage indeed has a limit of insurance for each occurrence, which specifies the maximum amount the insurer will pay for claims arising from products or completed work.
A) Only medical payments coverage has a limit of insurance
This statement is incorrect as it suggests that only medical payments coverage is limited, which is misleading. In fact, multiple coverages under a Commercial General Liability Policy, including products-completed operations, have specific limits of insurance.
B) Personal and advertising injury liability is not subject to limits of insurance
This option is also incorrect. Personal and advertising injury liability does have limits of insurance, which define the maximum payout for these types of claims. Therefore, this statement misrepresents the nature of coverage limits in a Commercial General Liability Policy.
C) Fire damage liability has a limit of insurance for any one person
While fire damage liability does have limits, this statement is misleading because it implies a specific limit per individual rather than clarifying that the overall coverage is subject to a defined limit for all claims. Thus, it does not accurately represent the typical structure of coverage limits.
D) The products-completed operations coverage has a limit of insurance for each occurrence
This statement is accurate as it correctly identifies that the products-completed operations coverage specifies a limit for each occurrence, ensuring that the insurer's liability is capped for claims arising from products or completed operations.
Conclusion
The correct answer is D, as it accurately reflects the structured limits of insurance for products-completed operations coverage in a Commercial General Liability Policy. Other options either misstate the facts regarding coverage limits or incorrectly describe the nature of the insurance limits applicable to various types of liability, which reinforces that D is the only accurate choice.