property and liability exam 2

Hawkeye Builders LLC is the named insured. A Hawkeye carpenter, acting within the scope of employment, negligently drops a beam and injures a coworker. The coworker sues the carpenter personally. Which statement best describes the carpenter's status under Hawkeye's CGL?

An insured only if Hawkeye adds the carpenter by endorsement.

Not an insured for this claim, because employees are not insureds for bodily injury to a co-employee in the course of employment.

An insured for this claim, because employees are insureds for acts within the scope of employment.

Not an insured, because only the LLC itself is an insured.

Not an insured for this claim, because employees are not insureds for bodily injury to a co-employee in the course of employment.

A subcontractor's employee is injured on the Hawkeye job site. The injured worker sues Hawkeye. The subcontract does not require Hawkeye to be named on the sub's policy, and no additional insured endorsement exists on either policy. Is the subcontractor an insured under Hawkeye's CGL?

No. Independent contractors are not insureds under the CGL unless added by endorsement.

Yes, but only for completed operations.

Yes, because anyone working on the insured's project is an insured.

Yes, because the subcontractor is a real estate manager.

No. Independent contractors are not insureds under the CGL unless added by endorsement.

A neighbor demands $5,000 for fence damage caused by Hawkeye's ongoing work. To keep the peace, Hawkeye pays the neighbor $5,000 without telling its insurer, then asks the insurer to reimburse it. Which result is most appropriate?

The insurer must reimburse because the amount is under the deductible.

The insurer is not obligated to reimburse, because the insured may not voluntarily make payments or assume obligations except at its own cost (other than first aid).

The insurer reimburses half, as a compromise.

The insurer must reimburse, because the loss is clearly covered.

The insurer is not obligated to reimburse, because the insured may not voluntarily make payments or assume obligations except at its own cost (other than first aid).

One occurrence injures three people. Total covered damages are $1,500,000. The each-occurrence limit is $1,000,000, and $2,000,000 of the general aggregate remains. How much does the insurer pay in damages?

$1,500,000, because the aggregate has enough room.

$1,000,000, because the each-occurrence limit caps all damages from one occurrence.

$1,000,000 per injured person, up to the aggregate.

$500,000, the amount above the occurrence limit.

$1,000,000, because the each-occurrence limit caps all damages from one occurrence.

Hawkeye signs a contract with a homeowner agreeing to indemnify the homeowner for bodily injury claims arising from Hawkeye's work. After the contract is signed, a visitor is injured and sues the homeowner, who tenders the claim to Hawkeye. Which analysis is best?

Coverage applies only if Hawkeye is also negligent.

Coverage may apply, because liability assumed under an insured contract is an exception to the contractual liability exclusion, provided the bodily injury occurs after the contract is executed.

Coverage B responds instead, because this is a contract claim.

The contractual liability exclusion bars coverage for all assumed liability.

Coverage may apply, because liability assumed under an insured contract is an exception to the contractual liability exclusion, provided the bodily injury occurs after the contract is executed.

Hawkeye faces a covered suit. The judgment is $1,000,000, which is the full each-occurrence limit. Defense costs were $200,000. How much does the insurer pay in total?

$1,000,000, and the insurer stops paying defense once it learns the judgment equals the limit.

$1,200,000, because supplementary payments such as defense costs are in addition to the limit.

$1,000,000, because defense costs erode the limit.

$800,000, because defense costs are inside the limit.

$1,200,000, because supplementary payments such as defense costs are in addition to the limit.