1. An insured who is an auto dealer advertises a new car for $3,399 instead of i
ID: 2658662 • Letter: 1
Question
1. An insured who is an auto dealer advertises a new car for $3,399 instead of its actual price of $33,999. When the insured refuses to sell the car for the advertised amount, several potential buyers sue for the $30,600 difference between the actual price and the advertised price. Identify the CGL policy exclusion that applies in this circumstance. 2. Roberta, an employee of a warehouse facility, sprained her ankle when she stepped off a forklift on the facility’s premises. A visit to the emergency department of a nearby hospital resulted in medical expenses of $850. Roberta made a claim for payment of these expenses under Coverage C—Medical Payments of the facility’s CGL form. Would Roberta gets payment from the insurer? 1. An insured who is an auto dealer advertises a new car for $3,399 instead of its actual price of $33,999. When the insured refuses to sell the car for the advertised amount, several potential buyers sue for the $30,600 difference between the actual price and the advertised price. Identify the CGL policy exclusion that applies in this circumstance. 2. Roberta, an employee of a warehouse facility, sprained her ankle when she stepped off a forklift on the facility’s premises. A visit to the emergency department of a nearby hospital resulted in medical expenses of $850. Roberta made a claim for payment of these expenses under Coverage C—Medical Payments of the facility’s CGL form. Would Roberta gets payment from the insurer? 1. An insured who is an auto dealer advertises a new car for $3,399 instead of its actual price of $33,999. When the insured refuses to sell the car for the advertised amount, several potential buyers sue for the $30,600 difference between the actual price and the advertised price. Identify the CGL policy exclusion that applies in this circumstance. 2. Roberta, an employee of a warehouse facility, sprained her ankle when she stepped off a forklift on the facility’s premises. A visit to the emergency department of a nearby hospital resulted in medical expenses of $850. Roberta made a claim for payment of these expenses under Coverage C—Medical Payments of the facility’s CGL form. Would Roberta gets payment from the insurer?Explanation / Answer
1 CGL refers to commercial general liability. The Commercial general liability policy exclusion that applies in this scenario is Wrong Description of prices.
2 In this case Roberta had an bodily injury in the facility's premises but there was no accident in the premises. Hence, roberta will not get payment from the insurer.
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