Los Angeles Claims Adjuster Property and Causality Practice Exam

What is the primary exclusion under CGL Coverage A for bodily injury or property damage?

1. Expected or Intended Injury

2. Nuisance Injury

3. Accidental Loss

4. Negligent Damage

The correct answer is: Expected or Intended Injury

The primary exclusion under Commercial General Liability (CGL) Coverage A for bodily injury or property damage is expected or intended injury. This exclusion is grounded in the idea that the purpose of liability insurance is to provide coverage for unforeseen incidents. If an insured intentionally causes harm or damage, the insurance company will not cover the resulting claims because these actions do not align with the intent of liability insurance to protect against accidental or unintentional acts. This exclusion is vital for insurers as it helps to prevent moral hazard, whereby individuals might take risks or engage in harmful activities, knowing they would be financially covered by their insurance. In essence, this exclusion maintains the integrity of the insurance system by ensuring that liability coverage is there for genuine accidents rather than intentional harm. The other options do not represent primary exclusions for CGL Coverage A. While nuisance injury might not be explicitly covered, it does not hold the same significance in the context of intentional harm. Accidental loss and negligent damage are typically covered as they represent unforeseen events or harm that results from a lack of reasonable care, which is within the scope of what CGL Coverage A aims to cover.