Los Angeles Claims Adjuster Property and Causality Practice Exam

When is loading and unloading considered to occur according to CGL?

1. When goods are being moved from a structure to a vehicle

2. After acceptance for movement into or onto an aircraft, watercraft, or automobile

3. Only when the items are on the ground

4. During the initial packing stage

The correct answer is: After acceptance for movement into or onto an aircraft, watercraft, or automobile

In the context of Commercial General Liability (CGL) insurance, loading and unloading is defined as occurring after goods have been accepted for movement into or onto a vehicle, which includes aircraft and watercraft. This definition is significant because it establishes the point at which liability coverage would apply if an incident occurs during this process. Understanding this concept is crucial for claims adjusters, as it clarifies that once the goods have been officially accepted for transport, the liability coverage extends to protect against risks associated with potential injuries or damages that could result from loading or unloading activities. This point of acceptance signifies a transition from the seller or shipper’s responsibility to that of the transport operator, making it a critical moment in the liability chain. The other choices do not accurately reflect the legal interpretation of loading and unloading as per CGL standards. For example, loading and unloading are not considered complete merely based on the physical movement from a structure (which does not capture the transition of responsibility). Similarly, limiting the definition to instances where items are merely on the ground or during the initial packing stage does not align with the accepted definitions used in CGL policies, which focus on the acceptance and the transition of ownership and responsibility during transport.