Los Angeles Claims Adjuster Property and Causality Practice Exam

What is specifically excluded under CGL for businesses selling alcohol?

1. General premises liability

2. Liability for contributing to a person's intoxication

3. Certain types of personal injury claims

4. Medical payments for patrons

The correct answer is: Liability for contributing to a person's intoxication

The correct answer highlights a significant exclusion under a Commercial General Liability (CGL) policy regarding businesses that sell alcohol. Specifically, liability for contributing to a person's intoxication is excluded because it can lead to serious legal ramifications and increased risks for insurers. This exclusion aims to mitigate the potential liabilities that arise when establishments serve alcohol, which can include accidents or injuries resulting from intoxicated patrons. By excluding this type of liability, insurers protect themselves from the costs associated with claims that might arise from situations where the business's actions are said to have contributed to a patron's inebriation. This reflects the insurance industry's understanding of alcohol-related risks, which can be considerable given the implications of serving alcohol and the legal environment surrounding these activities. The other options pertain to different facets of liability that may not be as specifically restricted or may still fall under the broader coverage provided by CGL policies. For instance, general premises liability typically covers injuries occurring on the business's property, certain types of personal injury claims can be included if they do not stem from alcohol-related incidents, and medical payments for patrons may still be covered under specific circumstances regardless of the alcohol service. However, the liability for contributing to a person's intoxication is a clear and defined exclusion given the heightened