Los Angeles Claims Adjuster Property and Causality Practice Exam

Which form covers specific pollution losses but excludes cleanup coverage?

1. Pollution Liability Coverage Form

2. Pollution Liability Limited Coverage Form

3. Pollution Liability Extension Endorsement

4. General Aggregate Pollution Coverage

The correct answer is: Pollution Liability Limited Coverage Form

The Pollution Liability Limited Coverage Form is designed to provide coverage for specific pollution losses while explicitly excluding cleanup coverage. This form addresses concerns for insured parties by acknowledging the potential for pollution-related incidents and offering tailored protection against certain claims. Typically, the inclusion of cleanup coverage in pollution liability insurance can significantly increase the cost of premiums. By opting for a limited approach, businesses may find this form more economically feasible while still maintaining some level of protection against pollution claims that could arise. In this context, the Pollution Liability Limited Coverage Form offers an intermediary solution, focusing on direct losses due to pollution while clearly delineating the boundaries of coverage, particularly when it comes to the costs associated with cleanup efforts. The distinction of excluding cleanup coverage is a core characteristic that makes this form stand out among the various insurance products available for pollution-related risks.