Florida General Lines Agent Practice Exam 2025 – Comprehensive Study Guide

The statement that the coverage territory for Employment-related Practices Liability (EPL) includes the US and Puerto Rico only is incorrect. Typically, EPL coverage is designed to extend beyond just the US and Puerto Rico, often including allegations of employment practices whether they happen within the company’s operations internationally. This broader perspective is essential in a global economy where businesses may have employees or operations in multiple countries, and the potential for employment-related claims can arise from those jurisdictions as well.

The co-payment provision, where the insured contributes part of the legal damages and defense costs, is a valid characteristic of many liability insurance policies, including EPL coverage. This kind of provision is meant to ensure shared responsibility between the insurer and the insured, promoting careful management of claims.

Furthermore, the extended reporting period for claims made under the EPL form can indeed be applied via an endorsement, allowing the insured to report claims that arise after their policy has ended, as long as the incident occurred during the coverage period. This feature of the policy supports businesses in addressing potential ongoing liabilities even after a policy has expired.

Overall, the incorrect statement specifically refers to the limitations placed on the coverage territory, highlighting a misunderstanding of how EPL coverage functions on a broader scale.