If International Toys is found liable for an injury caused by its toy, will its CGL coverage apply?

General Liability (CGL) policies typically provide coverage for products liability claims that arise from the sale of goods. In this case, if the injury caused by the toy occurred as a result of a defect or failure of the toy while it was in use, the CGL policy would generally cover such claims as long as the policy in question has no specific exclusions related to the location of the injury.

The correct choice states that the product was made in the U.S., which aligns with common coverage stipulations in many CGL policies that might include products liability claims stemming from products manufactured domestically. It indicates that the origin of the toy – being produced in the U.S. – is sufficient for the coverage to apply, regardless of where the injury occurs. This premise mainly relies on the fact that the insurance policy would cover liabilities and risks associated with the manufacturing and distribution of the product within the scope defined in the agreement.

In terms of other choices presented, while the jurisdiction of where a lawsuit is filed (like a U.S. court) may influence specific procedural aspects of a case, it does not fundamentally change the applicability of the coverage based on the product's origin. Similarly, even though injuries occurring overseas may introduce additional complexity, the coverage may still apply