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110 Cards in this Set
- Front
- Back
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The Commercial General Liability Coverage Form includes what 3 major liability coverages
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The Commercial General Liability Coverage Form includes 3 major liability coverages
1. Bodily Injury and Property Damage Liability; 2. Personal and Advertising Injury Liability; and 3. Medical Payments. |
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All liability losses resulting from either the insured's operations or premises are covered from this basic hazard
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Premises and Operations
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The Premises and Operations hazard includes ...
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the ownership, maintenance, or use of the insured's
premises and all business operations |
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What does is excluded from the Premises and Operations Hazard?
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the exposures included in the products and completed operations hazard
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The Products and Completed Operations hazard includes ...
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injuries or damage that occur after the
insured has completed their job and left the site, or relinquished control of a product they manufactured or sold. |
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This hazard includes injuries or damage that occur after the
insured has completed their job and left the site, or relinquished control of a product they manufactured or sold. |
The Products and Completed Operations Hazard
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an individual or entity that agrees to perform specific work for the
insured and is responsible for completing the work, but is not subject to the direction of the insured who contracted for their services is known as ... |
an independent contractor
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True or False?
Independent contractors are not covered under the insured's General Liability policy |
True
An independent contractor is not an employee for the insured who retained them. Independent contractors are not covered under the insured's General Liability policy, |
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a definition on liability forms that describes the types of contracts in which liability is assumed by the insured and included for coverage in the policy. This is known as ...
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an insured contract
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what is an insured contract?
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type of contract in which liability is assumed by the insured and included for coverage in the policy.
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The Commercial General Liability Coverage form excludes bodily injury or property damage that the
insured has assumed under any contract or agreement. However, the exclusion does not apply to certain types of contracts, as long as ... |
the injury or damage occurs after the execution of the contract
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List several examples of an insured contract
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Contracts for lease of premises;
Sidetrack agreements; Easement or license agreements, except in connection with construction or demolition within 50 feet of a railroad; Obligations to indemnify a municipality, except in connection with work for a municipality; Elevator maintenance agreements; and Liability the insured assumes under any contract that would have been imposed by law in the absence of the contract. This does not include any contract or agreement that agrees to indemnify a railroad, architect, engineer, or surveyor under specified circumstances. |
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List several examples of an insured contract
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Contracts for lease of premises;
Sidetrack agreements; Easement or license agreements, except in connection with construction or demolition within 50 feet of a railroad; Obligations to indemnify a municipality, except in connection with work for a municipality; Elevator maintenance agreements; and Liability the insured assumes under any contract that would have been imposed by law in the absence of the contract. This does not include any contract or agreement that agrees to indemnify a railroad, architect, engineer, or surveyor under specified circumstances. |
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List several examples of an insured contract
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Contracts for lease of premises;
Sidetrack agreements; Easement or license agreements, except in connection with construction or demolition within 50 feet of a railroad; Obligations to indemnify a municipality, except in connection with work for a municipality; Elevator maintenance agreements; and Liability the insured assumes under any contract that would have been imposed by law in the absence of the contract. This does not include any contract or agreement that agrees to indemnify a railroad, architect, engineer, or surveyor under specified circumstances. |
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Contractual Liability Insurance provides coverage for ...
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liability the insured has assumed under a
written contract |
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True or False
Contractual liability coverage is and extra coverage available in the CGL |
False
Contractual liability coverage is automatically included in the CGL |
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True or False
Contractual liability coverage is automatically included in the CGL |
True
Contractual liability coverage is automatically included in the CGL |
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Commercial General Liability Coverage Forms
What is Coverage A? |
Coverage A: Bodily Injury and Property Damage Liability
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Commercial General Liability Coverage Forms
Coverage A- Bodily Injury and Property Damage provides protection for ... |
injury, sickness, disease or
death suffered by third-parties because of the insured's business activities (bodily injury) and protection for damage, destruction, or loss of use of property of others arising out of the insured's business operations (property damage). |
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Commercial General Liability Coverage Forms
This coverage form provides protection for injury, sickness, disease or death suffered by third-parties because of the insured's business activities (bodily injury) and protection for damage, destruction, or loss of use of property of others arising out of the insured's business operations (property damage). |
Coverage A- Bodily Injury and Property Damage
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Commercial General Liability Coverage Forms
What Hazards are Included within the scope of the bodily injury and property damage coverage |
premises/operations and products/completed operations hazards
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The most common form of general liability coverage written is called an
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Occurance Form
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Occurrence
forms pay for ... |
The occurrence form pays for bodily injury and property damage that occurs during the policy period,
even if the loss is not discovered or reported until months or years after the policy expired |
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This form pays for bodily injury and property damage that occurs during the policy period,
even if the loss is not discovered or reported until months or years after the policy expired |
The Occurance Form
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The Claims-made form pays for ...
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The claims-made form pays for bodily injury or property damage reported during the policy period (so long as the
loss occurred on or after the retroactive date.) However, if the loss actually occurred during the policy period, but was not reported until after the policy expired, there would be no coverage. |
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Under the Claims-made form would there be coverage if the loss actually occurred during the policy period, but was not reported until after the policy expired
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there would be no coverage
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To avoid paying for losses that occurred before the effective date of a claims-made policy, a __________ is used
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retroactive date
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Under a claims-made form Coverage does not apply for any loss that occurred before
the _________. |
retroactive date
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What is a Mini-Tail?
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The claims-made policy includes an automatic tail for sixty days after the policy
expires. Claims that occurred during the policy period and are reported to the insurer within sixty days following the expiration of the policy will be covered. |
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With a claims-made form, claims that occurred during the policy period and are reported to the insurer within sixty days following the expiration of the policy will be covered becuase of the ______
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Mini-Tail
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What is the Basic Extended Reporting Period?
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with the claims-made policy as long as the insurer is notified about a potential claim within 60 days after
the policy expires, coverage will apply in the event an actual claim is filed against the insured within five years from the date of the incident. |
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The claims-made policy includes what is commonly
called a midi-tail. This is also called ... |
Basic Extended Reporting Period
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with the claims-made policy, for any potential loss that occurs during the policy period and is reported to the
insurer during the policy period or within the 60-day mini-tail, coverage will apply for up to five years |
Basic Extended Reporting Period
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What is the Extended Reporting Period Endorsement
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converts a claims-made policy into an occurrence form. With
this endorsement any loss that occurs during the policy period will be covered, no matter when the claim is actually reported to the insurer |
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this endorsement converts a claims-made policy into an occurrence form.
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Extended Reporting Period Endorsement
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The insured purchases a claims-made policy for his business. The
retroactive date is the same as the effective date, 1/1/91. The policy expires on 1/1/92 and the insured changes to an occurrence form, without buying an extended reporting period endorsement. On 5/15/92 the insured is advised of a claim that actually occurred on 3/17/91. Under which policy would the claim be covered? |
There would be no coverage under either the claims-made form, since the claim was not reported within 60 days of the policy expiration, or the occurrence form, since the loss did not occur
during the occurrence form policy period |
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The insured purchases a claims-made policy for his business. The
retroactive date is the same as the effective date, 1/1/91. The policy expires on 1/1/92 and the insured changes to an occurrence form, without buying an extended reporting period endorsement. On 5/15/92 the insured is advised of a claim that actually occurred on 3/17/91. prior to buying the claims-made policy the insured had an occurrence form effective from 1/1/90 to 1/1/91. A claim was discovered on 7/21/92 that had actually occurred on 12/15/90. Which policy, if any, would respond to this claim? |
In this case, there would be no coverage under the claims-made form since the retroactive date was 1/1/91, meaning no claims which occurred prior to this date are covered. However, there would be coverage under the occurrence policy that was in effect at the time the loss occurred, since occurrence
policies will pay for covered losses that occur during the policy period, regardless of when the actual loss is reported |
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What makes a policy respond to a claim?
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a Coverage Trigger
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The Basic Extended Reporting Period provides what 2 Extended Reporting Period provisions
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1. Mini-Tail; and
2. Midi-Tail. |
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this provision of a claims-made policy allows Claims arising out of occurrences after the retroactive date of the policy, but before the policy expiration, are covered if reported during this 60 day period
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Mini-Tail
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If the potential third party claimant delays giving notice of a claim for damages, but the insured is aware
of the event that could give rise to a claim, under the ________ provision, the insured may report the event to the insurer and that would give the insured protection for that event, should it result in a claim within the next 5 years. |
Midi-Tail
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If the potential third party claimant delays giving notice of a claim for damages, but the insured is aware
of the event that could give rise to a claim, under the Midi-tail provision, the insured may report the event to the insurer and that would give the insured protection for that event, should it result in a claim within the next ___ years. |
5 years
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With the Supplemental Extended Reporting Period what is the time limit within which claims must be reported
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there is no
time limit within which claims must be reported |
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when the Supplemental Extended Reporting
Period Coverage is purchased what happens to the policies aggregate limits? |
they are reinstated
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the reporting period added by this endorsement is indefinite
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Supplemental Extended Reporting Period
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Both known and unknown
occurrences are covered when this endorsement is purchased |
Supplemental Extended Reporting Period
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The insured must request the Supplemental Reporting Period Coverage within __ days after the end of the policy period.
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60
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The premium charge for this endorsement is normally 200% of the policy's annual premium and is
subject to a single policy aggregate limit for the duration of the coverage. |
Supplemental Extended Reporting Period
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To avoid paying for losses that occurred before the effective date of a claims-made policy, a _________ is used
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retroactive date
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A retroactive date in a claims-made liability policy is a coverage limitation, and provides that coverage
applies only to claims that |
reported during the policy period, and which arise out of events which
occur on or after the specified retroactive date |
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What is Coverage B?
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Coverage B: Personal Injury and Advertising Injury
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this covers specific acts that result in injury to
another, other than physical injury |
Coverage B- Personal and Advertising Injury Protection
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what types of injuries would be covered under Coverage B-Personal Advertising Injury Protection
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Mental anguish;
False arrest or imprisonment; Wrongful eviction or detention; Malicious prosecution; Defamation of character; Slander or libel; and Invasion of privacy |
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Slander or libel would be covered under what part of the CGL?
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Coverage B-Personal and Advertising Injury Protection
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Invasion of privacy would be covered under what part of the CGL?
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Coverage B-Personal and Advertising Injury Protection
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What is Coverage C?
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Coverage C: Medical Payments
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Coverage C- Medical Payments provides ...
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necessary medical, surgical, ambulance, hospital,
professional nursing or funeral expenses for injuries to third parties |
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this coverage provides necessary medical, surgical, ambulance, hospital,
professional nursing or funeral expenses for injuries to third parties |
Coverage C-Medical Payments
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This is considered "goodwill"
coverage since payments will be paid without regard to the fault or negligence of the insured |
Coverage C: Medical Payments
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Coverage C: Medical Payments
Medical expenses must be incurred and reported within ______ of the date of the accident to be covered |
1 year
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Bodily injury provides coverage for ...
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Bodily injury provides coverage for any injury, sickness, disease or
death suffered by third parties because of the insured's business activities. |
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________ provides coverage for any injury, sickness, disease or
death suffered by third parties because of the insured's business activities. |
Bodily Injury
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Property damage provides coverage for ...
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Property damage provides coverage for injury to, destruction of, of loss
of use of property of others due to the insured's business activities |
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______ provides coverage for injury to, destruction of, of loss
of use of property of others due to the insured's business activities |
Property Damage
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Personal injury covers ...
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Personal injury covers injuries caused to third parties that result from
mental anguish, false arrest or imprisonment, wrongful eviction or detention, malicious prosecution, defamation of character, slander or libel, and invasion of privacy. |
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______ covers injuries caused to third parties that result from
mental anguish, false arrest or imprisonment, wrongful eviction or detention, malicious prosecution, defamation of character, slander or libel, and invasion of privacy. |
Personal Injury
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Advertising injury covers ...
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Advertising injury covers injuries that occur if, in the course of
advertising, the insured inadvertently libels, slanders, defames or violates the privacy of another. |
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if the insured inadvertently libels, slanders, defames or
violates the privacy of another they would be covered by? |
Advertising Injury
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________ coverage provides for necessary medical, surgical,
ambulance, hospital, professional nursing or funeral expenses for third parties injured because of the insured's business operations, without regard to fault. |
Medical Payments
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These are amounts the insurer will pay in addition to the
stated policy limits |
Supplementary Payments
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What are supplementary payments?
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These are amounts the insurer will pay in addition to the
stated policy limits |
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Supplementary payments are provided for what coverage?
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Coverage A (Bodily Injury and Property Damage) and
Coverage B (Personal and Advertising Injury). |
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the insurer's duty to defend ceases when ...
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the total of all claims paid
reaches the aggregate limit |
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Are expenses the insurer incurs considered supplementary payments?
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yes
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Supplementary Payments on the CGL will cover Up to $___ for the cost of bail bonds and bonds to release attachments
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Up to $250 for the cost of bail bonds and bonds to release attachments
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Supplementary Payments on the CGL will cover up to $___ a day for loss of income
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up to $250 a day for loss of income
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Costs taxed against the insured would covered on a CGL?
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yes under supplementary payments
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what are the 3 types of legal entities most commonly insured under a General Liability policy
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1. Sole Proprietor
2. Partnership 3. Corporations |
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Under a partnership, who would be considered an insured?
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the partners and each partner's spouse are considered insureds
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Who is the insured under a Sole Proprietor?
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the owner and the owner's spouse are
considered insureds under the policy. |
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Who is considered an insured under a corporation?
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All executive officers and directors, and
The stockholders (coverage is only available with respect to their liability as stockholders). |
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Regardless of legal entity, who else is also considered an insured under the policy?
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- The insured's employees for acts within the scope of their employment
- Any person or agent while acting as the insured's real estate agent - Any person or organization, or legal representatives, having temporary custody of the insured's property if the insured dies - Any person while driving mobile equipment which is registered in the insured's name is considered an insured while driving the equipment along a public highway - Newly acquired organizations, other than a partnership or joint venture, for up to 90 days after ownership is acquired. |
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The insured employees are also considered insured on the CGL but not when ...
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Bodily injury or personal injury to an insured or co-employee, or a spouse, parent or sibling
of the employee Bodily injury or personal injury arising out of the employee's providing or failure to provide professional health care services Property damage to property owned, occupied, rented or loaned to any employee or partner |
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Name the two limits that General Liability Polices include
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Per Occurance Limit
Aggregate Limit |
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What is The per occurrence limit?
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the maximum amount payable per occurrence or accident, despite the number of claimants involved
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How is The per occurrence limit different for Premises/Operations and Products/Completed Operations
coverage (if purchased) |
It is the same for both
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What is The general aggregate limit
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it is the most the insurer will pay for all losses that
occur during a policy period for Coverages A, B and C. |
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A separate aggregate limit applies to which coverage?
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Products/Completed Operations coverage.
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Which Coverage has a separate aggregate limit?
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Products/Completed Operations coverage.
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A specific amount of coverage is also included in the General Liability Policy for Fire Damage Legal. What is this coverage?
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Fire Damage Legal Liability coverage pays for fire damage to property the
insured leases or temporarily occupies which is caused by the insured's negligence |
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Commercial General Liability Policy Conditions
What is the Bankruptcy condition? |
will not relieve the insurer of its obligation under the
policy. |
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what condition states that no party may sue the insurer until all policy
provisions have been complied with. |
Legal Action Against the Insurer
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this condition provides for a sharing of losses
on either a contributing, primary or excess basis |
Other Insurance
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under this condition The insurer is allowed to audit the insured's books or records at the end of the
policy term to make sure adequate premium has been collected for the exposure |
Premium Audit
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What is the Premium Audit Condition?
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The insurer is allowed to audit the insured's books or records at the end of the
policy term to make sure adequate premium has been collected for the exposure |
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By accepting the policy, the insured agrees that the statements shown in the
declarations are true and complete |
Representations
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This condition shows how the insurance will apply to each individual
insured. |
Separation of Insureds
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The insured
must transfer to the insurer any rights they possess to recover damages from a negligent third party. |
Transfer of Rights of Recovery Against Others to the Insurer (Subrogation
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The insured has 2 policies covering the same interest. Policy A is written
for $200,000 and Policy B is written for $500,000. A $500,000 loss occurs. Under the contribution by limits rule how much will each policy pay? |
Policy A would pay approximately 29% or
$145,000 and Policy B would pay approximately 71% or $355,000; that is, each policy would pay a portion of the loss equal to the portion of total coverage it provides |
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What is The Common Policy Conditions
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an interline form which contains provisions applicable to all lines of
coverage that may be included in the policy |
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an interline form which contains provisions applicable to all lines of
coverage that may be included in the policy |
The Common Policy Conditions
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who may cancel the policy at any time by giving written notice to the insurer.
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first named insured
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Examination of Books and Records - The insurer is granted the right to audit books and records
of the insured relating to the policy for a period of up to __ years after the end of the policy |
3 years
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Responsibility for payment of the premiums rests with
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the first named insured
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Definitions:
a land motor vehicle, trailer or semi-trailer designed for use on public roads, including attached machinery or equipment |
Auto
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Definitions:
Auto |
a land motor vehicle, trailer or semi-trailer designed for use on public roads,
including attached machinery or equipment |
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Definitions:
Bulldozers, farm machinery, forklifts and other vehicles, including attached equipment, designed for use off public roads; Vehicles maintained for use solely on or next to the insured premises; Vehicles that travel on crawler treads; Vehicles used primarily to provide mobility to power cranes, shovels, loaders, diggers, drills; and Any other road construction or resurfacing equipment. |
Mobile Equipment
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Definitions:
continuous or repeated exposure to substantially similar conditions. |
Occurance
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Definitions:
Occurance |
continuous or repeated exposure to substantially similar conditions.
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The insured's work will be considered completed at the earliest of the following
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When the work agreed to in a contract is completed;
When all the work at the insured's site has been completed; or When part of the work completed at the job site has been put to its intended use. |
