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113 Cards in this Set
- Front
- Back
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What are 4 coverage's provided under Section 1- Coverages
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Coverage B - Personal injury Liability Coverage C - Medical Payments Coverage D - Tenants Legal Liability |
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Only certain types of losses are insured. What 2 types of losses are insured by Section A, found in CGLS
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1. Bodily Injury 2. Property Damage |
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What are 3 components of bodily injury?
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2. Sickness or disease 3. Death resulting at any time, result from foregoing |
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Identify 3 types of injuries NOT covered by the term bodily injury
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2. Nausea 3. Hysteria |
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What are 2 components of the definition of Property Damage (Coverage A)? Also provide an example of each.
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Example: Welder negligently starts fire in customers building Resulting loss of tangible property Example: Cost to rent alternate premises while damaged premises are repaired or replaced |
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What are 3 types of INTANGIBLE property NOT insured by a CGL
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2. Patents 3. Licenses |
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When will CGLs respond to pay damages incurred by plantiffs?
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When clients are legally liable |
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What 3 sources of liabilities business owners face? Provide an example of each
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Example: Negligent actions cause injury or damage 2. Certain Contractual liabilities Example: Tenant assumes liability of landlords lease 3. Statutory Liability Example: Liabilities incurred by occupiers liabilities acts
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PUNITIVE OR exemplary damages
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Not covered |
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Compenstory damages
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covered |
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Nominal damages
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not covered |
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Identify the coverage territory found in CGLS
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Canada, United States including its territories and possessions |
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Losses arising from business operations may be insured when they occur outside the coverage territory. For them to be insured, 2 conditions must be met. Identify these conditions
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1. Product causing injury or damage was made or sold within coverage territory 2. Suit for damages must be brought with coverage territory |
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Losses arising from business operations may be insured when they occur outside the coverage territory. For them to be insured, 3 conditions must be present.
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2. Person causing the loss was only away for a short time on insured's business 3. Suit for damages must have be brought within coverage territory |
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Why do insurers have the right to defend?
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Insurers must insure all facts are presented to court so proper defense is provided and proper judgment is rendered |
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Insurers have the duty to defend. Indicate if this duty is present in the following cases. 1. When the claim is groundless, false & fraudulent 2. when occurrence giving rise to the claim falls outside coverage |
1. Yes 2. No |
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When does insurers duty to defend end?
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The insurers duty to defend ends when the policy limits have been expended
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How does the right to investigate a claim benefit the insurers?
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This allows insurers to save money by settling with plaintiffs by avoiding expense of going to court
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When bodily injury losses result from force, what conditions must be present for these losses to be covered?
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2. Force must be used to protect persons or property |
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Identify 5 insured contracts found in CGL's
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1. Lease of premises 2. Sidetrack agreements 3. Easement agreements 4. Indemnification resulting from municipal ordinance 5. Elevator maintenance agreements |
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What are 3 responsibilities imposed by elevator maintenance agreements
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2. Apply lubricants as required 3. Inform building owner when repairs or replacement required |
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CGLS also insure contracts where the tort liability of another has been assumed. When must this assumption of liability occur before coverage is available on CGL's
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Assumption must occur prior to any injury or damage
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Are oral contracts insured by CGLS
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yes! there is no requirement for the contract to be written |
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Are all liabilities assumed in contracts covered by CGLs? If not, what types of liabilities are not covered?
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CGL's will NOT insure assumptions made regarding breach of contract |
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Will CGL's insure fines levied by governments because employers breach Workers Compensation Legislation
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NO, cgls do not insure fines imposed by WCB plans |
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Do cgls cover injuries to employees
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NO cgls exclude losses arising from injuries to all employees
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What common law right do employees waive when eligible for benefits under workers compensation laws?
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Employees eligible for benefits under workers compensation laws give up their common law right to sue employer
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When employees are not covered by Workers compensation laws what 2 recommendations should brokerages suggest?
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Clients should enroll staff in workers compensation plans |
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Loss arising from automobile owned by business
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Loss arising from tow truck used by business to tow customers automobiles to service station
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not covered |
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Loss arising from unlicensed van used exclusively on insured premises
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covered |
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Loss resulting from snowmobiles
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not covered
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loss caused when the insured's forklift damages customers automobile in the parking lot on insured's premises
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covered
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loss caused by front end loader owned by insured when being operated at work site
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covered |
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loss caused by a cherry picker attached to insured's truck. The cherry picker damages an underpass while travelling to a job site
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not covered
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loss caused by drill rig attached to insured's truck while at the job site during drilling operation
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covered
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identify extent of coverage's provided by the CGL's for machinery
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CGL's insure loss arising from the use of attached machinery while at the site of use or operation
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when is coverage provided for watercraft?
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CGL's insure losses arising from owned watercraft while ashore on owned or rented premises
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What limitations of coverage apply to non owned watercraft?
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1. Non owned watercraft must be less than meters or feet in length 2. Non owned watercraft cannot be used for carrying passengers or property for charge |
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CGL's do not insure damage to property in the care, custody or control of insured's. CGL's will insure damage to other property damages which results from losses sustained to property in insured's care, custody & control. Your client installs overhead doors for commercial businesses.
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Yesterday while welding a support bracket onto the customers building a fire ensued. Indicate if the following property would be covered Fire damage to the support bracket |
not covered
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Yesterday while welding a support bracket onto the customers building a fire ensued. Indicate if the following property would be covered Fire damage to the customers building |
covered |
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Yesterday while welding a support bracket onto the customers building a fire ensued. Indicate if the following property would be covered Fire damage to the contents of customers buildings |
covered |
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Indicate if the following losses would be insured by CGL's. Breakdown of dryer sold by insureds store |
not covered |
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Indicate if the following losses would be insured by CGL's. damage to clothes in dryer resulting from the breakdown of thermostat in dryer |
covered
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Indicate if the following losses would be insured by CGL's. expenses incurred by insured to remove the faulty thermostat in the faulty dryer |
not covered
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Your client is a roofing contractor installing a new roof on a school that is being built. The roofing job is valued at $200,000. If this work causes damage to this new school and its contents, what limitation would the CGL impose |
CGL's would not respond to pay for the damage caused to work DONE by client. In this loss no coverage would be provided for the $200,000 roofing job. |
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Your client is a roofing contractor installing a new roof on a school that is being built. The roofing job is valued at $200,000. What endorsement would you suggest to insure this EXPOSURE?
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Broad form Completed Operations Endorsement |
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How does the Broad form Completed Operations Endorsement work? |
This endorsement would amend the EXCLUSION to only remove the particular part of work causing loss or damage. |
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What types of contractors are not AFFECTED by the EXCLUSION relating to "Your Work" |
General Contractors would not be affected by this exclusion because work done on the behalf of insured by contractors is not excluded |
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What are 3 expenses NOT insured by CGL's which business may incur when they become aware of deficiencies in their product? |
1. Withdrawing product or work from market 2. recall expenses 3. Inspection expenses |
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Coverage A - Bodily Injury or Property Damage When a store owner throws a threatening nine year old 20 feet through the air. The child is injured when he lands in the path of oncoming automobiles |
NOT COVERED |
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Coverage A - Bodily Injury or Property Damage
A store owner is escorting a shoplifter out of his store. While doing so the shoplifter struggles to get free and stumbles and hits their head on the door |
COVERED |
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Coverage A - Bodily Injury or Property Damage
Losses arising from the assumption of the landlords liability in the lease |
COVERED |
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Coverage A - Bodily Injury or Property Damage
Liability assumed in an easement agreement |
COVERED |
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Coverage A - Bodily Injury or Property Damage
Tort Liability assumed in contract prior to occurrence of any tort |
COVERED |
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Coverage A - Bodily Injury or Property Damage
Assumption of all liabilities of contractor hired to repair insureds roof |
Not Covered |
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Coverage A - Bodily Injury or Property Damage
Bodily Injury to employees arising from the course of their employment |
Not Covered |
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Coverage A - Bodily Injury or Property Damage
Damage to customers car by forklift used exclusively on insureds premises |
Covered |
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Coverage A - Bodily Injury or Property Damage
Bodily injury to customer injured by insureds unlicensed half ton truck. This truck is used exclusively on insureds premises |
Covered |
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Coverage A - Bodily Injury or Property Damage
Drill rig attached to insureds truck caused extensive damage to passing automobiles as it swayed back & forth. It seems the insured did not secure the drill rig prior to driving down the highway |
Not covered |
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Coverage A - Bodily Injury or Property Damage
While at a job site the insured damages an underground natural gas line while using the drill rig attached to his truck |
covered |
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Coverage A - Bodily Injury or Property Damage
While taking customers on a weekend fishing trip the insured turns his boat sharply ejecting 2 customers overboard. One of the customers drowns |
NOT COVERED |
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Coverage A - Bodily Injury or Property Damage
An employee starts a fire in his employers rented store. The landlord is suing for damages |
Not covered |
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Coverage A - Bodily Injury or Property Damage
While installing a toilet in a customers home the insured over tightens the anchor bolts and causing the toilet to crack |
Not Covered |
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Coverage A - Bodily Injury or Property Damage
The crack in the above toilet goes unnoticed and resulting water damage is discovered 2 weeks later. |
Covered |
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Coverage A - Bodily Injury or Property Damage
An electrician crosses 2 wires and blows a switch he is installing |
Not covered |
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Coverage A - Bodily Injury or Property Damage
An electrician crosses 2 wires and blows a switch he is installing, a small fire breaks out and causes damage to the building
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Covered |
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Coverage A - Bodily Injury or Property Damage
Your insured sold a lawnmower to a customer. The day after the sale the customer informs your insured the lawnmower broke down last night. |
Not covered |
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Coverage A - Bodily Injury or Property Damage
An electrician was awarded a $50,000 job to do the wiring in a office building under construction. three months after job completion a switch malfunctioned due to faulty installation. Is the cost to re wire insured? |
Not covered |
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describe false imprisonment
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false imprisonment involves holding persons against their will without legal cause or justification |
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Describe false arrest
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False arrest includes components of false imprisonment, however, also includes holding persons to turn them over to police for prosecution
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What 2 conditions must exist for a suit alleging malicious prosecution to succeed.
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1. Victim was arrested and then released 2. Facts showed that person making allegation did not really believe that the crime was committed, but was motivated by other improper motives |
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What is an example of a claim involving wrongful entry
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landlord use pass key to enter tenants apartment without providing proper notice to tenant
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What are 2 situations that may lead to claims involving wrongful eviction?
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1. Incorrect belief that the tenant did not pay rent, then evicted 2. Incorrect belief that a tenant was violating condition of lease then evicted |
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What are 2 torts with defamation?
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1. Libel 2. Slander |
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What is the difference between slander & libel
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Slander is spoken defamation |
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What does "publication of a wrong" in relation to defamation
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Improper statement must be communicated to "large part of community" When only person being defamed hears or reads statement, defamation has not occurred
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What defense is effective in libel & slander cases?
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Only effective defense in libel or slander cases is the truth
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How are payments made in Coverage C- Medical Payments?
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Payments made in this coverage are available without regard to fault |
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What types of medical expenses are commonly covered?
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1. First aid expenses 2. Ambulance Charges 3. X-ray expenses |
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How long do insured's have to claim under this coverage?
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One year from the date of the accident
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What are three reasons insurers provide this coverage?
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1. Possibility of severe injuries reduced when fast medical attention is obtained 2. Negligence is less likely to be assessed by the courts 3. No legal actions attempting recovery of these expenses will occur |
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Who are 3 people Not covered by Coverage C- Medical Payments?
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2. Insured's employees 3. Persons taking part in athletics |
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How are Tenants found responsible for damage to rented premises. Provide an example of each.
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1. Tort Liability Example: Tenant leaves the coffee turned on overnight which causes fire damage to landlords building 2. Contractual Liability example: Tenant assumes liability for glass lease agreement |
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Which of the above examples would be insured by Coverage D- Tenants Legal Liability?
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Coverage D-Tenants Legal Liability only insures tort liabilities of tenants
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Why do insured's require Coverage D- Tenants Legal Liability?
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Coverage A-Bodily Injury or Property Damage Liability excludes coverage for any damage to property owned, rented or occupied by insured's. As a result of this exclusion, Coverage D - Tenants Legal Liability is required to provide protection for damage caused to rented premises
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When determining limits of coverage to purchase, what should insured's consider?
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1. Fire 2. Explosion 3.Smoke 4. Leakage from fire protection equipment |
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What are the 3 common exclusions to all coverage sections?
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2. Nuclear 3. War risks |
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What is the limit of protection provided by Supplementary Payments?
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There is no limit of coverage found in protection provided by Supplementary Payments
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Are limits of coverage found in supplementary payments is in addition to amount of insurance or in addition to amount of insurance?
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Coverage provide by supplementary payments is in addition to amount of insurance shown on policy
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State 4 expenses insured by supplementary payments
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1. Insurers costs 2. Cost of bonds to release attachments 3. Expense incurred during investigation and defense 4. Costs taxed against insured and interest incurred after entry of judgment during appeals |
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When paying interest on judgments, what is the moment in times interest calculations begin?
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These interest payments begin after of initial judment |
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What are 3 factors affecting the premium charged for product liability exposures?
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2. Annual volume of sales 3. Jurisdictions where products are sold |
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What are 2 factors affecting premiums charged for completed operations liability exposures
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1. Type of work insured performs 2. Annual gross receipts |
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When will changes to existing business be insured by CGL's
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2. Coverage is provided for 90 days from the date of acquisition or until policy expires which ever first occurs |
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State the conditions imposed by the Canadian Currency \clause
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All premiums are paid in Canadian dollars and all losses are paid in Canadian dollars |
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What benefits are enjoyed by the first named insured?
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2. refunds are payable to first named insured's 3. Notice of termination is sent only to first named insureds |
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Explain the condition "Premium Audit"
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Insurers reserve the right to review clients books and records to ensure proper premium was charged. Premium on policy is a deposit premium only |
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How is coverage affected by the separation of insured's, Cross liability clause
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1. When one insured causes injury or damage which is excluded by CGL, coverage may still be available for other insured's 2. When one insured breaches policy condition thereby negating coverage, this breach may not affect other insured's |
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What are 3 Components of the definition of Products?
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2. Containers and other equipment furnished along with product 3. warranties and representing made regarding product |
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What are four components of the definition of "Work"
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1. Work done by insured 2. Work done on behalf of insured by subcontractors 3. Materials, parts and equipment used in connection with work 4. Warranties and representatives made regarding work |
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What are the 3 factors that should be considered when advising your insured on proper limits of coverage?
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1. Amounts of previous awards incurred by similar business 2. Inflation 3. Existence of insurance |
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What types of claims have the longest tails?
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Losses involving latent bodily injury losses have long tails |
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Identify the 3 theories used by courts to determine when occurrences take place.
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2. exposure in resident theory 3. Manifestation theory |
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Describe 2 key features of Claims Made liability policies.
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2. Claims made policies contain retroactive dates. Retroactive dates are the first day of the policy of the first claims made policy issued by insurer. These ensure claims made policy does not respond to losses occurring prior to retroactive date. |
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What endorsement would you recommend to insured's when replacing an existing Claims Made policy with another?
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Extending reporting period endorsement should be purchased when replacing on Claims Made Policy with a different insurer. This would eliminate problems of potential coverage gaps.
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Extending reporting period endorsement should be purchased when replacing a Claims Made Policy with a different insurer. This would eliminate problems of potential coverage gaps. Which policy is this endorsement attached to? |
These endorsements are attached to expiring claims made policies
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What are 2 advantages of Umbrella policies?
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1. Provide coverage when primary underlying policies provide inadequate limits of coverage 2.Provide coverage when primary (underlying) policies exclude losses |
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Which policy responds first when losses are covered by both policies?
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Underlying policies respond first when both policies insure loss |
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What is a SIR
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Self Insured Risk |
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When is a SIR applied to losses?
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SIR's are applied when underlying policies exclude loss and Umbrella Policy "drops down" to provide coverage |
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What are two functions of SIR's
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2. Encourages client to purchase underlying coverage for known exposures |
