Casualty Flashcards
1
Q
What are the three reasons people buy liability insurance?
A
- Sometimes required by law
- It protects assets and income should the insured be involved in an accident or and occurrence that was unintended, but would find the insured is legally liable (responsible) for another’s injuries or damages.
- If a claim is a covered claim, a liability policy will provide the insured’s defense.
2
Q
Is issued as a separate policy or other items it is packaged together with property insurance coverages.
A
Liability Coverage
3
Q
Pays all sums for which an insured becomes legally liable (responsible), for bodily injuries and/or property damage to third parties, not to exceed the policy limits of liabilities
A
Liability Coverage
4
Q
Damages can be _____ or _______
A
special ; general
5
Q
Are damages that are able to be easily determined such as medical bills, lost wages, repair costs and replacement value.
A
Special Damages
6
Q
Are damages that cannot be calculated precisely and are subject to judgement and differences of opinion. ______ _______ include compensation for pain and suffering, compensation for permanent disabilities and compensation for scarring and disfigurement.
A
General damages
7
Q
Are extra amounts a court orders the insured to pay to the claimant as punishment for doing something particularly reckless, dangerous, grievous or malicious.
A
Punitive damages
8
Q
Court orders for punitive damages are generally not covered by _____ ________
A
liability insurance
9
Q
A third party claimant must be able to prove he/she has damages either in the form of ___ _____ and or ______ _______
A
bodily injuries ; property damage
10
Q
A third party claimant must also prove the monetary value of the _______
A
damages
11
Q
Bodily injuries also means
A
Physical injuries
12
Q
Bodily injuries include:
A
a. reimbursement for medical bills
b. reimbursement for lost wages
c. compensation for pain and suffering
d. compensation for permanent disabilities
e. compensation for permanent scaring and disfigurement
13
Q
Direct or immediate cause is
A
Proximate Cause
14
Q
Is when a claimant is entitled to collect from an insured the percentage of damages for which the insured is responsible.
A
Comparative Negligence
15
Q
Is the type of legal proceeding through which claims for money or bodily injuries and/or property damage are made. It is also sometimes called CIVIL LIABILITY
A
Law of torts
16
Q
What is civil liability also called?
A
Law of Torts
17
Q
Is any sudden, unforeseen, unintended event which results in bodily injuries and/or property damage
A
Accident
18
Q
Is an accident, or any continuous or repetitious exposure to conditions which results in bodily injuries and/or property damage.
A
An Occurrence
19
Q
Both _____ and _______ policies cover claims made after the policy expiration, as long as it happened while the policy was in effect.
A
accident ; occurrence
20
Q
Some commercial and/or professional liability policies are written as _____ _____ ______
A
Claims made policies
21
Q
Coverage commences on the date specified in the policy as the _______ _____
A
retroactive date
22
Q
The ________ must occur sometime after the retroactive date and before the policy termination date
A
occurrence
23
Q
Is when the occurrence must be reported by the insured person or business to the insurance company while the policy is in effect during the 60 day reporting period that follows after the policy terminates
A
mini tail
24
Q
Is when the claim must be made by the injured person either while the insurance policy is in effect or withing the five year claim reporting period that follows after the policy terminates.
A
Midi tail
25
An endorsement can be purchased for the extra premium charge. If added, the occurrence must occur after the retroactive date and before the policy termination date and the occurrence and claim can be reported either while the policy was in effect or any time after the policy terminates.
Supplemental reporting period
26
What is the Supplemental Reporting Period also called?
Supplemental or full tail
27
An occurrence policy is not an ________ or _______ policy
accident ; claims
28
An occurrence policy is not an accident policy - which means it will cover ________ arising out of an accident or any continuous or repetitions exposure to conditions which results in damage
liability
29
An ______ policy is not a claims made policy - Which means all that is required is that the ________ or ________ occurs while the policy is in effect. It doesn't matter that the claim isn't made by the injured claimant until after the policy terminates.
Occurrence ; Accidental ; occurrence
30
Under some commercial (business) liability policies, the insurance company will charge an estimated premium at the beginning of a policy term. It is called a ____ ______
deposit premium
31
If an insurance company does an audit of the insured business, and the audit determines that the insured's liability risks increased during the policy premium, the insurance company will sometimes charge an additional premium at the end of the policy term, if they charge it, it is called an
audit premium
32
The Personal Auto policy can be used for what vehicles?
1. Any two door, four-door, or station wagon type auto which has the least four wheels
2. Any pick up or van
a. which is owned by an individual or husband and wife
b. which has a load capacity of less than 10,000 lbs
c. which is not used in the delivery of transportation of goods.
33
Two exceptions to the delivery and transportation of goods.
1. If the pick-up truck or van is used for installing, maintaining or repairing furnishings or equipment (such as construction job or repair service job) it can qualify for a Personal auto policy.
2. If the pick-up truck or van is used for farming it can qualify for a Personal auto policy
34
Business Auto policy can be used for two things:
1. Any auto owned by a business firm (partnership or corporation)
2. Any truck which does not qualify as a personal auto
35
What are the 5 auto insurance coverages?
1. Liability Coverage
2. Physical damage coverage: (comp/coll)
3. Medical payments coverage
4. Uninsured motorist coverage
5. Underinsured motorist coverage
36
When a policy includes all 5 coverages, it is called ______ coverage
full
37
When a policy does not include physical damage coverage, it is referred to "________ only coverage"
liability
38
What pays all sums for which an insured becomes legally liable (responsible)
Liability Coverage
39
What two things are caused to other parties?
1. Bodily injuries
2. Property damage
40
Parties to whom the insurance policy coverage applies (includes 4 items)
1. Named insured & spouse
2. All relative members of the insured's household
3. Anyone driving the insured auto with permission (express or implied)
4. Anyone legally responsible for the use of the auto at the time of the accident (omnibus clause)
41
Who is all covered as relative members of the insure's household?
a. whether they have driver's license or not
b. whether they are named in the policy or not
42
What is included (covered) while driving the insured auto with permission (expressed or implied)?
a. including liability caused by employees
(It will NOT cover liability to injured employees (Worker's compensation coverage))
43
What is it called when one person, such as an employer, can sometimes be held legally liable (responsible) under special circumstances for the actions or accidents or occurrences caused by another, such as an employee?
Vicarious liability
44
Auto liability coverage applies when it is arising out of _______ autos and _________ _______ autos if reported within _________ days
replacement; newly acquired; 30
45
Autos to which auto liability applies
1. autos in the dec page
2. replacement autos (if replaced within 30 days)
3. newly acquired autos (if reported within 30 days)
4. auto trailers
5. temporary substitute autos
6. non owned autos not regularly used by the insured (rental car)
46
Coverage follows the _______ first, the _________ second.
vehicle ; driver
47
Minimum liability limits required to be carried on all automobiles by state laws are __/__/___
25/50/20
48
If the insured has the minimum liability limits the insurance company will pay up to $_____ for bodily injuries per person
$25,000
49
If the insured has the minimum liability limits the insurance company will pay up to $_____ for total (aggregate) bodily injuries per occurrence.
$50,000
50
If the insured has the minimum liability limits the insurance company will pay up to $_____ for property damage occurrence
$20,000
51
An alternative to 20/50/25 split limits is minimum singe liability limits of $________
$70,000
52
It must be kept in all automobiles at all times. It must include the name of the insurance company, effective date and expiration date.
Proof of insurance
53
It is common to increase liability to _______ levels
Higher
54
(differences between property insurance coverage (fire policies, dwelling policies, homeowners policies and liability coverages))
Property insurance coverages are ___ _____ coverages because they pay to the insured for damage to the insured's property. Liability insurance coverages are ______ _____ coverages because they pay to someone other than the insured.
first party; third party
55
(differences between property insurance coverage (fire policies, dwelling policies, homeowners policies and liability coverages)) property coverages usually have a ________ : Liability coverages usually have __ _________
deductible; no deductible
56
(differences between property insurance coverage (fire policies, dwelling policies, homeowners policies and liability coverages)) property coverages indemnify by _____ the insured - Liability coverages, on the other hand Indemnify by ______ the insured's roled (or insured's position) in the claim.
reimbursing ; assuming
57
Are amounts which the insurance company will pay in addition to the limits of liability
Supplemental payments
58
Insurance companies will provide supplemental payments for $_____ for bail bonds required because of an accident which resulted in bodily injuries or property damage
$250
59
Insurance companies will provide supplemental payments for ________ cost including interest on a judgement resulting from a claim the insurance chooses to defend.
defense
60
Insurance companies will provide supplemental payments for _____ bonds and other bonds required by the insurance company's defense of a claim
appeal
61
Insurance companies will provide supplemental payments up to $____ for loss of earnings because of an attendance at hearings at the insurance company's request.
$50
62
Insurance companies will provide supplemental payments for other ________ insured at the request of the insurance company
expenses
63
Auto liability coverage exclusions are:
1. Liability for property owned by or in care/custody/control of the insured (covered under HO)
2. Liability of an employer for injuries sustained by employees during the course of employment (workers comp coverage would apply)
3. Liability while operating a vehicle for a fee (liability incurred while carpooling is covered)
4. Liability incurred by an intended act
5. Liability incurred by the insured while driving a non-owned auto while engaged in the auto business (gatekeeper coverage would apply)
6. Liability covered under a nuclear energy liability policy
64
A person would purchase either ____ ____ coverage or ______ coverage, never both
named peril; comprehensive
65
First party coverage that covers damage to the insured's vehicle.
Physical damage coverage
66
Physical Damage coverage named peril coverage includes:
1. fire
2. lightening
3. transportation (towed)
4. theft and vandalism
5. windstorm and hail
6. civil commotion and riot
7. explosion
8. flood and earthquake
9. aircraft
67
______ coverage is sold more often than ______ coverage
comprehensive; named peril
68
comprehensive coverage is also named
all risk coverage
69
What covers all the named perils (plus it is broader) and covers all forms of damage to the insured auto except those excluded?
Comprehensive (all risk coverage
70
The primary exclusion to comprehensive coverage is damage caused by ______ or ________
collision ; upset
71
Exception: comp coverage will cover damage caused by collision with a _____ or ______
bird; animal
72
Upset damage which is excluded under comprehensive coverage is damage incurred by _______ the insured vehicle
rolling
73
Comp coverage pays up to $____ per day for transportation costs not to exceed $______ after the insured auto has been stolen for ____ hours
15 ; 450 ; 48
74
Collision or upset coverage has a ____ deductible than comp coverage
higher
75
collision or upset coverage covers damage to the insured vehicle caused by ____ or ______
collision or upset
76
Comp coverage usually has a ____ deductible
low
77
collision coverage usually has a _____ deductible
higher
78
Autos to which Physical damage coverage applies:
1. Autos described in the dec page
2. replacement autos ( if reported within 30 days)
3. newly acquired autos (if reported within 30 days)
4. temp substitute autos (rental car or auto garage gives you loaner)
5. Non-owned autos not regularly provided for the insured's use. (excess to any coverage on auto)
79
Physical damage coverage exclusions are:
1. any auto used as a public or livery conveyance
2. war
3. Non-owned auto used by the insured while the insured is engaged in the auto business (garagekeeper coverage would apply)
4. Another auto owned by the insured upon which the insured has another valid and collectable insurance (Insured cannot stack coverage)
5. Damage due to wear, tear, freezing, mechanical, or electrical breakdown or failure unless it results from a theft
6. damage to tires, unless the damage was caused by fire, vandalism, or theft
7. radioactive contamination
8. loss of or damage to sound reproduction equipment not permanently installed and tapes
9. loss of or damage to C.B. radios and telephones not permanently installed
10. loss of or damage to custom furnishings
80
It covers medical bills incurred by the insured and household members if injured by any auto anywhere.
Auto medical payment coverage
81
It also covers medical expenses incurred by passengers of the insured auto if the passengers are injured while they are entering, occupying or alighting from the insured auto.
Auto medical payment coverage
82
Auto Medical Payments coverage covers medical expenses incurred within _ years of an accident including ambulance an funeral expenses.
3 years
83
Auto Medical Payments coverage pays whether the insured was ______ _______ for the injuries or not
legally responsible
84
Auto Medical Payments coverage is usually a per person limit (such as $______) and an aggregate (total) limit in a higher amount (such as $______) per occurrence
$5,000 ; $25,000
85
What are the Additional Auto coverages?
A. Towing and labor coverage
B. Transportation Expense (Rental Reimbursement) coverage
C. Hired auto coverage
D. Employees Non-Ownership liability coverage
E. Drive other car (DOC) coverage
86
The additional auto coverages are an extra _______ that can be added to an auto policy for an extra ______ charge
endorsement ; premium
87
If towing and labor coverage is added, it pays for _____ service, _____ and/or _____ charges
roadside ; labor ; towing
88
Towing and labor coverage _____ are sometimes $50, $75, $100, $150, $200, or $250
limits
89
Transportation Expense coverage covers auto rental expenses the insured incurs because the insured auto is unable to be driven due to damage covered under the insured's ____ _____ coverage
Physical Damage
90
Transportation Expense coverage covers expenses the insured incurs because the insured auto has been _____.
stolen
91
Transportation Expense coverage in the case of the insured auto being stolen, coverage starts after the insured auto has been stolen __ hours.
48 hours
92
Transportation Expense coverage pays up to $___ per day for transportation costs not to exceed $______. This amount can be increased for an additional premium charge. to qualify for this coverage, the insured must carry Auto ______ _______ coverage
$20 ; $600 ; Physical Damage
93
Hired Auto coverage covers liability arising out of a vehicle rented for leased for less than __ months
12
94
Hired Auto coverage is coverage needed by a business that _____ rents cars or trucks
occasionally
95
Employers non-ownership liability coverage protects an employer against legal liability caused by an employee while driving an auto ____ _____ by the employer
not owned
96
_______ _______ liability coverage is excess to any coverage there may be on the auto being driven by the employee at the time of the accident
Employee non-ownership
97
______ _______ ______ Coverage is purchased by a business to protect an executive, key employee, or a business owner who is not covered under a personal auto policy.
Drive Other Car (DOC)
98
Drive Other Car (DOC) Coverage protects only individuals that are _____ (listed)
scheduled
99
Drive Other Car (DOC) Coverage: Sometimes the scheduled (listed) insured will not have a Personal Auto policy because he/she and his/her family drive only ______ owned vehicles and do not personally own a vehicle
company
100
Drive Other Car (DOC) Coverage protects the ________ employees against liability incurred to a third party while driving a vehicle the employee does not own other than a company owned vehicle such as a rental vehicle, or some other vehicle the employee does not own.
scheduled
101
Drive Other Car (DOC) Coverage can also include _____ ______, _____/______ motorist coverage and _______ ______ coverages
Medical Payments ; Uninsured/Underinsured, Physical Damage
102
Drive Other Car (DOC) Coverage: ______ _______ _______ endorsement extends coverage to also cover family members of the scheduled (listed) insured person.
Individual Named Insured
103
Both ________/_________ motorist coverages cover the insured and all members of his/her household if they are injured anywhere.
Uninsured/Underinsured
104
Both Uninsured/Underinsured motorist coverages cover passengers if they are injured while they are ____, _____ or _______ from the insured auto.
entering, occupying, alighting
105
U.M. = _______
Uninsured Motorist
106
U.I.M = ___________
Underinsured Motorist
107
U.M. coverage protects an injured insured person if injured by what two things?
1. hit and run
2. uninsured motorist
108
U.M. coverage protects the injured insured person in the same way and for the same amount of money that he/she would have been covered had the hit-and-run or uninsured motorist had ______ ______
liability coverage
109
The total sum covered will not ______ the insured's U.M. coverage limits
exceed
110
____ coverage limits has only two numbers. It can be purchased with limits of 25/50, 50/100, 100/300, 250/500, or 500/1000
U.M.
111
U.M. coverage covers only _____ _______
bodily injuries
112
U.M. coverage does not cover ____ to the insured vehicle
damage
113
If the insured vehicle is damaged and there is Collision coverage on it, the damage to the insured vehicle will be covered under _______ coverage
Collision
114
If there is no Collision coverage on the insured auto, the insurance company must offer the insured the opportunity to purchase ______ ______ _______ _______ coverage to cover damage to the insured auto caused by an uninsured or hit and run motorist.
Uninsured Motorist Property Damage
115
Uninsured Motorist Property Damage = ____________
U.M.P.D
116
U.M.P.D. covers only damage to the _____ _____
insured auto
117
U.M.P.D. does not cover other ____ or ______ to the insured auto.
autos ; contents
118
U.M.P.D _____ amounts may only be limited to amounts set by law.
face
119
When issuing Auto Liability coverage, state laws require the insurance company to automatically include _____ coverage with limits of no less than ______/_______
U.M. ; $25,000/$50,000
120
If the insured increases the liability coverage limits to a level higher than 25/50/20, the insurance compnay must allow the insured to increase her ____ limits up to the same level as the insured's liability limits
U.M.
121
If an insured increases his/her U.M. coverage limits, the insurance company must automatically include _____ coverage with the same limits.
U.I.M
122
No U.I.M coverage is included if U.M. coverage is maintained with just ______/_______ minimum limits
$25,000/$50,000
123
U.I.M coverage covers the same parties as _____ coverage
U.M.
124
If a covered person is injured by an underinsured motorist, it pays up to the ______ between that at-fault driver's liability limits and the insured's U.I.M. limits (assuming they are higher)
difference
125
U.I.M pays the difference the ____ way and to the ____ extent that the at-fault driver's coverage would have paid had it's limits been higher.
Same
126
The total sum covered under the at-fault driver's liability coverage and the insured's U.I.M coverage will not exceed the insured's ______ coverage limits
U.I.M
127
General Auto Policy Conditions. Conditions also means what?
Requirements
128
General Auto Policy Conditions: the Insured must _______ fully with the insurance company's investigation, settlement and/or defense of the claim.
cooperate
129
General Auto Policy Conditions: The insured must provide full proof of ______
loss
130
General Auto Policy Conditions: In most circumstances, a third party claimant must make his/her claim against the _______ _______ and allow the insured person to submit the claim to his/her insurance company.
insured person
131
General Auto Policy Conditions: A third party claimant may not sue another person's _____ _____ directly unless a court has ordered the _____ ______ to pay and it has failed to do so or the _______ ______ has entered into claim settlement agreement agreeing that insured is legally liable (responsible) for damages and the _______ _______ has failed to pay. (all same answer)
insurance company
132
General Auto Policy Conditions: The insured must _______ additional loss.
prevent
133
General Auto Policy Conditions: After the insurance company has paid the claim, the insurance company may acquire the insured's _____ to make a claim against another party to recover the loss the insurance company has paid (subrogation)
rights
134
General Auto Policy Conditions: The accident or occurrence must occur within?
U.S, a territory, or Canada
135
General Auto Policy Conditions: the _____ _____ has the right to either pay the loss, repair the damaged property, or replace it.
insurance company
136
General Auto Policy Conditions: If the insured and the insurance company disagree as to the amount of loss and the vehicle cannot be repaired or replaced, each may select an appraiser and they will select and _______ _______ who will settle the loss (arbitration clause)
umpire appraiser
137
General Auto Policy Conditions: The policy cannot be _____ or ______ without the insurance company's permission.
changed ; assigned
138
It is issued as the liability coverage part of a Farmowner Package policy, or as the liability coverage part of a business owner policy (BOP), or as the liability coverage part of a commercial package policy (CPP), or it may be issued as a separate policy.
Commercial General Liability (CGL) coverage
139
It covers liability arising out of the insured business as will as new hazards arising during the policy term, whether they are reported to the insurance company or not.
Commercial General Liability (CGL) coverage
140
Commercial General Liability (CGL) coverage: A ______ ________ is charged at the beginning of the policy term
deposit premium
141
Commercial General Liability (CGL) coverage: An audit is done at the end of the policy term. If the audit determines that the insureds risks increased during the policy term, an additional premium (_____ ______) can be charged at the end of the policy term.
Audit premium
142
Commercial General Liability (CGL) coverage: If the audit determines the insureds liability risks decreased, a _____ or _____ will be issued
refund ; credit
143
A Commercial General Liability (CGL) coverage is usually issued as an _______ ________
occurrence policy
144
Commercial General Liability (CGL) coverage is usually issued as an occurrence policy, it is required only that the ________ or ________ occur while the policy is in effect.
accident ; occurrence
145
Commercial General Liability (CGL) coverage is usually issued as an occurrence policy, the claim can be made ____ the policy terminates
after
146
Some Commercial General Liability (CGL) policies are written as _______ ________ policies
claims made
147
CGL Policies: coverage commences of the date specified in the policy as the ______ _______.
retroactive date
148
CGL Policies: The occurrence must occur sometime after the _______ ______ and before the policy ________ _______
retroactive date ; termination date
149
CGL Policies: The occurrence must be reported by the insured business to the insurance company while the policy is in effect during the ___ day reporting period that follows after the policy terminates (also called _____ tail)
60 days ; mini
150
CGL policies: The claim must be made by the injured person either while the insurance policy is in effect or within the __ year claim reporting period that follows after the policy terminates (also called the ____ tail)
5 ; midi
151
CGL policies: What is an endorsement that can be purchased for an extra premium charge? if added, the occurrence must occur after the retroactive date and before the policy termination date and the occurrence and claim can be reported either while the policy was in effect or any time after the policy terminates.
Supplemental Reporting Period
152
What is supplemental reporting period also called?
Supplemental or full tail
153
The CGL policy covers _____ ______ incurred by the named insured business, its officers, partners, employees, real estate managers, custodians, and mobile equipment operators acting within the scope of the insured business.
legal liability
154
The CGL policy has separate limits for:
a. Bodily injuries and property damage liability coverage
b. Products liability coverage
c. fire liability coverage
d. personal and advertising injury liability coverage
e. medical payments coverage
f. a total maximum (aggregate) annual limit for all covered claims
155
Under the CGL policy conditions (requirements) , the insured is required to give the insurance company:
a. Prompt notice of an occurrence
b. Prompt written notice of all claims
c. immediate copies of claim notices and legal papers
d. authorization to obtain records
e. cooperation in investigation, settlement, defense claims
f. cooperation in enforcement of rights against others to attempt to recover the loss the insurance company has paid (subrogation)
156
Commercial Liability Coverages
Coverage A - Bodily Injury and Property Damage Liability coverage
Coverage B - Personal and Advertising Injury Liability coverage
Coverage C - Medical Payments coverage
157
Commercial Liability Coverage A includes
a. Premises Liability
b. Off Premises Liability
c. Operations Liability
d. Fire Liability
e Products and Completed Operations Liability coverage (Products Liability Coverage)
158
Commercial Liability Coverage A: Liability arising from the ownership, use or occupancy of premises
Premises Liability
159
Commercial Liability Coverage A: Liability arising from an operation or activity being performed by the insured, an employee or an independent contractor including liability caused by new construction and structural alteration liability.
Operations Liability
160
Commercial Liability Coverage A: Liability incurred off premises incidental to the insured business
Off Premises Liability
161
Commercial Liability Coverage A: Liability arising from a fire on the insure premises.
Fire liability
162
Commercial Liability Coverage A: Business that manufacture, distribute, or sell products or completed services have an extra high standard of responsibility (liability) to assure that their products or completed services are safe and cannot cause injuries or death to consumers.
Products Liability coverage
163
Commercial Liability Coverage A: Products Liability coverage - Business that manufacture, distribute, or sell products or completed services have an extra high standard of responsibility (liability) to assure that their products or completed services are safe and cannot cause injuries or death to consumers.
This high level of liability is called what?
Strict liability
164
Is liability arising out of defects in products and completed operations
Products liability
165
Commercial Liability Coverage A: It covers liability assumed for someone else by contract in a hold harmless clause. It sometimes occurs in lease contracts, construction contracts, service contracts, as well as other types of contracts.
Incidental insured contracts liability.
166
Commercial Liability Coverage A - Incidental insured contracts liability: The CGL policy will not cover liability resulting from _____ ___ _______
breach of contract
167
Commercial Liability Coverage A - Incidental insured contracts liability: The CGL policy covers only liability assumed under a hold harmless clause and only if the hold harmless clause is in a contract _______ to the insured buisness
incidental
168
Commercial Liability Coverage A - Incidental insured contracts liability: When one person assumes legal liability (responsibility) for actions or accidents or occurrences caused by another, it is called _____ liability
vicarious
169
Coverage A (Bodily Injury and Property Damage Liability coverage) Exclusions:
a. Liability caused by acts intended by the insured
b. Liquor liability (dram shop liability)
c. Liability to injured employees (workers compensation coverage)
d. Liability cause by the discharge of pollutants or waste
e. Liability arising from auto, watercraft or aircraft
170
It covers liability other than bodily injury liability arising out of the personal injury such as false arrest, malicious prosecution, wrongful entry or eviction, libel, slander, and invasion of privacy.
Coverage B - Personal and Advertising Injury liability Coverage
171
Coverage B - Personal and Advertising Injury liability Coverage: Advertising injury liability coverage covers claims resulting from advertising including _____ or _______ infringement claims
trademark ; copyright
172
Coverage B - Personal and Advertising Injury liability Coverage exclusions
a. Intentional false oral or written publication
b. Willful violation of the law
c. Liability assumed by contract
d. Liability resulting from publication that first occurred before the policy effective date.
e. Advertising liability caused by breach of contract
f. Liability caused by advertisement of wrong quality or price
g. Advertising liability when the insured business is advertising, broadcasting, publishing, or telecasting
173
Coverage A & B Supplementary Payments
a. Defense cost
b. Bail Bonds up to $250
c. Other costs incurred at the request of the insurance company including loss of income of up to $100 per day
174
It pays all medical expenses incurred within one (1) year of an accident occurring on the insured premises resulting from the insured operations
Coverage C - Medical Payments Coverage
175
It pays medical expenses regardless of legal liability up to the insured business' Medical Payments coverage limits
Coverage C - Medical Payments Coverage
176
Coverage C - Medical Payments Coverage: It covers medical expenses incurred by ______ other than the insured, employees, tenants, or persons injured as a result of a product or completed operations liability or as a result of an athletic contest.
anyone
177
Coverage C - Medical Payments Coverage: CGL Med Pay covers medical expenses incurred by _____ to the insured premises
visitors
178
It protects owners, landlords and tenants of property against liability caused by contractors or subcontractors named on the dec page
Owners and Contractors Protective Liability Coverage
179
Owners and Contractors Protective Liability Coverage: When a property owner enters into a construction contract with a contractor, the property owner will sometimes require the contractor to carry _______ and ________ Protection Liability coverage to protect the property owner and the contractor against legal liability arising out of the project.
Owners ; Constructor
180
Owners and Contractors Protective Liability Coverage: When a contractor enters into a contract with a subcontractor sometimes the contractor will require the sub to carry ________ and ________ Protective Liability coverage to protect the general contractor and the subcontractor against liability arising from the project.
Owners ; Contractor
181
It is required by businesses which due to the nature of their business or their prominence, run the risk of having claims made against them in extraordinary high amounts or for things not covered under other coverages.
Commercial Excess/Umbrella Liability coverage
182
Commercial Excess/Umbrella Liability coverage: To qualify for Commercial Excess/Umbrella Liability coverage, the insured must carry _______ liability coverage with at least required _________ limits
primary ; minimum
183
Commercial Excess/Umbrella Liability coverage: It covers liability claims which exceed ______ coverage limits and some types of claims not covered under ______ coverage
primary
184
It is important coverage for any professional person or professional organization to have if they are at risk of having a claim made against him or her due to a professional mistake.
Professional Errors and Omissions (E and O) coverage
185
Professional Errors and Omissions (E and O) coverage: It is important coverage ______ to have
1. hospital/doctor/nurse
2. lawyer/law firm
3. accountant/accounting firm
4. architect/architecture firm
5. insurance agent/agency
6. real estate salesman/real estate firm
7. other professional person or organization
186
Professional Errors and Omissions (E and O) coverage is sometimes called __________ Liability Insurance or _________ insurance. Other times it's called _________ and ___________ (_ & _) liability insurance
Professional ; Malpractice ; Doctors and Officers (D and O)
187
Professional Errors and Omissions (E and O) coverage is sometimes packaged together with _________ _________ Liability Insurance
Employment Practice
188
It protects businesses against claims made by employees against an employer alleging the employer has violated the employee's rights
Employment Practice Liability insurance
189
Professional Liability coverage sometimes includes a special ______ _______ provision
Loss Settlement
190
Professional Liability coverage sometimes requires the ___________ to obtain the insured's written consent to settle a claim without defending against the claim in court.
insurance company
191
Is needed by automobile sales, servicing, repair and parking businesses
Garage coverage
192
Covers Liability arising as a result of garage operations
Garage liability coverage
193
Covers legal liability for damage to customers' autos
Garage keepers coverage
194
Covers autos owned by the insured business
Garage Physical Damage coverage
195
Garage coverage 3 optional coverages
1. garage liability coverage
2. Garage Keepers coverage
3. Garage physical damage coverage
196
Can be purchased as either a part of a CGL policy, or, if a business does not have a CGL policy, as a separate policy
Products and Completed Operations Liability Coverage (Products Liability coverage)
197
It covers only liability arising out of defects in products and completed services manufactured, handled, distributed, or sold by the insured.
It must also be after the _____ has been passed from the insured (sale completed)
& after the insured has relinquished _________.
Products Liability coverage; title ; possession
198
It covers only liability assumed by the insured by contract in hold harmless clauses found in business contracts such as purchase agreements, construction contracts, maintenance agreements, service agreements, rental contracts, leases, and other business contracts
Contractual Liability coverage
199
Two types of Contractual Liability coverage:
1. Designated contracts (scheduled) coverage
2. Blanket coverage
200
Contractual Liability coverage can be purchased as part of a ____ policy, or, if a business does not have a ____ policy, as a separate policy
CGL
201
Contractual Liability coverage: When one person or organization becomes legally liable for accidents, injuries, or property damage caused by another it is called ______ _______
vicarious liability
202
Contractual liability coverage ______ liability resulting from breach of contract
excludes
203
It is a federal GOV program in which most insurance companies choose to participate
Terrorism Risk Insurance Act (TRIA)
204
When insurance companies participate in the federal terrorism insurance program, the insurance companies must offer terrorism coverage as an _____ _______ on all insurance policies covering commercial business properties
extra endorsement
205
Is when an insured person or organization is involved in an activity that creates risk to other people. Sometimes the risk that is imposed is a high level of risk. The people who are at risk are sometimes unaware that they are in this high risk situation. Other times, they are in a position where they can do very little or nothing about it. That imposes upon the insured person or organization a high duty to take an especially high level of care to avoid accidents and occurrences that may result in injuries to others
absolute liability
206
Occurs when an insured person or organization is involved in an activity where there is a high duty to take care to avoid accidents or occurrences that could cause injuries and/or property damage. The insured's duty is not, however an absolute duty where is something were to go wrong the insured would automatically be held legally liable.
Strict liability
207
Occurs when an insured person or organization has not committed an act of negligence but becomes legally liable for actions or failures to act of another.
Vicarious Liability
208
Is the taking or property from the premises of another with either forced entry or exit
Burglary
209
Is the taking of property from the person of another by either force or threat of force
Robbery
210
Is the taking of property with the intent to deprive the rightful owner (includes burglary & robbery, but is broader than both)
Theft
211
Is any unexplained vanishing of property under circumstances that would suggest a wrongful taking
Mysterious disappearance
212
Is the signing of another person's name with the intent to not deceive and take money
Forgery
213
Honesty=
Fidelity
214
Is a contract that guarantees a promise
Bond
215
Are contracts issued by insurance companies that guarantee a promise of honesty of one person to either another person or to an organization
Fidelity Bonds
216
Is a fidelity bond that is issued by insurance companies to guarantee the honesty of an employee to an employer. It protects the employer against the financial risk of employees stealing from the employer
Employee dishonesty coverage
217
Is a three party contract
Bond
218
Three party contract (bond) parties:
1. Principal (Obligor) - Person (employee making a promise of honesty
2. Obligee - Person (employer) to whom the promise is made
3. Surety - Insurance company that guarantees the principal's promise to the obligee
219
It protects an organization against loss of property other than money and securities.
Premises burglary coverage
220
It covers damage to the insured's property caused by the burglary or robbery of a watchman of property while the insured business is not open
Premises burglary coverage
221
Any person who is insured retains specifically to have care and custody of property and has no other duties
Watchman
222
Premises burglary coverage is _________ while damage to the insured premises is being resored
suspended
223
It protects an organization against loss of property other than money and securities
Premises theft and robbery outside the premises coverage
224
It protects property inside the premises against loss caused by theft.
Premises theft and robbery outside the premises coverage
225
It protects property outside the premises in the care and custody of a messenger against loss caused by robbery
Premises theft and robbery outside the premises coverage
226
It protects an organization against loss of property other than money and securities.
Robbery and Safe Burglary Coverage
227
Robbery and Safe Burglary Coverage can have an endorsement added to cover loss of _____ and ______
money ; securities
228
Robbery and Safe Burglary Coverage has 3 optional coverages
1. Robbery Inside the Premises (of a custodian)
2. Robbery outside the premises (of a messenger)
3. Safe Burglary (has an endorsement that can cover loss from safe caused by theft) (will cover damage cuased by the safe burglary)
229
It protects an organization against loss of only money and securities
Theft, disappearance, and destruction coverage
230
It protects money and securities both inside and outside the premises or in a bank
Theft, disappearance, and destruction coverage
231
It covers any kind of theft, disappearance or destruction
Theft, disappearance, and destruction coverage
232
It covers damage to the insured premises or safe, vault or other containers as a result of a theft
Theft, disappearance, and destruction coverage
233
It covers loss of money and securities outside the premises while in the custody of a messenger or armored car
Theft, disappearance, and destruction coverage
234
Will cover losses resulting from the forgery or alteration of the signature of the insured, an employee of the insured or an agent of the insured on outgoing checks, draft or promissory notes.
Forgery and Alteration Coverage
235
it will also cover legal expenses that the insured incurs as a result of forged or altered checks, drafts or promissory notes
Forgery and Alteration Coverage
236
It protects an organization (such as a business organization) against losses which include money, securities, and other property caused by dishonesty of employees
Employee dishonesty (fidelity bond) coverage
237
Lists each employee who is to be covered. Employees may be scheduled either by name or by position. (Limits apply per employee for each occurrence)
Schedule employee dishonesty coverage
238
Protects an employer against dishonesty of all employees as long as the loss can be determined to have been caused by an employee, the employee does not have to be identified. *limits apply per occurrence regardless of how many employees were involved.*
Blanket Employee Dishonesty coverage
239
is all losses whether the result of a single act or a series of acts
An occurrence
240
Claim requirements
- The loss must occur during the bond period
- The loss must occur after the policy has terminated but within the discovery period. Most Employee dishonesty policies (fidelity bonds) have six month discovery periods.
241
There is more often ______ on bonds than on other types of insurance policies
subrogation
242
_______ on bonds is also usually more complete than on other types of insurance policies
Subrogation
243
Important fidelity bond provisions
1. Coverage is terminated for a dishonest employee when the insured receives knowledge that the employee has committed a dishonest act
2 It does not matter whether the dishonest act relates to the insured's employment or not.
244
Bond that guarantees a promise by a principal (obligor) to an obligee of either faithful performance or payment
Surety bonds
245
Parties on a surety bond
Principal - Is the person making a promise of either faithful performance or payment
Obligee - Is the person to whom the promise of faithful performance or payment is made
Surety - Is the insurance company that guarantees the principal's promise to the obligee
246
Types of surety bonds
1. bid bond
2. performance bond
3. completion bond
4. judicial bond
5. Fiduciary bond
247
Is a bond required of a contractor bidding on a construction job. it guarantees that the contractor will enter into the contract if awarded the job
Bid Bond
248
Is a bond which guarantees that the contractor will complete a job on time, according to a specifications and without liens for materials or labor
Performance Bond
249
Is a bond which guarantees that a developer will complete a project
Completion Bond
250
Is a bond which guarantees court costs and that a judgement will be paid if a court case is lost. It is often required when appealing a case.
Judicial Bond
251
Is a bond which guarantees that an executer, administrator or guardian will manage and distribute an estate property
Fiduciary bond
