Ch.9- Intro To Liability Insurance Flashcards
1
Q
What liability policies insure:
1.insure bodily injury + property damage
A
- Bodily injury: physical unjury sustained + associated w/external causes
- Property damage: unintentional damage to property of others
2
Q
What liability policies insure:
- 3rd party coverage
A
anyone/any entity not names in policy
3
Q
What liability policies insure:
- Payment only when insured legally liable
A
- policy responds only when insured legally liable for injury/damage caused
- must establish negligence
4
Q
What liability policies insure:
- Coverage provided on occurrence basis
A
-
occurrence:
- occurs suddenly + unexpectedly
OR
- occurs over long period of time
- limit stated is for each occurrence ( amount resets for future claims
- Also:
- aggregate limits
- split limits
5
Q
Aggregate limits
A
- aggregate limits : max amt paid for all valid claims during policy term
6
Q
Split limits
A
- Inclusive limit|:
- split milits: 3 limits
- 1st- limit for bodily injury per person
- 2nd- limit in total for all claimants, still subject to limit per person
- 3rd- limit for property damage per occurence
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7
Q
What liability policies insure:
- Coverage for compensatory damages
A
- pays for compensatory damages only
- compensatory damages: compensate 3rd party for injury/damage caused by insured
8
Q
Duties in event of occurrence ,claim, action (5)
A
*should be in package*
- provide insured w/ prompt notification of any occurrence which may lead to claim/action
- immediately provide insurer w/ copies of any legal docs rec’d (notice of claim)
- Authorize insurer to obtain record + other info -assist in the investigation, settlement, defence of claim/action
- do not voluntarily make payment, assume obligation,incur expense, other than for first aid, w/o consent of insurer
9
Q
Supplementary payments
A
- Additional expenses incurred are under separate agreement: supplementary payments
- Cost of defence
- 2.reasonable expenses incurred by insured at insurers request to assist in investigation + defence of claim
- Court costs assessed against insured
- Interest from date judgement rendered but only on amt within limit of insurance in policy