Chapter 2 Flashcards
The coverage A Insuring Agreement insures against Bodily Injury or Property Damage for which the insured is legally liable.
- outline 3 component parts of Bodily Injury
- what are 2 types of intangible property that would not be covered by this section?
Physical injury to the body, sickness and disease and death as a result from injuries, sickness or disease
Patents, copyrights and licenses
Is it covered?
Losses arising from an automobile owned by the business.
Not covered
Is it covered?
Loss arising from tow truck used by the business to tow customers automobile to a service station.
Driving risk automobile exposure.
Using equipment in functional capacity is an CGL exposure.
Is it covered?
Loss arising from an unlicensed van used exclusively on the insured’s premises.
Covered
Is it covered?
Loss resulting from snowmobiles.
Not covered
Is it covered?
Damage to customers vehicle when the insureds forklifts collides with in the parking lot.
Covered
Is it covered?
Loss by a front end loader owned by the insured when being operated at a work site.
Covered
Make sure full disclosure all activities to underwriter
Is it covered?
Loss to 3rd party utility lines below ground when drill rig attached to the insureds truck strikes it during drilling operations.
Covered
Is it covered?
The insured company is a general contractor. They have hired subtrades to complete the electrical, HVAC and plumbing systems in a new build. Due to faulty electrical work done by the subtrades, a fire ensues and damages 75% of the new build. The general contractor is now being sued for damages.
Covered
Is it covered?
The insured manufacturers water bottles. An action is brought forward against them that their bottles have lead to long term health concerns. Which of the following are covered? Defense costs, damages to 3rd parties, advertising costs for safety concerns,
Defense costs
Damages to 3rd parties
Is it covered?
Our insured is a welder, and while at the job site, they were installing support brackets. During installation, the welder started a fire. Which is covered?
Damage to customers building, contents destroyed by fire retardant sprayed by firefighters and sprinkler systems, damage to support brackets
Damage to building, contents destroyed by fire protection
Product liability claims may be insured when they occur outside the coverage territory. In order for coverage to pay, what 2 conditions must be met?
Product must be manufactured and sold within the coverage territory. The suit for damages must be brought within the coverage territory
The insurer has the right to defend any civil suit brought against the insured. Why do insurers have the right to defend?
If the suit would be payable by the policy should a judgment be rendered, insurer must ensure all facts are presented to the court
Proper defense is set up
Proper judgment is rendered
Section A of CGL will provide contractual liability coverage for 5 specific circumstances. What are these insurable contractual liabilities?
Lease agreements for property
Easement agreements
Sidetrack agreements
Elevator maintenance
Municipal ordinance
Identify 3 expenses not insured by a CGL which a business may incur when they become aware of deficiencies in their product.
Recall costs, withdrawing product
Inspections
Advertising costs
Repair costs
With respect to defamation, identify two torts included as part of defamation and how they differ.
Libel is written and Slander is spoken
With respect to rented premises, how may tenants be found responsible for damage to rented premises? Which is covered by a CGL?
Tort liability- where the tenant’s negligence causes damage is covered
Contractual liability- where tenant assumes additional responsibility under contract is excluded
Policy exclusions
Asbestos
Fungi or spores
Nuclear or radioactive
Pollution
Terrorism
War risks
General liability conditions
Canadian currency clause
Premiums and claims are paid in Canadian funds.
Claims condition
Insured to give prompt notice of anything that may give rise to a claim
To give full of circumstances of loss.
If claim is brought against them, prompt written notice.
Not to voluntarily assume responsibility or pay expenses without authorization.
Explain the importance of being first named insured on a CGL
Refund check to first name insured
Only first name insured can request cancelation
Notice of termination is only sent to first named insured
Describe two key features of the claims made policies
Coverage is triggered by when the loss was reported, not the occurrence date.
The policy in effect when the claim is reported is the policy that will respond.
Retroactive dates ‘- the occurrence must not occur prior to the retroactive date in order to have cover, typically the date first written with the insurer.
Under Section 1 of the CGL, what are the 4 sections of coverage?
Coverage A - Bodily Injury & Property Damage
Coverage B - Personal Injury Liability
Coverage C - Medical Payments
Coverage D - Tenants Legal Liability
The CGL Coverage A will only cover certain types of losses. What 2 types of losses are insured by this insuring agreement?
Bodily Injury and Property Damage
