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CAIB 3 > Chapter 2 > Flashcards

Chapter 2 Flashcards

1
Q

Identify five losses of liability insurance of the 1980s

A
  1. high court awards in the USA.
  2. Environmental disasters.
  3. Aviation disasters
  4. Inadequate assessment of dangerous risks.
  5. Dormant bodily injury claims.
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2
Q

5 sections of the IBC 2100

A
  1. Coverages.
  2. Who is insured?
  3. Limits of insurance.
  4. Commercial general liability conditions.
  5. Definitions.
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3
Q

Section 1 - coverages

A

A. bodily injury and property damage liability
B. Personal injury and advertising injury liability
C. Medical payments.
D. Tenants legal liability.

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4
Q

Each coverage section has two parts

A

The insuring agreement
Definitions

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5
Q

Bodily injury

A

Bodily injury, sickness or disease, sustained by a person, including death, resulting from any of these at any time
Does not include mental anguish, such as pain, nausea, tears, or hysteria, or other emotional stress

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6
Q

Death

A

Deaths resulting from bodily injury, sickness or disease at any time is insured under the agreement

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7
Q

Sickness or disease

A

Refers to conditions that originate within the body

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8
Q

Two key coverages included under definition of property damage

A
  1. Physical injury to tangible property, including resulting loss of use.
  2. Loss of use of tangible property not physically insured.
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9
Q

3 types of liability that may be faced by business owners

A

1.torts liability
2.statutory liability
3.certain contractual liabilities

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10
Q

Occurrence

A

An accident, including continuous, or repeated exposure to the same general harmful conditions

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11
Q

What is limited worldwide coverage for products liability

A

The plaintiff must show that the products causing the injury or damage were made, or sold within the United States or Canada

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12
Q

Where must a suit for any product liability claims be brought

A

Within Canada or the USA

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13
Q

Define automobile

A

Land motor vehicle, trailer or semi trailer that is required by law to be insured

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14
Q

True or false
The insurer must defend in action for which coverage is provided by the policy, even if the allegations are groundless falls or fraudulent

A

True

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15
Q

True or false
The insurance, right and duty to defend ends when the coverage limits have been expended to pay the claim

A

True

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16
Q

True or false
The insurer can settle any claim or action at its discretion

A

True

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17
Q

Yes, or no
Does personal and advertising injury respond to claims alleging bodily injury

A

No

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18
Q

Identify two instances when there would be coverage for watercraft

A

1.While the shore on premises
2.You do not own that is less than 8 m long and not used to carry people for compensation

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19
Q

False imprisonment

A

Holding someone without lawful justification, in a place against their will

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20
Q

False arrest

A

False imprisonment, but contains the additional feature of detaining the victims with the intention that they be turned over to the police for prosecution

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21
Q

Malicious prosecution

A

A suit begun in malice without probable cause to believe that the charges can be sustained

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22
Q

Defamation

A

A statement that causes unjustified injury to the reputation of another person.

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23
Q

Slander

A

Spoken defamation

24
Q

Libel

A

Written defamation

25
Q

Identify 4 activities that constitute an advertising liability exposure

A
  1. Advertising
  2. Publishing.
  3. Broadcasting
  4. Telecasting.
26
Q

On what basis or medical payments made

A

Voluntary
No fault

27
Q

Five types of medical expenses

A

1.first aide
2.ambulance
3.x-ray
4.medical
5.surgical

28
Q

Insured liable for payment of…

A

Compensatory damages only

29
Q

Exemplary or punitive damages are..

A

Not covered under this policy and are the full liability of the insured

30
Q

Tangible Property

A

Property that can be felt or touched, including real and personal property

31
Q

Right to Defend

A

The insurer has invested interest in ensuring all the facts are placed before the courts as they may be called upon to render a judgement made against them

32
Q

Right to investigate

A

It provides the insurer with firsthand information that might otherwise be withheld from it

33
Q

Right to settle a claim or action

A

Once underway, it can result in substantial savings to the insurer

34
Q

Right and duty to Defend ends when

A

The coverage limits have been expended to pay the claim

35
Q

Duty to defend

A

The insurer has a duty to defend the insured in any action for which coverage is provided by the policy

36
Q

Tenants Legal Liability

A

Is limited to the payment of only those losses for which the tenant is liable in tort

37
Q

Exclusions - coverages A, C and D

A

Asbestos
Fungi or spores
Nuclear energy liability
Pollution liability
Terrorism
War risks

38
Q

Aggregate limit

A

The most the policy will pay during the policy period for all claims for which insurance is provided.

39
Q

3 examples of short term, rental exposures, that may be faced by a business

A
  1. Rental of hotel rooms.
  2. Seminars
  3. Trade shows.
40
Q

Two kinds of court costs

A
  1. Court costs
    2.interest of amount of judgement
41
Q

Who’s name a commercial general liability policy can be issued

A
  • individual to
  • Partnerships, joint ventures, limited liability corporation
  • Organizations other than partnerships or joint ventures
42
Q

Identify when a newly formed or acquired business would be automatically covered under the existing IBC 2100

A

When insured purchases all or majority of an existing corporation or forms a new one during the policy.

43
Q

Identify for those newly formed businesses that are covered the length of time for automatic coverage

A

90 days
Or
Policy expiry date

44
Q

Occurrence limit

A

The maximum to be paid by the insurer in anyone occurrence

45
Q

Identify three duties of the insured in the event of an occurrence claim or action

A
  1. Notify insurer promptly.
  2. Provide written notice to insurer when claim or action filed.
  3. Insurer not liable for cost or obligation, assumed by insured except first aid.
46
Q

Exposure theory

A

Assumes that the injury occurred when the person was in physical contact with the harmful substance

47
Q

Exposure in residence theory

A

The assumption is made that the disease or other bodily injury continues after the exposure to the hazardous substance.

48
Q

Manifestation theory

A

Injury is assumed to have occurred only one recognized or diagnosed

49
Q

Three features of the claims made policy

A
  1. Coverage triggered when claim made.
  2. Coverage limited by retroactive date.
  3. Reporting period can be extended for an additional premium.
50
Q

Three instances when the extended reporting period endorsement could be added to the IBC 2200 form

A
  1. Going out of business.
  2. Changing from claims made to a current policy.
  3. Replacing claims made policy with another Insurer.
51
Q

A professional

A

Someone who possesses or claims to possess the special knowledge and skills necessary to render a professional service

52
Q

Two categories of professionals

A
  1. Those who administer health or other professional care
  2. Those who give advice and counseling.
53
Q

Other than the company, identify three others that are also owed a duty, established by federal and provincial governments

A
  1. Shareholders.
  2. Creditors.
  3. Employees, and the public.
54
Q

Umbrella policy

A

Designed to respond only after the underlying or primary policy has responded

55
Q

A breach of contract will be successful when the plaintiff can show that the professional failed to perform at the required level

A
  1. Complete or unsatisfactory performance
    - Level of performance meets accepted standards
  2. Substantial performance.
    - Performance fall short of complete performance only in minor respects
  3. Material breach
    - Professional performance is grossly inadequate or defective in some major respect
56
Q

Easement

A

Right of person to use to land belonging to others

CAIB 3 (6 decks)

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