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Caib 3 > Chapter 2 Commercial General Liability Policy (IBC 2100) > Flashcards

Chapter 2 Commercial General Liability Policy (IBC 2100) Flashcards

1
Q

5 Sections of a CGL (IBC 2100)

A

Bodily Injury and Property Damage
Personal Injury
Medical payments
Tenants legal liability

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2
Q

4 sections of Insuring Agreement and Exclusions

A

Who is insured
Limits of insurance
Commercial general Liability conditions
Definitions

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3
Q

Key feature of Insuring Agreement 1

A

Coverage provided for bodily injury and property damage only

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4
Q

Bodily Injury

A

injury, sickness or disease sustained by a person including death resulting from any of these at any time

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5
Q

Sickness or disease

A

Conditions that originate inside the body

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6
Q

Death

A

Death from bodily injury, sickness or disease is covered at anytime under the insuring agreement

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7
Q

Property Damage

A

Physical injury to tangible property including all resulting loss or use of that property

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8
Q

Types of liabilities that are insured

A

Tort liability
Certain contractual liabilities
Statutory Liability

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9
Q

Insurer liable to pay

A

Compensatory damages only

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10
Q

Coverages provided for losses in

A

Canada and USA including QUam, Virgin Islands and Puerto Rico

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11
Q

Intentional bodily injury and property damage usually isn’t covered when would there be an exception

A

When bodily injury occurs due to a person using reasonable force to protect person(s) or property

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12
Q

7 exceptions to Liability assumed under contract exclusion

A

A lease of premises
A sidetrack agreement (railroad track installed on business land)
Easement or license agreement for pedestrian crossing, railroad EXT
Any other easement agreement
String wires and cable across land
Hang eaves of a building over another’s land
Elevator maintenance agreement

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13
Q

Instances when Workers Compensation will not respond for injured employees

A

Liability assumed under contract
Employee on whos behalf contributions are made by the insured under the provisions of any workers compensation law

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14
Q

Exclusions existing under IBC 2100 relating to bodily injury and property damage

A

Any automobile
Any motorized snow vehicle or its trailers
Any vehicle used in speed or demolition contest
Any vehicle which would be required by law to be insured by motor vehicle liability policy

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15
Q

Types of equipment of machinery would be included in the policy for injury and property damage that arose out of their operation

A

Front-end loaders
Fork lifts
Road graders
Caterpillars
Heavy construction machinery

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16
Q

2 instances where coverage for watercraft under IBC 2100

A

Watercraft is ashore on premise you own or rent
Watercraft not owned under 8 meters and not being used to carry person or property for charge

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17
Q

Aircraft and watercraft are very similar - key exclusion difference

A

Aircraft exclusions makes no provisions or exceptions

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18
Q

5 types of property excluded in a CGL

A

Property owned, rented or occupied by the insured
Premises sold, given away or abandoned of property damage arises out of those premises
Property loaned to insured
Property being restored, repaired or replaced because of work incorrectly performed

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19
Q

Broad Form Completed Operations Endorsement

A

Excludes coverage only for that particular part of the insured’s work responsible loss and not all of it

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20
Q

4 things insured may opt to do rather than having to be fully responsible for future suits against them and avoid cancellation of policy

A

Withdraw their products of work
Recall
Inspect
Repair or replace defective product or work
Removal or disposal of the defective product or work

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21
Q

5 coverages provided under Personal Injury Liability

A

False arrest, detention or imprisonment
Malicious prosecution
Wrongful entry or eviction from property
Slander or Libel of person or organization
Oral or written publication of material that violates a persons rights

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22
Q

False Imprisonment

A

Holding someone without lawful Justification against their will

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23
Q

False arrest

A

False imprisonment but with intent to turnover to the police for prosecution

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24
Q

2 conditions present in malicious prosecution

A

Complainant was arrested and later released
Evidence revealed that the person making the complaint did not have an honest belief that a crime has been commited

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25
Who will be charged with wrongful entry or eviction
A landlord
26
Defamation
A statement that cause unjustified injury to the reputation of another person which results in the loss to that persons esteem, confidence and respect of the community
27
Slander
Spoken defamation
28
Libel
Written defamation
29
4 activities considered an advertising liability that would not be covered under this section of the policy
Advertising Publishing Broadcasting Telecasting
30
31
What basis are medical payments made
Voluntarily Immediately
32
3 reasons other then goodwill would be included in no fault medical payments under IBC 2100
Chances to greatly reduce injury by immediate medical attention Potential for claims alleging negligence is reduced Legal confrontation with the victim over expenses is avoided
33
5 types of expenses paid under Coverage C - Medical Payments
First Aid Ambulance X-rays Medical, surgical and dental services Funeral expenses
34
Who is excluded under Coverage C - Medical Payments
The insured The insured's employees Any person participating in athletics
35
What 2 types of liability do tenants legal liability to the owner for damage to rented premises fall under
Tort Liability - legal obligation Contractual Liability- contractual obligation
36
Minimum limit of coverage to be purchased for tenants legal liability exposures
Should be a minimum no less than the value of the building or portion of the building occupied by the insured
37
3 examples of short term rental exposures
Rental of hotel rooms Rental of other facilities with purpose of accommodation Seminars or tradeshows
38
4 perils covered under Coverage D - property damage arising out of insured's negligence
Fire Explosion Smoke Leakage of fire protective equipment
39
What 3 liability exclusions exist under Coverages A C & D
Pollution Liability Nuclear Energy Liability War Risks
40
4 areas policy excludes for claims of injury or damage arising out of pollutants location
On insureds premise Any waste disposal site While being handled, transported,stored,treated or disposed of by insured on policy Any work site when brought onto site by the insured
41
4 additional claims related expenses covered as supplementary payments under Coverages A,B & D
Insurer's cost Cost of bonds to release attachments Reasonable expenses incurred by the insured at the insurer's request All costs taxed against the insured and any interest accruing after entry of judgement
42
2 kinds of costs addressed under costs taxed against the insured When is the interest on the amount calculated
Court costs Interest on amount of judgement Commencing from the date of judgement
43
Under premise and operations liability what factors determine the premium charged
Square footage Occupancy Payroll Location
44
Premium determined under product liability
Type of product sold Sales volume Territory
45
Premium determined for completed operations liability
Type of work preformed Gross receipts
46
Premium for coverage B- Personal Injury Liability Exposures
Most insurers include cost in base premium
47
Premium for Coverage C - Medical payments
No additional premium charged for this coverage
48
Premium for Coverage D - Tenants Legal Liability
Generally 35% of the building rate
49
Who or can be insured on the CGL Policy
Individuals Partnerships or joint ventures Organizations other then partnership and joint ventures
50
Generally all persons engaged in business would be included under CGL including -
Owners, partners, spouses and directors Employees A non-employee acting as the insured's real estate manager Those having temporary custody or control of property after death of insured Upon death, legal representative appointed by the business
51
Newly formed business or acquired business would be automatically covered under existing IBC 2100
Name insured purchases all or majority interest in an existing operation or forms a new one Coverage provided unless a separate policy exists Automatically covers for 90 days or until expiry of policy
52
Aggregate Limit
Amount stated on policy which states the maximum limit policy will pay for all claims for which insurance is provided
53
Each Occurrence Limit
Maximum limit paid by the insurer for any one occurrence
54
Condition insureds in when they are unable to pay their debts when due
Insolvency
55
Canadian Currency Clause
Payment of claims the same currency as premium was collected
56
Terms regarding cancellation of IBC 2100 Policy
Request of cancellation must be under signature of first named insured Insurers termination notice required to be sent to first name insured Any refund of premium payable to first named insured
57
3 duties of insured in event of a claim or action
Promptly notify the insurer Details of claim (time, place, circumstance) Prompt written notice to the insurer Immediately provide the insurer with copies of demands,notice,summons of legal papers received
58
Condition of examination of books and records
Allows the insurer to inspect the insureds records at any time and up to 3 years after expires policy
59
Under Legal Action Against Us, what time frame must a suit be filed
1 year from the time the right action arose
60
What happens when another policy is insuring the same exposure
Primary policy responds for coverage up to the limits unless both policies are listed as primary, share responsibility
61
Premium Audit
Outlines methods used by insurer to ensure it receives proper premium for the risk.
62
Conditions of Premium
Establishes the Liability of the insured with the insurer in respect to premiums charged and refunds provided under policy
63
Representation
A statement of fact made to induce another to enter contract
64
2 significant respects under Condition of Seperation of Insureds Cross Liability
Policy applies to each separately, breach made by one insured does not effect coverage of other insured All exclusions applied seperately
65
Condition of Transfer of Rights of Recovery Against Others to US
Acknowledges the right of the insurer to subrogate against any party responsible for the loss
66
Condition of Transfer of Your Rights and Duties under policy
Except in cases of death of named insured, policy cannot be transferred to any other person without permission of the insurer
67
Product
Any goods other then real property, manufactured, sold, handled, distributed or disposed of by insured
68
3 sections that explain the All Exclusivity of one's product
Products manufactured,sold,handled, distributed or disposed of by insured Their containers, materials, parts equipment furnished with connection to product (comes with screwdriver) Warranties made respecting fitness,quality or performance of product
69
Completed operations exposure
Arises out of work preformed by the business When work is defective or causes injury, person who preformed work may be sued for damages
70
"work" as relates to Commercial General Liability Policy
Work actually done by the insured or on behalf of the insured Materials parts, equipment in connection to operations and work Any warranties regarding fitness,quality, durability or performance of work or materials used
71
5 factors to consider how much insurance is enough
Extent of previous awards made by courts for similar types of business Inflation Existence of insurance Territory of operations Ability of a business to absorb a loss
72
2 advantages of liability insurance
Provided with service of professional adjusters trained in fraudulent claims Defense costs included

Caib 3 (6 decks)

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