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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
Q

Who will be charged with wrongful entry or eviction

A

A landlord

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26
Q

Defamation

A

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

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27
Q

Slander

A

Spoken defamation

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28
Q

Libel

A

Written defamation

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29
Q

4 activities considered an advertising liability that would not be covered under this section of the policy

A

Advertising
Publishing
Broadcasting
Telecasting

30
Q
A
31
Q

What basis are medical payments made

A

Voluntarily
Immediately

32
Q

3 reasons other then goodwill would be included in no fault medical payments under IBC 2100

A

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
Q

5 types of expenses paid under Coverage C - Medical Payments

A

First Aid
Ambulance
X-rays
Medical, surgical and dental services
Funeral expenses

34
Q

Who is excluded under Coverage C - Medical Payments

A

The insured
The insured’s employees
Any person participating in athletics

35
Q

What 2 types of liability do tenants legal liability to the owner for damage to rented premises fall under

A

Tort Liability - legal obligation
Contractual Liability- contractual obligation

36
Q

Minimum limit of coverage to be purchased for tenants legal liability exposures

A

Should be a minimum no less than the value of the building or portion of the building occupied by the insured

37
Q

3 examples of short term rental exposures

A

Rental of hotel rooms
Rental of other facilities with purpose of accommodation
Seminars or tradeshows

38
Q

4 perils covered under Coverage D - property damage arising out of insured’s negligence

A

Fire
Explosion
Smoke
Leakage of fire protective equipment

39
Q

What 3 liability exclusions exist under Coverages A C & D

A

Pollution Liability
Nuclear Energy Liability
War Risks

40
Q

4 areas policy excludes for claims of injury or damage arising out of pollutants location

A

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
Q

4 additional claims related expenses covered as supplementary payments under Coverages A,B & D

A

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
Q

2 kinds of costs addressed under costs taxed against the insured
When is the interest on the amount calculated

A

Court costs
Interest on amount of judgement
Commencing from the date of judgement

43
Q

Under premise and operations liability what factors determine the premium charged

A

Square footage
Occupancy
Payroll
Location

44
Q

Premium determined under product liability

A

Type of product sold
Sales volume
Territory

45
Q

Premium determined for completed operations liability

A

Type of work preformed
Gross receipts

46
Q

Premium for coverage B- Personal Injury Liability Exposures

A

Most insurers include cost in base premium

47
Q

Premium for Coverage C - Medical payments

A

No additional premium charged for this coverage

48
Q

Premium for Coverage D - Tenants Legal Liability

A

Generally 35% of the building rate

49
Q

Who or can be insured on the CGL Policy

A

Individuals
Partnerships or joint ventures
Organizations other then partnership and joint ventures

50
Q

Generally all persons engaged in business would be included under CGL including -

A

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
Q

Newly formed business or acquired business would be automatically covered under existing IBC 2100

A

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
Q

Aggregate Limit

A

Amount stated on policy which states the maximum limit policy will pay for all claims for which insurance is provided

53
Q

Each Occurrence Limit

A

Maximum limit paid by the insurer for any one occurrence

54
Q

Condition insureds in when they are unable to pay their debts when due

A

Insolvency

55
Q

Canadian Currency Clause

A

Payment of claims the same currency as premium was collected

56
Q

Terms regarding cancellation of IBC 2100 Policy

A

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
Q

3 duties of insured in event of a claim or action

A

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
Q

Condition of examination of books and records

A

Allows the insurer to inspect the insureds records at any time and up to 3 years after expires policy

59
Q

Under Legal Action Against Us, what time frame must a suit be filed

A

1 year from the time the right action arose

60
Q

What happens when another policy is insuring the same exposure

A

Primary policy responds for coverage up to the limits unless both policies are listed as primary, share responsibility

61
Q

Premium Audit

A

Outlines methods used by insurer to ensure it receives proper premium for the risk.

62
Q

Conditions of Premium

A

Establishes the Liability of the insured with the insurer in respect to premiums charged and refunds provided under policy

63
Q

Representation

A

A statement of fact made to induce another to enter contract

64
Q

2 significant respects under Condition of Seperation of Insureds Cross Liability

A

Policy applies to each separately, breach made by one insured does not effect coverage of other insured
All exclusions applied seperately

65
Q

Condition of Transfer of Rights of Recovery Against Others to US

A

Acknowledges the right of the insurer to subrogate against any party responsible for the loss

66
Q

Condition of Transfer of Your Rights and Duties under policy

A

Except in cases of death of named insured, policy cannot be transferred to any other person without permission of the insurer

67
Q

Product

A

Any goods other then real property, manufactured, sold, handled, distributed or disposed of by insured

68
Q

3 sections that explain the All Exclusivity of one’s product

A

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
Q

Completed operations exposure

A

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
Q

“work” as relates to Commercial General Liability Policy

A

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
Q

5 factors to consider how much insurance is enough

A

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
Q

2 advantages of liability insurance

A

Provided with service of professional adjusters trained in fraudulent claims
Defense costs included

Caib 3 (6 decks)

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