Chapter 2 - The Commercial General Liability Policy (IBC 2100) Flashcards
Coverages
Coverage A - B I and PD Liability
Coverage B - PI & Advertising Injury Liability
Coverage C - Medical Payments
Coverage D - Tenants’ Legal Liability
Each coverage section has two parts
insuring agreement and exclusions
Section 1 - Coverages
Coverage Provided for bodily injury and property damage only
Bodily Injury
the harm to the body associated with external causes -
does not include symptoms of mental anguish such as pain, nausea, tears and hysteria or other emotional stress
Sickness or Disease
conditions that originate within the body
Sickness
condition which interferes with the usual activities of a person
Disease
may exist without such a result and can occur over long periods of time before detected
Death
Death as a result of bodily injury or disease at any time is insured under the agreement
Property Damage
physical injury to tangible property, including all resulting loss of use of that property or loss of use of tangible property that is not physically injured
Tangible property
property which can be felt or touched and included
both real and personal property
Insurer Liable for payment of…
compensatory damages only
Punitive or exemplary damages…
are not covered and are the sole responsibility of the insured
Occurrence
an accident, including continuous or repeated exposure to substantially the same general harmful conditions
Limited world-wide coverage for products liability
plaintiff must show the product(s) causing the injury or damage were made or sold within Canada or the United States and suit for damages must be brought within Canada or the Untied States
Right to Defend
Insurer has a vested interest in ensuring all the facts are placed before the court as they may be called upon to pay a judgment rendered against them
Duty to Defend
to defend the insured in any action for which coverage is provided by the policy - no matter if the allegations are groundless, false or fraudulent
right and duty to defend end
the coverage limits have been expended
to pay the claim
Right to Investigate
gives the insurer with first hand information that might
otherwise be withheld from it
Right to Settle Claim Action
this can result in substantial saving to the insurer,
and out of court settlement would save the courts time and defense costs
False Imprisonment
holding someone with out lawful justification in a place
against their will
False Arrest
includes false imprisonment, with the additional feature of detaining the victims with the intention that they be turned over to the police for
prosecution
Malicious Prosecution
arrested person is later released upon lack of evidence
Medical Payments
Includes immediate first aid, ambulance charges, x-rays, medical, surgical and dental services, and, if necessary, funeral expenses and is no fault coverage
Tenant’s Legal Liability
limited to the payment of only those losses for which the tenant is liable in tort
Policy Coverage Limited
A per location, per occurrence limit applies
Exposure Theory
Assumes that the injury occurred when the person was in physical contact with the harmful substance, this can be over a short period or over many years.
Exposure in Residence Theory
Assumes that the disease or other bodily injury continues after the exposure to the hazardous substance has ceased.
Manifestation Theory
Assumes that the injury is to have occurred only when recognized or diagnosed
professional
someone who possesses or claims to possess the special knowledge and skill necessary to render a professional service
breach of contract will be successful if the plaintiff can show the professional failed to perform at the required level
Complete or Satisfactory Performance - the level of performance meets accepted standards
Substantial Performance - falls short only in minor respects, entitles the professional to the contract price, less any damages the client may have incurred
in not receiving complete performance
Material Breach - the professional’s performance is grossly inadequate or defective in some major respect
The Umbrella Policy
designed to respond only after the underlying or primary policy has responded
