Chapter 2 - The Commercial General Liability Policy (IBC 2100)

Question 1

Coverages

Answer 1

Coverage A - B I and PD Liability
Coverage B - PI & Advertising Injury Liability
Coverage C - Medical Payments
Coverage D - Tenants’ Legal Liability

Question 2

Each coverage section has two parts

Answer 2

insuring agreement and exclusions

Question 3

Section 1 - Coverages

Answer 3

Coverage Provided for bodily injury and property damage only

Question 4

Bodily Injury

Answer 4

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

Question 5

Sickness or Disease

Answer 5

conditions that originate within the body

Question 6

Sickness

Answer 6

condition which interferes with the usual activities of a person

Question 7

Disease

Answer 7

may exist without such a result and can occur over long periods of time before detected

Question 8

Death

Answer 8

Death as a result of bodily injury or disease at any time is insured under the agreement

Question 9

Property Damage

Answer 9

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

Question 10

Tangible property

Answer 10

property which can be felt or touched and included

both real and personal property

Question 11

Insurer Liable for payment of…

Answer 11

compensatory damages only

Question 12

Punitive or exemplary damages…

Answer 12

are not covered and are the sole responsibility of the insured

Question 13

Occurrence

Answer 13

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

Question 14

Limited world-wide coverage for products liability

Answer 14

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

Question 15

Right to Defend

Answer 15

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

Question 16

Duty to Defend

Answer 16

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

Question 17

right and duty to defend end

Answer 17

the coverage limits have been expended

to pay the claim

Question 18

Right to Investigate

Answer 18

gives the insurer with first hand information that might

otherwise be withheld from it

Question 19

Right to Settle Claim Action

Answer 19

this can result in substantial saving to the insurer,

and out of court settlement would save the courts time and defense costs

Question 20

False Imprisonment

Answer 20

holding someone with out lawful justification in a place

against their will

Question 21

False Arrest

Answer 21

includes false imprisonment, with the additional feature of detaining the victims with the intention that they be turned over to the police for
prosecution

Question 22

Malicious Prosecution

Answer 22

arrested person is later released upon lack of evidence

Question 23

Medical Payments

Answer 23

Includes immediate first aid, ambulance charges, x-rays, medical, surgical and dental services, and, if necessary, funeral expenses and is no fault coverage

Question 24

Tenant’s Legal Liability

Answer 24

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

Question 25

Policy Coverage Limited

Answer 25

A per location, per occurrence limit applies

Question 26

Exposure Theory

Answer 26

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.

Question 27

Exposure in Residence Theory

Answer 27

Assumes that the disease or other bodily injury continues after the exposure to the hazardous substance has ceased.

Question 28

Manifestation Theory

Answer 28

Assumes that the injury is to have occurred only when recognized or diagnosed

Question 29

professional

Answer 29

someone who possesses or claims to possess the special knowledge and skill necessary to render a professional service

Question 30

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

Answer 30

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

Question 31

The Umbrella Policy

Answer 31

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