chapter 4 Flashcards
CGL (Commercial General Liability) Coverage A
Bodily injury (a slip and fall on businesses property) Property injury (coverage to the injured by something that happened because of the business)
CGL exclusions (Coverage A)
- expected injury
- liquor liability
- pollution
- war
- workers comp
CGL coverage B
- personal injury - injuries to someone else that results because of slander, defemation of character, wrongful eviction, and some other shit
- Advertising injury - Injuries to another competitor that inadvertiantly libel or slander that happen from advertising
CGL coverage B exclusions
- criminal acts
- breach of contract
- Knowingly publishing false material
- copyright infringement
- media and internet type business
- violation of communication laws
CGL coverage C
-Medical payments - coverage for surgery or ambulance or hospital bills or whatever the person that we fucked over needs for their health
Crime coverage triggers
Discovery form policy - A loss that will be covered at any time as long as its discovered during the time that the policy is owned. (happened in December when didn’t have policy but discovered in Feb when did have policy. This shit is covered)
Loss sustained form - Loss happens during the policy and also discovered during policy
Commercial crime
people who are covered are empoloyees and employees who have been fired less than 30 days ago.
just a way for business to have crimes covered that they did (or employee did)
Bulgery vs robbery vs theft
bulgery - physical damage that is done from someone to your home
Robbery - taking physical property by means of phyisical harm or threat of harm
Theft - actual act of taking someone elses shit
Personal Auto Policy
6 parts - A - liability B - Medical payments C - uninsured motorists D - Damage to your auto E - duties after a loss F - general provisions
Part A (auto policy) broken into 3 parts:
Liability
- ) Bodily injury (per person) (up to 25,000)
- ) Bodily injury Per accident (up to 25,000)
- ) Property accident (up too 25,000)
Split limits
Separately stated limits on a policy
Per occurance vs per person liability
per occurance - max payment for all claims for one single event
per person liability - max payment for bodily injury to a single person regardless of policy limits
Aggregate limit
The max limit of coverage under a liability policy during a term
part B (auto policy)
Medical payments
covers medical and funeral. It pays per person per accident (covered for accidents up to 3 years)
part C (auto policy) (4)
uninsured motorists
This pays for bodily injury if owner who caused damages has:
-no insurance
- insurance amount that is less than required by laws
-has insurance by a company that went bankrupt
-unidentified (hit and run)
part D (auto policy)
Property damage Includes: -collision and other than collision -optional coverage -only applies when premium is shown in decleration
part E (auto policy)
duty after loss
- ) prompt notification after loss
- ) cooperate with insurer
- ) forwarding any legal papers
- ) submitting to physical exam
- ) allowing insurer access to medical records
- ) submitting proof of loss
- ) notify police of hit and run
- ) protecting property from further loss
- ) allow the insurer to inspect and appraise
part F (auto policy)
General provisions
- Bankruptcy doesn’t not relieve Farmers
- Policy changes - can only be added by endorsements
- Fraud - no coverage if the insured has committed fraud
- Subrogation
- Policy period and territory
- Termination - 10 days notice farmers can cancel
Misc type vehicle Endorsement
Expands coverage to:
- golf carts
- dune buggies
- motor home
- other recreational
- motorcycles
Joint ownership endorsement
This means that insurance will cover for someone who owns the car but is not the one driving the car (parent buys car for kid)
Commercial Auto Policy (business auto policy) (5 sections)
Section 1 - covered auto Section 2 - liability Section 3 - physical damage Section 4 - business auto conditions Section 5 - Definitions
Commercial auto coverage forms
Business auto Business auto physical damage Garage coverage (when you as a business have anothers car in care custody and control) Motor carrier coverage (transport property by auto)
Section 1 auto
Covered auto symbols (automobile)
Section 2 auto
Liability
Section 3 auto
Physical damage
Garage Coverage
Care custody and control of another persons car for the business. (when someone is doing service or repair on it)
Section 1 Garage policy
Defines what cars are covered
Section 2 Garage policy 2 parts
Liability coverage
- Garage operations other than covered autos (if they are test driving and hit someone else this covers the someone else)
- Garage operations covered autos. This takes care of the care that is in possession of garage person
Section 3 Garage policys
Garagekeepers (triggered by symbol 30)
Business auto vs garage coverage form
Business auto - Covers losses during policy period and within coverage territory
Garage coverage form - Covers losses at the time of the actual loss (loss can still be done before or after the service has actually been done)
2 laws under workers comp
- Compulsory
2. Elective
Elective workers comp
Employers are not required to have compensation laws - but this puts them more at risk to be sued
Compulsory workers comp
require all employers to provide workers comp package. This is more common
Monopolostic state funds
The state itself is issuing the insurance. Employers have to buy from government. Private insuers don’t even offer it
Private state funds
Employers can buy compensation package from private insurance companies
Workers comp Coverage parts
Part 1 - Workers comp
Part 2 - Employers liability
Part 3 - other states insurance (if employee is doing work in another state and gets hurt)
part 4 - gives list of duties if injury occurs
Part 5 - premium
Part 6 - Conditions
Federal Employees Liability act (FELA)
Covers employees of railroad. Lost earnings of railroad employees. Covers legal actions that happened within 3 years
US longshore and harbors workers comp act
For people who work in maritime (except for seamen)
The Jones Act
Covers ships crews (seamen)
Personal umbrella policy
excess over primary coverage
1,000,000 minimum
SIR (self insured retention)
Excess coverage
This is coverage that can save you from being absolutely boned (You have liability coverage of 500K but your dog bites someone and they need surgery to repair their penis and it costs more than 500K)
2 types of excess coverage
Stand alone form
Follow form
Specialty Liability Insurance (E & O coverage)
Good for professions other than Medical (consider for insurance agents)
Professional liability coverage
Should be considered for Medical fields and lawyers
Directors and Officers (D & O)
For people on boards (does not cover fines penalties and other shit)
Liquor Liability
Bars, resturaunts, and other distributors need to have this coverage.
Surety
Guarantees the performance of someone else
Fidelity Bonds
Guarantee honesty and trust (If you are worried one of your employees may have sticky fingers)
