Chapter 8 Flashcards
Define bodily injury
A term used in auto and liability policies meaning physical injury including sickness, disease, mental injury, shock, or death
Define property damage
Injury to real or personal property through another’s negligence, wilful destruction, or by some acts of nature
What is the difference between a Claims made policy and occurrence policy?
Claims made Policy-the policy must be in effect when loss is discovered
Occurrence policy- policy is in effect at time of loss responds
What are the exclusions under bodily injury and property damage for CGL policy?
Expected or intended injury
Contractual
Worker’s Compensation
Injury to employees while in the course of the employment
Aircraft or watercraft
Automobile
Product recall
Electronic data
Advertising
Professional exclusion
Abuse
What is covered under coverage B- personal injury liability and Advertising under CGL policy?
False arrest, detention, or imprisonment
Malicious prosecution
Wrongful eviction
Oral or written slander, or libel
Oral or written material that violates a persons right of privacy
Use of another’s person’s idea in the use of advertising
Infringing upon another’s copyright trade, or slogan in the insured’s Advertising
What property damage is excluded under coverage a-bodily injury and property damage Liability of a CGL policy?
Property there’s owned rented or occupied by the insured
Premises that are sold given away or abandoned
Property does loaned to the insured
Personal property that is in the insurance care, custody, or control
The part of any property which the insured or any contractor is working
Property that must be restored, repaired or placed because the insured‘s work was incorrectly performed on it
Property damage to the insurance product arising out of any part of it
Property damage to the insured’s work
Property damage to impaired property or property that has not been physically injured
What are the exclusions under personal injury liability in Advertising in a CGL policy?
Knowingly violating the rights of others
Statements, oral or written that are known to be false
Material published prior to the policy period
Criminal acts
Contractual liability
Breach of contract
Quality or performance of goods of the insured’s work
Wrong description of price
Infringement of copyright, patent, trademark or trade secret
Media and Internet type business
Electronic, chat rooms or bulletin boards
Unauthorized use of another’s name or product
Explain medical payments under CGL policy
-Form of no-fault coverage
-Purpose is that the minor third party claims can be paid promptly went insured is not legally liable, but feels a moral responsibility
-Injury must be caused by an accident
-Covers reasonable expenses for immediate first aid, necessary medical surgical, x-ray and dental services
What is excluded under medical payments on CGL policy?
Any insured except volunteers
Any person hired to do work for or on behalf of any insured or tenant of any insured
Any person injured on premises normally occupied by the injured party
Anyone covered by Worker’s Compensation
Persons taking part in athletics
Products completed operations hazard
All exclusions mentioned under coverage A
Explain tenant legal liability under CGL policy and the exclusions
Exposure for rented premises and covers all perils
Exclusions include intentional property damage and contractual liability
Who is insured under a CGL?
Insured, spouse, individual, partnership, or joint venture
Limited liability company
Executive offers, directors and shareholders
Volunteer workers or employees while performing duties related to the business
Trustees, real estate managers
Legal represents if the insured dies
Any newly acquired or formed organization-covered until the 90th day after its acquisition
Explain limits of insurance under CGL policy
Unlike other insurance policies, there is no automatic reinstatement of limits
As the Claims are paid the limit decreases
Available limits may be influenced by market conditions
Limits are found on the declaration page
All limits are subject to the aggregate limit and are adjusted for policy periods less than 12 months
Define aggregate limit and occurrence limit
The aggregate limit is the total amount payable under the policy for all claims for all coverages, combined with the exception of products completed/operations hazard, for which a separate aggregate limit is a provided
Occurrence limit maximum amount that will be paid by the policy for any single claim for coverage a and c
What is the conditions under CGL policy?
Insured obliged to perform duties, even if insured is bankrupt, or insolvent
Canadian currency clause
First named insured authorized to make changes only
Injured most probably notify the insurer of any claim
Insured can exam insurance financial books during the policy period and succeeding 3 year period
Insurer has right to determine physical characteristics of the risk
States when and how the insured can take, action against insured
Utmost good faith
Explain section definitions in the CGL policy
Important to determine coverage
Insured contract means
-Lease of premises
-Sidetrack agreement
-an easement with railroad crossings
-any other easement agreement
-An obligations required by ordience to indemnify municipalities
-Elevator maintenance agreement
-Hold harmless agreement
