Chapter 8 Flashcards
What are the 4 distinct insuring agreements under section one coverages of a CGL?
Bodily injury and property damage liability
Personal and advertising injury liability
Medical payments
Tenants legal liability
Define bodily injury
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 act of nature
What must be present in order to trigger coverage in a CGL policy under Bodily Injury and Property damage liability?
Legally obligated to pay signifies there must be a legal obligation for the insured to pay a claim
Define occurrence policy
A liability policy that responds to claims or losses that took place during the policy period, regardless of when the claims are made. As a result, claims can be filed years after the time the policy was in effect
Define claims-made policy
Refers to an insurance policy that provides coverage when a claim is made against the policy, regardless of when the claim event took place. A claims-made policy is most likely to be purchased when there is a delay between when claims occur and when they filed
What case is used to illustrate damages from one occurrence?
Alie et al vs Bertrand et al
What coverage territory does bodily injury and property damage under a CGL policy apply to?
Includes Canada, the USA, and its territories or possessions and international waters or airspace’s if the injury or damage occurs in the course of travel or transportation between the two countries
What are the exclusions under bodily injury and property damage under a CGL policy?
Expected or intended injury
Contractual liability
Workers compensation
Liability towards employees
Aircraft’s and watercraft
Automobile
Damage to insureds property
Property damage due to the insureds work
Impaired property/property not physically injured
Product recall
Electronic data
Personal advertising injury
Professional services
Abuse
What does personal injury mean?
Means an injury other than bodily injury
What are the exclusions under personal and advertising injury on a CGL policy?
-Knowing violating of rights of another
-Material published with knowledge of its falsity if done by or at the direction of the insured
-Material published prior to the policy period
-Criminal acts committed by or at direction of the insured
-Contractual liability as assumed in a contract or agreement, except the liability for compensatory damages that the insured would have had in any case
-Breach of contract except an implied contract to use another’s advertising idea
-Quality or performance of goods when the insureds work fails to conform to its advertising statements
-Wrong description of price used in the insureds advertisement
-infringement of copyright, patent, trademark or trade secret
-insureds in mediator web related businesses
-electronic chat rooms or bulletin boards
-unauthorized use of another’s name or product in the insureds email, or media, to mislead another’s personal customers
What does medical payments for under a CGL policy cover?
Reasonable medical expenses incurred for a third party regardless of fault. Reasonable expenses are payable for immediate fist aid, necessary medical, surgical, X-ray, and dental services, including prosthetic devices
What are the exclusions under medical payments on a CGL policy?
Any insured under the policy except volunteers
A person hired to do work for or on behalf of any insured or a tenant of any insured
Any person injured on premises normally occupied by the injured party
Anyone who is entitled, at the time of the injury, to compensation from provincial works compensation plan
Persons taking part in athletics, including practising, instructing, or participating
Products completed operations hazard
Exclusions under coverage A
What does tenant legal liability under a CGL policy cover?
Protects insured against liability incurred for damages from all perils unless specifically excluded to the rented (real property) premises
What are the exclusions for tenants legal liability under a CGL policy?
Property damage expected or intended from a standpoint of the insured
Contractual liability
Who is a named insured on CGL policy?
-When the insured is an individual, a partnership, or a joint venture-coverage extends to the spouse of the insured with respect to the conduct of the business
-When the insured is a limited,inability company-coverage extends to company members, executive officers, directors, and shareholders with respect to their liability pertaining to business duties
-Volunteer works or employees are covered while performing duties related to the conduct of the business
-Trustees, real estate managers and if the named insured dies his/her legal representatives and those having temporary custody of the property
-any newly acquired or formed organization covered until 90th day after acquisition or formation
Explain the limits of insurance under a CGL policy
The declaration page specifies the limits of insurance for the various coverages purchased
The amount inserted under each heading is the maximum amount payable regardless of the number of insureds, claims made or actions brought, or persons or organizations making claims or bring actions
There is no automatic reinstatement of the limits of insurance
Limits apply to the policy annual period
Explain conditions under a CGL policy
Not subject to the statutory conditions but it does contain similar conditions to most insurance forms
Explain the definitions section of a CGL policy
In the standard CGL policy wording, terms that are assigned a special meaning are in quotation marks
Insured contract is a definition that requires special attention
What are the common exclusions under a CGL policy?
Asbestos
Fungi or spores
Nuclear energy liability
Pollution
Terrorism
War risks
Define supplementary payments
Various expenses the insurer agrees to pay under a liability policy (in addition to the liability limit)
What supplementary payments are included in a CGL policy?
Expenses incurred by the insurer
Cost of a bond to release seized property for bond amounts within the limit of insurance
Reasonable expenses incurred by insured at insurers request including loss of earnings up to $250 per day
All costs assessed against the insured
Interest accruing after entry of judgement will be paid by insurer
