Chapter 8

Question 1

What are the 4 distinct insuring agreements under section one coverages of a CGL?

Answer 1

Bodily injury and property damage liability
Personal and advertising injury liability
Medical payments
Tenants legal liability

Question 2

Define bodily injury

Answer 2

Meaning physical injury, including sickness, disease, mental injury, shock, or death

Question 3

Define property damage

Answer 3

Injury to real or personal property through another’s negligence, wilful destruction, or by some act of nature

Question 4

What must be present in order to trigger coverage in a CGL policy under Bodily Injury and Property damage liability?

Answer 4

Legally obligated to pay signifies there must be a legal obligation for the insured to pay a claim

Question 5

Define occurrence policy

Answer 5

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

Question 6

Define claims-made policy

Answer 6

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

Question 7

What case is used to illustrate damages from one occurrence?

Answer 7

Alie et al vs Bertrand et al

Question 8

What coverage territory does bodily injury and property damage under a CGL policy apply to?

Answer 8

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

Question 9

What are the exclusions under bodily injury and property damage under a CGL policy?

Answer 9

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

Question 10

What does personal injury mean?

Answer 10

Means an injury other than bodily injury

Question 11

What are the exclusions under personal and advertising injury on a CGL policy?

Answer 11

-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

Question 12

What does medical payments for under a CGL policy cover?

Answer 12

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

Question 13

What are the exclusions under medical payments on a CGL policy?

Answer 13

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

Question 14

What does tenant legal liability under a CGL policy cover?

Answer 14

Protects insured against liability incurred for damages from all perils unless specifically excluded to the rented (real property) premises

Question 15

What are the exclusions for tenants legal liability under a CGL policy?

Answer 15

Property damage expected or intended from a standpoint of the insured
Contractual liability

Question 16

Who is a named insured on CGL policy?

Answer 16

-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

Question 17

Explain the limits of insurance under a CGL policy

Answer 17

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

Question 18

Explain conditions under a CGL policy

Answer 18

Not subject to the statutory conditions but it does contain similar conditions to most insurance forms

Question 19

Explain the definitions section of a CGL policy

Answer 19

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

Question 20

What are the common exclusions under a CGL policy?

Answer 20

Asbestos
Fungi or spores
Nuclear energy liability
Pollution
Terrorism
War risks

Question 21

Define supplementary payments

Answer 21

Various expenses the insurer agrees to pay under a liability policy (in addition to the liability limit)

Question 22

What supplementary payments are included in a CGL policy?

Answer 22

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