Chapter 9

Question 1

What are the two types of Commercial General Liability(CGL) forms and what is the difference between them?

Answer 1

Occurrence- CG 00 01
Most often to provide CGL coverage
Coverage applies for injury or damage that occurs during the policy period, regardless of when the claim is reported to the insurer
Claims Made- CG 00 02
Coverage for claims occurring on or after the retroactive date that are made during the policy period or the extended reporting period

Question 2

Contractual liability is generally excluded from the CGl, however there is coverage for 6 insured contracts (LEASE-T)

Answer 2

Lease of premises 
Easement or license agreement 
Agreement to indemnify a municipality 
Sidetrack agreement 
Elevator maintenance agreement
Tort Liability of a Third Party

Question 3

Discuss Coverage B- Personal and Advertising Injury Liability

Answer 3

Promises to pay those sums for which the insureds becomes legally obligated for personal injury or advertising injury caused during the policy period

Question 4

Discuss Coverage C- Medical Payments

Answer 4

Will pay for medical expenses for bodily injury caused by an accident on the premises the named insured owns or rents or uses, and for accidents because of their operations, medical expenses are paid regardless of fault or negligence and must be incurred within one year from the date of the accident

Question 5

Describe Supplementary Payments and coverages to which they apply

Answer 5

Pays resulting expenses from the insurer’s defence of any cail or “suit” in addition to the limits in the policy
Applies to coverages
Coverage A- Bodily Injury and Property Damage
Coverage B- Personal and Advertising injury

Question 6

Who is an insured Under a CGL?

Answer 6

Named Insured- Person or organizations listed on the declarations
Automatic Insureds- Persons or organizations who qualify automatically as insureds
Additional Insureds- Added as endorsements, specifically named

Question 7

What are the 6 Limits of Insurance for the CGL policy

Answer 7

General Aggregate
Products and completed operations aggregate 
Personal and Advertising Injury
Per Occurrence 
Medical Expense 
Damage to Premises Rented to You

Question 8

Advertisements

Answer 8

Notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers

Question 9

Auto

Answer 9

Land motor vehicle or trailer designed for use on public roads including any equipment attached to said vehicle

Question 10

Bodily Injury

Answer 10

Bodily injury, sickness or disease sustained by a person, including death

Question 11

Coverage Territory

Answer 11

USA, and its territories and possessions, PR and Canada
Coverage is worldwide for injuries or damages if the goods or products are made or sold by the named insureds in the coverage territory for activities of a person temporarily outside the coverage territory, and for internet activities

Question 12

Employee

Answer 12

Includes a leased worker but not a temporary worker

Question 13

Executive officer

Answer 13

A person holding an officer’s position created by the insured’s charter, constitution, bylaws or similar documents

Question 14

Impaired property

Answer 14

Tangible property but not the insured’s property that cannot be used or is less useful because it includes the insured’s product or work that is known to be or thought to be defective, inadequate or dangerous

Question 15

Insured Contract

Answer 15

LEASE-T

Question 16

Loading or unloading

Answer 16

The handling of property

Question 17

Mobile equipment

Answer 17

Includes the following land vehicles and attached equipment
Bulldozers, farm machinery, forklifts and other vehicles designed for use off public roads
Vehicles maintained for use solely on or next to the named insured’s premises
Vehicles on crawler treads
Vehicle maintained to provide mobility to permanently mounted power cranes, shovels, loaders, diggers

Question 18

Occurrence

Answer 18

Accident including continuous or repeated exposure to substantially the same conditions

Question 19

Personal and advertising injury

Answer 19

Injury from the following offenses
False arrest, detention or imprisonment
Malicious prosecution
Wrongful eviction, wrongful entry or invasion of privacy
Oral or written publication of material that slanders or libels or violates a person’s right of privacy
The use of another’s advertising ideas in the insured’s advertisement
Infringement of copyright, trade dress of slogan in the insured’s advertisement

Question 20

Products and completed operations hazard

Answer 20

Bodily injury or property damage that arises out of the insured’s product

Question 21

Property damage

Answer 21

Physical injury to tangible property, including its loss of use
Loss of use of tangible property not physically injured

Question 22

Temporary worker

Answer 22

A person who is furnished to the insured to substitute for a permanent employee on leave or someone used to meet a seasonal or short-term workload condition

Question 23

Volunteer worker

Answer 23

A person who is not an employee of the insured and donates his/her own time without payment under the insured’s direction

Question 24

Your product

Answer 24

Any goods or products manufactured, sold, handled, distributed or disposed of by the named insured

Question 25

Your work

Answer 25

Work or operations performed by the named insured or on behalf of the named insured as well as materials and parts furnished in connection with the work. It also includes warranties and representations

Question 26

Trigger

Answer 26

Simply how coverage for a claim is activated

Question 27

Retroactive date

Answer 27

Determines when coverage starts

Question 28

Extended reporting periods

Answer 28

Used to provide coverage for claims that are reported after policy ends

Question 29

Basic extended reporting period

Answer 29

Mini-tail which gives an additional 60 days after policy termination to make any claims that occurred during the policy period
Midi-tail which gives up to 5 years after policy termination to make a claim, provided the occurrence is reported within 60 days of policy termination and the loss occurred during the policy period

Question 30

Supplemental extended reporting period

Answer 30

This is an endorsement that must be purchased and it must be requested in writing by the insured within 60 days of termination