Commercial General Liability

Question 1

Interline Endorsements

Answer 1

Endorsements that may be used with more than one line of insurance

Question 2

Coverage “A”

Answer 2

Bodily Injury and Property Damage. Always to a third party if the insured is found to be legally liable

Question 3

Bodily Injury

Answer 3

bodily harm including required care, lost wages, lost services (landscaper, housekeeper, nurse, daycare while at the doctor, etc.), and death that results

Question 4

Property Damage

Answer 4

damage to the property of others, including loss of use of that property

Question 5

Split Limit

Answer 5

Per Person (BI) / All Persons (BI) / Property Damage

Question 6

Coverage “B”

Answer 6

Personal and Advertising Injury

Question 7

Personal Injury

Answer 7

injury to a person, other than bodily injury. Ex: slander, libel, invasion of privacy, false arrest, malicious prosecution, wrongful eviction

Question 8

Advertising Injury

Answer 8

personal injury caused by advertising, which includes slander, libel, and invasion of privacy, and such things as copyright infringement, or stealing someone’s advertising idea

Question 9

Supplemental Payments

Answer 9

Duty to defend related to Coverages “A” and “B”. Does not affect the liability limit. Paid in addition.

Question 10

Coverage “C”

Answer 10

Medical Payments - covers medical expenses without regard to fault

Must be reported within ONE year.

Injuries to an insured or a tenant or employee of insured are NOT covered

Question 11

Nonrenewal

Answer 11

requires 30-day notice to named insured and mortgagee

5-day notice to producer

Question 12

Claims Made Coverage Form

Answer 12

claim must be reported after retroactive date, but before policy expiration date (or Extended Reporting Period)

Question 13

Prior Acts Coverage

Answer 13

claims-made liability policy with no retroactive date

Question 14

Extended Reporting Period (ERP)

Answer 14

a period of time following the expiration of a claims-made policy during which claims filed will be covered

Question 15

Basic ERP (mini-tail)

Answer 15

begins automatically if policy is canceled or non-renewed. coverage for claims reported within 60 days of expiration

Question 16

5-Year Basic ERP (midi-tail)

Answer 16

automatic, free of charge, and covers occurrences before mini-tail expire. 5 years to report

Question 17

Supplemental ERP (maxi-tail)

Answer 17

covers all claims as long as the occurrence took place before policy expired. Additional premium charged for this coverage (limited to 200% annual CGL premium)

Question 18

Premises and Operations

Answer 18

Aggregate amount the covers legal liability of a business with premise OR operations exposures

Premise: at store, office, etc

Operations: on a job site

Question 19

Products and Completed Operations

Answer 19

Aggregate amount covers products no longer in control of insured and off premises; and operations that are completed - for example worksite abandoned

Question 20

Contractual Liability

Answer 20

Coverage included in CGL policies for “insured contracts” for Coverage “A” only.

Insured contracts: any contract that is necessary part of business

Question 21

Hold Harmless Agreement

Answer 21

one party assumes the liability inherent in a situation.

Question 22

Cancellation - Return Premium

Answer 22

By insured: 30 days - short rate basis

By insurer: 45 days - pro rata basis

Question 23

Negligence (4 Elements)

Answer 23

1. Legal duty to act or not act
2. Breach of that duty
3. Resulting injury or damage
4. Breach of duty must be proximate cause of the injury/damage

Question 24

Premium Audit Condition

Answer 24

Allows insurance company to audit the insured’s records for up to 3 years following the expiration of the policy

Question 25

Non-renewal Notice Times

Answer 25

Nonpayment of premiums: 10 days
Auto policies: 20 days
WA State: 45 days
Everything else: 30 days