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P & C > Commercial General Liability Coverage > Flashcards

Commercial General Liability Coverage Flashcards

1
Q

Businesses face a number of liability exposures relating to their operations, and protection against the resulting liability claims is most frequently provided by the _______.

A

Commercial General Liability policy

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2
Q

The possibility of being legally liable for injury or damage at the insured’s place of business is the _______.

A

Premises exposure

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3
Q

Possible liability arising out of doing work away from the insured’s place of business is the _______.

A

operations exposure

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4
Q

After the insured performs services or work at these off-premises locations and leaves the job site, possible liability for defective workmanship is the _______.

A

completed operations exposure

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5
Q

After the insured sells goods or merchandise and the goods leave the premises, claims relating to defective goods or improper warnings represent the _______.

A

products exposure

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6
Q

Businesses may also have _______ for actions or failures to act per the language of a contract or agreement.

A

contractual liability

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7
Q

The CGL covers liability arising out of certain contracts, known as _______.

A

insured contracts

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8
Q

These include a lease of premises, _______, agreement to indemnify the municipality, sidetrack agreement, and elevator maintenance agreement.

A

Ease Agreement

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9
Q

Contracts that indemnify a railroad for liability arising out of _______ operations are not insured contracts.

A

Construction or demolition

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10
Q

A CGL policy may be written on one of two forms that differ based on the _______.

A

Coverage Trigger

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11
Q

Under the _______, occurrences that take place during the policy period are covered. Liability claims related to those occurrences may be received and recorded at any time, even after policy expiration.

A

Occurrence Form

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12
Q

Under the _______, the occurrence must take place and the claim must be made during specified times.

A

Claims Made Form

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13
Q

Occurrences must take place between the _______ and policy expiration. This date could be the policy inception date, a date the insurer agrees to, or completely removed with Prior Acts coverage.

A

Retroactive Date

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14
Q

Claims must be made during the policy period or during a(n) _______.

A

extended reporting period

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15
Q

The Claims Made form automatically provides a(n) _______ extended reporting period.

A

basic

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16
Q

With the mini tail, claims related to unreported occurrences that took place during the policy period may be reported within _______ of policy expiration. With the midi tail, new claims related to previously reported occurrences that took place during the policy period may be reported within 5 years of policy expiration.

A

60 days

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17
Q

Another reporting period of unlimited duration, called the _______ extended reporting period, is available by endorsement.

A

Supplemental

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18
Q

Both CGL forms offer the same coverages under Section I. Coverage A pays for damages resulting from claims of _______ for which the insured is legally liable.

A

bodily injury or property damage

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19
Q

The insurer also has the _______ the insured against suits seeking these damages.

A

duty to defend

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20
Q

Occurrences must take place during the policy period and in the _______, meaning the United States, its territories, Puerto Rico, and Canada.

A

Coverage Territory

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21
Q

Coverage A includes coverages for liability arising out of the insured’s products and completed operations, known as the _______.

A

products-completed operations hazard

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22
Q

However, coverage is not provided if the insured’s product is recalled because of a defect—this is known as the _______.

A

host liquor liability

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23
Q

Coverage A covers the insured’s _______ and other damage to property rented to the insured, with certain conditions.

A

fire legal liability

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24
Q

CGL Coverage is also provided for liability resulting from specific types of autos and watercraft. Watercraft ashore on the insured’s premises and non-owned watercraft less than _______ are covered, as long as they do not carry people or property for a fee.

A

26 ft long

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25
Q

_______, like bulldozers and power cranes, are also covered.

A

Mobile Equipment

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26
Q

However, liability arising from _______ by autos owned or operated by the insured is excluded. CGL

A

transporting mobile equipment

27
Q

Coverage A has a number of exclusions, some of which are common to liability policies, such as excluding expected or intended injury, injuries resulting from war, and physical damage to _______.

A

the insured’s property or product

28
Q

Contracts are only covered if they are insured contracts or if liability would _______ of the contract being in place.

A

exist reguardless

29
Q

Liquor liability is excluded for insureds who are in the business of _______ alcoholic beverages.

A

manufacturing, distributing, selling, serving, or furnishing

30
Q

Coverage is not provided for injuries to _______ arising out of the employee’s work duties, as this liability is covered by Workers’ Compensation and Employers Liability policies.

A

employees or their relatives

31
Q

Liability arising out of actual, alleged, or threatened _______ would also be covered by a separate policy.

A

Pollution

32
Q

Other than the covered vehicles and watercraft, coverage for liability arising from _______, autos, and watercraft would also be provided by other policies.

A

Aircraft

33
Q

CGL Coverage B provides liability coverage for _______, including the insurer’s duty to defend the insured.

A

personal and advertising injury

34
Q

Coverage B excludes knowingly violating another person’s rights, knowingly publishing false material, and liability arising from _______ the insured hosts.

A

electronic chat rooms

35
Q

Coverage is also not provided for _______ descriptions in advertisements or the failure of products to conform to advertising standards.

A

wrongful price

36
Q

CGL Coverage B has its own _______, which is the most the insurer will pay for personal and advertising injuries sustained by any one person or organization.

A

personal and advertising injury limit

37
Q

Because Coverages A and B include the insurer’s duty to defend, _______ are also provided for those coverages.

A

supplementary payments

38
Q

These include claim-related expenses, the cost of bail bonds and bonds to release attachments, pre- and post judgment interest, and up to _______ per day for loss of earnings because the insured must assist with the defense.

A

$250

39
Q

CGL Coverage C offers _______ who incur medical expenses due to bodily injury caused by an accident on the insured’s premises or from the insured’s operations.

A

Medical Payments to others

40
Q

Coverage B Med Payments are made regardless of fault, and they must be incurred within _______ of the date of the accident.

A

1 year

41
Q

Coverage B CGL Payments may be made to customers and _______.

A

voluntary workers

42
Q

CGL The _______ is the most the insurer will pay for medical expenses incurred by any one person.

A

medical expense limit

43
Q

CGL Coverage B Payments are not provided if the bodily injury results from a Coverage A exclusion, such as coverages provided by Workers’ Compensation. They are also not provided to an _______, their employees, or anyone who normally occupies the insured premises.

A

insured

44
Q

CGL Coverage B Payments are also not provided if they are included in the products-completed operations hazard or result from _______.

A

athletic activities

45
Q

CGL: Section II indicates _______ under the policy.

A

who is an insured

46
Q

CGL Some people are considered insureds based on how the named insured is _______ on the Declarations page.

A

designated

47
Q

CGL Section II: For example, if the named insured is a corporation, insureds would include the corporation, its _______, its directors, and its stockholders.

A

executive officers

48
Q

CGL Seciont II: Besides these, other parties are also insureds when performing duties related to the insured’s business, like the insured’s volunteer workers, employees, _______, and legal representative.

A

Real Estate Manage

49
Q

Section III CGL: describes the multiple _______ that apply to a CGL policy.

A

limits of insurance

50
Q

Section III CGL: _______ aggregate limits apply, which will be the most the insurer will pay for certain coverages during the policy period.

A

two

51
Q

Section III CGL: The _______ is the most the insurer will pay for damages included in the products-completed operations hazard.

A

products-completed operations aggregate limit

52
Q

Section III CGL: The _______ is the most the insurer will pay for other Coverage A damages, Coverage B damages, and Coverage C expenses.

A

general aggregate limit

53
Q

Section III CGL: In addition to the aggregate limits and the limits applying exclusively to Coverage B and to Coverage C, there is also an _______, which is the most the insurer will pay for damages under Coverage A and expenses under Coverage C arising out of any one occurrence.

A

each occurrence limit

54
Q

Section III CGL: The _______ is the most the insurer will pay for property damage to any one premises rented to the insured.

A

damages to premises rented to you limit

55
Q

Section IV CGL: Section IV lists the policy’s _______.

A

conditions

56
Q

Section IV CGL: The insurer must be notified of _______ that may result in a claim as soon as practicable.

A

any occurance

57
Q

Section IV CGL: The premium paid for the policy is only a _______, and the earned premium will be based on a premium audit at the end of the policy period.

A

deposit premium

58
Q

Section IV CGL: CGL coverage may be written on a primary basis or excess basis. If written on a primary basis, the insurer will share the loss with other collectible insurance on a(n) _______ basis.

A

contribution by equal shares

59
Q

Section IV CGL: Section V includes all of the policy’s _______, like distinguishing between autos and mobile equipment.

A

definitions

60
Q

Section IV CGL: Generally, autos are used _______ public roads and must meet financial responsibility requirements, while mobile equipment is used off public roads and usually does not need to meet financial responsibility requirements.

A

on

61
Q

Section IV CGL: If a vehicle is _______ and has a permanently attached cherry picker, generator, or similar equipment, it is an auto.

A

self-propelled

62
Q

Section IV CGL:If a vehicle is _______ and has that same equipment permanently attached, it is mobile equipment.

A

not self-propelled

63
Q

Section IV CGL: Employees include leased workers, but do not include _______.

A

temporary workers

64
Q
A

P & C (10 decks)

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