Exam 2 CGL Conditions Flashcards
1
Q
Bankruptcy
A
- Insolvency of insured does not relieve insurer of duty to policy obligations
- Insurer must pay claims, defend insured, make settlements, regardless of insured financial condition
2
Q
Duties in the Event of Occurrence Offense, Claim or Lawsuit
A
- Insured fails in these duties; can relieve insurer from paying claims
- Notice must be given to insurer as soon as practical
- Can be written or oral
- How, where, when
- Name, and location of any damage or injury
- Insured must notify insurer ASAP
- Immediately forward any legal papers received in connection with the lawsuit
- Authorize insurer to obtain any legal papers in connection with the suit
- Cooperate with the insurer’s investigation
- Assist insurer in any action against a 34rd party
- Insured cannot make any voluntary payment or assume any obligation without insurer consent
3
Q
Legal Action Against US
A
- Insurer can’t be brought into lawsuit against insured - why?
- Insured cannot sue insurer to pay claims unless they have complied with insurer request for information
4
Q
When Insurer does not renew
A
- If insurer does not renew - written notice must be sent 30 days in advance to the first named insured
5
Q
Premium Audit
A
- CGL Policies can be issued with estimated premiums
- Determined after policy expires
- Requires insured to keep accurate records o permit correct calculation of premium
- Insured must promptly pay recalculated premiums
- Insurer must refund any excess premium
6
Q
Representations
A
- Statements made in declarations are accurate and complete
- Statements are based on representations made by named insured to insurer
- Insurer issues policy relying on named insured’s representation; Material and Concealment; both affect price and whether risk accepted
7
Q
Transfer of Right of Recovery Against Others to Us
A
- Transfers right to recover from a third party to insurer
- Principle of Subrogation
- Insured cannot impair this right and must offer necessary assistance
8
Q
Other: Insurance
A
- Explains how insurer responds to claim when other insurance also covers the claim
- CGL is excess for; fire, builder’s risk, installation risk, fire insurance on premises rented to insured; aircraft, auto and watercraft
