Multiline CIC

Question 1

Inland Marine Filed or Controlled form characteristics

Answer 1

1. Relative uniformity of exposures

• Regardless of industry, the exposures are similar

2. General agreement by the insurance industry concerning appropriate coverage provisions, underwriting rules, and rates
3. Tend to be specialty coverages

• Accounts receivable insures only accounts receivable, for example

4. Inflexible terms and conditions

• Policy terms and conditions are dictated by the filings made with each jurisdiction – non‐negotiable

5 Outcome of filed or controlled forms

• Rates filed
• Coverage forms filed

Question 2

Inland Marine Filed or Controlled form examples

Answer 2

Accounts Receivables
Valuable Papers and Records
Signs
Commercial Articles

Question 3

Inland Marine Non-filed or Unfiled form characteristics

Answer 3

1. Exposures not uniform even within the same industries
2. Exposures too unique or diverse to reasonably require insurers to insure them on other than a case‐by‐case basis
3. More flexibility on how coverage will be provided – terms and conditions are negotiable
4. Examples of classes where underwriters need flexibility to address the risks individually
   • Contractors Equipment

• Transportation Policies

•	Builders Risk Policies
5.	Outcome of non‐filed or unfiled forms
•	Rates not filed
•	Coverage forms not filed
6.	Inland marine forms and rate filing requirements can vary by jurisdiction. Check with your individual carriers and/or the Department of Insurance in your jurisdiction for requirements.

Question 4

Bailee

Answer 4

Accepts the personal property of others

Question 5

Bailor

Answer 5

Owner of personal property given to another

Question 6

Types of Bailment

Answer 6

1. For the benefit of the bailor - Bailee owes bailor low duty of care
2. For the benefit of the bailee - Bailee owes the abilor high duty of care
3. For mutual benefit - Requires reasonable duty of care

Question 7

Ways to Provide Bailee Coverage

Answer 7

o Legal Liability Basis

o Direct Damage Basis

Question 8

Legal Liability Basis - Bailee Coverage

Answer 8

This insurance covers you for loss or damage to covered property you accept for storage for which you issue a receipt. In order to cover the damage, you must be legally liable for the damage to the property in your care, custody or control

Cover the value of the customer goods

Bailee must be legally liability for bailor’s property

Coverage includes value of the Bailee’s investment in labor and materials

Question 9

Direct Damage Basis - Bailee Coverage

Answer 9

Covers value of customer’s property

Includes the value of the Bailee’s investment in labor and materials

Since coverage is on a direct basis, the Bailee does not have to be legally responsible for the damage to the bailor’s property

Care, custody or control establishes the responsibility

Payment is made without regard to liability in order to maintain the goodwill of the customer

Question 10

Bailee Exclusions

Answer 10

1. Theft of property left overnight in or on a vehicle, unless inside a locked building and there are signs of forced entry
2. Loss resulting from misdelivery
3. Voluntary parting with property due to trick, scheme, or fraud
4. Damage caused by processing performed by the bailee –“your work” exclusion

Question 11

Builders Risk Covered Property

Answer 11

“Buildings or structures” under construction, including
•Materials and supplies that become a permanent part
•Foundations, excavations, grading, filling, permanent fencing

Scaffolding, Temporary Fencing, And Temporary Structures. Example: Temporary security fencing around the perimeter of the jobsite

Question 12

Builders Risk Property Not Covered

Answer 12

1. Contraband
2. Land – Including land on which the covered property is located
3. Not A Permanent Part Of Building – That will not become a permanent part
4. Roadways And Walkways – More than 1,000 feet from covered building or structure
5. Existing property being renovated
   •May need to change this if policy is being used on a renovation project
   •Some carriers use special policies to cover this exposure
6. Landscaping materials, including trees, grass, shrubbery, plants
   Note:
   A per item, per occurrence sublimit may be provided subject to “specified causes of loss” (as defined)
7. Waterborne Property – except while in transit in the custody of a carrier for hire
8. Other coverage forms also may exclude aircraft, watercraft, automobiles

Question 13

Builders Risk Coverage Extensions

Answer 13

Debris Removal - $5K when exceeds 25% of loss
• Caused by a covered cause of loss
• No coverage to extract pollutants

Emergency Removal (Preservation of Property)
• Necessary to preserve property from a covered cause of loss
• While it is being moved or stored
• Limited to 10 consecutive days but not beyond policy expiration

Limited Fungus Coverage

*Additional Limits

Question 14

Builders Risk Supplemental Coverages

Answer 14

Expense To Re‐Erect Scaffolding – $2,500
Fire Department Service Charges – $1,000
Pollutant Cleanup And Removal – $10,000

• Caused by a covered cause of loss
• Reported within 180 days
• No coverage for mandated testing

Temporary Storage Locations – $10,000
Transit – $10,000

*Sublimits

Question 15

Installation Floater Coverage Ceases When…

Answer 15

1. The policy expires or is cancelled
2. The installation project is accepted by the purchaser
3. Insurable interest ceases
4. The project is abandoned without intention to complete
5. The project has been completed for over 30 days
6. The covered property has been put to its intended use with exception

Question 16

Builders Risk Coverage Ceases When…

Answer 16

a. Policy expires or is cancelled
b. Property is accepted by the purchaser
c. Insurable interest ceases
d. Project is abandoned with no intention of completion
e. 90 days after completion

Question 17

Types of workplace torts

Answer 17

Negligence (Unintentional Tort) and Intentional Tort

Question 18

Negligence (Unintentional Tort)

Answer 18

Failure to use the amount of care an ordinary, reasonable prudent person is required to use to protect others from harm or injury.

Question 19

Intentional Tort

Answer 19

A person’s actions/activities are intentional and may or may not be intended to cause injury (mental or physical harm) to others

Question 20

Who has exposure to EPLI claims alleging workplace torts?

Answer 20

Both large and small employers (regardless if exempt form many federal statutes)

Question 21

Types of workplace torts

Answer 21

1. Bullying, humiliation, or other types of infliction of emotional distress - Berating/belittling
2. Invasion of privacy
3. Coercion - Pressuring an employee to do unethical acts
4. Libel, slander, defamation of character - defames
5. Negligent hiring practices - Hiring dangerous individual that later hurts someone
6. Negligent supervision - Awareness of threatening, but no action taken
7. Retaliation - Manager fires employee after allegations are made
8. Wrongful or negligent evaluations, criticism, demotions, discipline, etc.- Employee evaluation based on inaccurate information
9. Wrongful detention or imprisonment - Does not allow you to leave, interrogates you
10. Wrongful termination including constructive discharge claims - Manager made work environment difficult or unbearable that it forced resignation
    * Not automatically included in definition of wrongful act

Question 22

Types of contracts that may be breached resulting in EPLI claim

Answer 22

Written or Implied

Question 23

Written Contracts

Answer 23

• Employment contracts
• Collective bargaining agreements
Note:
Usually not the subject of EPLI coverage

Question 24

Implied contracts

Answer 24

• Job offer letter
• Employee manual
• Oral promises
• Evaluations
• Tenure

Question 25

Types of statutes

Answer 25

Federal, state, and local - provide protection for employees and job applicants

Question 26

Federal Act - Title VII Civil Rights Act of 1964

Answer 26

Unlawful for an employer to discriminate on the basis of race/color, sex, religion, or national origin

Question 27

Named Insureds under an EPLI policy

Answer 27

Indicated on dec, not the same as the GL
Organization - May not extend to the spouse
Directors, Officers, and trustees
Employees
Volunteer or interns may be listed
Independent Contractors may be listed

Question 28

EPLI Claim will pay…

Answer 28

A wrongful act as defined in the EPLI policy

Question 29

Wrongful Act ISO

Answer 29

1. Wrongful demotion or failure to promote, negative evaluation, reassignment or discipline of your current “employee” or wrongful refusal to employ;
2. Wrongful termination, meaning the actual or constructive termination of an “employee”:
   a. In violation or breach of applicable law or public policy; or
   b. Which is determined to be in violation of a contract or agreement, other than any employment contract or agreement, whether written, oral or implied, which stipulates financial consideration if such financial consideration is due as the result of a breach of the contract;
3. Wrongful denial of training, wrongful deprivation of career opportunity or breach of employment contract;
4. Negligent hiring or supervision which results in any of the other offenses listed in this definition;
5. Retaliatory action against an “employee” because the “employee” has:
   a. Declined to perform an illegal or unethical act;
   b. Filed a complaint with a governmental authority or a “suit” against you or any other insured in which damages are claimed;
   c. Testified against you or any other insured at a legal proceeding; or
   d. Notified a proper authority of any aspect of your business operation which is illegal;
6. Coercing an “employee” to commit an unlawful act or omission within the scope of that person’s employment;
7. Harassment;
8. Libel, slander, invasion of privacy, defamation or humiliation; or
9. Verbal, physical, mental or emotional abuse arising from “discrimination”.

*Only as it relates to employment

Question 30

Third Party - EPLI

Answer 30

Claim against the named insured, and/or the named insured’s employees, by a third party. These third parties typically involve individuals that the business or business’s employees have contact with, such as customers, clients, vendors, independent contractors, volunteers or other non‐employees.- Need endorsement

Question 31

Defense Costs EPLI - ISO

Answer 31

Inside the limit of liability
“Defense expenses” means payments allocated to a specific “claim” we investigate, settle or defend, for its investigation, settlement or defense, including:
1. Fees and salaries of attorneys and paralegals we retain, including attorneys and paralegals who are our “employees”.
2. Fees of attorneys the insured retains when, by our mutual agreement or court order (or when required by administrative hearing or proceeding), the insured is given the right to retain defense counsel to defend against a “claim”.
3. All other litigation or administrative hearing expenses, including fees or expenses of expert witnesses hired either by us or by the defense attorney retained by an insured.
4. Reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the “claim”, including actual loss of earnings up to $250 a day because of time off from work.
5. Costs taxed against the insured in the “suit”.
“Defense expenses” does not include salaries and expenses of our “employees” or the insured’s “employees” (other than those described in Paragraphs 1. and 4. above).

Question 32

Consent to Settle - EPLI

Answer 32

If we recommend a settlement to you which is acceptable to the claimant, but to which you do not consent, the most we will pay as damages in the event of any later settlement or judgment is the amount for which the “claim” could have been settled, to which you did not give consent, less any deductible.

Question 33

EPLI - Disputed about exempt/Non-exempt Status

Answer 33

Need Wage & Hour Endt - Defense costs only