Objective 2 : CGL Coverage A—Insuring Agreement

Question 1

Insurer’s Duty to Pay Damages

Answer 1

(1) The insured must be legally obligated to pay
damages.
(2) The damages must result from bodily injury or
property damage
(3) The policy must apply to the bodily injury or
property damage.
(4) The bodily injury or property damage must be
caused by an occurrence.
(5) The occurrence must take place in the coverage
territory.
(6) The bodily injury or property damage must occur
during the policy period.
(7) The bodily injury or property damage must not be
known to the named insured or certain other
persons before the policy period

Question 2

damages

Answer 2

(1) Special damages, for such out-of-pocket costs as medical expenses and loss of earnings
(2) General damages, for such intangibles as pain and suffering
(3) Punitive damages, awarded to punish or make an example of the wrongdoer. few states do not recognize the concept of punitive damages, and others do not permit insurers to pay punitive damages on behalf of an insured.

Question 3

occurence

Answer 3

“accident, including continuous or repeated exposure to substantially the same general harmful conditions.”

Unintended results of intentional acts generally qualify as accidents

Question 4

Insurer’s Duty to Defend

Answer 4

insurer has the right and duty to defend the insured against any suit that seeks damages for bodily injury or property damage to which the insurance applies.