Rating CGL Coverage Flashcards
CGL Coverage Formula
Rate X Rate Exposure = Premium
What does the rate depend on?
The nature of the insured organization and odds suffering liability losses
Class Codes
Numerical Code representing the rating that best fits an organization
What does the rate exposure reflect?
The size of the business
How is the rate exposure measured
Premium Base: such as gross sales or payroll
Premium Base
- Retail Business - Gross sales
- Contracting Business - Payroll
- Apartment/Hotel - Area, gross sales, # of units
Special Events
of admissions sold (Concerts, sporting events, etc)
What is a Claims Made Form
Occurrence Based policies were the norm for policies pose problem for insurers with long tail exposures
What kind of problems do claims made forms pose for insurers
Long Tail Problems: asbestos, pollution
When does the the statute of limitations begin for a claims made form
When discovered, not when first occurred
What is hard to predict for a claims made form for insurers?
Cost for insurers
Claims Made Trigger
- Triggers coverage
When must claims be filed for the Claims made trigger?
Claims must be filed during the policy period
Claims Made Notification
Notification - not settlement
Retroactive Date
Date after which a claim must occur to be covered
What if a policy does not have a retro date?
If not retro date then it is the inception date of the policy
What if the date is before the retro date?
Might have to pay extra
What does the retroactive date help with?
When you switch to claim biased and might need a claim filed during the policy but occurred before the policy inception
When does the retroactive date not cover?
Pollution and Asbestos
Extended Reporting Period
Extends period in which a claim can be filed
What does the Extended Reporting Period not extend?
Coverage; only extends time to notify insurers
What must the occurrence be after and before for Extended Reporting Period?
After the retroactive date and before policy expiration
When must the occurrence be reported be for Extended Reporting Period?
60 days of occurrence
What is the basic CGL extension for a claim to be paid for no additional period?
5 years
Extended Reporting Period Extension requirements
- must occur after retroactive date and before policy expiration
- Must be reported by insured within 60 days of occurrence
