Section 3D

Question 0

Garage Liability

Answer 0

Coverage at auto dealers and repair shops

Question 1

Commercial General Liability (CGL)

Answer 1

Does not cover personal liability

It has no deductible.

It can be written for just about any type of business except auto dealers and repair shops

Question 2

CPP is a BI and PD coverage that will pay for your

Answer 2

Legal liability to others resulting from your failure to act reasonably (negligence)

The cost of hiring a lawyer is in addition to your policy limits.

Question 3

CPP

Injury to your own employees is not covered since is this WC and remember WC

Answer 3

Can never be added to CPP

Question 4

An occurrence form

Answer 4

Will cover any BI or PD that occurs during the policy period

Auto Liability and Homeowners Liability are written in this manner.

Question 5

Claims Made form is much more restrictive

Answer 5

Professional liability policies are written on a claims made basis

They have a retroactive date, which defines when coverage begins

CGL is written on this basis

Question 6

When renewing a policy written on a claims made basis, you should

Answer 6

Maintain the original retroactive coverage date

Question 7

A retroactive date can be advanced only with the written consent of the named insured. The insurer must obtain written consent and acknowledgment that

Answer 7

The insured has been informed of the right to buy an ERP (extended reporting period)

Question 8

ERP

Answer 8

Aka extended reporting period

It’s sometimes called a ‘tail of coverage’

Question 9

An ERP does not

Answer 9

Extend a policy period

Question 10

An ERP extends the

Answer 10

Period for reporting such claims.

The ERP are treated as if they had been made on the last day of the policy period. Once in effect, an ERP cannot be cancelled

Question 11

ERP is the

Answer 11

Opposite of the retroactive date

Question 12

Basic ERP

Answer 12

Is free and begins at the end of the policy period and provides an extra 60-day period for reporting any claims that occurred during the policy period.

Allows a claimant to report a claim up to five years after the policy period

Question 13

Supplemental ERP

Answer 13

Extends the claim-reporting period indefinitely or provides a full tail of coverage

Question 14

Claims Made CGL policy

A claim must be turned in during the policy period, or during

Answer 14

Any extended reporting period provided by the insurer

Question 15

It is the date of the claim that triggers coverage on a CGL that pays claims on an occurrence basis, but on a claims made CGL,

Answer 15

It is the date that the claim was turned in.

Question 16

Cov A on CGL

Answer 16

Premises and operations liability
Products and completed operations liability
Contractual or Assumed Liability
Independent Contractors

Question 17

Premises Liability

Answer 17

Provides coverage for BI and PD on your fixed premises in the event someone (other than you or your employee) is injured or property is damaged due to your negligence.

Question 18

The cost of defense is covered in addition to your policy limits, even if

Answer 18

It is proven to be not your fault. There is usually no deductible

Question 19

Operations liability

Answer 19

Is designed for businesses that do not have a single fixed premises, but various premises, instead.

Question 20

The cost of defense is covered in

Answer 20

Addition to limits, even though the lawsuit is groundless

Question 21

Theses policies are subject

Answer 21

To audit and payroll verification

Question 22

Products and Completed Operations for businesses that either

Answer 22

Manufacture or sell something (products-worldwide)

Or build something (completed operations)

Question 23

Products Liability covers BI and PD resulting from the sale or manufacturer of a faulty product,

Answer 23

After it has been released from the control of the manufacturer or retailer

Question 24

Basis of premiums for products liability is

Answer 24

Gross annual sales

Question 25

Products liability on a CGL may be

Answer 25

Excluded with the mutual consent of the parties.

Question 26

Completed operations liability is actually part of the same CGL insuring agreement, but is

Answer 26

Designed for businesses that build things.

Question 27

Completed operations liability

Answer 27

Covers you after you are done

Question 28

Contractual or Assumed Liability

Answer 28

Covers your liability assumed under contracts

Ex: hold harmless agreement (you agree that you will assume all liability)

Question 29

CGL only automatically covers insured contracts like

Answer 29

A sidetrack agreement (often a railroad siding)

An elevator maintenance agreement

Question 30

Independent Contractor’s Coverage

General Contractors are assumed to be responsible for the acts of any subcontractor they may hire.

Answer 30

They may be sued for the negligent acts of its subcontractors.

Question 31

Fire legal liability

Answer 31

May be added to CGL

The care, custody and control exclusion has been deleted as it is related to fire only

Question 32

Cov B on CGL

Personal and Advertising Injury covers the insured’s liability for financial damages due to publication that

Answer 32

Slanders or libels a person,etc that violates a person’s right of privacy.

Question 33

Advertising Injury means injury arising out of

Answer 33

Misappropriation of advertising

Infringement of copyright, title, or slogan

Question 34

Personal Injury

Means injury, other than BI , arising out of one or more of the following offenses:

Answer 34

False arrest, detention, or imprisonment
Malicious prosecution
Wrongful eviction

Question 35

Cov C on a CGL is called Medical

Answer 35

No fault coverage
Applies to others
Coverage on aperture person basis

Question 36

Supplementary payments are also included in the CGL

Answer 36

Loss of earnings $250 a day
Interest that accrues after judgment
Cost of bail bonds

Question 37

Most CGL policies are written with both an occurrence limit and aggregate limits. Claims paid on

Answer 37

An Occurrence basis will reduce the general aggregate.

The aggregate limit is reinstated on the policy anniversary date.

Question 38

CGL conditions

Answer 38

Conduct a premium audit and have the right to receive advance notice

Question 39

CGL policy territory

Answer 39

Puerto Rico
USA
Canada