Unit 15

Question 1

Page 308
What is an example premises and operations liability

Answer 1

liability arising out of the business location or activities of the business, i.e. customer falls on improperly installed floor

Question 2

Page 312
What does Supplemental Extended Reporting Period endorsement do?

Answer 2

Provides unlimited extension of the reporting period of a claim

Insured must request this and pay additional premium

Question 3

Page 315
What do the CGL (Commercial General Liability) forms cover?

Answer 3

A - Bod injury/Property Dam liability (BI/PD)
B - Personal/Advertising Injury liability
C - Medical Payments

Question 4

Page 315
What does coverage A do?

Answer 4

pays damages the insured is legally obligated to pay because he/she caused bodily injury or property dam.

BI or PD must be caused by and OCCURRENCE

Question 5

Page 315
What is considered an occurrence in order for Coverage A to apply?

Answer 5

An even such as an accident or repeated exposure to same harmful condition

Question 6

Page 315
What does the company need to do for the insured in addition to paying for covered damages?

Answer 6

needs to defend the insured against any suit alleging liability for damages to which policy applies

Question 7

Page 315/316
What are some exclusions to Coverage A, including liability?

Answer 7

Liability:
- from intentional injury
- insured assumes under a contract/agreement (leases, easements)
- for people in alcoholic beverages industry, any liability imposed by law
- for work-related injuries covered under Workers Comp

Question 8

Page 316
What does liability under a contract or agreement entail?
(David, I don’t know how to turn this into a question.)

Answer 8

Answer talks about insured, incidental, contracts, leases and easement agreements

Question 9

Page 317
What does Coverage B exclude?

Answer 9

any offense committed by the insured in business of advertising, publishing, broadcasting, telecasting or designing web content for others

Question 10

Page 318
What are 7 Supplementary Payments that are available for coverage under A and B?

Answer 10

1. all expenses incurred by insurance co.
2. up to $250 bail bonds
3. Cost of bonds to release attachments
4. reasonable expenses incurred by insured to assist in investigation/defense of a claim (up to $250/day lost income)
5. all costs taxed against the insure in a suit
   6 prejudgment/postjudgment interest
6. defense costs for an indemnitee

Question 11

Page 319
What does Coverage C (Medical Payments) of CGL pay for?

Answer 11

medical expenses for bodily injury cause by accident

Question 12

Page 319
How long after the accident does the claim need to be filed and expenses incurred?

Answer 12

expenses must be incurred and reported to insurance co with one year of date of accident

Question 13

Page 321
What is the General Aggregate Limit?

Answer 13

(Aggregate = whole or total)

The most that will be paid for the sum of coverages A, B and C

Question 14

Page 321
What does the sum of coverages A, B and C NOT include?

Answer 14

damages arising out of products-completed operations hazard (no clue what this means)

Question 15

Page 321
How can the General Aggregate Limit be modified?

Answer 15

by endorsement so that it applies SEPARATELY to each of the insured’s locations/projects.

Question 16

Page 321
What does a separate Products-Completed Operations Aggregate Limit represent?

Answer 16

most that will be paid under Coverage A due to injury and damage arising out of the products-completed operations hazard

Question 17

Page 323
What does the “Other Insurance” condition state?

Answer 17

when the insured has more than one policy applying to the same loss, claim will be divided in one of two ways
1. Contribution by equal shares OR
2. Contributions by policy limits

Question 18

Page 323
Under Contributions by Equal Shares, how much does each insurer pay?

Answer 18

equally - up to the limit of the policy with the lowest limit
After that, policy with the lowest limit stops paying and other insurance companies have to share remainder of loss.

Question 19

Page 323
When does Contribution by Equal Shares apply?

Answer 19

When all policies involved specify this method of handling other insurance.

If they do not, Contributions by policy limits applies