Term
| Which of the following are the coverage forms available for CGL |
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Definition
a. Occurrence and Claims Made
b. Business Owners
c. Commercial General Liability
d. All of the above
Answer a |
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Term
| Which of the following cancellation/non-renewal time frames is correct regarding the CGL policy? |
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Definition
a. The insurer provide written notice 60 days prior to cancellation
b. For non-payment, the company may cancel with 20 days notice
c. After 90 days, 45 days written notice is required for non-renewal
d. During the first 90 days the policy is in force, the company must provide 10 days written notice of cancellation.
Answer c |
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Term
| Which is most accurate as to examination of Books and Records by the carrier? |
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Definition
a. Anytime the carrier chooses
b. During the policy period and up to one year after expiration
c/ Carrier can only request a self-audit after policy expires
d. During the policy period and up to 3 years after expiration
Answer d. |
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Term
| How may the rights and duties of the insured be transferred? |
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Definition
a. Insured cannot transfer rights and duties
b. Insured may notify agent to transfer rights and duties
c. Rights and duties transfer automatically when insured sells business
d. By written consent of the carrier
Answer d |
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Term
| The definition of Bodily Injury includes which of the following? |
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Definition
a. Slander, libel
b. False Imprisonment, improper entry
c. Nonphysical injuries such as damage to reputation
d. Physical harm including sickness or disease or death resulting there from
Answer d |
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Term
| When work is deemed completed: |
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Definition
a. When all work called for in the contract is completed
b. When all work to be done at the site has been completed if contract calls for work at more than one site
c. When that part of the work done at a job site has been put to its intended use by someone other than contractor or sub-contractor
d. All of the above
Answer d |
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Term
| Which of the following most accurately describes "Product"? |
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Definition
a. Goods or products other than real property
b. Container, materials, parts or equipment furnished in connections with goods or products
c. Goods or products manufactured, sold, handled or distributed or disposed of by the insured, others trading under the insured's name
Answer d |
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Term
| Which of the following most accurately defines "Occurrence" in a general liability policy? |
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Definition
a. An accident
b. A happening, sudden and accidental
c. A faulty product
d. An accident, including continuous or repeated exposure to the same general harmful conditions.
Answer d |
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Term
| Which of the following defines "covered territory" as explained in a CGL policy? |
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Definition
a. Worldwide no matter where the product is manufactured or sold.
b. United States and its territories or possessions, Puerto Rico, Mexico, and Canada.
c. United States and its territories or possessions, Puerto Rico and Canada, including international waters and airspace between these places
Answer c |
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Term
| Under the contractual exclusion which contracts are specifically accepted? |
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Definition
a. All contracts are excluded
b. All contracts are excluded unless they are made during the policy period.
c. Leases, easements, elevator maintenance, sidetrack agreements, entered into prior to BI or PD
d. Who cares?
Answer c |
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Term
| Which is most accurate as to the BERP? |
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Definition
a. Loss will be considered to have been reported on the last day of the policy period and will be eligible for coverage if the loss occurred during the policy period and is discovered and reported within 60 days of expiration
c. Loss will be covered if it occurred within 30 days of expiration and was reported with 60 days of expiration
d. Loss will be covered if it occurred within the policy period but was not discovered and reported until 5 years after the policy expired.
Answer a. |
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Term
| Which is most accurate as to how liquor liability is covered under the CGL? |
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Definition
a. Excluded insured must purchase a separate policy
b. IF insured is not in the business of serving, selling, bottling or distributing alcohol, coverage is provided.
c. Excluded, but insured can endorse for additional premium for Host liability only.
d. None of the above
Answer b |
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Term
| Which of the following are not exclusions in the CGL? |
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Definition
a. Liquor Liability
b. Employee injuries
c. Intentional Body Injury
d. Mobile equipment at the premises
Answer d. |
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Term
| What is the Known Loss Rule |
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Definition
| The need for this insuring agreement came from the 1995 court case in California (Montrose Chemical Corp v Admiral Insurance co) which revolved in part around an insurance principle called the "Known Loss Rule". Simply stated, the rule says that one cannot insure against a loss that is already known to have occurred. Therefore once you have a pollution occurrence, the active insurer at the time of the occurrence owns that claim and is obligated to pay against that occurrence forever. |
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Term
| Which is most correct as how Pollution is covered under the CGL? |
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Definition
a. $10,000 cleanup costs at the job site from a covered cause of loss.
b. $10,000 cleanup costs as a result of an auto accident
c. $10,000 cleanup costs at the premises due to accidental spillage
d. No coverage
Answer d |
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Term
| Which of the following are not exclusions under the CGL? |
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Definition
a. Damage to insured's product
b. Damage to Insured's work
c. Defects, Delays, Recall
d. Damage to a subcontractors work
Answer d |
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Term
| Which of the following are included in Personal Injury/Advertising injury coverage? |
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Definition
a. Liability from written or oral publications with knowledge of falsity
b. Violation of the law with knowledge or consent of the insured
c. Liability assumed under contract, breach of contract.
d. False arrest, detention or imprisonment, malicious prosecution, wrongful entry or eviction, libel, slander
Answer d |
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Term
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Definition
| All cost of litigation, including court costs, prejudgement interest, interest on judgements, cost of bonds to release attachments, $250 cost of bail bonds, and $250 per day loss of earnings due to loss time. |
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Term
| Which of the following is the basic limit of liability under the CGL? |
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Definition
a. $25,000
b. $50,000
c. $100,000
d. $300,000
Answer c |
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Term
| Which is the basic limit for Fire Damage under the CGL |
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Definition
a. $25,000
b. $50,000
c. $100,000
d. No basic limit applies
Answer c. |
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Term
| In relation to the occurrence limit, the aggregate limit is which? |
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Definition
a. Same as the Occurrence
b. There is no aggregate
c. 2 times occurrence
d. Who cares?
Answer c |
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Term
| Which best describes Owner & Contractors Protective Liability (OCP?) |
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Definition
a. Covers only specific contractors and specific jobs.
b. Covers insured's premises liability only
c. Covers insured against claims for BI/Property Damage from work done by another on behalf of the insured
d. None of the above
Answer c (it also has to be for a named contractor and named job) |
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Term
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Definition
| The field of General Liability insurance embraces business liability hazards other than those dealt with by more specialized forms of coverage such as auto, aviation, marine, professional and workers compensation--all discussed elsewhere. All kinds of businesses need this type of protection to cover for liability arising from premises, general operations (ongoing and after completion) and products manufactured or sold. |
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Term
| An insured's liability under the CGL can be direct or indirect |
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Definition
Direct would be someone injured on your premises i.e. just waxed the floor and someone slips and falls
Indirect - being held liable for actions of an independent contractor to whom the insured has the liability may ordinarily belong to another but the insured agreed by contract to indemnity or "hold harmless" one whose direct actions produced the claim |
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Term
| The CGL comes in two coverage forms: |
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Definition
Occurrence
Claims Made
The only difference in the two versions relates to the coverage "trigger." The trigger applies to both Coverages A & B |
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Term
| A complete CGL contract contains the following: |
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Definition
1) Declarations page
2) common policy conditions
3) one of two coverage forms: Occurrence or Claims Made
4) a Nuclear Energy Liability Exclusion Endorsement
Various other endorsements may be attached to broaden or restrict the coverage provided by these basic forms |
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Term
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Definition
1)named insured
2)address
3)policy period & premium
4)miscellaneous info about insured
5)specifies the limits of coverage that apply |
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Term
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Definition
1) 90/20 First 90 days of policy requires 20 days notice of cancellation; except for material misrepresentation, misstatement or failure to comply with underwriting standards
2) 45/10 After 90 days, 45 days written notice of cancellation or non renewal are required
3) Only 10 days written notice for non-payment |
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Term
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Definition
| The policy may be changed only by endorsement, agreed to between the company and the first named insured of the policy. I.e. Nobody can change without the carrier endorsing the policy and first named insured signing |
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Term
| Examination of Books & Records under a CGL |
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Definition
| The carrier reserves the right to inspect the books during the policy period and up to 3 years thereafter. They don't have to but they have the legal right to do so |
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Term
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Definition
| The carrier reserves the right (but does not promise) to make inspections, give reports and make recommendations, but disclaims any liabilities for doing so |
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Term
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Definition
| The first named insured must pay premiums and will receive return premiums (if mutual co with dividends) |
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Term
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Definition
| the insured may not transfer any rights or duties under the policy except with written consent of the company. Rights and duties are automatically transferred if the insured DIES, first to one who has temporary custody of the property and then to the legal representative |
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Term
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Definition
| The Nuclear Energy Liability Exclusion endorsement must be on every policy or it is not considered a CGL policy. In general, excludes all hazards related to nuclear energy. Firms involved in nuclear activities receive their protection from special insurer pools organized to deal with nuclear activities (surplus) |
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Term
| Coverage A - Bodily Injury and Property Damage |
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Definition
| Coverage A - of the CGL states: "We will pay those sums that the insured becomes LEGALLY OBLIGATED to pay as damages because of "BODILY INJURY" (BI) or "PROPERTY DAMAGE" (PD) to which this insurance applies |
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Term
| Coverage A - Bodily Injury and Property Damage - For coverage to respond |
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Definition
The claim must be against someone who has the status of insured.
1)Sole Proprietor - The owner & the spouse as to conduct of business
2) Partnership or Joint Venture - Named Insured, partners, members and spouses of insured as to conduct of business
3) Limited Liability Co - members and managers are insured in their status as such
4) Corporation - executive officers, directors and stockholders are insured in their status as such i.e. decision making position |
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Term
| Legal Liability under CGL |
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Definition
| There must be a legal obligation to pay (not just a moral one) and that obligation must be for damages (what a court would assess, in money, as redress for the claimant's injury) We don't feel bad, we pay! |
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Term
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Definition
| BI means physical harm and includes sickness or disease or death resulting therefrom. It does NOT INCLUDE nonphysical injuries such as damage to reputation. |
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Term
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Definition
| PD means physical injury to TANGIBLE PROPERTY (not intangible property such as copyrights and patents, if infringed), including loss of use of that property. It also includes loss of use of tangible property that has not been physically injured |
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Term
| The phrase "to which this insurance applies" |
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Definition
| coverage is not provided for any and all liabilities. It will be limited by exclusion and other provisions. |
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Term
| One of the most important liability exposures for a business is its PREMISES AND OPERATIONS EXPOSURE |
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Definition
| arising out of the business location or its activities at any location. An example of this exposure would be a claim against Sandle Appliance for injuries a customer suffers when she slips on a newly waxed floor. |
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Term
| PRODUCTS COMPLETED OPERATIONS |
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Definition
| Products/completed operations exposure includes all BI and PD occurring away from premises the insured owns or rents and arising out of the insured's products or work except products still in the insured's physical possession or work that has not been completed or abandoned |
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Term
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Definition
work or operations performed by the insured or on the insured's behalf and materials, parts or equipment furnished in connection with such work or operations. Work is deemed completed at the earliest of the following times:
1) When all work called for in the contract is complete (1 site)_
2) When all of the work to be done at the site has been completed if one contract calls for work at more than one site
3) When that part of the work done at a job site has been put to its intended use by any person or organization OTHER THAN contractor or subcontract |
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Term
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Definition
any goods or products, other than real property, manufactured, sold, handled, distributed or disposed by:
1) The insured
2) Others trading under the insured's name (another co selling your product)
3) A person or organization whose business or assets the insured has acquired (Only after the business is acquired i.e. bought biz in March it only covers products mfg after acquisiton) |
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Term
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Definition
| containers (other than vehicles), materials parts or equipment furnished in connection with such goods or products. examples of the PRODUCTS AND COMPLETED OPERATIONS EXPOSURE are a claim against Hook's Baker for injury resulting from the sale of spoiled cream puffs or a claim against Magic Carpets, Inc. for injury that results when a customer steps on a carpet tack left behind by Magic's workers. |
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Term
| Contractual Liability Agreement |
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Definition
| One business may assume the liability exposure of another business through a CONTRACTUAL LIABILITY AGREEMENT. For example, the town of Redton may have a contractual liability agreement with the H & H Drugstore that allows the drugstore to hang a large neon sign over the public sidewalk as long as the drugstore assume responsibility for any liability should the sign fall. (Legal binding contract) |
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Term
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Definition
| Not only can a business be held liable for its own actions, a business can be held liable because of its indirect or contingent liability for the actions of its employees, agents, or subcontractors. For example if a bank guard knocked a man down, mistakenly thinking him to be a bank robber, the man might sue both the guard and the bank. The bank could be held responsible for these injuries because of the action of the employee through vicarious liability |
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Term
| BI or PID must be caused by an "occurrence" that takes place in the "coverage territory" |
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Definition
| An "occurrence" is defined to be an accident, including continuous or repeated exposure to substantially the same general harmful conditions (i.e. asbestos exposure). An accident is a sudden, unexpected event. The second part of the definition include situations that would not be defined as accidents; for example, a faulty product that causes progressive injuries over time (i.e. a breast implant). |
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Term
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Definition
| U.S. and its territories or possessions, Puerto Rico and Canada, including international waters and airspace between these places. (Anything being flown or shipped between covered territories) |
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Term
| The definition of coverage territory is expanded to include the entire world as to BI & PD when |
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Definition
| caused by product made or sold by the insured in the defined territory, and activities of the insured while away from the defined territory for a short time on business. If a suit results from such an injury, it must be filed within the more limited territory described in the preceding paragraph. The carrier may always settle claims at its discretion |
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Term
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Definition
1) OCCURRENCE FORM - applies to BI & PD that occurs during the policy period, regardless of any later time at which a claim is made. AS long as the occurrence occurred in the policy period it is covered forever
2) CLAIMS MADE - form applies only to BI or PD that occurs on or after the "retroactive date," and for which the claim is received or recorded by an insured or the company during the policy period. |
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Term
| Claims Made Form (Pays retroactively) |
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Definition
| A retroactive date is stated in the Declarations and will normally be the same date as the effective date of the issuing company's first claims made policy for the insured. |
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Term
| Claims Made extended reporting period BERP |
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Definition
BERP - Basic Extended Reporting Period
This provides that if the policy is
1) canceled or not renewed
2) is renewed with a retroactive date later than the date stated in the Declarations
3) is renewed by a policy on other than a claims-made basis, then claims first received and recorded:
a. within 60 days after policy expiration
b. within 5 years after policy expiration, if the occurrence was reported not later than 60 days after policy expiration, will be considered to have been made on the last day of the policy period and thus will be eligible for coverage. This extension is automatic and free of charge. Once in effect it cannot be canceled.
SERP- After BERP expires (60 days) insured has the option to purchase |
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Term
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Definition
| BERP which must requested in writing within 60 days after policy expiration and if BERP was utilized). The effect of this option is to extend the basic period to unlimited duration . In addition, unlike the BERP that does not increase or reinstate policy limits, the SERP provides two new separate aggregate limits, which are equal to the expiring policys general aggregate and products-completed operations aggregate. These "supplemental" limits apply only to claims first received and recorded during the supplemental extended reporting period. |
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Term
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Definition
| It is important to emphasize that BERP & SERP do not extend the policy term itself; i.e., the occurrence that gives rise to a claim must still happen after the retroactive date and before the policy expiration date. They simply extend the time allowed to report the claim. |
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Term
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Definition
Intention Injury
Contractual
Liquor Liability Employee Injuries
Pollution
Aircraft, Autos, Watercraft
Mobile Equipment
Miscellaneous Property Damage
Insured's Work
Recall
Electronic Data
as further outlined in following flashcards |
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Term
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Definition
| Coverage excludes injury or damage that is expected or intended by the insured (unless it was the use of reasonable force to protect person or property). |
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Term
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Definition
Liability assumed under contract is excluded but this exclusion is subject to 2 exceptions
1) the exclusion does not apply if the insured would have been legally liable regardless of the contractual assumption
2) There are specified contracts that ARE NOT subject to the exclusion such as leases, sidetrack agreements, easement agreements, and certain other agreements as long as they were entered into prior to the BI or PD. |
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Term
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Definition
| If the insured is IN THE BUSINESS OF manufacturing, distributing, selling, serving or furnishing alcoholic beverages, liability associated with serving liquor to intoxicated or underage persons or I violation of law is excluded. Such exposure is subject of the separate Liquor Liability Cover form. |
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Term
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Definition
| Coverage excludes liabilities under a workers' compensation or similar law or arising from injuries to employees of the insured. These would be covered by a Worker's Compensation and Employers Liability policy |
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Term
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Definition
| There is basically no coverage for injury, damage or cleanup costs caused by pollutants, subject to minor exceptions |
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Term
| Aircraft, Autos, Watercraft |
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Definition
excludes liability for aircraft, automobiles or watercraft that are owned or operated by or loaned or rented to an insured, subject to a few exceptions. The exclusion does not apply to:
a) watercraft ashore on the insured's premises, or if less than 26 feet long and not owned by the insured and not being used to carry persons or property for a charge
b) parking of others autos on or next to the insured's premises
c) liability for aircraft and watercraft, assumed under a contract not excluded by the contractual exclusion; and
d) numerous types of "mobile equipment." |
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Term
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Definition
| There is no coverage for transportation of mobile equipment by automobile or over-the-road travel of mobile equipment that is subject to compulsory or financial responsibility laws or other motor vehicle laws. In addition, use of mobile equipment in assn with racing activities is excluded. The BAP covers while being hauled or towed. The CGL covers when off the trailer/or put to its intended use. |
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Term
| Miscellaneous Property Damage CGL excludes coverage for damage to the following: |
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Definition
1) That which the insured (liability only) owns, rents, occupies or has on loan; or personal property in the insured's ccc
2) Premises the insured has sold, given away or abandoned, if the damage arises out of any part of the premises
3) That particular part of real property on which the insured or others in the insured's behalf are performing operations, if the damage arises out of those operations
4) As to work in progress, that particular part of any property that must be restored, repaired, or replaced because the work of the insured (or others in insured's behalf) was incorrectly performed. |
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Term
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Definition
| Damage to the insured's own products, arising out of the product itself, is excluded. (This is liability; pays others) |
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Term
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Definition
| Liability or expense related to recall of the insured's products or work, because of a known or suspected deficiency, is excluded, A separate Product Withdrawal Coverage Form is available for this exposure. It does pay liability of occur caused by defective product to others but not for recall of insured's own product. |
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Term
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Definition
| The policy EXCLUDES damage arising out of the loss of, or damage to, electronic data including the loss of use, corruption of , or inability to manipulate the data. Coverage is available under a separate Electronic Data Liability Coverage Form. |
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Term
| Coverage B - Personal and Advertising Injury |
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Definition
| In addition to BI and PD, the CGL policy covers "personal and advertising injury." The same "coverage trigger" discussion as to the differences between the Occurrence or Claims-Made forms also applies to Coverage B |
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Term
| Coverage B - Personal and Advertising Injury |
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Definition
| P & A covers claims against the insured for false arrest, detention or imprisonment, malicious prosecution; wrongful entry of eviction; and oral or written publications that libel (written), slander (oral), or violation of rights of private occupancy, plus misappropriation of advertising ideas or style of doing business or infringement of copyright, title or slogan. |
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Term
| Coverage B - Personal and Advertising Injury |
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Definition
| Both coverages exclude liability from oral or written publications, in any manner, made with knowledge of falsity or occurring before the policy period; willful violation of law with knowledge or consent of the insured; liability assumed under contract; breach of contract; failure of products or services to meet advertising standards; wrong price descriptions; any offense committed by an insured whose business is advertising, broadcasting, publishing or telecasting; and pollution. |
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Term
| Coverage C - Medical Payments |
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Definition
| This is voluntary the insured doesn't have to be legally liable. Payment is for medical, dental, hospital and funeral services INCURRED WITHIN ONE YEAR from the date of the accident to persons who suffer BI by accident (1) on or next to the insured's owned or rented premises, or (2) because of the insured's operations. Premises operations only. |
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Term
| Coverage C - Medical Payments |
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Definition
| DOES NOT INCLUDE injuries to any insured, a tenant (while on that part of the premises the tenant normally occupies), an employee of an insured or tenant, one entitled to Workmen's Comp or similar law benefits, one participating in athletics, or one injured away from the insured's premises by the insured's work after completion or by the insured's products. Additionally, all of the exclusions for BI & PD apply. A basic limit of $5,000 per person applies to Med Payments. As you'll learn under the Limits section of this unit Medical Payment is also subject to a General Aggregate Limit and an Each Occurrence limit. |
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Term
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Definition
| Costs related to claims, and are payable in addition to the policy limits. Generally, all costs of li tigation are covered, including court costs, prejudgment interest, interest on judgments, and cost of bonds to release attachments. In addition up to $250 for cost of bail bonds for accidents or traffic law violations is reimbursed, if they arise from use of a vehicle covered by the policy. The insured is reimbursed for expenses incurred at company request, related to investigation or defense of a claim, including up to $250 per day for loss of earnings because of time off from work. (FYI Personal Auto is $200/day) |
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Term
| Who is Insured under the CGL |
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Definition
1)Sole Proprietor - named insured and spouse as to conduct of business, as are legal successors if the insured dies
2) Joint Venture - Partners, members and their spouses as to the conduct of the partnership or joint venture business.
3)Limited Liability Co - Named insured, the members and managers are insured in their status as such.
4) Corporation - executive officers, directors and stockholders are insured in their status as such. i.e. decision making position and you have status as such |
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Term
| Employees (other than executive officers or managers of limited liability company) are insureds for their acts as employees, subject to limitations: |
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Definition
| not as BI or personal injury to the named insured, partners members or a co-employee; not for acts or omissions in providing professional health care services; not as to damage to property owned, occupied, rented to or loaned to an employee, partner or joint venture. |
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Term
| Who is the only non employee that can be on a CGL? |
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Definition
| a nonemployee who acts as a real estate manager for the named insured is an insured. |
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Term
| If the named insured acquires or forms another business (other than a partnership, joint venture or limited liability company) during the policy termn, such an organization becomes a named insured for 90 days but only as to events that occur after the acquisition. Insured status does not apply to anyone for a partnership, joint venture or limited liability company not shown as a named insured in the Declarations. |
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Definition
| In other words this automatic coverage for 90 Days is only for a sole proprietor or corporation. You can obviously buy coverage on the other companies it's just not automatic |
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Term
| TEST - Which is not part of the lawyers professional liability policy? |
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Definition
a. minimum limits of $25,000/$75,000
b. claims expenses are payable in addition to the policy limit
Answer b |
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Term
| TEST Which is correct regarding the CGL basic extended reporting period BERP? |
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Definition
a. applies to occurrence and claims made forms
b. must be requested in writing within 60 days of policy expiration
c. provides a 60 day coverage for claims after the policy expiration
d. none of the above are correct
Answer d |
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Term
| TEST If insured under a CGL rents a storage warehouse and he does not notify the company which is correct about his coverage on the policy? |
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Definition
a. coverage is for 90 days unless reported
b. coverage is for 30 days unless reported
c. no coverage unless reported
d. coverage is for the balance of the policy period
Answer d |
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Term
| TEST - Which is not included in the definition of property damage liability? |
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Definition
a. direct damage and loss of use of insureds property
b. physical damage to tangible property
c. loss of use of tangible property
d. loss of use of tangible property even if not damaged
Answer a??? |
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Term
| TEST - Which is not an example of when work is considered completed in a CGL? |
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Definition
a. when all work called for in a contract is completed
b. when all work at one site is done if there are more than one site
c. when put to its intended use except by another contractor
d. When put to its intended use by another contractor at the job site
Answer d |
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Term
| TEST To whose injuries would the CGL coverage C Medical Payments apply? |
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Definition
a. one participating in athletics
b. a tenant of the insured inside the tenants unit
c. Injuries arising out of products completed operations
d. a client of the insured while inside insureds building
Answer d |
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Term
| TEST What does the CGL basic extended reporting period (BERP) provide? |
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Definition
a. full reinstatement of general and products completed operations aggregates
b. 60 Days to report occurrences after the retroactive date and before the expiration date of the policy.
c. Extra time to report claims under the occurrence or claims made form
d. 60 Days to report claims which occur within 5 years of the expiration date.
Answer b |
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Term
| TEST Which of the following is not an example of the CGL PI? |
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Definition
a. Bodily Injury
b. False imprisonment
c. Wrongful entry or eviction
d. Damage to someone's character or reputation
Answer a |
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Term
| TEST Which is not automatically covered under the CGL policy? |
|
Definition
a. a new sole proprietorship created during the policy for 90 days
b. a new joint venture as long as less than 90 days have passed
c. a new corporation purchased during the policy period for 90 days
d. sole proprietors and their spouses while both working for the business.
Answer b |
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Term
| TEST - Which is correct about the CGL supplementary reporting period SERP? |
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Definition
a. it applies to claims first reported within 60 days of the expiration date of the policy
b. it must be requested in writing 60 days before policy expiration
c. It has a premium equal to last years audited premium
d. it reinstates a full general and products completed operations aggregate
Answer d |
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Term
| TEST Which is most correct about the CGL aggregate limits? |
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Definition
a. one aggregate applies to products completed operations and a second aggregate for all other policy coverages
b. one aggregate applies to all claims for all policy coverages
c. one aggregate applies to premises operations and completed operations and a second aggregate to all other coverages
d. none of the above are correct
Answer a |
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Term
| TEST - What is the purpose of the CGL's insureds products exclusions? |
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Definition
a. to exclude damage to the insureds product but not damage done by the insured's product to property of others
b. to exclude damage to the insureds product and damage done by the insureds product
c. to provide coverage for direct damage to the insureds product
d. to exclude damage done to by the insureds product but not damage done to the insureds product
Answer a |
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Term
| TEST - An electrical contractor is installing electrical lights in a grocery store. Which is correct as to how the policy will pay |
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Definition
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Term
| TEST What is the CGL coverage territory for premises operations on a CGL |
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Definition
a. The U.S. Canada, Puerto Rico U.S. possessions and territories only.
b. Worldwide if the product is made or sold in a coverage territory.
c. Worldwide if a suit is brought against the insured in a coverage territory
d. U.S. and its territories, or possessions, Puerto Rico, Canada, including international waters and airspace between these places
answer d. |
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Term
TEST - All of the following are covered
under the CGL coverage C - except? |
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Definition
a. to cover injuries sustained within one year of the occurrence
b. to cover injuries regardless of fault
c. to provide medical coverage to insureds
d. to cover accidents on premises or for operations away
Answer c |
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Term
| TEST What is the CGL coverage territory for BI & PD caused by products made or sold by the insured in a coverage territory? |
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Definition
a. the domestic United States
b. Worldwide coverage
c. U.S. its territories and possessions Puerto Rico, Canada and International waters and airspace between these places
d. None of the above
Answer b |
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Term
| TEST When must the occurrence take place under the CGL Occurrence form? |
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Definition
a. on or after the retroactive date but before policy expiration
b. during the policy period or within 60 days of policy expiration
c. during the policy period if reported within 60 days of BERP
d. during the policy period
Answer d |
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Term
| TEST - What is the maximum amount of an insured can pay during a policy period on a CGL if the insured carries $1,000,000/2,000,000 per occurrence (excluding supplemental payments) |
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Definition
a. 4,000,000
b. 1,000,000
c. 2,000,000
d. 3,000,000
Answer a |
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Term
| TEST Which is an example of the CGL contractual liability exclusion? |
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Definition
a. all insured contracts
b. easement agreements
c. sidetrack agreements
d. contracts entered into after the loss
Answer d |
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Term
| TEST In which instance would the CGL liquor liability exclusion not apply |
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Definition
a. an insurance agency serves alcohol during its holiday party
b. a liquor store serves
c. a tavern
Answer a |
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Term
| TEST Which of the following is not a coverage of information security protection policy |
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Definition
a. website publishing liability
b. business income and extra expense
c. programming errors and omissions liability
d. terrorism risk insurance
Answer d |
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Term
| TEST Which of the following is not an exclusion under a cyber liability policy? |
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Definition
a. a suit against an insured prior to the policy period
b. interruption of normal computer function or network services due to insufficient capacity to process transactions
c. power surge
d. extortion threats
Answer d |
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Term
| TEST A Person comes into insured's restaurant and is eating a sandwich and starts choking on glass that is in the sandwich. Which part of CGL pays? |
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Definition
| Products Completed because the sandwich is put to its intended use |
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Term
| What is the time limit on a retro date? |
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Definition
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Term
| TEST Which part of your CGL will you never see Med Pay? |
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Definition
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Term
| Sole proprietor called a CGL co wanting to add his wife on policy can he do so? |
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Definition
| Must have conduct to the business. |
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Term
| I own 25,000 shares of GM. GM is involved in a law suit. Do I need to be an insured? |
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Definition
| Only if I have decision making ability i.e. 51% or more of total shares |
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Term
| Acquired a new biz during policy period will you and your partner have automatic coverage? |
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Definition
| No only Sole Proprietors and Corporations have automatic coverage for 90 days. |
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Term
An insured with a CGL has a $250,000 per occur & a $750,000 Aggregate with $5,000 Med Payments sustains the following claims:
#1 - 4 persons injured/Med bills $10,000 ea
#2 - 1 person injured/$350,000 BI Liab
#3 - 1 person inured/$325,000 BI Liab
What is the maximum payable for claim #2 for person injured & the Aggregate remaining including reduction from claim #1 |
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Definition
A. $350,000/$380,000 remains
b. $250,000/$480,000 remains
c. $350,000/$400,000 remains
d. $300,000/$450,000 remains
Answer is b |
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Term
| Which is not an option under limits of insurance? |
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Definition
a. $100,000
b. $200,000
c. $300,000
d. $1,000,000
Answer a (100,000 is the basic limit not an option) |
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Term
| Separating Insureds. If a Dr. in a building under a policy of multiple doctors is being sued can the plaintiff make claims against all the Doctors. |
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Definition
| No under Separation of Insureds the other doctor's don't exist. |
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Term
| What is OCP protection coverage provide? |
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Definition
| Owners of buildings for work done by others. Must be a specific contractor provided by the insurer and specific job. |
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Term
| Client has a building in Miami, Ft. Lauderdale, West Palm Beach, FL and he hires someone from the yellow pages. Under his OCP coverage form does he have coverage? |
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Definition
| No it must be a contractor authorized by the carrier. |
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Term
| Where do people in the business of find coverage for Liquor Liability? |
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Definition
| Liquor Liability Coverage Form |
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Term
| Product/Completed Operations Liability Coverage form is coverage for the Hardware store that added a paint section and his existing CGL carrier refused to cover that are of the store. |
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Definition
| Therefore he purchases a product/completed operations Liability form and it will be considered a full CGL |
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Term
| What two forms are available under Professional Liability PS&D |
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Definition
Individual
Partnership, Assn, Corporation etc. |
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Term
| What form do you have to have if you're a Doctor on the board of a hospital? |
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Definition
| Hospital form Professional Liability |
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Term
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Definition
| Various federal acts involving the purchase, sale or offering of securities; activities as a fiduciary under the Employees Retirement Income Security Act (ERISA); businesses other than the practice of law in which the insured is involved as owner, partner or manager; dual capacity functions as both a lawyer and a principal in another business or as a public official or employee of a governmental body. |
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Term
| Which best describes OCP liability coverage? |
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Definition
| a. protects the building owner from liability arising out of operations completed by a specific contractor at a specific location. |
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Term
| Which of the following is a valid reason to change your retroactive date? |
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Definition
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Term
| What is not a coverage on Information Security Protection Policy? |
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Definition
a. website
b. biz income & business expense
c. programming error & ommissions liab
d. terrorism
Answer d |
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Term
| Which is not an exclusion under Cyber Liability insurance also known as cyber liability policy? |
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Definition
a. suit against an insured prior to the policy period
b. interruption of normal completed function or network services due to insufficient capacity to process transactions.
c. power surge
d. extorsion threats
Answer d |
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