Term
|
Definition
| A category of insurance, which includes most of a business's liability exposures. Exposures covered include premises and operations, products and completed operations, contractual liability, and contingent liability. |
|
|
Term
| Products and Completed Operations |
|
Definition
| A form of insurance, which covers a company against liability arising out of its products or its completed operations. Included in CGL forms or may be purchased separately. |
|
|
Term
| Nuclear Energy Liability Exclusion Endorsement |
|
Definition
| A mandatory endorsement, which must be, included with the Commercial General Liability coverage part of the Commercial Package Policy. In general, it excludes all hazards related to nuclear energy. |
|
|
Term
| A CGL contract must contain a declarations page, the common policy conditions, and a nuclear energy endorsement. What other form is necessary to complete the contract? |
|
Definition
| The contract must include coverage form- either an occurrence or claims-made form. |
|
|
Term
| What is general liability Insurance? |
|
Definition
| A field of insurance, which embraces business liability hazards other than those dealt with by more specialized forms of coverage such as automobile, aviation, marine, professional and worker's compensation etc. |
|
|
Term
| Why do businesses require this special class of "business liability insurance"? |
|
Definition
| To protect their businesses from the liability arising from premises, general operations (ongoing and after completion) and products manufactured or sold. |
|
|
Term
| Which forms are contained in a complete CGL policy? |
|
Definition
| " The forms are: declarations; common policy conditions; one of the two coverage forms, occurrence, or claims-made; and a nuclear energy liability exclusion endorsement. Other endorsements may be attached to broaden or restrict coverage provided by these basic forms. " is the correct response to: |
|
|
Term
|
Definition
| A form containing conditions that apply to all coverages issued under the Commercial Package Policy program. |
|
|
Term
|
Definition
| The policy states the insurer must give thirty days written notice of cancellation except a 10-day notice is required for nonpayment of premium. Florida law supersede this provision requiring as with other policies that cancellation during the first 90 days the policy is in force provide a 20 day written notice, except for material misrepresentation or misstatement or failure to comply with underwriting standards. After the first 90 days, a 45-day written notice of cancellation or nonrenewal is required. A 10-day notice is required for nonpayment of the premium. |
|
|
Term
| Examination of Books and Records |
|
Definition
| The insurer may audit the insured's books and records at any time during the policy period and for up to three years after expiration of the policy. |
|
|
Term
|
Definition
| The insurer reserves the right to make inspections, and give reports and recommendations but disclaims any liability for such inspections or recommendations. The insurer is under no obligation to make inspections or give recommendations. |
|
|
Term
|
Definition
| The first named insured listed on the policy is required to pay all premiums when due and will receive any return premiums from the insurer. |
|
|
Term
| Identify the three different legal theories of recovery that CGL insurance may protect an insured against? |
|
Definition
| Direct; indirect or contingent; and contractual |
|
|
Term
| Is an insured's (business) liability "direct" to the business in a general liability insurance policy? |
|
Definition
| Yes it could be, such as, a person being injured by an allegedly unsafe condition in premises owned or occupied by the insured. |
|
|
Term
| In what way would liability be "indirect" to an insured in a general liability insurance policy? |
|
Definition
| Contingent or indirect liability examples would be being held liable for actions of an independent contractor to whom the insured has subcontracted a part of general contract work and agreed to "hold harmless" the subcontractor whose direct actions produced the claim. |
|
|
Term
| What is the cancelation clause in the CGL? |
|
Definition
| " The policy states the insurer must give thirty days written notice of cancellation except a 10-day notice is required for nonpayment of premium. Florida law supersede this provision requiring as with other policies that cancellation during the first 90 days the policy is in force provide a 20 day written notice, except for material misrepresentation or misstatement or failure to comply with underwriting standards. After the first 90 days, a 45-day written notice of cancellation or nonrenewal is required. A 10-day notice is required for nonpayment of the premium. " is the correct response to: |
|
|
Term
|
Definition
| Provides coverage against liability rising out of an insured's contractual obligations. Generally excluded in the Commercial General Liability Policy, subject to several exceptions. |
|
|
Term
|
Definition
| Negligence which is not directly attributable to the person claimed against, but which is the negligence of another for whom the person claimed against is in some way responsible. See Contingent Liability. |
|
|
Term
| Name the two coverage forms for the CGL policy? |
|
Definition
| the "occurrence" and the "claims-made" forms |
|
|
Term
| What does Coverage A of the CGL form state? |
|
Definition
| "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." is the correct response to: |
|
|
Term
| Describe bodily injury as used in the CGL policy. |
|
Definition
| Bodily injury (BI) means physical harm including sickness or disease or death resulting therefrom. Bodily injury does not include non-physical injuries such as damage to reputation. |
|
|
Term
| Describe property damage as used in the CGL policy. |
|
Definition
| " Property damage (PD) means physical injury to tangible property including loss of use of that property. Property damage also includes loss of use of tangible property that has not been physically damaged. Property damage does not include loss to intangible property or loss of use of intangible property such as copyrights or patents. " is the correct response to: |
|
|
Term
| What is meant by the term "work" as used in the CGL policy. |
|
Definition
| " Work means any job or operations performed by the insured or on the insured's behalf including materials, parts for equipment furnished in connection with such work or operation. Work is completed at the earliest of (1) when all work called for in the contract is completed, (2) when all of the work at the site has been completed if work is done at more than one site, or (3) when that part of the work at the job site has been put to its intended use by any person or organization other than another contractor or subcontractor. " is the correct response to: |
|
|
Term
| Describe vicarious liability. |
|
Definition
| When one person is liable for another's actions, he or she has vicarious liability. Vicarious liability may arise from a contract or from several relationships such as employer/employee or principal/agent (agents or subcontractors) relationships. |
|
|
Term
| Is the "coverage territory" limited to the U.S. and its territories for products claims under Coverage A of a CGL Policy? |
|
Definition
| " Territory is expanded to include the entire world as to BI and PD caused by products 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 i.e., "The U.S. and its territories etc., etc." " is the correct response to: |
|
|
Term
| Are there any coverage limitations to the BI and PD coverage in a CGL Policy? |
|
Definition
| The insuring agreement states that the BI or PD must be caused by an "occurrence" which takes place in the "coverage territory". (Coverage territory is the U.S. and its territories or possessions, Puerto Rico and Canada, including international waters and airspace between these places. |
|
|
Term
|
Definition
| The event, which triggers coverage under a Commercial General Liability Coverage form. Under the Occurrence form, the coverage trigger is bodily injury or property damage, which occurs during the policy period, regardless of any later time at which a claim is made. Under the Claims-Made form, the trigger is BI or PD, which occurs on or after the retroactive date and for which claim is made during the policy period. |
|
|
Term
|
Definition
| A Commercial General Liability Coverage form with a coverage trigger that states that coverage applies only to bodily injury or property damage which occur during the policy period, regardless of when claim is made. |
|
|
Term
| What is meant by the term "coverage trigger" for BI and PD damage liability coverage in a CGL Policy? |
|
Definition
| It deals with how the policy will apply to occurrences and claims, depending upon their timing, which is the "coverage trigger" or difference between the CGL forms- the "occurrence" and "claims-made" versions. |
|
|
Term
| What is the difference between the "occurrence" and the "claims-made" versions of the CGL Policy? |
|
Definition
| Occurrence applies to BI or PD claims which occur during the policy period, regardless of any later time at which a claim is made. Claims-made applies to BI or PD which occur 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. |
|
|
Term
|
Definition
| A date stated in the Declarations of a CGL Coverage form which is normally the same date as the date of the issuing company's first Claims-Made policy for the insured. No coverage is provided under the Claims-Made form for bodily injury or property damage that occurs prior to the retroactive date. |
|
|
Term
|
Definition
| A liability form, which is part of the Commercial General Liability part of the Commercial Package Policy. Covers bodily injury and property damage which occurs on or after the retroactive date, if any, and for which a claim is first made during the policy period. |
|
|
Term
| What is meant by the "retroactive date" in a CGL Policy? |
|
Definition
| The claims-made form provides coverage for any claim where the claim is made after a "retroactive date" (a separate date stated on the claims-made policy) and the expiration date of the policy. |
|
|
Term
| Extended Reporting Period |
|
Definition
| A period of time provided by the Claims-Made Commercial General Liability coverage form during which coverage will be provided for claims made beyond the expiration date of the policy if the coverage part is (1) canceled or not renewed or (2) if the insurer renews or replaces the Coverage with insurance that has a retroactive date later than the date shown in the Declarations, or with an Occurrence form. The Basic Extended Reporting Period runs five years. The Supplemental Extended Reporting Period has unlimited duration but is available only by endorsement for an extra charge. |
|
|
Term
| What is the basic extended reporting period provision? |
|
Definition
| " The basic extended reporting period provision allows claims to be made within sixty days after policy expiration or within five years after policy expiration, if the occurrence was reported not later than 60 days after policy expiration under the existing claims made policy as if the claim had been made on the last day of the policy period. The basic extended reporting period provision is automatic, cannot be canceled, and is free of charge. The basic extended reporting period probation does not increase or reinstate policy limits. " is the correct response to: |
|
|
Term
| What is the supplemental extended reporting period provision? |
|
Definition
| " This option extends the basic extended reporting period provision to unlimited duration. The supplemental provides two separate aggregate limits (aggregate means within the policy period). The supplemental provides a limit equal to the expiring policy's general aggregate and products-completed operations aggregate. This coverage is provided by endorsement to the policy and does charge the insured an additional premium. " is the correct response to: |
|
|
Term
|
Definition
| The CGL policy excludes bodily injury or property damage, which is intended or expected by the insured. This exclusion does not apply if the injury or damage was the use of reasonable force to protect persons or property. |
|
|
Term
|
Definition
| Liability assumed under contract is excluded subject to two exceptions: (1) the exclusion does not apply if the insured would have been legally liable regardless of the contractual assumption: and (2) leases, sidetrack agreements (railroads), easement agreements, and certain other agreements entered into prior to the bodily injury or property damage are not subject to the exclusion. |
|
|
Term
|
Definition
| Liquor liability is excluded if the insured is in the business of manufacturing, distributing, selling, servicing or furnishing alcoholic beverages. An insured in the business of selling etc. alcoholic beverages purchases coverage on a separate policy. |
|
|
Term
|
Definition
| The CGL policy excludes employee injuries or any liability under the worker's compensation or similar laws. These injuries or liabilities are insured under a separate worker's compensation and employers' liability policy, which will be discussed in a later unit. |
|
|
Term
|
Definition
| Subject to minor exceptions, there is no coverage for injury, damage or clean-up cost caused by pollutants. |
|
|
Term
| Aircraft, Automobiles, Watercraft |
|
Definition
The CGL policy excludes liability for aircraft, automobiles or watercraft subject to a few exceptions: (1) 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; (2) parking of an automobile not owned by, or rented or loaned to the insured next to the insured premises; (3) liability for aircraft and watercraft assumed under a contract and not excluded by the contractual exclusion.
In addition, some types of "mobile equipment" are covered. Mobile equipment is defined as any of the following types of land vehicles and attached equipment: bulldozers, farm machinery, forklifts and other vehicles designed primarily for off-road use, vehicles maintain solely for use on or next to the premises the injured owns or rents, vehicles on crawler treads, vehicles maintained to provide mobility to mounted power cranes, shovels, loaders, diggers, or drills or road construction or reconstruction equipment, and vehicles used to provide mobility for air compressors, pumps, generators and cherry pickers or similar devices. |
|
|
Term
|
Definition
| There is no coverage for transportation of mobile equipment by automobile or use of mobile equipment in association with racing activities. Mobile equipment being transported by automobile is covered for liability by the commercial automobile policy. The damage to mobile equipment itself is covered by an inland marine policy, which will be discussed in a future unit. Mobile equipment not listed above is not covered under the CGL policy. |
|
|
Term
| Miscellaneous Property Damage |
|
Definition
| Subject to various exceptions, the CGL policy excludes damage for various kinds of property including: (1) property which the insured owns, rents, occupies or has on loan; or personal property in the insured's care, custody or control; (2) damage arising out of a premises the insured has sold, given away or abandoned; (3) damage to real property the insured occupies, operates, or has in their care, custody or control; and (4) that particular part of any property that must be restored, repaired, or replaced because work of the insured was incorrectly performed while the work was in progress. |
|
|
Term
|
Definition
| Damage to the insured's own products arising out of the product itself are excluded. |
|
|
Term
|
Definition
| The CGL policy excludes damage to the insured's own work. Damage arising out of the insured's work even after completion is excluded. Work done by a subcontractor is covered. |
|
|
Term
|
Definition
| There is no coverage for claims based on defect, deficiency, inadequacy or dangerous condition in the insured's product or work, or from delay or failure to properly perform a contract, in so far as it makes property which contains the insured's product or work useless or less useful, or results in loss of use without physical harm to the property. This exclusion does not apply to loss of use of other property when there is sudden and accidental injury to the insured's products or work, after it has been put to its intended use. |
|
|
Term
|
Definition
| Liability or expense related to recall of the insured's products or work is excluded. |
|
|
Term
| What is the contractual liability exclusion in a CGL Policy? |
|
Definition
| " Liability assumed under contract is excluded subject to two exceptions: (1) the exclusion does not apply if the insured would have been legally liable regardless of the contractual assumption: and (2) leases, sidetrack agreements (railroads), easement agreements, and certain other agreements entered into prior to the bodily injury or property damage are not subject to the exclusion. " is the correct response to: |
|
|
Term
| Describe the exclusion for aircraft, automobiles, and watercraft? |
|
Definition
| " The CGL policy excludes liability for aircraft, automobiles or watercraft subject to a few exceptions: (1) 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; (2) parking of an automobile not owned by, or rented or loaned to the insured next to the insured premises; (3) liability for aircraft and watercraft assumed under a contract and not excluded by the contractual exclusion. " is the correct response to: |
|
|
Term
| What types of mobile equipment are covered by the CGL Policy? |
|
Definition
| " Mobile equipment is defined as any of the following types of land vehicles and attached equipment: bulldozers, farm machinery, forklifts and other vehicles designed primarily for off-road use, vehicles maintained solely for use on or next to the premises the injured owns or rents, vehicles on crawler treads, vehicles maintained to provide mobility to mounted power cranes, shovels, loaders, diggers, or drills or road construction or reconstruction equipment, and vehicles used to provide mobility for air compressors, pumps, generators and cherry pickers or similar devices. There is no coverage for transportation of mobile equipment by automobile or use of mobile equipment in association with racing activities. Mobile equipment being transported by automobile is covered for liability by the commercial automobile policy. The damage to mobile equipment itself is covered by an inland marine policy, which will be discussed in a future unit. Mobile equipment not listed above is not covered under the CGL policy. " is the correct response to: |
|
|
Term
| Describe the coverage for recall of the insured's product? |
|
Definition
| Liability or expense related to recall of the insured's products or work is excluded. |
|
|
Term
| Assume, for each of the following: an insured had calendar year policies: occurrence policies in 2000 and 2001, claims-made policies in 2002 and 2003, both stating retroactive date 1-1-02. The insured retired from business and did not renew or replace the 2003 policy. If there is a BI or PD from a covered occurrence, which policy or policies (if any) apply for; "Insured sold product which caused injury in 2000, it injured claimant in 2001, claimant first made claim against insured in 2002?" |
|
Definition
| " 2001 occurrence policy applies (occurrence form applies to BI/PD which occurs during the policy term). The 2002 claims-made policy does not apply because the occurrence happened before retroactive date. " is the correct response to: |
|
|
Term
| Assume, for each of the following: an insured had calendar year policies: occurrence policies in 2000 and 2001, claims-made policies in 2002 and 2003; the 2002 claims-made policy contained no retroactive date; the 2003 policy had a retroactive date of 1-1-02. The insured retired from business and did not renew or replace the 2003 policy. If there is a BI or PD from a covered occurrence, which policy or policies (if any) apply for; "Insured sold product which caused injury in 2000, it injured claimant in 2001, claimant first made claim against insured in 2002?" |
|
Definition
| " The 2001 occurrence policy would still apply and the 2002 claims-made policy would also apply (with no retroactive date, it applies to claims for all prior occurrences if first made during its term); the occurrence policy would be primary; the claims-made coverage would be excess. " is the correct response to: |
|
|
Term
| Assume, for each of the following: an insured had calendar year policies: occurrence policies in 2000 and 2001, claims-made policies in 2002 and 2003, both stating retroactive date 1-1-02. The insured retired from business and did not renew or replace the 2003 policy. If there is a BI or PD from a covered occurrence, which policy or policies (if any) apply for; "Claimant injured in 2002. Claim was first made against insured on 3-1-03?" |
|
Definition
| " The 2003 claims-made policy applies (occurrence after retroactive date, claim fist made during its term). The 2002 claims-made policy does not apply because it has expired. " is the correct response to: |
|
|
Term
| Personal and Advertising Injury |
|
Definition
| Coverage provided under Liability policies which provides coverage against liability for libel, slander, violation of privacy, misappropriation of advertising ideas or infringement of copyright, title or slogan. |
|
|
Term
| What is coverage B of the CGL Policy? |
|
Definition
| In addition to BI and PD the policy covers "personal injury" and "advertising injury." |
|
|
Term
| Explain personal injury coverage in a CGL Policy? |
|
Definition
| " Personal injury liability protects the insured against claims for false arrest, detention or imprisonment, malicious prosecution, wrongful entry or eviction, libel, slander, or violation of rights of private occupancy. " is the correct response to: |
|
|
Term
| Explain advertising injury liability coverage in a CGL Policy? |
|
Definition
| Advertising injury liability protects the insured against claims for misappropriation of advertising ideas or style of doing business or infringement of copyright, title or slogan. |
|
|
Term
| What are coverage B exclusions? |
|
Definition
| Coverage B exclusions included: liability from oral or written publications 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 in advertising; any offense committed by an insured whose business is advertising, broadcasting, publishing or telecasting; and pollution. |
|
|
Term
| Explain what is covered by coverage C -medical payments? |
|
Definition
| The final CGL coverage is a "voluntary" or non-legal coverage. 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. |
|
|
Term
| What are the exclusions under coverage C - medical payments? |
|
Definition
| " Several exclusions applied to Coverage C: injuries to any insured: injuries to tenant; injuries to an employee of the insured; injuries to anyone entitled to worker's compensation or similar law benefits; injuries to anyone participating in athletic event; or anyone injured away from the insured's premises or by the insured's work after completion or by the insured's product. Additionally, all of the exclusions for bodily injury and property damage liability apply to Coverage C. " is the correct response to: |
|
|
Term
|
Definition
| Found in most liability contracts. Supplementary Payments provide "extra" coverage over and above the insured's limit of liability. Included are defense costs, first aid, bond premiums, accrued interest on judgments, etc. |
|
|
Term
| Explain what is covered by supplementary payments? |
|
Definition
| " Supplementary payments cover several costs related to claims. Supplementary payments are payable in addition to the policy limits. Most policies cover all defense cost including court cost, prejudgment interest, interest on judgments, and the cost of bonds to release attachments. Supplementary payments well also pay up to $250 for the cost of bail bonds. The insured is reimbursed for expenses incurred at the insurer's request related to any investigation or defense of a claim, including up to $250 per day for loss of earnings because of time off from work. |
|
|
Term
| Who is insured under the CGL policy? |
|
Definition
| " Who is insured" is usually determined by the insured's form of legal entity (corporation, partnership, or sole proprietor). If the named insured is an individual, the spouse is also an insured while conducting business. Legal successors are also insureds in the event that the sole proprietor dies. If the named insured is a partnership or joint venture, the partners and their spouses are insureds while conducting business. If the named insured is a limited liability company, the members and managers are insured while conducting business. If the named insured is a corporation, executive officers, directors and stockholders are insured in their status as such. " is the correct response to: |
|
|
Term
| How are employees covered under the CGL policy? |
|
Definition
| " Employees are considered insureds while acting within the scope of their employment. Coverage is excluded for employees who cause bodily injury or personal injury to the named insured, partners, members or another employee. Employees are not covered for acts or omissions in providing professional health care service. Employees are not covered for damage to property owned, occupied, rented to or loaned to an employee, partner or joint venture. Employees are insured, except for injury to fellow employees or damage to property owned by the named insured, while operating mobile equipment covered under the CGL policy. " is the correct response to: |
|
|
Term
| How are new businesses covered under the CGL? |
|
Definition
| New businesses, which are not a partnership, joint venture or limited liability company, which are formed during the policy term, are automatically covered for 90 days. Partnerships, joint ventures or limited liability companies not named on the policy are not covered. |
|
|
Term
| What are the limits of insurance in a CGL Policy? |
|
Definition
| " Limits apply to each occurrence for BI, PD and medical payments. (1) The lowest limit available is $25,000. Higher limits such as $100,000; $300,000; $500,000 or $1,000,000 are commonly written. A limit applies to all damages sustained by one person for personal and advertising injury, which is usually in the same amount as under BI and PD. For medical payments a basic limit of $5,000 applies to each person. " is the correct response to: |
|
|
Term
| What are the limits of coverage for fire legal liability in a CGL Policy? |
|
Definition
| A $100,000 fire damage limit applies with respect to damages for each fire to premises rented to the insured; higher limits are available. |
|
|
Term
| What is the "general aggregate" limit in a CGL Policy? |
|
Definition
| " A limit, which applies to "all claims" during each annual policy period for all policy coverage except for BI and PD claims arising from the insured products and completed operations. The lowest limit is $50,000. A separate products-completed operations aggregate limit for those hazards. " is the correct response to: |
|
|
Term
| An insured had a CGL policy with limits of $100,000 each occurrence BI and PD, $100,000 Personal and Advertising Injury, $300,000 General Aggregate, $300,000 Products Aggregate, $5,000 Medical Payments and $50,000 Fire Damage Liability. Assume covered occurrences and claims were all during the current policy period: Three persons were injured in an accident. There are no liability claims, but there are medical expenses of $3,000 for one person, $7,000 for the second person and, $12,000 for the third person. How much is payable? |
|
Definition
| $13,000 is payable, maximum $5,000 per person under medical payments. |
|
|
Term
| An insured had a CGL policy with limits of $100,000 each occurrence BI and PD, $100,000 Personal and Advertising Injury, $300,000 General Aggregate, $300,000 Products Aggregate, $5,000 Medical Payments and $50,000 Fire Damage Liability. Assume covered occurrences and claims were all during the current policy period: The company paid a $60,000 PD claim for an occurrence during an ongoing construction job. After this claim, how much coverage is available to the insured for the next claim for BI or PD? |
|
Definition
| General aggregate: $240,000 ($300,000 original less $60,000 paid to date) Products Aggregate: $300,000 (no claims paid). |
|
|
Term
| An insured had a CGL policy with limits of $100,000 each occurrence BI and PD, $100,000 Personal and Advertising Injury, $300,000 General Aggregate, $300,000 Products Aggregate, $5,000 Medical Payments and $50,000 Fire Damage Liability. Assume covered occurrences and claims were all during the current policy period: The company paid a $30,000 liability claim for fire damage to the building rented by the tenant. What limit is available if the same type of loss should occur again at the same building? |
|
Definition
| A $50,000 - limit applies per fire. |
|
|
Term
| What is the other insurance condition of the CGL policy? |
|
Definition
| " The other insurance condition details how the policy will interact with other policies covering the same claim. Except as otherwise noted, the CGL policy is primary insurance (primary meaning the policy will pay first up to the limits of the policy). If another CGL policy is in force which also is primary, then the first CGL policy will share the claim as follows: (1) a claims-made CGL policy including any coverage provided under a retroactive date or extended reporting period provision is excess over any policy which is not a claims-made form; (2) the CGL policy is excess over a property policy covering the insured's completed work or property rented to the insured; (3) the CGL policy is excess over any limited coverage afforded by an aircraft, automobile or watercraft policy; (4) if conditions 1 - 3 do not exist, each insurer contributes equal amounts until its limits are reached (known as equal shares); (5) if the equal shares basis is not permitted by one of the policies, each insurer contributes based on its limit in proportion to the limits of all policies. " is the correct response to: |
|
|
Term
| What is the separation of insureds condition of the CGL policy? |
|
Definition
| The separation of insureds condition states that coverage applies separately to each insured, as if that interest were the only insured. One insured cannot make a claim against another insured. |
|
|
Term
| Owner's and Contractor's Protective Liability (OCP) Form |
|
Definition
| The OCP form is designed to cover the insured for liability arising from the operations of an independent or subcontractor. This coverage is also provided on the CGL form. The form protects the insured against claims for bodily injury and property damage arising out of work performed for the insured by another, including the named insured's acts or omissions in general supervision. This form is most commonly used to protect an owner for operations being performed by general contractor. The separate policy is on written on an occurrence form of coverage. |
|
|
Term
| Liquor Liability Coverage |
|
Definition
| This form belongs to the Commercial General Liability coverage part of the Commercial Package Policy. It covers liquor liability, which is excluded from the standard CGL forms for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. |
|
|
Term
| Products-Completed Operations Liability Coverage Form |
|
Definition
| Coverage for products-completed operations liability is covered by the CGL policy. Coverage for various reasons is sometimes written on a separate policy. |
|
|
Term
| Pollution Liability Coverage and Pollution Liability |
|
Definition
| Two forms are available to cover the pollution liabilities exposures excluded in the CGL form. A "pollution incident", means emission of pollutants into or on land, the atmosphere or water causing environmental damage. The broader form covers liability for cleanup costs. Both forms are written on a claims-made basis. |
|
|
Term
| Describe the owner's and contractor's protective liability (OCP) Form. |
|
Definition
| " The OCP form is designed to cover the insured for liability arising from the operations of an independent or subcontractor. This coverage is also provided on the CGL form. The form protects the insured against claims for bodily injury and property damage arising out of work performed for the insured by another, including the named insured's acts or omissions in general supervision. This form is most commonly used to protect an owner for operations being performed by general contractor. The separate policy is on written on an occurrence form of coverage. " is the correct response to: |
|
|
Term
| Describe the liquor liability coverage form. |
|
Definition
| " The CGL policy excludes coverage for liability for having caused or contributed to a person's intoxicated, or furnishing liquor to minors or furnishing liquor in violation of statute for those who are in the business of manufacturing, distributing, selling, servicing or furnishing alcoholic beverages. This form provides coverage for those in the business of selling etc. alcoholic beverages. Coverage is available on either an occurrence for a claims-made form. " is the correct response to: |
|
|
Term
|
Definition
| The study manual lists two forms of excess coverage the follow form and the stand-alone form. Both forms require underlying policies to be in effect. A follow form policy provides the exact same coverages, provisions, and exclusions as the underlying policies; the follow form policy simply provides excess or higher limits than the underlying policies. Stand-alone policies also provide the same coverage as the underlying policies but the stand-alone form has its own terms, conditions and provisions. |
|
|
Term
|
Definition
| An umbrella form operates much like a stand-alone policy, except it will also provide coverage not included in the underlying policies. The umbrella form has its own terms, condition, provisions, coverages, and exclusions. The umbrella form is subject to a deductible known as a self-insured retention (SIR); the SIR only applies to claims covered by the umbrella policy but not covered by the underlying policies. |
|
|
Term
| What are the two forms of excess coverage listed in the study manual? |
|
Definition
| " The study manual lists two forms of excess coverage the follow form and the stand-alone form. Both forms require underlying policies to be in effect. A follow form policy provides the exact same coverages, provisions, and exclusions as the underlying policies; the follow form policy simply provides excess or higher limits than the underlying policies. Stand-alone policies also provide the same coverage as the underlying policies but each stand-alone form has its own terms, conditions and provisions. " is the correct response to: |
|
|
Term
| Describe the umbrella form. |
|
Definition
| " An umbrella form operates much like a stand-alone policy, except it will also provide coverage not included in the underlying policies. The umbrella form has its own terms, conditions, provisions, coverages, and exclusions. The umbrella form is subject to a deductible known as a self-insured retention (SIR); the SIR only applies to claims covered by the umbrella policy but not covered by the underlying policies. " is the correct response to: |
|
|
Term
|
Definition
| Liability arising out of the rendering or failure to render services of a professional nature. |
|
|
Term
| What is professional liability insurance? |
|
Definition
| " A policy which covers liability arising from rendering of or failure to render professional services for physicians, surgeons and dentists; hospitals and lawyers. By adding endorsements, the policy may apply to blood banks, medical and x-ray laboratories, nurses, optometrists and veterinarians. " is the correct response to: |
|
|
Term
| Which forms do the physicians, surgeons and dentists (PS&D) professional liability insurance have? |
|
Definition
| Individual professional liability and partnership, association or corporation professional liability. |
|
|
Term
| How do the two coverages apply in the PS&D insurance policy? |
|
Definition
| " The individual professional coverage applies to each person named in the declarations page as an insured as well as the insured's employees, or anyone else under the personal direction, control or supervision of the insured, including services by the insured on any professional board or committee. The second coverage applies to the same medical incidents but the insured is the organization named in the declarations page and coverage is provided for services furnished by a member, partner, officer, director, stockholder or employee or others acting under the direction, control or supervision of the insured. " is the correct response to: |
|
|
Term
| How does coverage apply in the hospital, blood banks, x-ray laboratories, optometrists and veterinarians liability policies? |
|
Definition
| Generally each of the forms applies to "medical incidents" defined as an act of omission in furnishing of professional services specific to each of the professionals' forms. |
|
|
Term
| What exposures is the farm liability coverage designed to cover? |
|
Definition
| Both personal and business exposures. |
|
|
Term
| Injury is defined as one or more of the following offenses: |
|
Definition
| Injury is defined as one or more of the following offenses: refusal to employ, termination, demotion, or failure to promote, negative evaluation, reassignment, discipline, defamation or humiliation based on discrimination; coercing the person to commit an unlawful act or omission within the scope of their employment; work related sexual harassment; other work-related verbal, physical, mental or emotional abuse because of race, color, national origin, gender, marital status, age, sexual orientation or preference, physical or mental condition or any other protected class or characteristic. |
|
|
Term
| What coverage is provided by an EPL policy? |
|
Definition
| The EPL policy provides employers with claims-made coverage for liability arising out of claims or injury to an employee because of an employment-related offense. |
|
|
