CGL

Question 1

Coverage A - BI and PD Liability (What Coverages Provided? 6)

Answer 1

CCCOPP
Contractual
Contingent
Completed Operations
Operations
Premises
Products

Question 2

Coverage B - Personal and Advertising Injury Liability (What Coverages Provided? 2)

Answer 2

CO
Contingent
Operations

Question 3

Coverage C - Medical Payments (2 coverage types)

Answer 3

PO
Premises
Operations

Question 4

5 Sections of a CGL Coverage Form

Answer 4

1- Coverages
2- Who is an insured
3 - Limits
4 - Conditons
5 - Definitions

Question 5

(8) Types of Liability Exposure

Answer 5

CCCAPPP B (no CCCAPPP Bitch)

Completed Operations: Completed work, left their premise
- If you leave premise in unsafe
condition, then may not be covered

Contingent Liability: Work performed for NI by someone else

Contractual Liability: One party assuming responsibility for another party

Advertising liability: Misappropriation of advertising ideas, copyright violation

Personal Injury: Liability arising from intentional torts

Products: Not in possession of manufacturer, seller AND injury takes place away from premise
- If takes place on premise, then a
premise exposure

Premise: Owners, landlords, tenants

Business Operation Liability: Anywhere where biz operations conducted

Question 6

Who is an insured? (5)

Answer 6

• Individual (spouse included)
• Partnership or Joint Venture (members, partners, spouses
  LLC (members)
  Other Type of Org (Directors, Executives)
  Truestees

Question 7

Employees + Volunteers NOT considered insureds when they… (5)

Answer 7

OF3PP

Other Parts of Org - BI or P&A to NI or others part of org

Family - Consequential Injury to family of injured co-employee

3rd party action as result of above

Professional Care - BI and P&A from failure to provide professional health care

PD to property in CCC

Question 8

Non-Volunteer or employees that are insured (3)

Answer 8

• Real estate manager
  
  • Property in Temp custody of someone else if you die
    Legal rep if you die

Question 9

Newly Acquired of Formed Orgs that are insured (# of days, 1 Exclusion, doesn’t include 3 types of orgs )

Answer 9

90 days or end of policy period
○ 90 Days or expiration

Exclude BI or PD or P&A from before org acquired
○ Prior Acts

Doesn’t include partnership, joint venture or LLC

Question 10

Who is not insured (3)

Answer 10

• LLC’s, JV, Partnership not in decs
  • Coverage Gap

May need discontinued products coverage

Question 11

Insuring Agreement 2 Promises

Answer 11

• Legally obligated damages from BI/PD

Right / Duty to defend against any suit

Question 12

Coverage only applies if (2)

Answer 12

• During policy period

In coverage Territory

Question 13

PD Definition (2)

Answer 13

• Physical injury to tangible property resulting in loss of use
  • Loss of use to tangible property that is not physically injured
    ○ Power cut to mall results in revenue loss example

Question 14

Occurrence Definition

Answer 14

• Accident, continuous or repeated exposure to same harmful conditions

Question 15

Coverage Territory

Answer 15

• US + Territories and Possessions
  
  • PR
  • Canada
  • International waters or airspace if traveling to the places above
  • All other parts of world via
    ○ Made or sold by you in territory
    above
    ○ Short business trips
    ○ P&A offenses through internet

Question 16

BI / PD deemed known when (3)

Answer 16

• Insured reports to us or any carrier
  • Written or verbal demand for damages
  • Becomes aware of any other means that BI or PD ahs occurred or begun to occur

Question 17

16 Coverage A Exclusions

Answer 17

(4D, 2WARPE, CL)

Damage to your product

Damage to impaired property or property not physically injured

Damage to your work

Damage to property

War

Workers Comp or similar laws

Aircraft, auto or watercraft

Access or Disclosure of Confidential or Personal Info and Data-Related Liability

Recall of products, work of impaired property

Recording and Distribution of Material or Information in Violation of Law

Pollution

Personal and Advertising Injury

Expected or Intended Injury

Equipment that’s mobile

Contractual Liability

Liquor Liability

Question 18

Coverage A Exclusion - Liquor Liability (2 Excluded Losses and 2 Exceptions)

Answer 18

Excluded Losses
§ Making, selling serving, distributing
§ Anyone under your supervision

Exceptions
BYOB establishments
Host Liquor liability

Question 19

Coverage A Exclusion - Expected or intended injury (1 exception)

Answer 19

Exception: Reasonable force to protect person or property

Question 20

Coverage A Exclusion - Aircraft, auto or watercraft (Auto Definition / 1 exclusion / 5 exceptions)

Answer 20

Auto Definition: Vehicle or machinery or equipment attached

Excludes
§ Ownership, maintenance, use or entrustment to others, including Ops

Exceptions
§ Watercraft while ashore on premises

§ Non-Owned watercraft less than 26 feet and not with a carry charge exposure

§ Parking of autos

§ Insured contract for aircraft or watercraft

§ BI or PD arising out of  operation of machinery or equipment
	□ Attached mobile equipment that is considered an auto due to compulsory or financial responsibility law or other moto insurance law OR 
	□ Cherry pickers, air compressors, pumps and generators that are mounted on automobile or truck chasssis and are considred autos by definition
		® Movement of truck or movement of equipment

Question 21

Coverage A Exclusion - Damage to your product (1)

Answer 21

Resulting damage, but not damage to insured’s products

Question 22

Coverage A Exclusion - Damage to impaired property or property not physically injured (impaired property definition / one exclusion / one exception)

Answer 22

Impaired Property Definition
§ Tangible property that cannot be used or is less useful because:
□ It incorporates the NI product or work that is known or thought to be defective, deficient, inadequate or dangerous
□ The NI has failed to fulfill terms of contract or agreement

○ Has to be repairable

○ Excludes property damage to impaired property or to property that hasn’t been physically injured
§ Arising out of defect, deficiency, inadequacy, or dangerous conditions
§ Arising out of a delay or failure to perform in accordance to contract or agreement

Exception
§ Coverage for loss of use of other property arising out of sudden or accidental physical injury to NI product or NI work after it has been put to its intended use

Question 23

Coverage A Exclusion - Contractual Liability (Can’t contract away ___ / 2 exceptions / Insured contract defintion 6 / not an insured contract 3)

Answer 23

Can’t contract away negligence

Hold Harmless Agreements (Specific, limited, broad)

Exceptions
§ Liability in absence of contract
§ Liability assumed in contract that is an insured contract and only with respect o injury or damage that occurs after contract is executed
Reasonable defense expenses if assumed in contract

Insured Contract Definition
- LEASEPlus
□ Lease of Premise except….
□ Easment of license agreement except…
□ An obligation to indemnify a municpality as required by ordinance except….
□ Sidetrack agreement
□ Elevator maintenance agreement
□ Plus, any contract in which NI assumes tort liability of anotehr party to pay for BI or PD to a third person
- Negligence considered tort

Not insured contract
□ Railroad indemnity agreement
□ Architect o, engineer or surveyor indmenity agreement
□ Architect, engineer, or surveyor PD and BI rendering or failure to render professional services

Question 24

Coverage A Exclusion - Pollution (Definition / 3 exclusions, 1 with 2 exceptions and1 with 3 exceptions / 2 inferred exceptions)

Answer 24

Definition
§ Solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed

Exclusion 1
- Excludes at or from any premises owned or occupied by, or rented or loaned to any insured
Exceptions
§ Fire and consequential damage (smoke, fumes, vapors)
§ Owner added as AI to contractor insured because contractor working on their premise
- BI caused by heating equipment

Exclusion 2
§ Handling, storage, disposal, processing, treatment of waste

Exclusion 3
§ Pollutants brought to premise or in connection to ops
§ Exceptions
□ Fuels from mobile equipment leaking related to operation
□ Gases, fumes, vapors from materials brought into building with connection to ops
□ Fire and consequential damage

Inferred Exceptions
§ Certain off premises operations
§ Most product-completed operations exposures

Question 25

Coverage A Exclusion - Mobile Equipment (Definition 4 / Specifically described autos 3 / Exclusions 2 /

Answer 25

Definition (4) (Off, On, Crawl, Move) § Principally off public roads § On or next to premises you on primarily § Crawler Treads § Primarily providing mobility to permanently mounted equipment Specifically Described as Autos (3) § Snow removal, road maintenance, but not construction or resurfacing § Cherry pickers and similar devices mounted on a truck chasis § Air compressors, pumps and generators. Exclusions § Transportation of mobile equipment by an auto § Use in racing, speed, demo, stunts

Question 26

Coverage A Exclusion - Damage to property (Excludes damage to 5 / Exceptions 4 )

Answer 26

Excludes Damage to §NI Property § Previous premises § Property loaned to NI § PP in CCC § Particular part being worked on during ops Exceptions § PD to premises rented for 7 or fewer consecutive days (fire only after 7) § Speculative buildings that are vacant § Sidetrack agreements § Prod Completed Op Hazard

Question 27

Coverage A Exclusion - Damage to your work (1 Exclusion / Your work definition 2 / 1 exception)

Answer 27

Excludes damage to NI work and prod completed Definition of your work □ Your ops or your subs ops □ Materials connected to those ops Exception § Damage caused by subcontractor (carrier will subrogate the sub)

Question 28

Personal and Advertising Injury Definition (7)

Answer 28

F SPACE P Injury + Consequential injury from following offenses □ False arrest, detention or imprisonment □ Prosecution that's malicious □ Eviction that is wrongful, wrongful entry, invasion of private occupancy □ Slander, libel, disparagement □ Privacy rights violation □ Advertising idea theft - Copyright, trade dress or slogan infringement in the NI's advertisement

Question 29

P&A Exclusions (16)

Answer 29

FFUCCC W VIPPPPER Bitch ○ Falsely Published material with knowledge ○ Failure to Conform to Statements -Quality or Performance of Goods ○ Unauthorized Use Of Another’s Name Or Product ○ Contractual Liability ○ Criminal Acts ○ Copyright, Patent, Trademark or Trade Secret Infringement ○ War ○ Violation of Rights of Another Knowingly ○ Internet and Media Type Businesses - Insureds ○ Published Material prior to policy period ○ Price Description Incorrect ○ Pollution-Related ○ Pollution ○ Electronic Chatrooms Or Bulletin Boards (hosts, Owns, controls) ○Recording And Distribution Of Material Or Information In Violation Of Law ○ Breach of Contract

Question 30

Medical Payments - Insuring Agreement (5) (Pays medical expenses caused by accident __3__ , provided that __2_)

Answer 30

(OOO provided that Territory, Term, One year, examination) Pays medical expenses caused by an accident § On premises § On ways Next to Premises § Operations of the insured § Provided that □ In territory and policy term □ Reported within one year of accident Injured person complies with examination

Question 31

Medical Payments - Exclusions (7)

Answer 31

CHAW IPA Coverage A Exclusions Hired person Any insured other than volunteers WC and similar laws Injury on Normally Occupied Premises Products-Completed Ops Athletics

Question 32

Supp Payments - Conditions for Defense and litigations defenses being paid (6)

Answer 32

SUCCON this to get payment In writing □ Cooperate □ Send docs □ Notify insurer - Use available insurance Provides written Authorization □ Obtain records and info related □ Conduct and control the defense during suit

Question 33

Damage to Premises Rented to You Limit (Which limit under and 2 ways paid out)

Answer 33

Each Occurrence Limit Most paid under coverage A for § PD not caused by fire for 7 or fewer days § PD caused by fire to any one premises rented to NI

Question 34

CGL Conditions (4)

Answer 34

NDAD ○ Notify carrier ASAP ○ Details - Record Specifics ○ Authorization to carrier and cooperate - Don't move money without permission

Question 35

Separation of Insureds

Answer 35

can sue each other under same limits Limits do not apply separately Cross suits liability

Question 36

Subrogation Definition

Answer 36

The assignment to an insurer by terms of the policy or by law, after payment of a loss, of the rights of the insured to recover the amount of the loss from one legally liable for it.

Question 37

Waiver of Subrogation Definition

Answer 37

An agreement between two parties in which one party agrees to waive subrogation rights against another in the event of a loss Must be before loss

Question 38

3 Types of Insured

Answer 38

Named Insureds Automatic Insureds Non-Automatic Insureds (AI)

Question 39

AI Definition

Answer 39

Intended to signify those persons or organizations that generally are not automatically included as insureds under the liability policy of another, but for whom the named insured desires or is required to provide a certain degree of protection under its liability policies.”

Question 40

Reasons why Others Request AI (5)

Answer 40

- Risk transfer safety - Direct rights under NI policy - Protects from subrogation - Higher total limits (potentially) - Cost of insurance reduction (potentially)

Question 41

Why NI would add an AI (2)

Answer 41

Contract relationship requirement Close relation with AI

Question 42

Problems for NI adding AI (4)

Answer 42

SUC D Sharing of policy limits Unintended coverage provided Compliance problems (different types of forms) Defense conflicts

Question 43

Problems for AI (4)

Answer 43

CCDD - Disputes over coverage - Control of defense lost - Coverage limited under current forms - Dependent on someone else's insurance

Question 44

Why use Auto AI endorsements 2

Answer 44

Reduce admin expense Easier to manage requests

Question 45

Noncontributory Definition

Answer 45

Won't use limits of AI policy. NI is primary in event of claim

Question 46

Other Insurance Clause Purpose

Answer 46

Wording saying your excess if you are an AI