Chapter 2 - The Commercial General Liability Policy (IBC 2100) Flashcards Preview

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Flashcards in Chapter 2 - The Commercial General Liability Policy (IBC 2100) Deck (31):
1

Coverages

Coverage A - B I and PD Liability
Coverage B - PI & Advertising Injury Liability
Coverage C - Medical Payments
Coverage D - Tenants' Legal Liability

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Each coverage section has two parts

insuring agreement and exclusions

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Section 1 - Coverages

Coverage Provided for bodily injury and property damage only

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Bodily Injury

the harm to the body associated with external causes -
does not include symptoms of mental anguish such as pain, nausea, tears and hysteria or other emotional stress

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Sickness or Disease

conditions that originate within the body

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Sickness

condition which interferes with the usual activities of a person

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Disease

may exist without such a result and can occur over long periods of time before detected

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Death

Death as a result of bodily injury or disease at any time is insured under the agreement

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Property Damage

physical injury to tangible property, including all resulting loss of use of that property or loss of use of tangible property that is not physically injured

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Tangible property

property which can be felt or touched and included
both real and personal property

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Insurer Liable for payment of...

compensatory damages only

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Punitive or exemplary damages...

are not covered and are the sole responsibility of the insured

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Occurrence

an accident, including continuous or repeated exposure to substantially the same general harmful conditions

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Limited world-wide coverage for products liability

plaintiff must show the product(s) causing the injury or damage were made or sold within Canada or the United States and suit for damages must be brought within Canada or the Untied States

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Right to Defend

Insurer has a vested interest in ensuring all the facts are placed before the court as they may be called upon to pay a judgment rendered against them

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Duty to Defend

to defend the insured in any action for which coverage is provided by the policy - no matter if the allegations are groundless, false or fraudulent

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right and duty to defend end

the coverage limits have been expended
to pay the claim

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Right to Investigate

gives the insurer with first hand information that might
otherwise be withheld from it

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Right to Settle Claim Action

this can result in substantial saving to the insurer,
and out of court settlement would save the courts time and defense costs

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False Imprisonment

holding someone with out lawful justification in a place
against their will

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False Arrest

includes false imprisonment, with the additional feature of detaining the victims with the intention that they be turned over to the police for
prosecution

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Malicious Prosecution

arrested person is later released upon lack of evidence

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Medical Payments

Includes immediate first aid, ambulance charges, x-rays, medical, surgical and dental services, and, if necessary, funeral expenses and is no fault coverage

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Tenant's Legal Liability

limited to the payment of only those losses for which the tenant is liable in tort

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Policy Coverage Limited

A per location, per occurrence limit applies

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Exposure Theory

Assumes that the injury occurred when the person was in physical contact with the harmful substance, this can be over a short period or over many years.

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Exposure in Residence Theory

Assumes that the disease or other bodily injury continues after the exposure to the hazardous substance has ceased.

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Manifestation Theory

Assumes that the injury is to have occurred only when recognized or diagnosed

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professional

someone who possesses or claims to possess the special knowledge and skill necessary to render a professional service

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breach of contract will be successful if the plaintiff can show the professional failed to perform at the required level

Complete or Satisfactory Performance - the level of performance meets accepted standards

Substantial Performance - falls short only in minor respects, entitles the professional to the contract price, less any damages the client may have incurred
in not receiving complete performance

Material Breach - the professional's performance is grossly inadequate or defective in some major respect

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The Umbrella Policy

designed to respond only after the underlying or primary policy has responded