Exam 2: General Liability (CGL) Part B Flashcards Preview

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Flashcards in Exam 2: General Liability (CGL) Part B Deck (19)
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1
Q

CGL Policy

A
  • Most commonly used to cover business liability exposures

- Usually written on an occurrence basis

2
Q

3 Parts CGL Policy

A

A) Bodily Injury and Property Damage
B) Personal and Advertising Injury
C) Medical Payments

3
Q

CGL Coverage A

A
  • Insuring Agreement
  • Insurer pays damages on behalf of insured
  • Insurer defends insured under claims or lawsuits seeking damages covered under policy
4
Q

Insurer’s Duty To Pay Damages Conditions

A

1) Legally obligated to pay damages
2) Bodily Injury (BI)/Property Damages
3) Injury or Damage to which condition applies
4) Caused by Occurrence
5) Coverage Territory
6) Occurs During Policy Period

5
Q

Legally obligated to pay damages

A
  • Settled by court through insurance company investigation
  • Can’t dictate to insurance company who to pay claims to -why?
  • Insurer will usually attempt out of court settlement
6
Q

Bodily Injury (BI)/Property Damages

A
  • BI is injury, sickness, disease, sustained by a person - includes death
  • Damages for care, loss of services (consortium), pain and suffering, and death benefits
  • PD - physical injury to tangible property
  • Loss of use of tangible property
7
Q

Injury or Damage to which condition applies

A

Insurer does not pay if it is excluded or not covered for a specific reason

8
Q

Caused By Occurrence

A
  • Accident - includes conditions or repeated exposure to the same general harmful condition
  • Unintended results of intentional acts are usually considered accidents
9
Q

Coverage Territory

A
  • Must occur in the area defined in the policy

- Usually U.S., Puerto Rico and Canada

10
Q

When will Coverage Territory include the world?

A
  • Goods or products made by named insured in a covered territory
  • Activities of a person whose home is in a covered territory but is away for a short time pursuing named insured’s business interests
11
Q

Occurs During Policy Period

A
  • Occurrence Coverage Trigger
  • Policy that applies to claim is one in effect the time claim occurs; not when actually filed
  • Others triggers exist- claims made, continuous injury, etc
12
Q

Insurer’s Duty To Defend

A
  • In the event of lawsuit - insurer defends in court
  • As long as it is reasonable that coverage might apply to claim
  • Or could conceivably be covered
  • Does not matter if claim ends up groundless, fraudulent, etc
13
Q

Coverage A Exclusions

A

1) Expected or Intended Injury
- intentional harm
- does not apply to reasonable force to defend property
- excessive force won’t be covered
2) Contractual Liability
- If it wouldn’t exist without contract (hold harmless agreement)
- Is covered if it is something that could be imposed by tort law
3) Liquor Liabilities
- Those specifically in the alcohol business
- Does not apply to the casual or occasional distribution of alcohol
4) WC and ER Liability
- On the job injuries excluded
- Includes regular and leased workers
- Seasonal Workers are not excluded
5) Pollution
- Except for injury from smoke, fumes and vapor from heating equipment or hostile fire
6) Aircraft, Auto, Watercraft; liability from operating, loading, unloading
7) War: Rare but insured could have some business that could result in some war related liabilities (War Crimes)
8) Damage to Specific Property
- Owned, rented, or occupied by the name insured
- Property loaned to the named insured
- Personal property in the care or custody of the named insured
9) Personal or Advertising Injury; can be purchased in Coverage B

14
Q

Coverage B Exclusions: Personal Advertising Injury

A
  • False arrest, detention, imprisonment
  • Malicious Prosecution
  • Wrongful eviction, wrongful entry into, violation of privacy by landlord or owner
  • Oral or written publication that slanders, libels, or disparages a person or organizations good products or services
  • Or or written publication that violates a person’s right to privacy
15
Q

Coverage B Exclusions: Personal and Advertising Injury

A

1) Mistakenly using of another’s advertising idea in your advertisement; infringing upon another’s
2) Breach of contract: abundant supply/guaranteed in stock, failure of product to live up to its statement of quality
- Purposefully stealing another’s slogan
- Knowingly making a false statement
- Result of a criminal act
- Wrong description of price
- Electronic chatroom or bulletin board that the insured hosts, owns, or controls
- Email or domain name purposefully designed to confuse you with a competitor and competitor sues

16
Q

Coverage C - Medical Payments

A
  • Not liability Insurance
  • Pays regardless of wether insurance is legally liable
  • Modest amount of coverage for minor medical inure cases
  • Prompt settlement
  • Satisfy potential claimants and avoid possible lawsuits
  • Bodily inures that occur by accident
  • On or next to the premises insured owns or rents
  • Also away from premises if it occurs from named; insured operations
  • Must be reported within a year of accident
  • Must submit to an examination by a physician assigned by insurance company
17
Q

Coverage C Exclusions

A
  • Insured
  • Anyone hired by insured to do work
  • Tenant
  • Person injured while taking part in politics
18
Q

CGL - Who is an Insured?

A

1) Named insured and related parties
- individual partnership, firm, corporation, LLC, Joint Venture, or Trust; only business not person
- Individual - includes spouse; only business not personal
- Partnership or Joint Venture includes members and spouses (business only)
- Corporation: executives, directors and stockholders
- LLC - the trust and any trustees
2) EE’s and voluntary workers of the named insured
- Not for bodily injury or personal, or advertising injury to insured or co-workers
- Not providing medical services
- Property Damage to insured, co-workers, not etc
3) Other Persons
- Real Estate Agent
- Legal Representative (When an insured dies)
- Newly acquired organization - 90 days or until end of policy period

19
Q

CGL Conditions

A

1) Bankruptcy
2) Duties in the event of Occurrence Offense or Lawsuit
3) Legal Action Against US
4) When Insurer Does not Renew
5) Premium Audit
6) Representatives
7) Transfer of Right of Recovery Against others to “us”
8) Other Insurance