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RMI 3502 > Rating CGL Coverage > Flashcards

Flashcards in Rating CGL Coverage Deck (25)
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1
Q

CGL Coverage Formula

A

Rate X Rate Exposure = Premium

2
Q

What does the rate depend on?

A

The nature of the insured organization and odds suffering liability losses

3
Q

Class Codes

A

Numerical Code representing the rating that best fits an organization

4
Q

What does the rate exposure reflect?

A

The size of the business

5
Q

How is the rate exposure measured

A

Premium Base: such as gross sales or payroll

6
Q

Premium Base

A
  • Retail Business - Gross sales
  • Contracting Business - Payroll
  • Apartment/Hotel - Area, gross sales, # of units
7
Q

Special Events

A

of admissions sold (Concerts, sporting events, etc)

8
Q

What is a Claims Made Form

A

Occurrence Based policies were the norm for policies pose problem for insurers with long tail exposures

9
Q

What kind of problems do claims made forms pose for insurers

A

Long Tail Problems: asbestos, pollution

10
Q

When does the the statute of limitations begin for a claims made form

A

When discovered, not when first occurred

11
Q

What is hard to predict for a claims made form for insurers?

A

Cost for insurers

12
Q

Claims Made Trigger

A
  • Triggers coverage
13
Q

When must claims be filed for the Claims made trigger?

A

Claims must be filed during the policy period

14
Q

Claims Made Notification

A

Notification - not settlement

15
Q

Retroactive Date

A

Date after which a claim must occur to be covered

16
Q

What if a policy does not have a retro date?

A

If not retro date then it is the inception date of the policy

17
Q

What if the date is before the retro date?

A

Might have to pay extra

18
Q

What does the retroactive date help with?

A

When you switch to claim biased and might need a claim filed during the policy but occurred before the policy inception

19
Q

When does the retroactive date not cover?

A

Pollution and Asbestos

20
Q

Extended Reporting Period

A

Extends period in which a claim can be filed

21
Q

What does the Extended Reporting Period not extend?

A

Coverage; only extends time to notify insurers

22
Q

What must the occurrence be after and before for Extended Reporting Period?

A

After the retroactive date and before policy expiration

23
Q

When must the occurrence be reported be for Extended Reporting Period?

A

60 days of occurrence

24
Q

What is the basic CGL extension for a claim to be paid for no additional period?

A

5 years

25
Q

Extended Reporting Period Extension requirements

A
  • must occur after retroactive date and before policy expiration
  • Must be reported by insured within 60 days of occurrence