Unit 15 Commercial General Liability Insurance

Question 1

Name the 5 risk exposures.

Answer 1

1. premises and operations
2. product and completed operations
3. fire legal
4. independent contractors
5. contractual liability

Question 2

____ - liability arising out of the business location or the activities of the business.

Answer 2

Premises and Operations Exposure

Question 3

A business may also be exposed to liability by defects in its ____. Takes place away from premises - example would be spoiled food.

Answer 3

Products or Completed Operations

Question 4

____ - Many business rent or lease the business premises from a landlord. If the negligence of the renter(tenant) causes fire damage, the renter can be held liable. This coverage in the CGL pays for this fire damage, but only the part of the building actually occupied by the insured.

Answer 4

Fire Legal Liability

Question 5

____ - this liability coverage insures businesses from any errors or fuck ups that their hired contractors make.

Answer 5

Independent Contractor Liability

Question 6

Contractual Liability - think of the example of a restaurant owner securing a contract to use movie theater parking from across the street for their customers. This liability is normally excluded from the CGL with the exception of the following INSURED CONTRACTS

L E A S E

Answer 6

Lease of a premises
Easement agreement for the use of shared property
Agreement to indemnify a municipality
Sidetrack agreement with a railroad
Elevator maintenance agreement

Question 7

CGL 3 Coverages

Coverage A - ____
Coverage B - ____
Coverage C - ____

Answer 7

Coverage A - bodily injury and property damage liability
Coverage B - personal and advertising injury liability
Coverage C - medical payments

Question 8

Coverage A - ____ pays the sums that the insured becomes legally obligated to pay as damages. To be covered, damages must be caused by an occurrence that is defined as an accident, including continuous or repeated exposure to the same general harmful conditions. Insurers also have the duty to defend an insured against any suit alleging liability for damages the which the policy applies.

Answer 8

Coverage A - BI and PD Liability

Question 9

Coverage A Exclusions: (9)

Answer 9

1. Intentional injury
2. Contractual liability (except for LEASE)
3. Liquor liability (any liability imposed by law concerning alcoholic beverages)
4. Employee work-related injuries (covered under works’ compensation)
5. Pollution liability (BI, PD, and clean-up costs)
6. Vehicles (except as specified in the policy)
7. Transportation of mobile equipment by auto or the use of mobile equipment in any prearranged racing activity)
8. Owned or rented property in the insured’s care, or control (except for fire liability)
9. Product recall

Question 10

Coverage B - ____ coverage, which covers liability arising out of such offense s as libel, slander, or advertisements. The claimant may be an individual or another business.

Answer 10

Personal and Advertising Injury Liability

Question 11

Coverage B Exclusions: (6)

Answer 11

1. Knowingly inflicting injury that violates the rights of another
2. Oral or written publication of material that the insured knows is false but publishes it anyways
3. Material that was published before the effective date of the policy
4. Any offense committed by an insured who is involved in the business of advertising, publishing, broadcasting, telecasting, or designing or determining the content of websites for others
5. Infringement of copyright, patent, trademark, trade secret, or other intellectual property rights
6. Violating recording and distribution of material laws

Question 12

True or False - Coverage A and B include BAILED

Answer 12

True, up to $250 for bonds and $250/day for loss of earnings

Question 13

____ - pays for medical expenses incurred for BI caused by an accident on the premises the insured owns or rents, or arising from the insured’s operations. To be covered, the expenses must be incurred and reported to the insurer within ____ of the date of the accident. Medical payment are made WITHOUT REGARD TO FAULT, unlike other coverages under the CGL forms.

Answer 13

Coverage C - Medical Payments, One Year

Question 14

Coverage C Exclusions: (2)

Answer 14

1. injuries to any insured or to a tenant or employee of the insured
2. injuries payable under workers’ compensation or related laws

Question 15

Coverage under the ____ form is triggered by damage or injury that occurs during the policy period, even though a claim may be made after the policy has expired.

Answer 15

Occurrence Form

Question 16

Coverage under the ____ form is triggered when a claim is first made against the insured, regardless of when the loss or injury took place. Claims are covered under this form if the claim is made during the policy period and the occurrence is on or after the retroactive date

Answer 16

Claims-Made Form

Question 17

____ - provides coverage for claims made after a claims-made policy’s expiration date. Periods of either ____ days or ____ years are available automatically and free of charge under specific conditions.

Answer 17

Extended Reporting Periods
60 Days
5 Years

Question 18

ERP for 5 years to apply - The insured has up to ____ days following policy expiration to report the occurrence or offense to the insurer.

Answer 18

60 Days

Question 19

A ____ endorsement provides an unlimited extension of the reporting period, although the event causing the claim must still occur between the retroactive date and the policy expiration date.

Answer 19

Supplemental Extended Reporting Period Endorsement

Question 20

The ____ means work or operations performed on behalf of the insured and materials, parts, or equipment furnished in connection with such work or operations. It also includes WARRANTIES OR REPRESENTATIONS made at any time with respect to the quality or performance of the insured’s work….

Answer 20

Insured’s Work

Question 21

Does coverage extend to Mexico?

Answer 21

No

Question 22

A CGL lists ____ different limits on the policy’s declarations page.

Answer 22

Six

Question 23

The ____ limit is the most that will be paid for the sum of Coverages A, B, and C during a policy period, except for damages arising out of the products-completed operations exposure.

Answer 23

General Aggregate Limit

Question 24

There is a separate ____ limit that represents the most that will be paid under Coverage A because of injury and damage arising out of the (same as above) exposure.

“Completed operations” differs from “operations.” The phrase “____” describes completed operations.

Answer 24

Products-Completed Aggregate Limit
Put to its intended use

Question 25

The ____ limit represents the most that will be paid under Coverage B for the sum of all damages due to personal injury or advertising injury sustained by any one person or organization. This limit is also subject to the overall general aggregate limit.

Answer 25

Personal Advertising Injury Limit

Question 26

The ____ limit represents the most that will be paid under Coverage A for liability for property damage to premises rented to the named insured for fire damage. This sublimit is also subject to the per occurrence limit and the general aggregate limit.

Answer 26

Damage to Premises Rented to the Insured Limit

Question 27

The ____ limit is the most that will be paid under Coverage C for all medical expenses because of BI sustained by any one person. This sublimit is also subject to the per occurrence and general aggregate limits.

Answer 27

Medical Expense Limit

Question 28

When reporting an occurrence does the insured need to provde the names and addresses of the injured persons and witnesses?

Answer 28

Yes, they must provide that, how, when, where, nature, and location of the occurrence as well.

Question 29

If a claim is made or suit brought against any insured, the insured must immediately record the specifics of the claim or suit and the ____ it was received, and notify the insurer as soon as possible. The insured must also see to it that the insurer receives ____ notice of any claim or suit as soon as possible.

DONT VOLUNTARILY ASSUME LIABILITY

Answer 29

Date, Written

Question 30

The ____ condition states that when the insured’s CGL is primary and other primary insurance applies to the same loss, the loss will be divided between the policies by either Contribution By Equal Shares or Contribution By Limits

Answer 30

Other Insurance Condition

Question 31

Under Contribution by ____, all insurers contribute equally up to the limit of the policy with the lowest limit.

Answer 31

Equal Shares

Question 32

Contribution by ____ is basically just pro rata.

Answer 32

Limits

Question 33

Which form does the Your Right to Claim and Occurrence Information Condition apply to?

Answer 33

Claims-made Form

Question 34

Your Right to Claim and Occurrence Information Condition - this info includes:
1. ____
2. ____

If the insurer does not renew the policy, the insurer must send this information to the first-named insured at least ____ days prior to the termination date. In other circumstances, the insurer will provide the information only if it receives a written request from the first-named insured within ____ days after the end of the policy period. The information will be provided within ____ days of the request.

Answer 34

1. A list or record of each occurrence not previously reported to any other insurer…
2. A summary, by policy year, of payments made and amounts reserved under any aggregate limits that apply
   30 days
   60 days
   45 days