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CISR Commercial Casualty Exam ( 5 sets) Questions with Answers 100% CORRECT
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CISR Commercial Casualty I Lesson Exam 48 Questions with Answers,100% CORRECT
CISR Commercial Casualty I Lesson Exam 48 Questions with Answers Legal Liability - CORRECT ANSWER A responsibility or obligation to others, which court... [Show More] s recognize and enforce. In general failure to meet this duty often results in the imposition of monetary damages. 3 Types of Legal Liability - CORRECT ANSWER Tort Liability, Statutory Liability, Contractual Liability 4 Types of Tort Liability - CORRECT ANSWER Negligence, Intentional Torts, Strict Liability, Absolute Liability Name the four requirements of a negligent tort (long version) - CORRECT ANSWER 1. Duty owed by negligent party to another party, 2. Breach of that Duty, 3. Actual Injury or Loss must occur, 4. There has to be a close cause and effect (proximate cause) relationship between the breach of that duty and the injury or loss. 4 requirements of a negligent tort (short version) - CORRECT ANSWER 1. Duty owed, 2. Breach of Duty, 3. Proximate Cause, 4. Damages Intentional Tort Definition - CORRECT ANSWER An intentional or voluntary act where the person or organization committing the act is expressly or implicitly deemed to have possessed intent or purpose to injure. The person or organization committing the act can be held legally liable for that injury or loss. Intentional Tort Examples - CORRECT ANSWER 1. Libel, 2. Slander, 3. Wrongful entry or wrongful eviction, 4. Assault and/or battery, 5. Wrongful detention, 6. False Arrest, 7. Copyright infringement, trademark infringement, etc... Strict Liability (Tort) Definition - CORRECT ANSWER Concept applied by the courts in product liability suits in which a manufacturer, distributor or seller is liable for any and all defective or hazardous products that unduly threaten a consumer's health and safety. Strict Liability (Tort-Products Liability) Coverage trigger - CORRECT ANSWER Has to be proved that the product that caused the damage was defective and the defect rendered that product unreasonably dangerous. The element of proximate cause is not applicable. Defective Product (Tort-Strict/Products Liability) - CORRECT ANSWER A defect in manufacture, design or failure to adequately warn of a hazard involved in the foreseeable use of the product. (ladder that only holds 250 pounds but doesn't have that clearly displayed as a warning on the product) Absolute Liability (Tort) Definition - CORRECT ANSWER When conditions or activities are inherently dangerous. Liability without regard to fault. Certain activities create such a serious risk of harm that it is justifiable to place liability for any injury or damage on the person or organization engaging in the activity, even what every precaution to prevent or reduce damages has been taken. All that has to be proved is that an injury or damage occurred because of the activities. Absolute Liability (Tort) Examples - CORRECT ANSWER 1. Explosive or blasting operations, 2. Dangerous animals, 3. Hazardous material operations Statutory Liability Definition - CORRECT ANSWER Liability arising out of specific rules or laws (statutes) enacted by a legislative body providing direction or prohibition. Statutory Liability Examples - CORRECT ANSWER 1. Workers Compensation Statutes, 2. Dram Shop or Liquor Liability Statutes, 3. Environmental Protection Statutes, 4. Americans With Disabilities Act, related rulings and state statutes, 5. Employment Liability through statutes and EEOC rulings Contractual Liability Definition - CORRECT ANSWER Coverage for Insured Contracts (Only Insured Contracts) Contract Definition - CORRECT ANSWER An agreement between two or more parties, which creates and obligation to do or not to do a particular thing. Often in contracts, one party assumes the financial consequences of certain liabilities of another. Hold Harmless and /or Indemnity Agreement - CORRECT ANSWER Assumption of responsibility for the liability of another Parties commonly involved in a hold harmless and/or indemnity agreement - CORRECT ANSWER 1. Lessor-Lessee, 2. Owner-Contractor, 3. Contractor-Subcontractor, 4. Manufacturer-Distributor Breach of Contract Example - CORRECT ANSWER A breach of warranty claim, Contractual Liability Examples - CORRECT ANSWER Tenant/Landlord lease, Equipment Lease Implied Warranty - CORRECT ANSWER Product is fit for the ordinary purpose for which it is used (Breach of Warranty Example: The first time you use a hammer a large piece breaks off and injures you) Direct Liability Definition - CORRECT ANSWER Results from the conduct of a person or organization that is responsible for injury or property damage to another. Direct Liability Example - CORRECT ANSWER Market fails to clean up a food spill in the aisle and a patron slips on the food and falls and is injured. Vicarious Liability Definition - CORRECT ANSWER Liability of one party based on upon the liability of another. Liability is imputed (transferred from one party to the other. Vicarious Liability Example - CORRECT ANSWER Employee delivering for employer causes an auto accident in which people were injured. Vicarious Liability Relationship Examples - CORRECT ANSWER 1. Employer/Employee, 2. Principal/Agent, 3. Owner/Manager 4.Owner/Contractor, 5. Contractor/Sub-Contractor Types of damages that can be awarded in liability claims - CORRECT ANSWER Compensatory damages or Punitive or exemplary damages Compensatory Damages Definition - CORRECT ANSWER Sums of money that will, as far as possible, compensate for the loss 2 Types of Compensatory Damages - CORRECT ANSWER Special Damages and General Damages Special Damages Definition - CORRECT ANSWER Specific Dollar amounts that cover specific costs Special Damages Examples - CORRECT ANSWER Medical Bills, lost income, rehabilitation expenses, repair or replacement of property, loss of use of property, etc... General Damages Definition - CORRECT ANSWER Subjective dollar amounts that cover intangible losses General Damages Example - CORRECT ANSWER Pain and suffering, disfigurement, loss of consortium, etc... Punitive or exemplary damages Definition - CORRECT ANSWER sums of money, more than are required to compensate for loss, which are imposed in order to punish wrongdoer conduct now and deter such conduct in the future Punitive or exemplary damages Example - CORRECT ANSWER In addition to compensatory damages, the defendant is ordered to pay $100,000 in punitive damages for texting while driving. Punitive or exemplary damages restrictions - CORRECT ANSWER Statutes may restrict the amount of exemplary or punitive damages that can be recovered. State law may also restrict liability policies from paying for exemplary or punitive damages. Some liability polices have exclusions that prohibit paying for exemplary or punitive damages. Common Business Exposures that can lead to Legal Liability Examples - CORRECT ANSWER 1. Premises, 2. Operations, 3. Products, 4. Completed Operations, 5. Ownership, Maintenance, or Use of Autos, 6. Ownership, Maintenance or Use of Other Conveyances, 7. Employing Workers, 8. Liquor, 9. Environmental Impairment, 10. Professional Activities, 11. Bailee Liability Legal Liability Exposure: Premises Definition - CORRECT ANSWER Legal liability results out of an injury and/or damage due to the ownership, maintenance or use of a location. Legal Liability Exposure: Operations Definition - CORRECT ANSWER Legal liability results when injury and/or damages arise out of business activities such as construction, processing, manufacturing, repairing or loading and unloading of goods. Legal Liability Exposure: Products Definition - CORRECT ANSWER Legal liability results when injury and/or damages arise out of defects in product design, manufacture or the failure to warn. Legal Liability Exposure: Completed Operations Definition - CORRECT ANSWER Legal liability results out of an injury and/or damage arises out of defective or improper workmanship. The exposure applies to the insured's work. The exposure begins once the operations have been completed and the insured leaves the work site. Legal Liability Exposure: Ownership, Maintenance or Use of Automobiles Definition - CORRECT ANSWER Legal liability results when injury and/or damages arises out of the ownership, maintenance or use of an auto. Almost every commercial client has this exposure. Legal Liability Exposure: Ownership, Maintenance or Use of Other Conveyances Definition - CORRECT ANSWER Legal liability results when injury and/or damage arises out of the ownership, operation, maintenance or use of conveyances other than an auto. This exposure will vary from business to business. Legal Liability Exposure: Employing Workers Definition - CORRECT ANSWER Legal liability arises from the statutory obligations employers have to employees regarding work-related injuries or occupational disease. The exposure is subject to the laws and regulations covering workers compensation, employers liability, and other employment-related issues in each state. Legal Liability Exposure: Liquor Definition - CORRECT ANSWER Legal liability is imposed when injury and/or damage arises from the business of manufacturing, distributing, selling, serving or furnishing of alcoholic beverages. The exposure will vary and is subject to statutes and case law in each state. Legal Liability Exposure: Environmental Impairment Definition - CORRECT ANSWER Legal liability exposure that may arise from direct or indirect involvement with pollution and/or pollution-related situations. Legal Liability Exposure: Professional Activities Definition - CORRECT ANSWER Legal liability results from injury and/or damage arising from the giving or failure to give professional advice or service. The exposure will vary depending on the nature of the business and by state statute and case law. Legal Liability Exposure: Bailee Definition - CORRECT ANSWER Legal liability results from injury and/or damage arising out of the insured's possession of others property. Exposure will vary on the nature of the business. [Show Less]
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CISR Commercial Casualty I Lesson 2 L Exam 59 Questions with Answers,100% CORRECT
CISR Commercial Casualty I Lesson 2 L Exam 59 Questions with Answers Summary of Exposures covered by the CGL Coverage Form: - CORRECT ANSWER Premise... [Show More] s Operations Products Completed Operations Contractual Contingent Personal Injury Advertising Injury +Vicarious Liability Exposures covered by the CGL - Vicarious Liability - CORRECT ANSWER CGL will afford coverage to the named insured for vicarious liability imposed because of those who may be acting on behalf of the named insured. "Auto" Definition - CORRECT ANSWER A land motor vehicle, trailer, or semi-trailer designed for travel on public roads, including any attached machinery or equipment. Any other land vehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. Mobile Equipment - CORRECT ANSWER "designed for use off public roads" Mobile Equipment - CORRECT ANSWER "used primarily to service premises you own or rent" Mobile Equipment - CORRECT ANSWER "moves on crawler treads" Mobile Equipment - CORRECT ANSWER "self propelled or not self propelled" Mobile Equipment - CORRECT ANSWER "provides mobility to permanently mounted specific equipment" Mobile Equipment - CORRECT ANSWER "not otherwise described ...maintained for purposes other than the transport of cargo" Mobile Equipment Category - CORRECT ANSWER Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads. Mobile Equipment Category - CORRECT ANSWER Vehicles maintained for use solely on or next to premises you own or rent. (The key words are "maintained for use solely on premises you own or rent".) Mobile Equipment Category - CORRECT ANSWER Vehicles that travel on crawler treads. Mobile Equipment Category - CORRECT ANSWER Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted specified equipment. (This wording includes trailers.) Mobile Equipment Category - CORRECT ANSWER Other vehicles that are not self-propelled and are maintained primarily to provide mobility to specific types of permanently attached equipment. Mobile Equipment Category - CORRECT ANSWER Vehicles not otherwise described maintained primarily for purposes other than the transportation of persons or cargo. Autos - NOT Mobile Equipment - CORRECT ANSWER Equipment designed primarily for snow removal, road maintenance, (but not construction or resurfacing) or street cleaning. I. E. Snowplow, Paint Striping, Street Sweeper Autos - NOT Mobile Equipment - CORRECT ANSWER Cherry pickers and similar devices mounted on an automobile or truck chassis and used to raise or lower workers; Autos - NOT Mobile Equipment - CORRECT ANSWER Self-Propelled with permanently attached equipment. I.E. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. I.E. Well Drilling Truck Autos - NOT Mobile Equipment - CORRECT ANSWER Land vehicles subject to a compulsory or financial responsibility law or other motor vehicle insurance law Coverage Territory 4a. - CORRECT ANSWER USA (incl its territories and possessions), Puerto Rico & Canada Coverage Territory 4b. - CORRECT ANSWER International Waters or Airspace during the course of transportation, provided there is no transportation between points outside the listed geographic locations in part a. of the definition Coverage Territory 4c. - CORRECT ANSWER If Injury or Damage arises out of: 1.) Goods or Products made or sold by the named insured in the territory described in the first part of this definition 2.) Business activities of persons whose home is located in the geographic location listed in part a. of the definition, but are away from home for a short time on the named insured's business. 3.) Personal and Advertising offenses that take place through the Internet or similar electronic means of communication. Provided the insured's responsibility to pay damages is determined in a "suit" on the merits, in the territory described in a. or in a settlement the insurance company agrees to. International Waters or Airspace Example - CORRECT ANSWER A plane going from New Orleans, Louisiana to San Juan, Puerto Rico is considered to be in the "coverage territory". However the same plane flying between New Orleans and Mexico City would not be in the "coverage territory". When are All Parts of the World considered part of the Coverage Territory? - CORRECT ANSWER Goods must be made or sold in part a. of the definition or caused by a covered person residing in part a. of the definition while traveling on business or be a Personal and Advertising Injury offense that occurs through the internet or other electronic means of communication. and Legal action brought in part a. of the definition or in a settlement agreed to by the insurance company. All Parts of the World as part of Coverage Territory Example - CORRECT ANSWER The named insured makes a product in St. Louis and ships it directly to their customer in Europe. The product was made in the "coverage territory". All Parts of the World as part of Coverage Territory Example - CORRECT ANSWER Business activities of persons whose home is located in the geographic location listed in part a. of the definition but are away from home for a short time (not defined) on the named insured's business. All Parts of the World as part of Coverage Territory Example - CORRECT ANSWER A factory representative who lives in Boston causes a covered loss while attending a 10 day business show in Paris, France. Bodily Injury CGL form verbatim 0413 ed date - CORRECT ANSWER bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time. Intent of CGL Coverage Form "bodily injury" - CORRECT ANSWER Some type of physical manifestation that must be sustained by an injured person. "bodily injury" as expanded by case law in some states - CORRECT ANSWER Includes things such as mental anguish, emotional trauma, loss of companionship, and other claims where there is no actual physical harm to the body. Property Damage - CORRECT ANSWER Damage to tangible property of others and loss of use of that property. Including the loss of use to tangible property of others that does not suffer actual damage. Property Damage Example - CORRECT ANSWER While digging, an insured accidentally cuts an electrical cable. The cost to repair and/or replace the damaged cable is covered as damage to tangible property. The power company loses income because it could not sell electricity while the cable is being repaired and/or replaced. This loss of income is covered as loss of use of that damaged property. Property Damage Example - CORRECT ANSWER Business owners in the area suffered loss of income because they were without power. Although their property did not suffer direct loss to tangible property, the loss of income because they were without electricity is an example of loss of use of tangible property that does not suffer actual damage. Employee Dictionary Definition - CORRECT ANSWER A person hired to work for wages or a salary. Employee per CGL Coverage Form - CORRECT ANSWER Does include "leased worker" - from a labor leasing firm Does NOT include "temporary worker" - substitute for permanent employee Considered part of the "coverage territory" as defined in the CGL policy - CORRECT ANSWER Canadian cities with an international bridge to the United States. Example of Mobile Equipment - CORRECT ANSWER A Cushman type truck to carry guests and luggage to rooms at a resort hotel. Example of Mobile Equipment - CORRECT ANSWER A vehicle that is not self propelled that is designed to primarily provide mobility to a permanently mounted crane. Example of Mobile Equipment - CORRECT ANSWER A lawn tractor used to cut grass Example of Auto - CORRECT ANSWER A street sweeper used by a city street maintenance department 3 Main Types of Insureds under CGL policy - CORRECT ANSWER Named Insureds, Automatic Insureds, Additional Insureds Type of Insured: Named Insured - CORRECT ANSWER The individual or entity shown on the CGL Policy Declarations. Typically, referred to as the "you" in the policy. The named insured is provided the broadest coverage. Type of Insureds: Automatic Insureds - CORRECT ANSWER Any persons or organizations who qualify for automatic coverages as an insured as described in Section II - Who Is An Insured in the CGL Coverage Form Type of Insureds: Additional Insureds - CORRECT ANSWER Coverage for these individuals can only be added by endorsement. Examples of Named Insureds - CORRECT ANSWER Individual, Partnership or Joint Venture, Limited Liability Company, Organization, Trust Automatic Insureds: Individual - CORRECT ANSWER Individual, Spouse, Others with respect to business operations: Employee, Volunteer Worker, Real Estate Manager, Temporary Custodian of Deceased Named Insured's Business, Legal Representative Automatic Insureds: Partnership or Joint Venture - CORRECT ANSWER Partners, Members, Spouses, Others with respect to business operations: Employee, Volunteer Worker, Real Estate Manager, Temporary Custodian of Deceased Named Insured's Business, Legal Representative Automatic Insureds: Limited Liability Company - CORRECT ANSWER Members, Managers, Others with respect to business operations: Employee, Volunteer Worker, Real Estate Manager, Temporary Custodian of Deceased Named Insured's Business, Legal Representative Automatic Insureds: Organization - CORRECT ANSWER Executive Officers, Stockholders, Directors, Others with respect to business operations: Employee, Volunteer Worker, Real Estate Manager, Temporary Custodian of Deceased Named Insured's Business, Legal Representative Automatic Insureds: Trust - CORRECT ANSWER Trustees, Others with respect to business operations: Employee, Volunteer Worker, Real Estate Manager, Temporary Custodian of Deceased Named Insured's Business, Legal Representative 5 Groups considered to be named insured under CGL - CORRECT ANSWER 1. Employees, 2. Volunteer Workers, 3. Real Estate Managers, 4. Temporary Custodian of a Deceased Named Insured's Business., 5. Legal Representative if the named insured dies Who Is An Automatic Insured? - CORRECT ANSWER Spouses of Individuals Who Is An Automatic Insured? - CORRECT ANSWER Partners and their Spouses of Partnerships Who Is An Automatic Insured? - CORRECT ANSWER Members and their Spouses of Joint Ventures Who Is An Automatic Insured? - CORRECT ANSWER Members and Managers of LLCs, not Spouses Who Is An Automatic Insured? - CORRECT ANSWER Executive officers, directors and stockholders of other organizations Who Is An Automatic Insured? - CORRECT ANSWER Trustees of trusts Is Newly Acquired or Formed Organization covered under the CGL? - CORRECT ANSWER MAY automatically become named insured - coverage excluded if this causes duplicate coverage.Until the 90th day after the acquisition or formation OR until the end of the policy period - whichever is earlier. This does not apply to newly acquired or formed partnership, joint ventures or limited liability companies. Avoid DBA coverage restriction - CORRECT ANSWER First Named insured should be the corporation and only the corporation. Second named insured should be the corporation with the dba name. [Show Less]
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CISR Commercial Casualty I Lesson 3 S Exam 56 Questions with Answers,100% CORRECT
CISR Commercial Casualty I Lesson 3 S Exam 56 Questions with Answers 3 Main Coverage Parts in the CGL Coverage Form, each with its own insuring agreem... [Show More] ent and exclusions. - CORRECT ANSWER 1. Coverage A, 2. Coverage B, 3. Coverage C Coverage A in the CGL - CORRECT ANSWER Bodily Injury and Property Damage LIABILITY - protection for injuries and damage arising out of insured's legal liability to others. Coverage B in the CGL - CORRECT ANSWER Personal and Advertising Injury LIABILITY Coverage C in the CGL - CORRECT ANSWER Medical Payments How are defense costs paid? Inside or Outside the limits? - CORRECT ANSWER Defense costs are outside the limit of liability if the damages are covered by the CGL policy. What is the exception to the exclusion for Contractual Liability? - CORRECT ANSWER Insured contracts LEASE+ Easement - CORRECT ANSWER An interest one party has in land of another or a right of use over another party's property. Written, implied or created by necessity or by prescription. Generally, the party enjoying the benefit of being on the property assumes the liability of the property owner. LEASE+ Insured's Contracts, L = - CORRECT ANSWER Lease of Premises. Subject to exceptions. Most building owners require tenants (the named insured) to hold them harmless for damage or injury, when the tenant signs a lease. LEASE+ Insured's Contracts, E = - CORRECT ANSWER Easement or License Agreement: involves the right to use land that belongs to others. LEASE+ Insured's Contracts, A = - CORRECT ANSWER An obligation as required by ordinance. Subject to exceptions. LEASE+ Insured's Contracts, S = - CORRECT ANSWER Sidetrack agreement with a railroad Railroad Sidetrack Agreement - CORRECT ANSWER An agreement between a railroad and a business in which the railroad agrees to build a siding on the property of the business, and the business will hold the railroad harmless for certain liability arising out of the use of the sidetrack. LEASE+ Insured's Contracts, E = - CORRECT ANSWER Elevator maintenance agreement. Public elevators must be inspected and maintained to minimum standards. Many building owners contract for this service with an outside vendor. LEASE+ Insured's Contracts, + = - CORRECT ANSWER PLUS includes that part of any other business contract or agreement where insured assumes tort liability of another to pay for "BI" or "PD" to a third person or organization. Tort Liability - CORRECT ANSWER Liability caused by a civil wrong against another for which courts often assess monetary damages against the wrongdoer. NOT covered as an "insured contract" - CORRECT ANSWER contract that indemnifies a railroad for BI or PD arising out of construction or demolition operations within 50 feet of any railroad property NOT covered as an "insured contract" - CORRECT ANSWER contract that indemnities an architect, engineer or surveyor for injury or damage arising out of preparing or approving or failing to prepare or approve certain items such as: maps, drawings, reports, surveys, change orders, specifications, etc. OR giving directions or instructions or failure to give them. NOT covered as an "insured contract" - CORRECT ANSWER contract that an architect, engineer or surveyor, if they are the insured, assumes liability for injury or damage for their rendering or failure to render professional services. Is coverage for liability assumed under an "insured contract" still subject to all the terms, conditions and exclusions of the CGL Policy - CORRECT ANSWER Coverage for liability assumed under an "insured contract" is still subject to all of the terms, conditions and exclusions of the CGL Policy Is failure to perform covered by the CGL Policy? - CORRECT ANSWER Failure to perform is NOT covered by the CGL Policy Is a BYO establishment that is not in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages to others covered for liquor Liability on an un-endorsed CGL policy? - CORRECT ANSWER A bring your own (BYO) establishment is covered for liquor liability on a CGL policy. Host Liquor Coverage Definition - CORRECT ANSWER A named insured that serves complimentary wine at an open house for the business is covered by the CGL Coverage Form. Example of Work comp exclusion exception that provides coverage for liability assumed by the insured under an "insured contract" - CORRECT ANSWER A SC signs a construction contract assuming the tort liability of the GC. An EE of the SC who is injured on the job sues the GE. The GC tenders the claim to the SC. The SC's CGL Policy will respond. 4 exceptions to Pollution Exclusion on CGL - CORRECT ANSWER When: "BI" is caused by smoke, fumes, vapor or soot produced by equipment that is used to heat, cool or dehumidify the building, or used to heat water for tenants AND/OR "BI" or "PD" is caused by a contractor performing operations i.e. owner of the premises site or location that is AI. 4 exceptions to Pollution Exclusion on CGL - CORRECT ANSWER Pollution Exclusion Exception 2: Arising Out of the Insured's Operations When: Insured did not bring pollutants to the job site and is not there to "work on" the pollutants. AND/OR Fluids or fuels used to operate "mobile equipment" escape accidentally. AND/OR Materials brought into that building by a named insured or a contractor working for the named insured, release gases, fumes, or vapors. 4 exceptions to Pollution Exclusion on CGL - CORRECT ANSWER Pollution Exclusion Exception 3: Arising Out of the Products - Completed Operation Hazard: The pollution exclusion does not apply to the named insured's products - completed operations hazard. 4 exceptions to Pollution Exclusion on CGL - CORRECT ANSWER Pollution Exclusion Exception 4: Arising Out of a Hostile Fire for either Premises or Operations: The CGL Coverage Form defines a "hostile fire" as one that becomes uncontrollable or breaks out from where it was intended to be. Personal and Advertising Injury Coverage triggers and conditions - CORRECT ANSWER The offense that triggers legal liability must be committed in the coverage territory and during the policy period, and the offense must arise from a named insured's business. Personal and Advertising Injury - False Arrest, detention or imprisonment - CORRECT ANSWER Wrongfully detaining a suspected shoplifter Personal and Advertising Injury - Malicious Prosecution - CORRECT ANSWER Filing charges and making false statements against someone without cause and with malice Personal and Advertising Injury - Wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor. - CORRECT ANSWER A landlord wrongfully evicts a tenant from an apartment in order to lease out the premises at a higher rental rate Personal and Advertising Injury - Oral or written publication of material that slanders or libels a person or organization or disparages their goods, products, or services. Slander is spoken; libel is printed. - CORRECT ANSWER Making false statements about the quality of a competitor's workmanship to improve your chances of getting a production contract. Personal and Advertising Injury - Oral or written publication of material that violates a person's right of privacy - CORRECT ANSWER Releasing privileged and/or protected personal information such as a SSN or medical condition Personal and Advertising Injury - The use of another's idea in your advertisement - CORRECT ANSWER An individual opens a fast-food establishment, using similar building plans, color schemes, menu offerings and layout of an established fast-food chain. Although the new establishment uses a different name and logo, they used the ideas of the established chain. Personal and Advertising Injury - Infringing upon another's copyright, trade dress, or slogan in your "advertisement." - CORRECT ANSWER Using gold colored, arched Ms to advertise McCales Burgers and Fries The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER An offense made at the direction of the insured, with the knowledge that the committed act would violate the rights of another and would inflict "personal and advertising injury". The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER The insured's oral remarks or published written material that the insured knows are false. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER The insured's oral remarks or published written material that first took place before the beginning of the policy period. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER A criminal act committed by or at the direction of the insured. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER Liability the insured assumed in a contract or agreement. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER A breach of contract. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER The products, goods, or services that don't do what the named insured's advertising says they will do. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER A misstated price of products, goods, or services in the named insured's advertising. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER The infringement of copyright, patent, trademark, trade secret or other intellectual property rights. However, this does not apply to infringement in your "advertisement" of copyright, trade dress or slogan. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER An insured's business if the business is advertising, broadcasting, publishing, or telecasting (with limited exception). This also excludes website designers, Internet search, access, content or service providers. There are special policies that must be purchased for these exposures. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER Electronic chatrooms or bulletin boards the insured hosts, owns, or over which the insured exercises control. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER Unauthorized use of another's name or product in "your" e-mail address, domain name or meta tag, or any other similar tactics to mislead another's potential customers. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER Actual, alleged, or threatened pollution caused by "pollutants" at any time; this exclusion became necessary because pollution claims alleged that the pollution incident was wrongful invasion of the right of private occupancy. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER Pollution-related clean up coverage. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER War - Applies to due to war including undeclared or civil war; warlike action by a military force; insurrection, rebellion, revolution or action taken by government authority in hindering or defending against any of these. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER Recording And Distribution of Material or Information In Violation of Law - TCPA, CAN-SPAM Act of 2003, any statute, ordinance or regulation, other than the above, that prohibits or limits the sending, transmitting, communicating or distribution of material or information. The CGL policy will not cover "personal and advertising injury" when the loss arises out of: - CORRECT ANSWER Access to or disclosure of confidential or personal information. This exclusion is added by mandatory endorsement CG 21 06 and includes patents, trade secrets, processing methods, customer lists, financial, information, credit card information, health information, or any other type of nonpublic information. There are special liability policies such as cyber liability policies that may provide coverage for security and privacy exposures. Medical Payments Coverage triggers and conditions - CORRECT ANSWER The accident must take place in the "coverage territory" and during the policy period. Additionally, the medical expenses must be incurred and reported to the insurance company within one year of the accident date. Medical Payments Coverage will pay reasonable expenses for the following: - CORRECT ANSWER 1. First aid administered at the time of an accident 2. Necessary medical, surgical, x-ray and dental services, including prosthetic devices; and 3. Necessary ambulance, hospital, professional nursing and funeral services. Medical Payments Exclusions - CORRECT ANSWER Any insured, except for "volunteer workers". A person working for any insured or for a tenant of any insured. Any person injured on that part of premises the named insured owns or rents that the person normally occupies. Any person if Workers Compensation benefits for bodily injury are payable or must be provided. Any person who is injured while practicing, instructing, or participating in any physical exercises or games, sports or athletic contests. Injuries resulting from the "products-completed operations hazard". Injuries excluded under Coverage A-Bodily Injury and Property Damage Liability. What is the primary purpose of Medical Payments Coverage - CORRECT ANSWER The primary purpose of the coverage is the reduction of bodily injury lawsuits, reduction in the size of claims that are filed, and goodwill. [Show Less]
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Commercial Casualty II – CISR Exam 121 Questions with Answers,100% CORRECT
Commercial Casualty II – CISR Exam 121 Questions with Answers In BAP what does liability section provide protection from claims for? - CORRECT ANSWE... [Show More] R Bodily Injury and Property Damage for which insured is legally responsible for. In BAP physical damage section what type of protection? - CORRECT ANSWER provides coverage for damage to or loss of an insured's covered auto. What other BAP coverages can be added by endorsement? - CORRECT ANSWER Medical payments personal injury protection uninsured/underinsured motorist bodily injury and/or property damage losses List all BAP Coverage Exposures? - CORRECT ANSWER Liability physical damage comprehensive collision Owned auto non-owned auto hired or borrowed auto specified cause of loss towing for private passenger What are BAP liability auto exposures that can arise out of insured maintenance or use of several types autos? - CORRECT ANSWER Autos name insured owns Autos Name insured does not own, but uses in business Autos name insured hires or borrows List some common claims that arises out of physical damage? - CORRECT ANSWER Collision windshield breakage theft fire vandalism Define "Accident" in BAP - CORRECT ANSWER Does not have to be sudden. A Continuous or repeated exposure to the same conditions that result in BI or PD Define "Auto" in BAP - CORRECT ANSWER a land motor vehicle, trailer or semi trailer designed to travel on public roads subject to financial responsibility law or other MV law where it is licensed or principally garaged Recap CGL "insured contracts" - CORRECT ANSWER Lease of premises Sidetrack agreement easement or license agreement obligation as required by ordinance assumed tort liability *BAP elevator maintenance is not applicable! BAP uses LEAS plus what other "insured contract?" - CORRECT ANSWER Rental Lease agreement - made by name insured or any of it's employees. does not cover property damage to auto rented or leased by name insured or one of the employees Recap descriptive phrases for GL mobile equipment? - CORRECT ANSWER "designed for use off public roads" "used primarily to service premises you own or rent" "moves on crawler treads" "self propelled or not self propelled" "provides mobility to permanently mounted specific equipment" "not otherwise described ... maintained for purposes other than transport of persons or cargo" What 6 types mobile equipment for BAP? - CORRECT ANSWER 1. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads. 2. Vehicles maintained for use solely on or next to premises you own or rent. (The key words are "maintained for use solely on premises you own or rent".) 3. Vehicles that travel on crawler treads. 4. Vehicles, whether self - propelled or not, maintained to provide mobility to permanently mounted specific equipment. (This wording includes trailers.) 5. Other vehicles that are not self - propelled and are maintained primarily to provide mobility to specific pe rmanently attached equipment. 6. Vehicles not otherwise described maintained primarily for purposes other than the transportation of persons or cargo. Describe what coverage triggers for Symbol 1 - CORRECT ANSWER liability for any auto -provides the broadest coverage possible -can be used when no owned autos, and umbrella -calls for underlying auto coverage Describe what coverage triggers for Symbols 2, 3 & 4? - CORRECT ANSWER Liability, Physical Damage, Medical Payments, Personal Injury Protection, Uninsured Motorists -for owned autos (of same type) acquired during the policy period. 2 - owned auto 3 - owned private passenger, *Symbol three includes Towing & Labor 4 - owned auto other than private passsenger Describe what coverage triggers for Symbols 5 & 6? - CORRECT ANSWER Personal Injury Protection for autos required to have No-fault benefits in the state where they are licensed or principally garaged. - for owned autos 5- owned auto subject to no fault law 6- owned auto subject to UM, includes newly acquired autos Describe what coverage triggers for Symbol 7? - CORRECT ANSWER Autos Only Liability, Physical Damage, medical Payments, Personal Injury Protection, Uninsured Motorists - for specifically described autos only *triggers coverage for autos scheduled in decs *liability for trailers the name insured does not own while attached to schedule auto Describe what coverage triggers for Symbol 8? - CORRECT ANSWER Liability, Physical Damage - for hired autos *Excludes autos those from employees, partners of LLP, members of LLC or members of their household Describe what coverage triggers for Symbol 9? - CORRECT ANSWER liability for non-owned autos *for autos the name insured DOES NOT own, lease, hire, rent or borrow and used in business *owned by insured employees, partners, members, and member of household used in business or personal affairs Describe what coverage triggers for Symbol 19? - CORRECT ANSWER liability coverage for autos that would qualify as mobile equipment *Mobile Equipment Subject To Compulsory Or Financial Responsibility Or Other Motor Vehicle Insurance Law Only What endorsement would be used to customize coverage on those vehicles fairly new? - CORRECT ANSWER Symbol 10 What symbols are used for automatic coverage? - CORRECT ANSWER Symbols 1, 2-6 or 19 *Autos you acquire after the policy begins What symbols are used for schedule coverage? - CORRECT ANSWER Symbol 7 *Specifically scheduled in item 3 of BAP dec, must tell insurance company within 30 days after acquired List reason insured can use certain trailers, mobile equipment and temporary substitute autos if because of - CORRECT ANSWER breakdown repair servicing loss or destruction List example of an automatic symbol coverage - CORRECT ANSWER Name insured has symbol 2, used to trigger liability, comp and collision. If name insured acquires an additional auto that has liability, comp and collision under the policy for the remainder of policy period, insured doesn't need to report newly acquired auto. premium will be picked up at audit List example that doesn't qualify automatic symbol coverage - CORRECT ANSWER name insured has symbol 3. if name insured acquires a panel truck there is no automatic coverage because the panel truck is not a passenger auto What 2 conditions must be met for Symbol 7 to apply? - CORRECT ANSWER 1. All "autos" the named insured owns must be insured by the insurance company for that coverage; or it replaces an "auto" the named insured previously owne d that has coverage and 2. This named insured must tell the insurance company within 30 days after acquiring the "auto" that the named insured wants that coverage. *If both are met the newly acquired auto is additional unit, will automatically have the coverage that all owned autos have. List an example of symbol 7 limited coverage for new auto - CORRECT ANSWER Name insured owns 9 autos with symbol 7. All 9 have liability, 8 have comp, one has specified cause of loss. 6 have collision. if the name insured acquires 10th auto, will only have automatic liability coverage, because all 9 have at least liability. *will only extend automatically for 30 days List an example of symbol 7 limited coverage for replacement auto - CORRECT ANSWER name insured has 2 autos, both have symbol 7. 1st vehicle has only liability. 2nd vehicle has liab. and collision. if name insured acquires a replacement or 1st vehicle, new auto only has liability for max. of 30 days *Must inform insurer within 30 days after purchase *Physical damage does not apply until notified that physical damage is wanted What happens for Symbol 7 if late reported to insurance company for new auto? so if acquired on Mar 1st, and doesn't tell insurance company until Aug 15? - CORRECT ANSWER No coverage is in place for the newly acquired auto. Coverage requested will now begin on Aug 15. What 3 types of insureds are afforded coverage in auto form? - CORRECT ANSWER 1. "You" 2. Permissive Users of Covered "Autos" 3. Others Who Have Vicarious Liability Describe what a permissive user is? - CORRECT ANSWER individual who are using a covered auto with name insured permission Explain Drive Other Car Coverage - Broadened Coverage for Named Individuals (CA 99 10) endorsement - CORRECT ANSWER Typically used to provide non-owned coverage similar but not identical to that provided by a Personal Auto Policy for an individual. This individual is typically a corporate officer or key employee who is provided a company car but does not own a personal auto and does not have a Personal Auto Policy. -There is a premium charge for each named individual. -All BAC Form's exclusions apply; none are removed. Explain Individual Named Insured (CA 99 17) endorsement - CORRECT ANSWER This endorsement is added to a Business Auto Policy when the named insured is an individual; and at least one of the covered autos is a private passenger type auto. Explain Employees as Insureds (CA 99 33) endorsement - CORRECT ANSWER This endorsement addresses the exclusionary language that states an employee is not an insured while driving a covered "auto" owned by that employee or a member of that employee's household. -Liability coverage is provided on an excess basis. Explain Employee as Lessor (CA 99 47) endorsement - CORRECT ANSWER This endorsement is used to treat an "auto" hired, borrowed or leased by the named insured as an owned "auto". Explain Designated Insured (CA 20 48) endoresment - CORRECT ANSWER This endorsement was developed to give insurers a way to respond to requests to specifically show a person or organization as an additional insured. -allows insurance co. to list Explain Lessor -Additional Insured and Loss Payee (CA 20 01) endorsement - CORRECT ANSWER This endorsement is used to treat an auto leased by the named insured as an owned "auto". What does the 1st paragraph of BAP insuring agreement state? - CORRECT ANSWER Insurance company will pay all sums that an insured must legally pay because of: •"Bodily injury" or "property damage"; •That arises from the ownership, maintenance, or use of a covered "auto •Caused by an "accident"; and is •Not excluded by this Policy. What does the 2nd paragraph of BAP insuring agreement state? - CORRECT ANSWER insurance company will pay "covered pollution cost or expense" caused by an "accident" resulting from the ownership, maintenance or use of a covered "auto". What does the 3rd paragraph of BAP insurance agreement state? - CORRECT ANSWER besides paying for covered "accidents", the insurance company has the right and the duty to defend any insured against a "suit" seeking covered damages or covered cleanup costs. If there is no coverage, the company does not have to defend. The company can investigate and/or settle any claim as it sees fit. Once the insurance company has paid the Limit of Insurance, it no longer has a duty to defend. List 6 Types of BAP supplementary payments (coverage extension) - CORRECT ANSWER 1. behalf of the insured while investigating, settling, and/or defending the insured 2. bail bonds - up to $2,000 3. cost of bonds for release of attachments made against the insured 4. reasonable expenses that the insured incurs at the company's request. - up to $250 per day for lost earnings because of missed work 5. court costs taxed against the insured 6. post judgement interest List 2 types of coverage extensions under "Out of State coverage" - CORRECT ANSWER 1. Higher limits than policy limits to comply with the laws where the "auto" is being used. However this extension does not apply to the laws governing motor carriers of passengers or property. 2. Additional benefits, such as no fault or mandatory personal injury protection, required of out-of-state vehicles by the jurisdiction where the covered "auto" is being used. List BAP exclusions - CORRECT ANSWER 1.Expected Or Intended Injury 2.Contractual 3.Workers Compensation 4.Employee Indemnification And Employer's Liability 5.Fellow Employee 6.Care, Custody Or Control 7.Handling Of Property 8.Movement Of Property By Mechanical Device 9.Operations 10.Completed Operations 11.Pollution 12.War 13.Racing Specified cause of loss coverage is for loss caused by: - CORRECT ANSWER •Fire, lightning, or explosion; •Theft; •Windstorm, hail or earthquake; •Flood •Mischief or vandalism; or •The sinking, burning, collision, or derailment of any conveyance transporting the covered "auto" BAC Form Physical Damage Coverage -We Will Pay - CORRECT ANSWER for "loss" to a covered "auto" or its equipment. Three types of coverage are offered. 1. specified causeof loss 2. collision 3. comphrensive Collision Coverage is for collision with - CORRECT ANSWER another object of overturn *most companies required one of 2 coverages (comp, or SCL) before they will include collision Describe physical damage coverage - Towing & Glass Breakage - CORRECT ANSWER can be purchased for private passengers only. includes labor cost performed at the place of disablement Describe physical damage coverage -Glass breakage - Hitting a Bird or Animal - falling Objects or missiles - CORRECT ANSWER covered under comprehensive coverage if name insured purchased -has option of having glass breakage coverage under collision is caused by collision or overturn -loss covered by hitting a bird, or animal and loss caused by missile or falling option will be covered under comp Describe physical damage coverage extension - transportation Expenses - CORRECT ANSWER pays for transportation expenses max $20 per loss max $600 (because of total theft of an auto of private passenger) 48 hour waiting period Describe physical damage coverage extension - Loss Of Use Expenses - CORRECT ANSWER covers or loss of use resulting from physical damage to rented or hired autos when insured becomes legally responsible under written contract. - must show symbol 8 (hired autos) in order to collect $20 per day, subject to max $600 Name BAC form Physical Damage Exclusions - CORRECT ANSWER 1. Specified cause of loss - Nuclear hazard, contamination, war 2. Specified activities - professional/organized racing 3. Specified perils to specific equipment - loss caused from wear and tear 4. Specified types of equipment - tapes, speed measure, transmit audit, visual data signals 5. Accessories used with electronic equipment 6. Not pay for loss covered due to diminution in value Explain how limits of insurance on BAC policy apply? - CORRECT ANSWER 1. The insurance company will pay the smaller of: o Actual cash value at the time of the "loss"; or o The cost of repairing or replacing with like kind and quality. 2. $1,000 is the most that will be paid for "loss" in any one "accident" to all covered electronic equipment that reproduces, receives or transmits audio, visual or data signals which at the time of loss is permanently installed in housing or location that is not normally used by the "auto" manufacturer for the installation of such equipment. 3. The insurance company can adjust for depreciation. 4. The insurance company does not have to pay for betterment. List Example of how insurance company will pay in event of BAC loss - CORRECT ANSWER Some sales reps, adjustors, fire, EMS, or law enforcement workers install AVD equipment in areas of an "auto" not intended for such use by the manufacturers. In the event of a loss this equipment is limited to $1,000. List example of how BAC deductible would be applied? - CORRECT ANSWER Hail damages several autos parked at a single location. The deductible applies to each covered "auto". What are 2 types of BAP conditions that apply in additional to common policy conditions? - CORRECT ANSWER Loss Conditions General Conditions List types of BAP - Loss Conditions - CORRECT ANSWER -Appraisal For Physical Damage Loss -Duties In the Event Of Accident, Claim, Suit Or Loss -Legal Action Against Us -Loss Payment - Physical Damage Coverage -Transfer of Rights of Recovery Against others to Us. Describe Loss BAP Condition - Appraisal for Physical Damage Loss - CORRECT ANSWER The named insured and insurance company only enter the appraisal provision when there is a disagreement on the amount of "loss" under Physical Damage Coverage. The decision reached through this process is binding on both the named insured and the insurance company. List Types of BAP - General Conditions - CORRECT ANSWER -Bankruptcy -Concealment, Misrepresentation or Fraud -Liberalization -other insurance -policy period, coverage territory Explain BAP General Condition - Other Insurance - CORRECT ANSWER The other insurance condition states that coverage under this BAP is primary for the named insured's owned covered "autos" and excess for any other covered "auto". The exception is liability coverage will be primary if liability arises from an "insured contract". If Physical Damage Coverage is purchased for hired autos, then the hired "auto" is considered owned. If two BAPs apply, payment under the Policy is pro rata. List the 2 conditions that allow the coverage territory to be anywhere in the world on a BAP - CORRECT ANSWER 1. A covered "auto" of the private passenger type auto is leased, hired, rented, or borrowed (without a driver) for a period of 30 days or less; and 2. The insurance company agrees to a settlement or where damages are awarded in a "suit" brought in the coverage territory described above. Mexico is not included What are the 4 types of benefits provided by WC? - CORRECT ANSWER 1. Medical Expense 2. Disability Income 3. Rehabilitation Expenses 4. Death Benefits What states do not require employers to carry WC insurance? - CORRECT ANSWER New Jersey & Texas If NJ rejects WC, then must purchase employers liabiltiy What is the definition of a monopolistic state? - CORRECT ANSWER a state where employer can purchase WC only from the state. the 4 states are: North Dakota, Ohio, Washington & Wyoming True or False - Monopolistic States Fund provides employers liability insurance - CORRECT ANSWER False What is the most important item in the WC information - CORRECT ANSWER Item 3 •Item 3.A Workers Compensation Insurance(mono. states cannot be listed here) •Item 3.B Employers Liability Insurance •Item 3.C Other States Insurance •Item 3.D Endorsements and schedules What does Item 3.B. of WC information page list? - CORRECT ANSWER example: 1. $100,000 (bodily injury by accident) Each Accident 2. $500,000 (bodily injury by disease) Policy Limit 3. $100,000 (bodily injury by disease) Each Employee What does item 3.C. Trigger? - CORRECT ANSWER Other States Insurance. Policy responds as if the 3.C. state were in 3.A. state (mono. states cannot be listed in 3.C. What is the purpose of item 3.D? - CORRECT ANSWER policy endorsements/schedule are listed in this section What does Item 4 of information Page Entail? - CORRECT ANSWER WC and EL rating data What does item 1 of information page entail? - CORRECT ANSWER Name insured, entity, mailing and work locations What does item 2 of information page entail? - CORRECT ANSWER Policy period explain paraghraph A of WC insurance applies? - CORRECT ANSWER This is the insuring agreement for workers compensation insurance, which says the Policy will pay for: -Bodily injury by accident occurring during the policy period -Bodily injury by disease caused by or aggravated by conditions of employment explain paragraph B of WC insuring agreement? - CORRECT ANSWER Paragraph B. We Will Pay informs us that the insurer will "pay promptly when due the benefits required...by the workers compensation law". The named insured has this coverage for those states listed in Item 3.A. of the Information Page of the Policy. What does paragraph CDE of WC insuring agreement explain? - CORRECT ANSWER address the right and duty to defend, supplementary payments and other insurance provisions. explain "Payments you must make" in part one of WC insurance - CORRECT ANSWER You means - employer 1. Payments required because of the serious and willful misconduct of the named insured. 2. Payments required for an employee who the named insured knowingly hired in violation of law. 3. Payments required when the named insured failed to comply with a health or safety law or regulation. 4. Payments required when the named insured discharges, coerces, or otherwise discriminates against any employee in violation of the state's workers compensation law. List 4 types of employer liability claims - CORRECT ANSWER 1. third party claims or third party action over claims' 2. dual capacity claims 3. consequential bodily injury claims 4. Loss of care and services claims Provide an example of Third party Claim? - CORRECT ANSWER An employee of Polly's Plastics is injured by a piece of machinery in the manufacturing plant. The employee collects workers compensation benefits and then also sues the manufacturer of the machinery in a products liability suit. The manufacturer looks to the Polly's Plastics for reimbursement and/or contribution because Polly's supervisor removed all of the safety guards from the machinery. Explain Dual Capacity claim? - CORRECT ANSWER These claims are claims in which the employee sues the employer in some capacity other than that of employer, such as a manufacturer of a defective product, owner of a premises, etc. Provide example of dual capacity claim - CORRECT ANSWER An employee is injured while in the course of employment when a defectively manufactured ladder collapses. The employer is the manufacturer of that ladder. The employee files a workers compensation claim with the employer AND also sues his/her employer as the manufacturer of the ladder for the injury arising out of the defective product. Explain Bodily Injury Claim - CORRECT ANSWER These claims involve bodily injury damages suffered by a family member arising out of the employee's job-related injury/disease. Explain Care and Loss of Services (AKA Loss of Consortium) claim - CORRECT ANSWER These are claims for damages suffered by a family member arising out of the loss of services that the injured/sick employee provided. Provide example of care loss of services claim? - CORRECT ANSWER The child of an injured employee sues for loss of companionship and the loss of services provided by the parent, which resulted from the employee's injury. What are following options for providing employer liability for monopolistic states? - CORRECT ANSWER Endorse a Workers Compensation and Employers Liability Insurance Policy written for non- monopolistic states with an Employers Liability Coverage Endorsement; or Endorse a CGL Policy, if there is one, with a Stop Gap -Employers Liability Coverage Endorsement; or Purchase a separate policy with Employers Liability Insurance for the monopolistic state. True or False - the name insured must inform the insurance company at once if they begin work in any state listed in item 3.C? - CORRECT ANSWER True What does provision of coverage part 3 - three other states insurance say if name insured has work on effective date of policy in any state NOT identified in 3.A.? - CORRECT ANSWER no coverage will be afforded unless the insurance company is notified within 30 days from effective date. Explain Employers Liability Coverage Endorsement WC 00 03 03 C - CORRECT ANSWER provides EL insurance for states not included in the issued WC/EL policy primarily used when WC is purchased in monopolistic state fund Explain Longshore and Harbor Workers' Compensation Act Coverage Endorsement WC 00 01 06 A - CORRECT ANSWER coverage for land based employees who work on wharves, piers, docs and bridges. benefits are higher includes harbor workers, shipbuilders, ship breakers and ship repairers Explain Outer Continental Shelf Lands Act Coverage Endorsement WC 00 01 09 B - CORRECT ANSWER provides WC and EL for work on outer continental shelf. usually drilling rigs and or platforms Explain Maritime Coverage Endorsement WC 00 02 01 A - CORRECT ANSWER provides EL for employers who have maritime exposures. applies to BI to mate or crew members of vessel and NI that occur in operation of vessel Explain Foreign Coverage Endorsement - CORRECT ANSWER applies to employees hired in the US while traveling temporarily (90 days or less) residing outside the US, it's territories, possessions PA or CAN What two coverages are offered with Foreign Coverage Endorsement? - CORRECT ANSWER 1. Endemic Disease Endemic disease is covered as a work-related injury/disease. Endemic disease means a disease that is infectious and generally recognized as a health hazard, is restricted to a peculiar locality, and is not caused by or aggravated by the conditions of employment. An example is yellow fever. 2. Repatriation Expenses Coverage also pays for repatriation expenses, which are costs for transporting the injured employee to a medical facility or home. List 3 primary reasons for the need of higher liability policies? - CORRECT ANSWER 1. Public Attitude 2. Law of Negligence 3. Jury Attitude Explain "self insured retention" - CORRECT ANSWER dollar amount listed on the declarations page that will be paid by the insured before this insurance becomes applicable only applies if insurance is provided by umb. policy, but not by underling polices What are the 3 types of umbrella forms? - CORRECT ANSWER 1. True umbrella policy 2. follow form excess policy 3. stand alone excess liability policy What are the typical required underlying policy limits? - CORRECT ANSWER GL Agg - $2M PCO Agg - $2M Occ - $1M PA $1M Bus. Auto $1M EL $500/$500/$500 Describe "Ultimate Net Loss" - CORRECT ANSWER Types of payments, including expenses that policy pays means the total amount for the insured the insured is found liable for a covered "incident" Retained Limit covered as self insured retention in respect to: - CORRECT ANSWER a. "Bodily injury" or "property damage" caused by an "occurrence"; or b. "Personal and advertising injury" sustained by any one person or organization and caused by an "offense." Explain - Retained Limits defined as indemnity payments are applied? - CORRECT ANSWER any payments made for defense costs or other expenses that are inside the underlying policy limits do not count toward the retained limit this leaves potential gap in coverage Explain the definition of occurrence in umbrella policy - CORRECT ANSWER "Occurrence" means an accident, including continuous and repeated exposure to conditions, which result in personal injury, property damage or advertising injury neither expected nor intended from the standpoint of the insured. Explain definition of occurrence - batch clauses - CORRECT ANSWER continuous or repeated exposures to the same general harmful conditions" are indicating different consumers are each one occurrence. What two situations does affirmative duty to defend by umb company apply? - CORRECT ANSWER 1. When no underlying insurer is obligated to defend because the damages are not covered by the underlying insurer but are covered by the excess liability policy/umbrella liability policy; or 2. When no underlying insurer is obligated to defend because the underlying insurance has been exhausted in accordance with its terms and conditions. Describe "first dollar defense" - CORRECT ANSWER When defense coverage applies within the SIR, this is commonly known as the first dollar defense List 3 types of ways umbrella aggregate an be applied - CORRECT ANSWER •Combined single limit policy aggregate •Separate aggregates apply to selected coverages •Aggregates follow aggregates in the underlying Describe Combined single limit policy aggregate - CORRECT ANSWER one aggregate that applies. For example, while the underlying Business Auto Policy has no aggregate limit, the excess liability policy/umbrella liability policy has an aggregate limit that applies to auto claims as well as any/all other claims. All claims under the policy reduce the aggregate limit . Describe Aggregates Follow Aggregates in the Underlying Policies - CORRECT ANSWER If there is an aggregate in the underlying policy that applies, there is an aggregate in the excess liability/umbrella liability policy as well. But it doe s follow the aggregate in the underlying as the aggregate applies in the underlying. List 3 types of umb coverage territory - CORRECT ANSWER 1. Policy is silent as to coverage territory -does not define coverage territory 2. Coverage territory is worldwide - to restriction where suits file 3. Coverage territory is limited worldwide - restrict where suits on merits are filed "Maintenance of Scheduled underlying conditions" states: - CORRECT ANSWER except for any reduction or exhaustion of liability in the scheduled underlying insurance provided such reduction or exhaustion is solely the result of happenings taking place during this policy period, and not before. ... "If the insured fails to maintain scheduled underlying insurance, this condition shall not invalidate this policy, but in the event of such failure, we will only be liable to the same extent as if the insured had maintained the scheduled underlying insurance." List excess liability exclusions - CORRECT ANSWER 1. Expected or Intended Injury 2. aircraft 3. watercraft 4. property in care, custody or control 5. employment related practices 6. injury to fellow employee 7. ERISA (employee benefits liability) 8. Punitive Damages 9. Pollution 10. Uninsured Motorists and Underinsured motorists 11. Asbestos What does "Property Damage" Mean? - CORRECT ANSWER damage to or loss of use of tangible property What is definition of "trailer" - CORRECT ANSWER includes semi trailer What is "no fault" benefits? AKA Personal Injury Protection - CORRECT ANSWER insured makes their own automobile insurer pay for insured and passenger's medical bills, lost earning and certain out of pocket damages after a car accident not available in all states, required in others What is an "owned auto" - CORRECT ANSWER Name insured owns that auto to use for business what is a "non owned own" - CORRECT ANSWER vehicle not owned by business insured, and is owned by an individual what is a "hired" auto? - CORRECT ANSWER name insured needs to rent to use in business. example is commercial van. For symbols 2-4 what is the same coverages they have across the board? - CORRECT ANSWER Liability Physical Damage Med pay Personal injury protection (No fault) Uninsured motorist If BAP includes liability coverage, which 3 types of vehicles automatically have liability coverage at no additional premium? - CORRECT ANSWER Trailers mobile equipment temporary substitute Define who is an insured "you" is in BAC - CORRECT ANSWER -"You" refers to the named insured shown in the Declarations. If the named insured is an individual, there is no automatic coverage for any spouse or for any other relative, but the named insured is an insured for any covered "auto". -A few states do have mandatory provisions that make persons other than the named individual (resident spouse, estate executor) a "you". -The named insured receives the broadest coverage. Define who is an insured "Others Who Have vicarious Liability" - CORRECT ANSWER anyone who is legally responsible for the conduct of any insured identified as name insured or a person who qualifies as a permissive drive List 5 types of permissive users that do NOT get coverage under BAP Forms - CORRECT ANSWER 1. Owner of rented or borrowed covered "auto"... 2. Employee using his owned "auto"... 3. Any individual working in the auto business... 4. Loading and unloading a covered "auto" by a non-employee... 5. Partner (of partnership) or a member (of LLC) using his owned "auto"... what is the definition of "attachments" with the supplementary #3 (bonds for release of attachments made against the insured) - CORRECT ANSWER legal proceedings where a defendant files and gets a legal claim against the insured's assets to assure value to pay for any judgement and/or claim) BAC as with all exclusions, coverage is excluded for: - CORRECT ANSWER exposures better covered under other types of policies,exposures covered by endorsement for an additional premium, or exposures that are not insurable under any policy or endorsement. [Show Less]
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CISR Commercial Casualty II Business Auto Policy Exam 32 Questions with Answers,100% CORRECT
CISR Commercial Casualty II Business Auto Policy Exam 32 Questions with Answers 5 Parts that make up the Business Auto Policy -CORRECT ANSWER 1. Common ... [Show More] Policy Declarations 2. Common Policy Conditions 3. Business Auto Declarations 4. Business Auto Coverage Forms 5. Endorsements The Business Auto Coverage Form - CORRECT ANSWER Designed to provide coverage for most Business Risks (Including auto service and auto repair) The Motor Carrier Coverage Form - CORRECT ANSWER Designed for businesses that transport materials, commodities, and goods for themselves as well as others The Auto Dealers Coverage Form - CORRECT ANSWER Designed for auto dealers and similar auto businesses Exposures Covered by the Business Auto Coverage Form - CORRECT ANSWER 1. Liability for the ownership, maintenance or use of covered autos - Owned, Non Owned (as defined in the BAC form), Hired or borrowed (as defined in the BAC form) 2. Physical Damage for losses to covered autos - Owned or Hired or borrowed (as defined in the BAC form) - Comprehensive - Specified causes of loss - Collision - Towing (Private passenger autos only) Endorsement Coverages - CORRECT ANSWER Medical Payments Personal Injury Protection Uninsured/Underinsured Motorist Accident - CORRECT ANSWER includes continuous or repeated exposure to the same conditions resulting in bodily Injury or property damage Auto - CORRECT ANSWER - A land motor vehicle; trailer or semitrailer - Designed for Travel on public roads - Land vehicle subject to compulsory or financial responsibility or other motor vehicle insurance law - Does NOT include mobile equipment as defined Bodily Injury - CORRECT ANSWER bodily injury, sickness or disease sustained by a person including death resulting from any of these Property Damage - CORRECT ANSWER damage to or loss of use of tangible property Insured - CORRECT ANSWER any person or organization qualifying as an insured in the who is an insured provision of the applicable coverage. Except with respect to the limit of insurance, the coverage afforded applied separately to each insured who is seeking coverage or against whom a claim or suit is brought Insured Contract - CORRECT ANSWER - a lease of premises - a sidetrack agreement - similar to the CGL policy definition (but without elevator maintenance agreement) and includes Auto rental agreements - Auto rental agreements entered into as part of the named insured's business by the named insured or by the named insured's employee - Does NOT include property damage to the rented/ leased auto Itself Loss - CORRECT ANSWER - direct and accidental loss or damage - Definition is used for Physical Damage and does not include loss of use Pollutants - CORRECT ANSWER any 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. Trailer - CORRECT ANSWER includes semitrailer Mobile Equipment includes these 6 types of Land Vehicles - CORRECT ANSWER - designed for use principally off public roads - maintained for use solely on or next to premises you own or rent - travel on crawler treads - maintained primarily to provide mobility to permanently mounted equipment as defined - NOT self-propelled and are maintained primarily to provide mobility to permanently attach equipment of the types defined - maintained primarily for purposes other than the transportation of persons or cargo Self-Propelled land vehicles - CORRECT ANSWER -snow removal - road maintenance, but no construction or resurfacing - Example: Paint striper - Street cleaning - Cherry pickers and similar devices (must be mounted on a truck chassis) - Air compressors, pumps and generators Symbol 1 - CORRECT ANSWER - Any Auto Liabililty* - can only be used to provide liability coverage - triggers liability coverage for ALL autos - provided the broadest liability coverage possible Symbol 2 - CORRECT ANSWER - Owned "autos" only Liability - Only those autos you own (and for covered autos liability coverage any trailers you dont own while attached to power units you own). This includes those autos you acquire ownership of after the policy begins - Physical Damage - Med pay - UM/ UIM Symbol 3 - CORRECT ANSWER - Owned private passenger autos only Liability - Only the private passenger auto you own - This includes those private passenger autos you acquire ownership of after the policy begins - Physical Damage - Med Pay - UM/UIM Symbol 4 - CORRECT ANSWER - Owed Autos OTHER than Private Passenger Autos only Liability - Only those autos you own that are not the private passenger type (and for covered autos liability coverage any trailers you don't own while attached to power units you own). This includes those autos not of the private passenger type you acquire ownership of after the policy begins - Physical Damage - Med Pay - UM/ UIM Symbols - CORRECT ANSWER The business auto policy uses numerical symbols to designate which autos are covered for the carious coverages provided by the policy. A symbol must be on the Declaration page to trigger coverage Symbols 2, 3, and 4 - CORRECT ANSWER - Triggers coverage for autos owned at the inception of the policy as well as automatic coverage for autos (of the same type) acquired during the policy period. - Can be used to provide liability, medical payments, UM/UIM, and physical damage coverage (towing and labor only on Symbol 3) Symbol 5 - CORRECT ANSWER - Used for owned autos - That are required to have and can not reject no-fault benefits because of state law in the state where they are licensed or garaged - Includes newly acquired autos IF they are subject to the law - Autos subjected to no-fault personal injury protection Symbol 6 - CORRECT ANSWER - Used for owned autos - that are required to have and can not reject uninsured motorist coverage because of state law in the state where they are licensed or garaged - Includes newly acquired autos if they are subject to the law - Autos subjected to compulsory uninsured motorist Law Symbol 7 - CORRECT ANSWER - used for specifically described autos - Triggers coverage for autos scheduled in the declarations - Liability for non-owned trailers attached to a scheduled auto - Specified autos liability - Physical Damage - Med Pay - PIP - UM/UIM Symbol 8 - CORRECT ANSWER - used for hired or borrowed autos liability - Physical Damage - triggers coverage for autos the named insured leases, hired, rents or borrows. - Does not include autos leased, hired, rented or borrowed from employees, partners or members, or members of their households Symbol 9 - CORRECT ANSWER - non-owned autos only liability Symbol 10 - CORRECT ANSWER - Customized description of covered autos Liability - Physical Damage - Med pay - UM. UIM Symbol 19 - CORRECT ANSWER Any auto used by the named insured (owned, borrowed, hired) - Mobile equipment subjected to the motor vehicle insurance law liabilitiy 3 types of vehicles granted coverage through the liability extension - CORRECT ANSWER 1. Trailers - load capacity of 2,000 lb or less - designed primary for public roads - there is no automatic physical damage (collision/comp) 2. Mobile Equipment - while being carried or towed by a covered auto 3. Temporary Substitutes - Any non owned auto - While used with permission of the owner - As a temporary substitute for a covered auto to the named insured owns because the named insureds covered auto is out of service 1. Breakdown 2. Repair 3. Servicing 4. Loss 5. Destruction Endorsements that modify who is an insured - CORRECT ANSWER 1. Designated insured for covered autos liability coverage CA 20 48 2. Employee Hired Auto CA 20 54 3. Employees as insureds CA 99 33 4. Lessor - Additional insured and loss payee CA 20 01 5. Employee as Lessor CA 99 47 6. Drive Other Car Coverage - Broadened Coverage for Named Individuals CA 9910 7. Individual Named Insured CA 99 17 [Show Less]
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