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
... [Show More] agreement 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]