CIC Casualty Test Review actual exam with 100% correct answers(latest update)

Identify the rights and responsibilities of the first NI. 1. Authorize or cancel the policy 2. Receive notice of cancellation 3. Authorized to make changes in terms of policy with insurer's consent 4. Responsible for payment 5. Payee for return premiums Compare and contrast the Occurrence form with the Claims made form Occurrence - BI and PD must take place during the policy period - Personal and advertising injury must take place (committed) during the policy period - CGL policy in force when claim occurs is the one that responds Claims Made - BI or PD must occur on or after the retro date and the claim has to be reported during the period or in the ERP - Personal and advertising injury offense must be committed on or after the retro date - No coverage if claim occurred before retro date Identify various liability exposures and describe the coverage's provided for these exposures by the CGL coverage form. 1. Premises Liability - Applies to owners, landlord, tenants, and arises out of the ownership, maint. or use of the insured premises 2. Business operations liability - Liability arises from activates involved in the operation of an organization while the activity is being conducted 3. Products liability - arises out of the sale, distribution or manufacturing of products Who is an insured? 1. An individual, you and your spouse are insured's but only in respect to business operations 2. A partnership or join venture, you are an insured. Your members, your partners, and their spouses are also insureds 3. An LLC, you are an insured. Your members are also insured's, but only in respect to your business. 4. An org other than a partnership, joint venture, or LLC, you are an insured. Your "executive officers" and directors are insured's. 5. A trust, you are an insured. Your trustees are also insured's, but only with respect to their duties as trustees. Identify the two promises the insurer makes in the insuring agreement under Coverage A and describe the requirements that must be met for coverage to apply. 1. Pay sums the insured becomes leagally obligated to pay as damages because of BI or PD or PD to which this insurance applies. 2. Right and duty to defend against any suit. Legal liability is a responsibility or obligation to others which courts recognize and enforce. Apply the definition "coverage territory" to claims situations. Widgets Inc. manufactures a product that is then shipped to Costa Rica. A products claim arises and suit is brought in Costa Rica, no coverage. Coverage A exclusions 1. Expected or intended injury exclusion. 2. Contractual liability exclusion Define and be able to apply the term "insured contract" - Lease of premises except... - Easement or license agreement except... - An obligation to indemnify a municipality as required by ordinance except... - Sidetrack agreement - Elevator maintenance agreement - Plus, a contract in which the named insured assumes the tory liability of another party to pay for BI or PD to a third party Apply the coverage A Liquor Liability exclusion to claims situations. 1. Causing or contributing to the intoxication of any person 2. The furnishing of booze to a person under the legal age or under influence 3. Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages Apply the coverage A pollution exclusion to claims situations BI or PD arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants" Apply the coverage A aircraft, auto, or watercraft exclusion to claim situations. Define and be able to apply the definition "mobile equipment" "Mobile Equipment" means: - Bulldozers, farm machinery, forklifts and other vehicles designed for use - Vehicles maintained strictly for use on or next to your premises you own or rent - vehicles on crawler treads - Vehicles, whether self-propelled or not, primarily to provide mobility to permanently mounted cranes, loaders, digger or road construction or resurfacing machines Apply the coverage A damage to property exclusion to claim situations. - property you own, rent or occupy, including any costs or expenses incurred by you - premises you sell, give away or abandon if the PD arises out of any part of those premises - property loaned to you - personal property in the CCC of insured Apply the coverage A damage to your product exclusions to claims situation Property damage to your product arising out of it or any part of it Apply the coverage A damage to "Your Work" exclusion to claims situations PD to "Your Work" arising out of it or any part of it and included in the PD operations hazard THIS EXCLUSION DOES NOT APPLY IF THE DAMAGED WORK OR THE WORK OUT OF WHICH THE DAMAGE ARISES WAS PERFORMED ON YOUR BEHALF BY A SUBCONTRACTOR Apply Coverage A Damage to Impaired Property or Property not Physically Injured exclusion to claims situations. PD to impaired property or property that has not been physically injured arising out of 1. A defect, deficiency, inadequacy or dangerous condition in "your product" or "your work" 2. A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms THIS EXCLUSION DOES NOT APPLY TO THE LOSS OF USE OF OTHER PROPERTY ARISING OUT OF SUDDEN AND ACCIDENTAL PHYSICAL INJURY TO "YOUR PRODUCT" OR "YOUR WORK" Apply the CFoverage A Recall of Products, Work or Impaired Property exclusion to claims situations. Damages claimed for any loss, cost or expnse incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of 1. your product 2. your work or 3. impaired property Apply the Coverage A exception to Exclusions c. through n. to claims situations 1. Commonly referred to as Fire Damage Legal Liability 2. Applies to damage caused by fire to premises that are rented to or temporarily occupied by the named insured 3. Coverage only applies of caused by negligence 4. A separate limit of insurance applies