CISR Commercial Casualty I Lesson 3
S Exam 100% Correct.
3 Main Coverage Parts in the CGL Coverage Form, each with its own insuring
agreement and exclusions. - ANSWER1. Coverage A, 2. Coverage B, 3. Coverage C
Coverage A in the CGL - ANSWERBodily Injury and Property Damage LIABILITY -
protection for injuries and damage arising out of insured's legal liability to others.
Coverage B in the CGL - ANSWERPersonal and Advertising Injury LIABILITY
Coverage C in the CGL - ANSWERMedical Payments
How are defense costs paid? Inside or Outside the limits? - ANSWERDefense 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? - ANSWERInsured
contracts LEASE+
Easement - ANSWERAn 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 = - ANSWERLease 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 = - ANSWEREasement or License Agreement:
involves the right to use land that belongs to others.
LEASE+ Insured's Contracts, A = - ANSWERAn obligation as required by ordinance.
Subject to exceptions.
LEASE+ Insured's Contracts, S = - ANSWERSidetrack agreement with a railroad
Railroad Sidetrack Agreement - ANSWERAn 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 = - ANSWERElevator 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, + = - ANSWERPLUS 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 - ANSWERLiability caused by a civil wrong against another for which
courts often assess monetary damages against the wrongdoer.
NOT covered as an "insured contract" - ANSWERcontract 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" - ANSWERcontract 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" - ANSWERcontract 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 - ANSWERCoverage 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? - ANSWERFailure 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? - ANSWERA bring your own (BYO) establishment is
covered for liquor liability on a CGL policy.
Host Liquor Coverage Definition - ANSWERA 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" - ANSWERA 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 - ANSWERWhen:
"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.
S Exam 100% Correct.
3 Main Coverage Parts in the CGL Coverage Form, each with its own insuring
agreement and exclusions. - ANSWER1. Coverage A, 2. Coverage B, 3. Coverage C
Coverage A in the CGL - ANSWERBodily Injury and Property Damage LIABILITY -
protection for injuries and damage arising out of insured's legal liability to others.
Coverage B in the CGL - ANSWERPersonal and Advertising Injury LIABILITY
Coverage C in the CGL - ANSWERMedical Payments
How are defense costs paid? Inside or Outside the limits? - ANSWERDefense 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? - ANSWERInsured
contracts LEASE+
Easement - ANSWERAn 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 = - ANSWERLease 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 = - ANSWEREasement or License Agreement:
involves the right to use land that belongs to others.
LEASE+ Insured's Contracts, A = - ANSWERAn obligation as required by ordinance.
Subject to exceptions.
LEASE+ Insured's Contracts, S = - ANSWERSidetrack agreement with a railroad
Railroad Sidetrack Agreement - ANSWERAn 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 = - ANSWERElevator 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, + = - ANSWERPLUS 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 - ANSWERLiability caused by a civil wrong against another for which
courts often assess monetary damages against the wrongdoer.
NOT covered as an "insured contract" - ANSWERcontract 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" - ANSWERcontract 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" - ANSWERcontract 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 - ANSWERCoverage 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? - ANSWERFailure 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? - ANSWERA bring your own (BYO) establishment is
covered for liquor liability on a CGL policy.
Host Liquor Coverage Definition - ANSWERA 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" - ANSWERA 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 - ANSWERWhen:
"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.
