OREGON STATE PROPERTY AND CASUALTY EXAM PREP QUESTIONS AND ANSWERS 2024

The Occurrence form it doesn't matter when the loss is reported, but the date the loss occurred must be during the policy period. The Supplemental Extended Reporting Period The cost of the endorsement may be up to 200% of the CGL's annual premium. This is a one-time charge and is fully earned at issuance. Product liability would cover Product liability applies to bodily injury the product causes away from the insured's premises. A customer contracting food poisoning is a perfect example of product liability. Ex: A restaurant customer who contracts food poisoning the supplemental extended reporting period under the Claims-Made Form of the CGL -It is an optional extended reporting period of unlimited duration -The one time premium may not exceed 200% of the annual premium for the coverage part -It must be purchased within 60 days after the end of the policy Supplementary Payments under the CGL -The cost of bail bonds is included up to $250 -Coverage only applies to losses under Coverages A and B -Insurer claim related expenses are included The Retroactive Date the date after which an occurrence can take place and be covered under the claims-made form Coverage B of the CGL would cover The insured was accused of causing a business associate to be falsely arrested Premises and operations An insured business conducts its operations both at its own premises and elsewhere. If a business, or anyone acting on its behalf, causes bodily injury or property damage, the business may be considered legally liable for such injury or damage. CGL coverage is provided for the insured's legal liability for bodily injury or property damage arising out of the insured's premises or the insured's operations. $100,000 A CGL policy with a general aggregate limit of $300,000 and a per-occurrence limit of $100,000 would have how much remaining after paying a claim for a $200,000 loss, and subsequently a second claim for a $100,000 loss? Ex: The first claim would only be paid up to the per occurrence limit of $100,000. The second claim would paid in full. Combined, the two claims could reduce the aggregate by $200,000, leaving only $100,000 available for all other claims in the policy period. Which of the following is correct regarding products liability under the CGL Coverage applies to the bodily injury (BI) and property damage (PD) the product causes, but not to the product itself The Premium Audit condition of the Commercial General Coverage Part to the Commercial Package Policy Premium audit determines what the earned premium will be at the end of the policy period Members of a past partnership not listed in the Declarations NOT an insured under the Commercial General Liability policy Injury would be covered by a CGL policy? A customer injured on the premises is covered under a CGL. Employees are covered under Workers' Compensation and a sole proprietor's spouse is considered an insured and is not covered. Contingent Liability Insurance Contingent liability arises when a business is held legally liable for the actions, or failures to act, of other parties, such as sub-contractors or independent contractors. The coverage trigger point The trigger is the event that brings coverage into play. It may be an occurrence either of bodily injury or property damage; or, in a form with a claims-made trigger, the formal making of a claim. Operations Liability A CGL policy provides coverage for, Pollution, Contractual, and Employee Liability are exclusions under a CGL. The premium is a one-time charge The Supplemental Extended Reporting Period. The cost of the endorsement may be up to 200% of the CGL's annual premium. This is a one-time charge and is fully earned at issuance. Bodily Injury Personal injury liability insurance does not cover 1 year Medical payments coverage under the Commercial General Liability Coverage Forms includes reasonable medical expenses if they are incurred and reported within how many years following an accident Pollution Liability Coverage Form The Pollution Liability Coverage Form provides coverage for both pollution liability and governmentally-mandated clean up. Products liability under the CGL Coverage applies to the bodily injury (BI) and property damage (PD) the product causes, but not to the product itself Bodily injury limit NOT one of the limits of liability provided by the CGL Mexico NOT included in the CGL coverage territory Supplementary Payments under the CGL Supplementary Payments do not reduce the limits of insurance. Spouse of a partner insured under the CGL policy The Premium Audit condition of the Commercial General Coverage Part to the Commercial Package Policy Premium audit determines what the earned premium will be at the end of the policy period The Commercial General Liability Coverage Forms Medical Payments coverage is not available for any insured. Products Liability Coverage as relates to Commercial General Liability Insurance covers damage or injuries caused by the product, but does not include damage to the product itself. the Supplemental Extended Reporting Period Endorsement Once the premium has been paid, Endorsement cannot be cancelled. Medical Payments under the CGL The insurer will pay for medical expenses caused by an accident on the insured's premises or because of the insured's operations. Products & Completed Operations claims, the CGL policy have their own aggregate limit and these claims do not reduce the General Aggregate. Clean up costs excluded under both the Limited Pollution Liability coverage form and Pollution Extension endorsement Contingent liability exposures exist when the insured is held liable for the actions or failure of actions of others. Premises liability is not a contingent liability exposure. Workers' Compensation insurance will cover the injuries to an employee arising out of work activities. Expected or intended injury Liability arising out of expected or intended injury is not covered by the CGL policy. Extended reporting period In commercial liability policies, the word 'tail' is synonymous with Impaired property cannot be used because it is defective, inadequate, deficient, or dangerous. At the end of the policy period the earned premium used in a premium audit to compute the final premium is determined at what point in time Completed Operations coverage The coverage will pay for bodily injury and/or property damage caused by negligent or faulty work by the insured, but not for the cost of replacing the work that caused the loss Occurrence form responds to losses that occur while the policy is in force, regardless of when the claim is made The supplemental extended reporting period can be purchased up to 60 days after the end of the policy term the Supplemental Extended Reporting Period The cost of the endorsement may be up to 200% of the CGL's annual premium. This is a one-time charge and is fully earned at issuance. General Liability policies exclude injuries to employees because they are covered by Workers' Compensation. Which injury would be covered by a CGL policy A customer injured on the premises is covered under a CGL. Employees are covered under Workers' Compensation and a sole proprietor's spouse is considered an insured and is not covered. personal injury -False arrest -Infringement of copyright -Misappropriation of a title or slogan Supplementary Payments under the Commercial General Liability Coverage Forms Supplementary Payments only apply to Coverages A and B; not C. The Insured's Right to Claim Information found in the claims-made form only. Completed operations When the work is completed, coverage applies