CIC ADDITIONAL INSURED CONCEPTS
AND ENDORSEMENTS EXAM
QUESTIONS AND ANSWERS
Amendment Of Insured Contract Definition (CG 24 26 04 13) -Answer- Narrows
contractual coverage under paragraph f. of the definition of
"insured contract" under the CGL Coverage Form to remove insurance
protection for the sole negligence of the indemnitee
2019 edition of many Additional Insured endorsements added significant language -
Answer- 1. There are several states that have passed legislation that voids certain
indemnification/hold harmless provisions in contracts, primarily construction
contracts
• Some states indicate that these statutes do not affect contractual risk
transfer through the use of requirements to purchase insurance to protect
another party
• But, in several states, statutory limitations also apply to Additional Insured
requirements - *in essence, cannot have an Additional Insured
endorsement that "picks up" more insurance protection than that
permitted by statute*
2. Incorporates contract provisions, if any, into the insurance protection available
3. Adds Limits Of Insurance provision
Commonly used Additional Insured Endorsements for use with the
CGL Policy -Answer- Selected for discussion are ISO endorsements that are commonly
used to provide Additional
Insured status.
CG 20 10 12 19 Additional Insured - Owners, Lessees Or Contractors -
Scheduled Person Or Organization
CG 20 37 12 19 Additional Insured - Owners, Lessees Or Contractors -
Completed Operations
CG 20 11 12 19 Additional Insured - Managers Or Lessors Of Premises
CG 20 26 12 19 Additional Insured - Designated Person Or Organization
CG 20 28 12 19 Additional Insured - Lessor Of Leased Equipment
, CG 20 33 12 19 Additional Insured - Owners, Lessees Or Contractors -
Automatic Status When Required In Construction Agreement With You
CG 20 38 12 19 Additional Insured - Owners, Lessees Or Contractors - Automatic
Status For
Other Parties When Required In Written Construction Agreement
Additional Insured - Owners, Lessees Or Contractors -
Scheduled Person Or Organization (CG 20 10 12 19) -Answer- Modifies the Who Is An
Insured provision to include the person or organization shown in the
schedule as an Additional Insured
Provides liability coverage for bodily injury, property damage, or personal and
advertising
injury for the Additional Insured
• Caused, in whole or in part, by the named insured's acts or omissions or those
acting on the named insured's behalf
(No coverage for liability caused solely by the Additional Insured's negligence)
• In the performance of the named insured's ongoing operations
• At the location designated in the endorsement schedule
Coverage limitations:
• Only applies to the extent permitted by law
• If coverage is required by contract, the insurance will not be broader than what is
required by contract or agreement
Does NOT provide coverage for:
• Completed operations
OR
• That portion of the named insured's work put to its intended use
If coverage is required by contract or agreement, the CGL Policy will pay the lesser of:
• Amount required by the contract or agreement
OR
• Available applicable Limits Of Insurance
Notice that the endorsement does not stipulate that a written contract or agreement is
AND ENDORSEMENTS EXAM
QUESTIONS AND ANSWERS
Amendment Of Insured Contract Definition (CG 24 26 04 13) -Answer- Narrows
contractual coverage under paragraph f. of the definition of
"insured contract" under the CGL Coverage Form to remove insurance
protection for the sole negligence of the indemnitee
2019 edition of many Additional Insured endorsements added significant language -
Answer- 1. There are several states that have passed legislation that voids certain
indemnification/hold harmless provisions in contracts, primarily construction
contracts
• Some states indicate that these statutes do not affect contractual risk
transfer through the use of requirements to purchase insurance to protect
another party
• But, in several states, statutory limitations also apply to Additional Insured
requirements - *in essence, cannot have an Additional Insured
endorsement that "picks up" more insurance protection than that
permitted by statute*
2. Incorporates contract provisions, if any, into the insurance protection available
3. Adds Limits Of Insurance provision
Commonly used Additional Insured Endorsements for use with the
CGL Policy -Answer- Selected for discussion are ISO endorsements that are commonly
used to provide Additional
Insured status.
CG 20 10 12 19 Additional Insured - Owners, Lessees Or Contractors -
Scheduled Person Or Organization
CG 20 37 12 19 Additional Insured - Owners, Lessees Or Contractors -
Completed Operations
CG 20 11 12 19 Additional Insured - Managers Or Lessors Of Premises
CG 20 26 12 19 Additional Insured - Designated Person Or Organization
CG 20 28 12 19 Additional Insured - Lessor Of Leased Equipment
, CG 20 33 12 19 Additional Insured - Owners, Lessees Or Contractors -
Automatic Status When Required In Construction Agreement With You
CG 20 38 12 19 Additional Insured - Owners, Lessees Or Contractors - Automatic
Status For
Other Parties When Required In Written Construction Agreement
Additional Insured - Owners, Lessees Or Contractors -
Scheduled Person Or Organization (CG 20 10 12 19) -Answer- Modifies the Who Is An
Insured provision to include the person or organization shown in the
schedule as an Additional Insured
Provides liability coverage for bodily injury, property damage, or personal and
advertising
injury for the Additional Insured
• Caused, in whole or in part, by the named insured's acts or omissions or those
acting on the named insured's behalf
(No coverage for liability caused solely by the Additional Insured's negligence)
• In the performance of the named insured's ongoing operations
• At the location designated in the endorsement schedule
Coverage limitations:
• Only applies to the extent permitted by law
• If coverage is required by contract, the insurance will not be broader than what is
required by contract or agreement
Does NOT provide coverage for:
• Completed operations
OR
• That portion of the named insured's work put to its intended use
If coverage is required by contract or agreement, the CGL Policy will pay the lesser of:
• Amount required by the contract or agreement
OR
• Available applicable Limits Of Insurance
Notice that the endorsement does not stipulate that a written contract or agreement is
