CAIB 3- Chapter 2
Four coverages provided under Section 1- Coverages: - answer1. Coverage A- Bodily
Injury and Property Damage
2. Coverage B- Personal Injury liability
3. Coverage C- Medical Payments
4. Coverage D- Tenant's Legal liability
What two types of losses are insured by Section A found in CGLs? - answer1. Bodily
Injury
2. Property Damage
What are three components of bodily injury? - answer1. Actual physical injury to the
body
2. Sickness and disease
3. Death resulting at any time, resulting from foregoing
Three types of injuries not covered by the term bodily injury: - answer1. Mental anguish
2. Nausea
3. Hysteria
Two components of the definition of property damage, example of each: - answer1.
Physical injury to tangible property. Ex. welder negligently starts fire in customers
building
2. resulting loss of use of tangible property. Ex. resulting loss of use of tangible property
Three types of intangible property not insured by CGLs: - answer1. Copyrights
2. Patents
3. Licenses
When will CGLs respond to pay damages incurred by plaintiffs? - answerWhen clients
are legally liable.
Three sources of liabilities business owners face, example of each: - answer1. Tort
liabilities. Ex. negligent actions cause injury or damage
2. Certain contractual liabilities. Ex. tenant assumes liability of landlord in lease
3. Statutory liability. Ex. liabilities incurred by Occupier's Liability Acts
For product liability losses that occur outside the coverage territory to be covered, two
conditions must be met: - answer1. Product causing injury or damage was made or sold
within coverage territory
2. Suit for damage must be brought in the coverage territory
, For business operation losses arising outside of the coverage territory to be covered,
three conditions must be present: - answer1. Person causing loss has home within
coverage territory
2. Person causing loss was only away for a short time on insured's business
3. Suit for damages must be brought within coverage territory
Why do insurers have the right to defend? - answerInsurers must insure all facts are
presented to court, proper defense is provided, and proper judgement rendered.
When does insurers duty to defend end? - answerInsurer's duty to defend ends when
policy limits have been expended.
How does the right to investigate claims benefit insurers? - answerThis allows insurers
to gather information from witnesses and compile first hand information.
How does the right to settle benefit insurers? - answerThis allows insurers to save
money by settling with plaintiffs by avoiding expense of going to court.
When will changes to existing businesses be insured by CGLs? - answer1. When
clients acquire or form new organizations during the policy term
2. Coverage is provided for 90 days from the date of acquisition or until policy expires,
whichever comes first
When bodily injury losses result from force, what conditions must be present for these
losses to be covered? - answer1. Force must be reasonable
2. Force must be used to protect persons or property
Identify five insured contracts found in CGLs: - answer1. Lease of premises agreements
2. Sidetrack agreements
3. Easement agreements
4. Indemnification resulting from municipal ordinance
5. Elevator maintenance agreements
What are three responsibilities imposed by elevator maintenance agreements? -
answer1. Make all necessary adjustments
2. Apply lubricants as required
3. Inform building owner when repairs or replacement required
CGLs also insure contracts where the tort liability of another has been assumed. When
must this assumption of liability occur before coverage is available on CGLs? -
answerAssumption must occur prior to any injury or damage.
Are all liabilities assumed in contracts covered by CGLs? - answerCGLs will not insure
assumptions made regarding Breach of Contract
Four coverages provided under Section 1- Coverages: - answer1. Coverage A- Bodily
Injury and Property Damage
2. Coverage B- Personal Injury liability
3. Coverage C- Medical Payments
4. Coverage D- Tenant's Legal liability
What two types of losses are insured by Section A found in CGLs? - answer1. Bodily
Injury
2. Property Damage
What are three components of bodily injury? - answer1. Actual physical injury to the
body
2. Sickness and disease
3. Death resulting at any time, resulting from foregoing
Three types of injuries not covered by the term bodily injury: - answer1. Mental anguish
2. Nausea
3. Hysteria
Two components of the definition of property damage, example of each: - answer1.
Physical injury to tangible property. Ex. welder negligently starts fire in customers
building
2. resulting loss of use of tangible property. Ex. resulting loss of use of tangible property
Three types of intangible property not insured by CGLs: - answer1. Copyrights
2. Patents
3. Licenses
When will CGLs respond to pay damages incurred by plaintiffs? - answerWhen clients
are legally liable.
Three sources of liabilities business owners face, example of each: - answer1. Tort
liabilities. Ex. negligent actions cause injury or damage
2. Certain contractual liabilities. Ex. tenant assumes liability of landlord in lease
3. Statutory liability. Ex. liabilities incurred by Occupier's Liability Acts
For product liability losses that occur outside the coverage territory to be covered, two
conditions must be met: - answer1. Product causing injury or damage was made or sold
within coverage territory
2. Suit for damage must be brought in the coverage territory
, For business operation losses arising outside of the coverage territory to be covered,
three conditions must be present: - answer1. Person causing loss has home within
coverage territory
2. Person causing loss was only away for a short time on insured's business
3. Suit for damages must be brought within coverage territory
Why do insurers have the right to defend? - answerInsurers must insure all facts are
presented to court, proper defense is provided, and proper judgement rendered.
When does insurers duty to defend end? - answerInsurer's duty to defend ends when
policy limits have been expended.
How does the right to investigate claims benefit insurers? - answerThis allows insurers
to gather information from witnesses and compile first hand information.
How does the right to settle benefit insurers? - answerThis allows insurers to save
money by settling with plaintiffs by avoiding expense of going to court.
When will changes to existing businesses be insured by CGLs? - answer1. When
clients acquire or form new organizations during the policy term
2. Coverage is provided for 90 days from the date of acquisition or until policy expires,
whichever comes first
When bodily injury losses result from force, what conditions must be present for these
losses to be covered? - answer1. Force must be reasonable
2. Force must be used to protect persons or property
Identify five insured contracts found in CGLs: - answer1. Lease of premises agreements
2. Sidetrack agreements
3. Easement agreements
4. Indemnification resulting from municipal ordinance
5. Elevator maintenance agreements
What are three responsibilities imposed by elevator maintenance agreements? -
answer1. Make all necessary adjustments
2. Apply lubricants as required
3. Inform building owner when repairs or replacement required
CGLs also insure contracts where the tort liability of another has been assumed. When
must this assumption of liability occur before coverage is available on CGLs? -
answerAssumption must occur prior to any injury or damage.
Are all liabilities assumed in contracts covered by CGLs? - answerCGLs will not insure
assumptions made regarding Breach of Contract
